North East set to be hardest hit by cuts to PIP

THE North East will be hit harder than any other part of England by the Government's planned cuts to Personal Independence Payments (PIP), new research has found.

- By DANIEL HOLLAND

Our region’s economy is expected to lose £268.83 per person as a result of Labour's controversial welfare reforms, which is more than double London's loss, according to academics who predict a “devastating” toll on the most deprived communities. Chancellor Rachel Reeves announced in March that the Government would be tightening the eligibility for PIP, which gives disabled people and those with chronic health issues extra financial help with their living costs, as part of a squeeze on benefits aimed at saving billions of pounds and getting more people back to work.

But the Department for Work and Pensions' (DWP) own analysis has estimated that 250,000 people would be pushed into poverty as a result of the welfare overhaul, including 50,000 children. And Health Equity North (HEN) analysis released today, is predicting that the worst-affected towns stand to lose more than £20 million per year due to a resulting drop in spending in local shops and other services, as claimants will have less money coming in to support their needs.