Insights: July 2025 Members Roundtable
At the latest WMFN Members Roundtable, Jude Hawes (Operations Manager, Staffordshire North and Stoke-on-Trent Citizens Advice Bureau) and Louise McKiernan (Chief Executive, Birmingham Disability Resource Centre) shared a critical analysis of the implications of the new Labour government’s proposed welfare and disability benefit reforms. Their reflections highlighted the significant impact these changes could have on disabled people and the third sector services that support them.
The West Midlands is already one of the most disadvantaged regions in England, with entrenched health inequalities, high levels of economic inactivity, and deep poverty in specific towns, constituencies, and wards. The region is particularly vulnerable to policy reforms designed to reduce benefit expenditure and increase employment among disabled people.
Louise and Jude shared data showing that over 18% of the West Midlands population is recognised as disabled under the Equality Act. In areas such as Stoke-on-Trent, this figure rises to more than 21%, far exceeding the national average of 17.3%. These figures reflect long-standing and deeply rooted health disparities across the region.
At the centre of the proposed reforms is a government agenda to reduce economic inactivity and curb public spending on disability benefits as part of its broader fiscal strategy and economic growth ambitions. For frontline third sector organisations such as Staffordshire North and Stoke-on-Trent CAB and Birmingham Disability Resource Centre, the proposed measures are deeply concerning. Likely changes include tighter eligibility criteria for Personal Independence Payment (PIP), the reduction or removal of support for those deemed capable of work, and a greater emphasis on health assessments linked to employment readiness rather than individual need.
Evidence presented by Citizens Advice paints a bleak picture. For many disabled individuals, losing PIP can result in a monthly income shortfall of up to £423 (based on the advanced rate of PIP). Without this essential financial support, people face severe hardship—cutting back on food, heating, transport, and medical expenses. The reforms may push people into employment, but in many cases this could be precarious or low-paid work, leading to in-work poverty rather than financial stability. As a result, third sector organisations anticipate a surge in demand for debt advice, foodbank referrals, mental health services, and crisis support.
This trend is already evident. Last year, more than 370,000 people across the UK sought help with disability benefits, and 65% of them also required foodbank access or other charitable support. Furthermore, there is currently little evidence that employers are being incentivised or supported by the government to create accessible, inclusive environments that recruit and retain disabled employees.
The voluntary, community, faith and social enterprise (VCFSE) sector is already under considerable pressure. In Birmingham, this is further intensified by the City Council’s Section 114 notice and its implications for local authority funding. However, Birmingham is not alone. Many local authorities across the region are facing financial deficits, resulting in shrinking public services at a time of rising demand. This increases the pressure on third sector organisations, many of which are already experiencing closures, staff and volunteer burnout, and increased competition for diminishing resources.
For funders working in the region, the speakers’ key recommendations were clear: prioritise support for core capacity through multi-year, unrestricted funding that allows for flexibility in outcomes, in order to respond effectively to a rapidly changing environment. Invest in collaborative approaches to funding, rather than fostering competition, and ensure that the voices of lived experience are heard and elevated. Funders should also recognise the intersectionality of poverty, disability, race, and gender when shaping their support.
Presentation materials are available below.