Charity warns government is overlooking a ‘double whammy’ impact of welfare cuts that will hit the poorest hardest.
UNITED KINGDOM / AGILITYPR.NEWS / June 26, 2025 /
As the Prime Minister confirms his willingness to make concessions to next week's welfare bill, a leading charity funder urges him to recognise the danger of a 'double whammy impact on the poorest'.
Cuts to disability benefits will impact some of the poorest areas with the least available support from disability charities, finds new research from Social Investment Business, a leading charity funder supporting thousands of charities across the UK. The charity argues this could cause ‘a double whammy impact on the poorest’ which the government has overlooked in it's recent impact assessment.
Their analysis, published today, looks at existing demand on charities that support people with disabilities, as well as their capacity to deliver support to those at risk of losing Personal Independence Payments (PIP), one of the key disability benefits the government intends to reduce. The findings reveal that some of the most deprived areas of the UK have the lowest level of disability charity capacity and the weakest safety net to support those who could lose their benefits under the government’s current proposals.
Out of the twenty local authority areas with the weakest available support, more than half are among the top 10% most deprived areas of the UK. This includes Blackpool and Knowsley, the first and third most deprived areas in England, as well as Caerphilly and Bridgend, two of the most deprived areas in Wales. These areas have high numbers of PIP claimants at risk of losing support, yet some of the most limited capacity among charities that support disabled people – which Social Investment Business warns could create a dangerous combination of increased need and low support.
The government’s impact assessment, published on 18 June, looked at proposed cuts to both Universal Credit and PIP, yet there was no recognition of the impact rising demand could have on charities providing vital services and support. Funding to support various back-to-work schemes was referenced, and these can sometimes be contracted to charities to deliver, but without greater clarity disabled people in the poorest parts of the country could see their benefits cut without the social safety net there to catch them.
The research also found significant regional variation, which the charity says has also not been thoroughly accounted for. Across the North East and Yorkshire and the Humber, more than 80% of Local Authority areas are in the lowest 40% for disability charity. For Comparison, no London Local Authority is in the lowest category for capacity, with more than three quarters of London actually having some of the highest capacity across England and Wales.
As MPs prepare to vote on the proposals next week, SIB urges them to consider the full impacts of these cuts, not only on disabled people depending on the support, but also on the organisations determined to support them. They argue that if the Government is serious about helping disabled people into work, it is fundamental a strong third sector exists to support that transition.
The research combined publicly available data from the Charity Commission, Office of National Statistics and the House of Commons library, which Social Investment Business have brought together in an open and interactive dashboard, made available here: https://www.sibgroup.org.uk/news-insights/double-whammy-impact-on-the-poorest-the-welfare-bills-failure-to-recognise-the-role-of-charities-and-the-consequences-for-the-most-deprived-communities/
Nick Temple OBE, Chief Executive of Social Investment Business, said:
“Charities provide a whole range of support and services to people with disabilities, including supporting them into employment, which the government says is their aim. Yet overlooking the link between deprivation, benefits cuts and the capacity of local charities could seriously undermine this agenda and push more people into poverty.
"If the government genuinely wants to help more people into work, then they need a thriving third sector – particularly in the most deprived areas. Currently the areas that will be hit the hardest by the proposed benefits cuts are also those least prepared to respond to them, creating a double whammy impact on the poorest.”
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About the research:
So far, analysis of welfare cuts has not considered the vital role of charities in supporting those with disabilities and providing a safety net should the cuts go ahead. Our new research focusses on this critical gap and exposes a serious risk: some of the most deprived areas of the UK have the lowest level of disability charity capacity and therefore weakest support available to those who could lose their benefits under the government’s proposed cuts. This is something the government's impact assessment published last week fails to recognise.
To assess this, we brought together, for the first time, four variables to robustly assess the capacity of, and demand on, charities that support people with disabilities, and map this against IMDs of Local Authority Areas. The analysis combines 1) Number of disabled charities in a local area 2) Their expenditure as a proxy for size 3) Disabled adults as per the 2021 census and 4) Disabled adults on PIP.
By combining all four variables we form a broader picture of the disability charity sector than if we relied simply on one or two. These are then split into ratios: Disabled Adults per charity (a proxy for potential demand) and Expenditure by Disability Charities by PIP claimants (a measure of potential capacity). Local Authorities are ranked by both indices, with an average taken.
The results revealed a significant regional gap. The North East, and North West have over 8 in 10 of their local authorities with some of the least disability charity capacity, whilst those in London and the South East have some of the greatest capacity. Over 83% in the North East are in the lowest 40% of capacity, whilst 80% in Yorkshire and the Humber. For Comparison, no London Local Authority is in the lowest area of capacity.
The raw data is brought together in our interactive dashboard, available here: https://public.tableau.com/views/MappingDisabilityinEnglandWales/Page1?:language=en-US&:sid=&:redirect=auth&:display_count=n&:origin=viz_share_link
About Us
Social Investment Business is one of the largest and oldest social investors in the UK, providing finance and support to charities and social enterprises to build a fairer and stronger society. Driving our work are three core missions: transforming public services, strengthening community assets like housing, community buildings and land, and securing energy resilience. Since 2002, we've deployed and managed over £0.7bn of loans and grants, directly supporting more than 3000 charities and social enterprises, and are recognised as a go-to partner for Government and other funders.
