15,000 Southwark Households to Lose Welfare Payments Under “Cruel” Labour Government Reforms

• 3,515 residents are expected to lose PIP, worth up to £5,740 per year.
• 9,190 people currently receiving LCWRA will lose over £500 per year in real terms due to a stealth freeze.
• 2,388 new LCWRA claimants will receive around £2,450 less annually under the new, lower award.
• 1,251 people in receipt of both PIP and LCWRA are at risk of losing both — amounting to a potential loss of £5,000 a year.

New research has revealed the devastating local impact of Labour’s proposed welfare cuts - with more than 15,000 Southwark households set to lose support, totalling £33 million stripped from residents currently receiving disability related welfare payments. 

Analysis by policy experts Policy in Practice shows the Government’s planned reforms to Personal Independence Payment (PIP) and Limited Capability for Work-Related Activity (LCWRA) will hit thousands of vulnerable residents across the borough. 

The Liberal Democrats have repeatedly condemned the plans since they were first unveiled at the Spring Budget, warning they could push thousands into poverty and deepen the crisis facing local services. At March’s Council Assembly, Lib Dem Leader Cllr Victor Chamberlain challenged the Labour Leader to condemn the cuts – but Cllr Williams feigned ignorance and suggested he’d have to wait to see the detail.

Only one of Southwark’s five MPs responded to a Southwark News request for their stance on the issue - with the rest failing to defend their own constituents from the cuts.

Despite charities warning the cuts were “unprecedented” and more swinging than even those that happened under the previous Conservative administration, in a bizarre intervention the Labour MP for Bermondsey and Old Southwark Neil Coyle MP claimed the reforms would “bring huge benefits” and “could not be compared to austerity”. 

The Liberal Democrats warn that the full consequences could be even worse, with the report noting additional impacts on carers, increased pressure on local social care, and the likelihood of more people becoming reliant on overstretched council services. 

The party is calling on Southwark Council to act now by supporting at-risk residents to access existing entitlements before the reforms hit in 2026. 

Councillor Victor Chamberlain, Leader of Southwark Liberal Democrats, said:

“These are not just numbers - they’re our neighbours, friends, and family. People with disabilities, mental health conditions, and chronic illnesses are being targeted by a Labour Government that promised better. Instead of real change, we’re getting cruel Tory-style cuts from a party that has abandoned its values. 

“It’s shameful that only one of Southwark’s Labour MPs could even be bothered to respond to questions about these cuts, and even then only to offer a bizarre defence of this cruelty.

“The Liberal Democrats are standing up for those being abandoned. We’re demanding a rethink of these damaging reforms and calling for proper support for disabled residents - not more excuses.”