Disability campaigners have hit back at government plans that will see banks pay less than disabled people to cut the national deficit.
The complaints came as Iain Duncan Smith MP, Secretary of State for Work and Pensions, revealed the full extent of the coalition's welfare reform agenda.
As expected, the government is seeking to introduce a Universal Credit to provide a single benefit, penalties for those refusing to work, the abolition of Disability Living Allowance (DLA) which will be replaced with the Personal Independence Payment (PIP), and a one year limit for those receiving contribution based Employment and Support Allowance (ESA).
The government said the policy has been underpinned with the aim to make work pay, but Disability Alliance noted the government initiated the process by identifying cuts in spending before consulting on which elements needed to be reformed.
Neil Coyle, director of policy at the disability rights organisation, said: "Disabled people have not ‘misunderstood the Government objectives.'
"The Government has been clear about the level of cuts to welfare spending and the reforms proposed are driven by this aim. What people do find difficult to understand is the fairness of the approach and who is being targeted.
"Contributions-based ESA (only accessed by disabled people with significant needs) will be cut by £2 billion and a further £1.5 billion is to be axed from DLA. The ‘disability contribution' to reducing the national deficit is therefore larger than that sought through the banking levy: £2.5 billion.
"In the silos of Whitehall cuts to one department's expenditure may appear achievable without impact elsewhere. But it is extremely likely that the cuts in DWP spending will cause higher NHS costs, greater need for council support and disabled people and carers being unable to retain employment due to reduced financial help," it added.
At present more than 80% of new claimants for ESA are judged fit for work under the new tighter criteria, as are approximately a third of those being transferred from the previous Incapacity Benefit (IB).
The conversion process is set to be fully rolled out across the country by 2013.
Support organisation Family Action has also warned that the welfare reform programme could affect the most poor in society, explaining that DLA is a vital lifeline for many of the families it works with, and these changes could threaten their ability to live active, independent lives, and to parent their children in the way they would wish.
Helen Dent, Chief Executive of Family Action, added: "Welfare reform could be a make-or-break time for the poor and disadvantaged families with children who use our services.
"This isn't the time for Iain Duncan Smith to be a have-a-go hero on welfare. He has got to get this right if the reforms are not going to undermine the Coalition's promises to tackle disadvantage and improve social mobility."
