The £8.5m promised by Lutfur Rahman to ‘plug the gap’ left by national disability cuts will remain despite government U-turn

Despite the government’s climbdown on disability benefit cuts, Tower Hamlets Mayor Lutfur Rahman pledges to keep £8.5m support package amid uncertainty for future claimants

The £8.5m funding boost announced by Lutfur Rahman in June to ‘plug the gap’ left by the government’s ‘cruel proposals’ to cut disability benefits will remain despite government U-turns on the welfare bill.

Originally, the government’s proposals set out a plan of reform to the current welfare system, notably by making eligibility criteria for Personal Independence Payments (PIP) stricter and cutting incapacity benefit, the health element of Universal Credit (UC). 

By tightening the assessment criteria to gain PIP, the Council estimated that 16,388 households – over 13% of all households in Tower Hamlets – were to be directly affected, with the impact on the local economy estimated to be £35.78m. 

In response, Tower Hamlets Mayor Lutfur Rahman announced the additional £8.5m funding at a meeting held by the council convening disabled residents and support organisations on 13 June. 

Rahman said at the meeting, ‘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.’

Rahman criticised the government’s plans as causing ‘entirely avoidable suffering’, urging them to raise taxes on the rich instead of ‘making vulnerable people bear the burden and driving up costs for cash-strapped councils like ours which are stepping in to try to replace this vital support.’

At the time of the announcement, the council was not clear on how the £8.5m would ‘plug the gap’ nor where the money would come from. 

Since then, over 120 Labour MPs rebelled against the government by signing an amendment to reject cuts to disability and sickness-related benefit payments. To appease them, the government U-turned by announcing that the proposals would only affect future claimants.

The government won a vote on the bill on 2 July after making further heavy concessions. Among those who signed the amendment and voted against the bill is suspended MP Apsana Begum, who represents Poplar and Limehouse. 

In response to the government’s U-turns, a spokesperson from Tower Hamlets Council said, ‘We welcome the government’s decision to reconsider its proposals on disability benefits following widespread concern from disabled people and organisations from across the country. 

‘However, while this U-turn provides some reassurance for those already receiving support, we are concerned about the impact on future claimants if new restrictions are introduced and many disability rights organisations are expressing serious concerns about the impact on future claimants.’

Today the Council has told the Slice that the £8.5 million will remain, and this will be split across services that support those with disabilities: £5m for free homecare; £1.108m for expanding technology enabled care, which provides equipment to enhance independent living; £1m for support to young adults with SEND needs; and £1.3m given to organisations to support people with disabilities. 

For Jay, who’s supported by Real, a Tower Hamlets disability charity, the back and forth over their future is a further burden during what is already a highly pressured time. 

Jay has multiple disabilities, including multiple sclerosis, ataxia, autism, ADHD and PTSD, stemming from NHS neglect and familial abuse. Jay receives PIP and UC, and is cared for full-time by their wife, but Jay currently only receives a single person’s entitlement UC as their wife has no recourse to public funds. 

Jay said about the welfare bill fiasco, ‘It’s another stress on top of all my other stresses.’

To make things worse, Jay is legally homeless, currently living in a private, non-accessible home as they and their wife wait for a disability-accessible home.

They continued, ‘I’m already legally homeless. I don’t know how to survive any of it. It’s really worn me down the whole thing and I’m suicidal at this point.’

For Ellen Kennedy, Head of Programmes at Real, the bill and following U-turns have brought a range of emotions for the service users. On one end, relief at the concessions made to the bill. On the other, questions linger about what the future looks like for disabled residents.

Kennedy said, ‘When [the council] were talking about plugging the gap, they were very, very vague about what that means. A lot of people within Tower Hamlets really rely on voluntary sector services, and voluntary services are on their knees. 

‘So making sure that money is put into those services so we can continue to support people to make sure that they do get the benefits that they’re entitled to would be really important.’

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