Tories attempt to save billions by avoiding disability payments

Without the planned move by Theresa May, Philip Hammond would have to allocate an extra £3.7 billion over five years in next month’s budget
Without the planned move by Theresa May, Philip Hammond would have to allocate an extra £3.7 billion over five years in next month’s budget
TOBY MELVILLE/REUTERS

Theresa May faces a battle over efforts to claw back enhanced disability payments from more than 150,000 people, including those suffering from dementia.

Ministers have announced emergency legislation to overturn two tribunal rulings on entitlement to personal independence payments (PIPs), which help disabled people with their living costs.

Without the move Philip Hammond, the chancellor, would have had to allocate an additional £3.7 billion over five years in next month’s budget, blowing a significant hole in the welfare bill.

PIPs are made up of two elements, a living cost and a mobility allowance.

The first tribunal case said that people who suffer “overwhelming psychological distress” when travelling alone should be entitled to the enhanced payments.

Unless overturned, the ruling will result in money being handed