Taking the PIP: who can reform welfare?

About this episode

The episode discusses the challenges and implications of welfare reform in the context of Personal Independence Payments and government spending.

Recorded at the Battle of Ideas festival 2025 on Sunday 19 October at Church House, Westminster. ORIGINAL INTRODUCTIONThe government suffered serious embarrassment earlier this year when its attempts to rein in Personal Independence Payments (PIP) had to be hurriedly scaled back in the face of a backbench revolt. But the scale of welfare payments today remains a huge worry – and there seems little appetite to bring this spending under control. Earlier this year, there was a furore about the scale and availability of cars through the Motability scheme, which runs a fleet of cars said to be worth £14 billion. According to the Department of Work and Pensions (DWP): ‘In 2025 to 2026 the government is forecast to spend £316.1 billion on the social security system in Great Britain. Total GB welfare spending is forecast to be 10.6% of GDP and 23.5% of the total amount the government spends in 2025 to 2026.’ Of this spending, £174.9 billion goes to pensioners and £141.2 billion to children and working age adults. Going forward, an ageing population means these costs will continue to rise – and that’s without the huge liabilities for public-sector pensions. Moreover, does the emphasis on…

Topics covered

• welfare reform
• Personal Independence Payments
• government spending
• social security
• incentives for work

Keywords

• welfare
• PIP
• government spending
• Motability scheme
• social security
• Policy Exchange
• incentives

Mentioned in this episode

Organizations: Department of Work and Pensions

Books & works: Out of Control

Places: Great Britain, Church House, Westminster

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