Labor must abandon “hugely worrying” proposal to replace benefit payments with vouchers, disabled claimants and campaigners have said.

Work and Pensions Secretary Liz Kendall has refused to rule out the previous government’s plans to replace personal independent payments (PIP) with a voucher system.

Charities are also troubled by Labor pushing on cost-saving changes to out-of-work benefits affecting the disabled.

Plans to tighten Work Capability Assessment (WCA) criteria – which determine whether someone is eligible for Universal Credit and Employment Support Allowance (ESA) – could see more than 450,000 disabled people lose more than £400 a month.

Yolanda Barker, who has secondary progressive multiple sclerosis (MS) – when the condition gets steadily worse – relies on ESA as an unemployment payment and PIP to support her daily living and mobility needs.

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The 52-year-old from Kent uses his £150-a-week PIP to help drive his mobility car, electric wheelchair and other specialist equipment. It also helps pay for regular physical therapy sessions and vitamin supplements.

Ms Barker is dismayed that Labor ministers have yet to reject Tory proposals to replace regular cash PIP payments with lump sums or vouchers for equipment and other services.

“When it comes to PIP, the fact that they don’t rule out a voucher system is a real concern, a big problem,” Barker told inwho is worried that moving away from cash would undermine her independence.

“Vouchers could never cover all the different things we would need. I need PIP for so many things.”

She added: “The PIP assessment process is still in short supply, with people not always able to get what they need. So how do we get an assessor who can accurately provide enough vouchers?”

Kendall told MPs on the work and pensions committee last week that she was aware of “real concerns” about the approach. But she refused to rule out vouchers and grants as Labor puts forward its own proposals for PIP.

Kendall also said she would bring bring forward new ideas to reform PIP.

The cabinet minister confirmed the government would seek to save billions by pushing ahead with conservative plans to limit who qualifies for the highest level of jobless benefits under the WCA process.

The DWP has estimated that 457,000 disabled and chronically ill people who are currently assessed as unable to work – with limited capacity for work and work-related activity (LCWRA) – will instead be classed as ready to prepare for work.

This means they will lose £416 a month in Universal Credit or ESA, and will be asked to take part in training and other work-related activities. The government estimates it will save £1.3 billion a year to the Exchequer by 2028-29.

Ms Barker, who receives £138 a week in ESA after being deemed to have limited work capacity, is dismayed that Labor will implement Tory cuts.

She suffers from pain throughout her body, sciatica, severe fatigue, brain fog and paralysis. It has prevented her from working for the past 20 years.

“It’s clear they want to reduce the amount spent through the Work Capability Assessment, which scares me,” she said. “It’s hard to see how we’re going to support people successfully and cut money.

“Yes, there are many disabled people working,” she added. “I hope they understand that it is completely impractical to ask some disabled people to work. There are days when even taking out clothes is exhausting.”

The 52-year-old is only partially certain that changes to the WCA process are not expected to affect current claimants whose circumstances remain the same – only for those making new claims. “Even if it doesn’t affect me, will it affect the next group of people with MS?”

Ms Barker is also concerned that the Government’s rhetoric about getting people “back to work” is coming unfairly demonizing disabled people who don’t have a job as scroungers.

“It worries me enormously that if we don’t work, what are we seen as, other than a drag on society? Ministers and MPs should be able to understand what we are facing. And if they don’t, why aren’t they listening?”

Ross Barrett, head of policy at the MS Society, called on the Government to rule out PIP vouchers and “communicate this to disabled people as soon as possible”.

“PIP is a lifeline for so many and helps to deal with the extra costs of having a disability, from paying for adapted vehicles to charging mobile devices.”

Stephen Bunbury, a disability law expert at the University of Westminster, said changes to the WCA process were “causing a lot of concern among disabled people”.

“The new government can say it was their plan, but they are following the plans of the previous government. It will still be based on the premise of cutting and saving.”

The government has been contacted for comment.