But groups representing disabled people have condemned the “cruel cuts” as “immoral and devastating”, arguing the changes will “push more disabled people into poverty, and worsen people's health”.
Ahead of yesterday’s announcement, MPs on Labour's left and the party’s trade union backers hit out at the plans, arguing they would punish the disabled and the poor.
Addressing Parliament, Ms Kendall announced the “work capability assessment” for universal credit which is used to determine eligibility for incapacity benefit payments based on someone's fitness for work will be scrapped in 2028.
Instead, she said, extra financial support for health conditions will in future be based on a person’s health or disability, rather than their capacity to work.
She also said the Government would bring in a “permanent, above-inflation rise” to the standard allowance of universal credit as well as legislate to “rebalance” payments for the benefit.
Ms Kendall said this would also equate to a £775 annual increase in cash terms by 2029.
She said this was a “decisive step to tackle the perverse incentives in the system”, with the Government previously saying the current system incentivises people to say they cannot work “simply to get by financially”.
She confirmed the Government would not freeze personal independence payment (Pip), as had been rumoured. But she said it would legislate for a change to the assessment for a benefit which is aimed at helping the disabled with the increased cost of living associated with their conditions.
She said people would need to score a minimum of four points in at least one activity to qualify for the daily living element of the benefit from November 2026.
She said the Government would also review the Pip assessment, promising to consult with disabled people and organisations representing them, to ensure the process is “fit for purpose now and into the future”.
The Disabili...