Welfare crackdown 'devastating', says Somerville

The UK government's welfare reforms will be "devastating" for disabled people, Scotland's social justice secretary has said.

Shirley-Anne Somerville said social security changes designed to save £5bn a year by 2030 would a "severe" effect on Holyrood finances.

Labour Work and Pensions Secretary Liz Kendall insisted claimants and taxpayers would benefit from the changes.

The UK government is aiming to save billions of pounds to avoid missing the chancellor's self-imposed debt rules.

In a statement to the Commons, Kendall told MPs the current social security system was "holding our country back".

She announced the UK government would tighten the eligibility criteria for Personal Independence Payments (PIP) from November 2026, potentially resulting in reduced payments for many.

PIP is paid to people who have difficulty completing everyday tasks or getting around as a result of a long-term physical or mental health condition.

Although the benefit is being phased out in Scotland and replaced by the devolved Adult Disability Payment (ADP), any reduction on spending on PIP by the Treasury would have a knock-on effect on the Scottish government's budget.

Kendall also announced plans to raise the standard allowance of Universal Credit by £7 per week to £98, which would directly affect claimants in Scotland.

However, she said incapacity benefits under Universal Credit are to be frozen in cash terms for existing claimants from April next year, with payments for new claimants to be reduced.

The work and pensions secretary said there would be "an additional premium" for people with severe lifelong conditions.

The work capability assessment is to be scrapped in 2028, though it is not yet clear how Scots would be assessed for Universal Credit under the proposals.

The UK government has also proposed merging jobseeker's allowance and Employment Support Allowance (ESA) - both of which are reserved to Westminster - into a time-limited "unemployment insurance" paid at the current rate of Employment Support Allowance (£138 per week).

Kendal said benefits claimants will have the right to try returning to work "without the fear this will put their benefits at risk".

She said this will tackle the "perverse financial incentives" which "actively encourage people into welfare dependency".

The UK government will set out further details of its plans when the chancellor delivers the Spring Statement next week.

Somerville told BBC Scotland News: "These are devastating cuts for the most vulnerable in our society."

The SNP minister urged the UK government to reconsider what she described as "swingeing cuts" that would "punish" disabled people.

Asked if her government would have to tighten the eligibility criteria for ADP to make up for a potential funding shortfall, Somerville said the SNP cabinet would look closely at the UK government proposals.

She said: "We'll look at the decisions we'll need to take in future years but this will have a very, very severe impact on the Scottish government's budget and we will need to reflect on that with budget's going ahead."

The social justice secretary said Holyrood ministers had already committed to mitigating the so-called "bedroom tax", the two-child benefits cap and other Westminster policies.

She said there was only "so much the Scottish government can do" to reverse welfare cuts.

Inclusion Scotland CEO Heather Fisken said the disability charity, which is funded by the Scottish government, was "opposed to the UK government's choice to slash the welfare budget by pushing disabled people further into poverty."

Welfare cuts have also been opposed by Labour MPs, including Alloa and Grangemouth representative Brian Leishman.

He told BBC Scotland News he felt "emotional" about the announcement.

"Let's be blunt about it, £5bn worth of cuts is austerity. We should always be as a political party fiercely anti-austerity," the Scottish Labour MP said.

"It's my fear that the most vulnerable and disadvantaged people in society, disabled people, are going to suffer on the back of today's announcement."

The UK's Employment Minister Alison McGovern said she did not "blame anybody for being fearful" of welfare cuts.

She added: "And that's why we're going to do this carefully and work with disabled people and their organisations to make sure we get it right."

Speaking ahead of the announcement, Scottish Labour leader Anas Sarwar said the UK government was right to reform the welfare system but said any changes had to be "fair".

He denied that Labour ministers were imposing austerity and said they were trying to put "finances on a more stable footing" while providing support to the most vulnerable in society.

As of January 2025 there were 35,420 people entitled to PIP in Scotland.

Some 433,050 people - about 8% of the population - were in receipt of ADP.

The Scottish government is aiming to transfer eligible PIP recipients to the new devolved benefit by the end of the year.

If the UK government spends less on benefits such as PIP, a proportionate figure will be cut from the Treasury block grant to Holyrood.

Scottish ministers would either have to apply similar cuts north of the border, divert funding from elsewhere or raise taxes to cover the shortfall.

Devolved powers allow the Scottish government to be more generous with social security policies, including creating new benefits such as the Scottish Child Payment and spending money to mitigate some Westminster policies.

The Scottish Fiscal Commission has forecast the gap between what Scotland has committed to social security and what it receives from the UK government will rise to £1.3bn in 2025-26, and up to £1.5bn in 2029-30.

That has led to questions about the financial sustainability of Scotland's welfare regime.

Labour's critics would say the party's been on a journey - from Corbynite socialism to a Labour work and pensions secretary standing in the Commons announcing cuts to welfare.

But many inside the party believe this is a return to Labour's roots - saying it's a progressive argument to make sure that people who do want to work are given that support.

I've been on a journey, literally, as yesterday we spoke to the disability rights campaigner Carolynne Hunter in Edinburgh who's ripped up her Labour membership card in fury and disgust.

Down in London today - we catch up with the rebel Scottish Labour MP Brian Leishman, who seemed genuinely emotional at the cuts proposed by his party.

In the same location, a few minutes later, the Work and Pensions Minister Alison McGovern told us the government would be compassionate - saying she "knew in her heart that people don't trust the Department for Work and Pensions enough".

Decisions here impact elsewhere - the main disability benefit, the Personal Independence Payment, is devolved to Scotland.

So with questions about that - up the road in Whitehall, Scottish Secretary Ian Murray reasoned to us there would be minimal impact on the Scottish government, saying the £5bn that's coming out of welfare is a "projected increase" because of the number of people moving on to these benefits.

These are significant reforms and will be supported by many taxpayers out there despite the chorus of concerns.

Attention focuses now on Labour rebels at Westminster - but by next spring ahead of the Holyrood election, the SNP will be hoping there's enough of a backlash for them to benefit.