Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      Could Burnham be the answer to free-to-air sport for all?

      Getty Images logo on a digital screen, symbolizing media and stock photography in a business news context

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Could Burnham be the answer to free-to-air sport for all?

      Getty Images logo on a digital screen, symbolizing media and stock photography in a business news context

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      The best wine to take to a picnic in the sun

      Breaking news event unfolding with a crowd gathered at the scene, capturing the urgency and significance of the moment

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Thursday 04 February 2016 11:56 am

Reform think tank proposes radical cuts to disability budget by cutting benefits in half

By: Lauren Fedor

Add as a preferred source on Google

The government should radically overhaul the welfare system for sick and disabled people by slashing weekly benefits by nearly half, a top think tank has said.

In a new report out today, the right-wing Reform research group said the existing employment and support allowance has "failed to encourage sick and disabled people to work".

"The government will fail to reach its target of a higher employment rate for disabled people without root-and-branch change," researchers added.

Reform wants the government to cut the weekly benefit paid to 1.3m sick and disabled people from £131 to £73 – the same amount of basic pay that Jobseeker's Allowance claimants receive. The report's authors said that having a higher rate of weekly benefit for sick and disabled people "encourages people to stay on sickness benefits rather than move into work".

"Too many people with health conditions are being left stranded on incapacity benefits," said report co-author Charlotte Pickles. "Employment not only provides a source of income, but improves social inclusion, builds self-esteem and improves an individual’s physical and mental health."

Reform's proposals have faced sharp criticisms, however, from charities, including Mencap, which works with people with learning disabilities.

"Cutting their benefits, of which almost 7 in 10 disabled people say will cause their health to suffer, will do nothing to improve their employment chances and would instead push them closer to poverty and further from employment," said Mencap policy head Dan Scorer, citing a survey of people claiming disability benefits from last October.

"Disabled people were hit by £18bn of benefit cuts in the last parliament. Targeting them again will do nothing to help the Government achieve its desire to halve the disability employment gap," Scorer added.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business

Trending Articles

  • Reeves’ new tax charge on cash ISAs faces fierce industry backlash

  • Revealed: Secret Treasury plan to tax State Pension before it is paid out

  • Burnham’s new chief of staff ran City firm advising Thames Water and rival Heathrow bidder

  • As it happened: Stocks recover after markets rocked by tech-sell off; US claims ‘good foundations’ of Iran deal

  • As it happened: FTSE 100 scrapes into green after Segro’s surge; Oil at pre-war levels after Trump snaps at industry

More from CityAM

  • Would a £10bn VAT cut really save hospitality?

    Hospitality
    Business professionals discussing strategies in a modern office setting with diverse team collaboration visible
  • OECD: Growth to remain below one per cent as UK economy struggles with unemployment

    Economics
    Sir Keir Starmer and Rachel Reeves discussing policy at a press conference, emphasizing Labours economic strategy
  • Burnham adviser floats higher tax on pension funds’ overseas investments

    Economics
    Andy Haldane speaking at a business conference, gesturing with hands, wearing a suit and tie, addressing economic issues.
  • Nearly half of retail workers considering quitting over mental health

    Retail
    Whitfield will replace outgoing chair Andy Higginson.
  • Nigel Farage calls for General Election after Starmer replacement

    Politics
    Nigel Farage’s party won a barnstorming victory in previously-Tory Kent in May’s local elections, alongside nine other county councils, in part over promises to slash spending. (Photo by Lia Toby/Getty Images)
  • Andy Burnham commits to triple lock despite backlash over ‘unsustainable’ policy

    Politics
    Andy Burnham speaking to supporters during his campaign to re-enter UK parliament, engaging with the public in outdoor set...
  • Pat McFadden: I have not apologised to Rachel Reeves over ‘tax to pay benefits’ text

    Politics
    Pat McFadden speaking at a podium during a press conference, addressing current general news topics.
  • ‘Unsustainable’ – Iceland boss and Labour peer calls for end of triple lock pension

    Economics
    Iceland's Richard Walker

CityAM Canada — business, markets and opinion for Canadian readers.

Sections

  • Business
  • Markets
  • Tech
  • AI
  • Economics
  • Opinion
  • Cities

Company

  • About
  • Contact

Legal

  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 CityAM Canada. All rights reserved.
Terms · Privacy · Cookies