London council forced to spend £8.5m to ‘plug the gap’ from Government’s disability cuts

Lutfur Rahman has called on the Government to reverse cuts to disability benefits

A London Council has warned it is having to spend an extra £8.5 million to plug the gap created by the Government’s “cruel” cuts to disability benefits.

A new analysis by Tower Hamlets Council has found that 16,388 households in the borough will be directly affected by changes to Personal Independent Payments (PIP) and Limited Capability for Work-Related Activity (LCWRA).

Up to 1.3 million people across England and Wales could lose at least some support under the changes, the Government has suggested.

It comes after campaigners and local government officials warned that the cuts could drive more costs onto cash-strapped councils.

The leader of Tower Hamlets Lutfur Rahman has said he is confident the Government will ultimately reverse course on disability benefits, but warned that the changes may still have a “devastating impact” as overstretched council services are pushed to their limit.

Mr Rahman said: “As disabled people face the biggest cuts to disability benefits on record, I am extremely concerned about the impact on disabled residents in Tower Hamlets.

“In response, we are convening disabled residents, care workers, service providers, and community organisations to discuss the support the council is providing for disabled members of our community, including our additional investment of nearly £8.5 million in Tower Hamlets to help plug the gap left by national cuts.

“We once again urge the Government to reverse these cruel proposals, which will reportedly affect 700,000 families already in poverty and threaten to push a further 250,000 people—including 50,000 children—into poverty.”

The mayor also pointed to a raft of measures it has brought in to “fill the void created by national cuts” such as providing Winter Fuel Payments for thousands of pensioners and providing universal free school meals for all pupils.

Tower Hamlets is investing £5 million in free homecare for residents, as well as £1 million to help young people with special education needs transition into adulthood.

A further £1.1 million is being invested in a range of life-changing equipment for disabled residents.

An extra £1.3 million will also given out in grants for organisations that support people with disabilities.

Mr Rahman called on the Government to prevent the “entirely avoidable suffering” by taxing the super-rich and major corporations, rather than “making vulnerable people bear the burden and driving up costs for cash-strapped councils likes ours which are stepping in to try to replace this vital support”.

The Government recently sought to soften the impact of its plans, which it hopes will save £5 billion a year by 2030, in a bid to reassure MPs concerned about the impact of the cuts.

Last week Work and Pensions Secretary Liz Kendall promised “non-negotiable” protections for the most vulnerable benefits recipients would be included in the welfare bill in a bid to quell backbench unease, the Guardian reported.

Asked whether there would be further concessions, the Prime Minister told reporters travelling with him to the G7 in Canada: “Well we have got to get the reforms through and I have been clear about that from start to finish.

“The system is not working, it’s not working for those that need support, it’s not working for taxpayers.

“Everybody agrees it needs reform, we have got to reform it and that is what we intend to do.”

A spokesperson for the department of Work and Pensions said: “The vast majority of people who are currently getting PIP will continue to receive it.

“We are determined to create a welfare system that supports people into work and out of poverty – backed by £1 billion to help sick or disabled people find good, secure jobs.

“We will never compromise on protecting people who need our support, and our reforms will mean the social security system will always be there for those who will never be able to work.”