Insights: July 2025 Members Roundtable
At the latest WMFN members roundtable exchange, Jude Hawes, Operations Manager, Staffordshire North and Stoke on Trent CAB and Louise McKiernan, Chief Executive, Birmingham Disability Resource Centre, shared their critical analysis and view of the implications for disabled people and third sector services of the latest Labour government reforms on welfare and disability benefits.
The West Midlands is already one of the most disadvantaged regions in England in terms of health inequality, economic inactivity and entrenched poverty in particular towns, constituencies and wards. It faces disproportionate risks from reforms aimed at reducing benefit expenditure and increasing employment among disabled people.
According to data presented by Louise and Jude, over 18% of the WM population is recognised as disabled under the Equality Act, with pockets in Stoke-on-Trent exceeding 21% well above the English national average rate of 17.3% reflecting deep-rooted health inequalities in the region.
At the heart of these reforms is the government’s desire to reduce economic inactivity and control spending on disability benefits as part of the government’s challenge to reduce fiscal spending and improve economic growth. For third sector front line services like Staffordshire North and Stoke on Trent CAB and Birmingham Disability Resource Centre the proposed measures raise significant concerns in that likely changes will be tighter eligibility criteria for Personal Independence Payment (PIP); reduction or removal of payments for those deemed able to work, and a sharper focus on health assessments linked to employment readiness rather than need. The evidence from Citizens Advice paints a stark picture. For disabled people, losing PIP can mean an average monthly income deficit of up to £423 (advanced PIP rate). Without this safety net, individuals face cuts to essentials: food, heating, transport, and health-related expenses. The reforms are likely to push people into work but potentially into in-work poverty, with a surge in service demand for debt advice, foodbank referrals, mental health support and crisis intervention as people risk being homeless. This is reflected in the evidence both agencies provided, in that over 370,000 people nationally sought help with disability benefits last year, with 65% also needing foodbank or other charitable support. In addition, there is little evidence that employers will be encouraged by Government with investment or incentives to put in appropriate support and development opportunities to recruit or retain disabled people.
The voluntary, community, faith, and social enterprise (VCFSE) sector is already under strain. In the case of Birmingham, it is exacerbated by the Council’s Section 114 notice and the wider impact on local authority funding. However, this is not peculiar to Birmingham, but many local authorities are at risk of financial deficits. This means that key public services are shrinking while demand increases. For the third sector, greater reliance by those affected by these changes. Yet the sector has seen organisational closures, increased workforce and volunteer burnout and increased competition for reduced resources.
For funders operating in the region, the key messages from the presenters were: support core capacity through multi-year unrestricted funding with flexibility in outcomes to fit a fast-changing context; invest in collaborative funding approach rather than creating a competitive environment. Champion the lived experience voice, and recognise intersectionality of poverty, disability, race, gender. Presentations are below.