Zarah ChoudharyThe Government has announced £1bn employment support measures to help disabled persons and those living with long-term illnesses to get back to work.
This comes as one in eight young people are not currently in work, education or training and 2.8 million people are economically inactive due to long term sickness.
The number of people receiving one of the main types of health and disability benefit, Personal Independence Payments (PIP), has also risen rapidly.
Since the pandemic, the number of working-age people receiving PIP has more than doubled from 15,300 to 35,100 a month.
The number of young people (16 to 24) receiving PIP per month has also increased from 2,967 to 7,857 a month.
Over the next five years, the number of working age people claiming PIP is expected to increase from two million in 2021 to 4.3 million, costing £34.1bn annually.
Yesterday, Liz Kendall, Secretary of State for Work and Pensions, announced a package of reforms in a bid to reduce barriers to work, ending reassessments for disabled people who will never be able to work to ensure they can live with dignity and security.
As part of these plans, the Government will be scrapping the Work Capability Assessment to end the current process that often drives people into dependency.
By providing improved employment support, backed by £1bn, the measure will implementnew tailored support conversations for people on health and disability benefits to break down the barriers to work.
The Government said it will be legislating to protect those on health and disability benefits from reassessment or losing their payments if they take a chance on work.
One significant measure announced by Kendell includes reintroducing reassessments for individuals on incapacity benefits who have the capability to work.
This would ensure they receive the appropriate support while preventing them from being indefinitely written off.
Additionally, the Government set to redefine Personal Independence Payments (PIP) to target those with higher needs.
The eligibility criteria will be adjusted so that individuals must score a minimum of four on at least one of the daily living activities to qualify for the daily living element of the benefit, alongside existing requirements.
To further improve financial support, Universal Credit payment levels will be rebalanced, with an increase in the Standard Allowance.
By 2029/30, it will rise above inflation, equating to an annual cash boost of £775.
Furthermore, the Government said it plans to delay access to the health element of Universal Credit until individuals reach the age of 22.
The savings generated from this change will be reinvested into work support and training opportunities through the Youth Guarantee.
Prime Minister Keir Starmer said: “We inherited a fundamentally broken welfare system from the previous Government.
“It does not work for the people it is supposed to support, businesses who need workers or taxpayers who foot the bill.
“This Government will always protect the most severely disabled people to live with dignity.
“But we’re not prepared to stand back and do nothing while millions of people – especially young people – who have potential to work and live independent lives, instead become trapped out of work and abandoned by the system.”
He added: “It would be morally bankrupt to let their life chances waste away.
“When I talk about opportunity for all, I mean it. That’s why we are bringing forward the biggest changes to the welfare system in a generation and improving support for those who need it.
“Ensuring those who can work do work is not only right, but it will also improve living standards and drive growth, the number one priority in our Plan for Change.”
Kendall added: “Our social security system must be there for all of us when we need it, now and into the future.
“That means helping people who can work to do so, protecting those most in need, and delivering respect and dignity for all.
“Millions of people have been locked out of work, and we can do better for them.
“Disabled people and those with health conditions who can work deserve the same choices and chances as everyone else.”
She continued: “That’s why we’re introducing the most far-reaching reforms in a generation, with £1bn a year being invested in tailored support that can be adapted to meet their changing circumstances – including their changing health – while also scrapping the failed Work Capability Assessment.
“This will mean fairness for disabled people and those with long term health conditions, but also for the taxpayers who fund it as these measures bring down the benefits bill.
“At the same time, we will ensure that our welfare system protects people.
“There will always be some people who cannot work because of their disability or health condition.
“Protecting people in need is a principle we will never compromise on.”
In her statement to Parliament, Kendell outlined the case for change to the welfare system.
In particular, she highlighted that the UK has one of the highest reported rates of working-age people out of work due to ill health in Western Europe and the UK is the only major economy whose employment rate hasn’t recovered since the pandemic – exacerbated by a broken NHS with millions of people on waiting lists.
She said the reformed system will be built on a straightforward guarantee that any disabled person or person with a long-term health condition who is claiming out of work benefits will be able to access high quality, tailored help into a job.
Those currently receiving Universal Credit (UC) health benefits will see their standard allowance increase and will not be impacted by future reductions to UC health.
Additionally, a new premium is has been proposed for individuals with severe, lifelong health conditions that prevent them from working, with details on eligibility and rates to be outlined at a later date.
Reassessments for disabled individuals and those with lifelong conditions will be scrapped entirely, in a move the Government says aims to remove “unnecessary stress and bureaucracy.”
The Government also aims to enhance safeguarding practices for the most vulnerable, working with stakeholders to improve their experiences within the welfare system.
Furthermore, the Government plans to delay access to the UC health element until age 22, redirecting savings into the Youth Guarantee to fund work support and training opportunities for young people.
To prevent individuals from falling into long-term economic inactivity, the Government is also introducing early intervention measures.
Improvements to the Access to Work Scheme will be considered to help people secure and maintain employment through reasonable adjustments, such as assistive technology and other workplace accommodations.
The contributory benefits system will also be reformed, merging Employment and Support Allowance (ESA) and Jobseeker’s Allowance (JSA) into a single, non-means-tested, time-limited benefit for those who have paid into the system.
The Work Capability Assessment (WCA) will be scrapped to eliminate the rigid classification of people as either ‘fit’ or ‘unfit’ for work.
Instead, a new single assessment will determine eligibility for financial support across PIP, ESA, and UC health, focusing on how a disability impacts daily living rather than work capacity.
To improve assessment quality, the Government will increase the number of face-to-face assessments for PIP and WCA, ensuring decisions are accurate and reflect individual needs.
Additionally, a long-term review of the PIP assessment will be conducted with input from experts and stakeholders to refine the system further.
A Right to Try Guarantee will be introduced to ensure that individuals exploring employment opportunities are not subjected to immediate reassessments or award reviews.
Meanwhile, mandatory reassessments for incapacity benefits will be reinstated, except for those with lifelong conditions or individuals under special end-of-life care rules.
Changes will also be made to PIP eligibility.
The benefit will be more narrowly targeted by requiring a minimum score of four points in at least one daily living activity, in addition to existing criteria.
The Department for Work and Pensions (DWP) will collaborate with the Department of Health and Social Care (DHSC) to ensure that individuals who no longer qualify for PIP under the new rules still have their health and care needs addressed.
The Government is also rebalancing Universal Credit by enhancing the Standard Allowance, which will be increased above inflation by 2029/30, equating to an additional £775 annually.
This adjustment aims to ensure financial support is adequate without discouraging employment.
