The Institute for Fiscal Studies has told the Labour government it could save around £8billion a year by means-testing disability benefits, including cutting payments to middle-class young people with anxiety, ahead of the Timms Review and October's Budget. The proposal would fold Personal Independence Payments (PIP) into the already means-tested Universal Credit system, targeting support more closely at those most in need, though the IFS cautioned that behavioural changes could erode some of the savings over time as more people claim Universal Credit to retain PIP eligibility.

The IFS report suggests means-testing could cut PIP spending by a third, while separately limiting claims by under-30s to only the most severe conditions could save up to £2.2billion a year, rather than the £5.5billion that would come from barring all 689,000 young claimants outright. This follows record PIP claimant numbers under Labour and spending rising from £14billion in 2019-20 to £25billion in 2025-26, forecast to hit £34billion by 2030-31. A separate report from the Re:State think tank found Britain's disability benefit claims are far higher than comparable countries such as Denmark and France, and that PIP payments are unusually generous and unconditional compared with international norms.