UK Government Unveils Major Reforms to Benefits System Amid £5 Billion Cut Plans
The reforms, designed to reduce the welfare bill, will impact Personal Independence Payments and reshape eligibility criteria for support.
The UK Government has announced significant reforms to the welfare benefits system in a bid to reduce its expenditure by £5 billion.
Work and Pensions Secretary Liz Kendall outlined the changes, stating that the current system is unsustainable, with one in ten working-age individuals claiming sickness benefits.
The reforms include tighter eligibility criteria for Personal Independence Payments (PIP), which are benefits aimed at assisting individuals with disabilities.
While the amount paid under PIP will not be frozen or subjected to means testing, the number of individuals eligible for the benefit will be decreased.
Key changes to the benefits system include the merger of jobseeker's allowance and employment and support allowance, with plans to raise the minimum age for claiming PIP to 18 years starting in November 2026. Only individuals with severe disabilities needing a minimum score of four points in at least one daily living activity will qualify for the daily living allowance.
A notable feature of the reforms is the introduction of a 'right to try' initiative, allowing individuals on disability benefits the opportunity to seek employment without the risk of losing their benefits if their employment attempt is unsuccessful.
Additionally, the work capability assessment (WCA) for universal credit will be phased out by 2028.
To address rising costs, the Government plans to increase the standard universal credit allowance by £775 in the fiscal year 2029-30. Furthermore, individuals with severe, lifelong disabilities will no longer have to undergo regular reassessments for their benefits.
Recent data indicate a rise in the number of individuals claiming sickness or disability benefits, escalating from 2.8 million in 2019 to approximately 4 million today.
Consequently, the welfare bill has grown to £48 billion for the financial year 2023-24, with projections suggesting an increase to £67 billion by 2029-30, surpassing the current schools budget.
These reforms have drawn criticism from various quarters.
Debbie Abrahams, chairwoman of the Commons Work and Pensions Committee, highlighted the significant nature of the proposed savings, marking the most substantial reduction in social security support since 2015. Former shadow chancellor John McDonnell expressed concerns that the changes could lead to detrimental outcomes for vulnerable individuals, emphasizing the potential for increased suffering.
Charities representing disabled individuals have condemned the proposals as immoral.
The Disability Benefits Consortium warned that the cuts could exacerbate poverty among disabled people.
The Prime Minister’s official spokesperson defended the changes, arguing they aim to address a social security system that leaves a segment of the population dependent on welfare and does not effectively encourage pathways back into employment.
Mayor of London, Sir Sadiq Khan, and Andy Burnham, Mayor of Greater Manchester, have voiced their support for maintaining essential safety nets for vulnerable individuals, emphasizing the need to ensure that those reliant on benefits do not suffer as a result of the reforms.
Meanwhile, the Government insists that it is committed to supporting the most severely disabled while creating a more effective welfare system.
Work and Pensions Secretary Liz Kendall outlined the changes, stating that the current system is unsustainable, with one in ten working-age individuals claiming sickness benefits.
The reforms include tighter eligibility criteria for Personal Independence Payments (PIP), which are benefits aimed at assisting individuals with disabilities.
While the amount paid under PIP will not be frozen or subjected to means testing, the number of individuals eligible for the benefit will be decreased.
Key changes to the benefits system include the merger of jobseeker's allowance and employment and support allowance, with plans to raise the minimum age for claiming PIP to 18 years starting in November 2026. Only individuals with severe disabilities needing a minimum score of four points in at least one daily living activity will qualify for the daily living allowance.
A notable feature of the reforms is the introduction of a 'right to try' initiative, allowing individuals on disability benefits the opportunity to seek employment without the risk of losing their benefits if their employment attempt is unsuccessful.
Additionally, the work capability assessment (WCA) for universal credit will be phased out by 2028.
To address rising costs, the Government plans to increase the standard universal credit allowance by £775 in the fiscal year 2029-30. Furthermore, individuals with severe, lifelong disabilities will no longer have to undergo regular reassessments for their benefits.
Recent data indicate a rise in the number of individuals claiming sickness or disability benefits, escalating from 2.8 million in 2019 to approximately 4 million today.
Consequently, the welfare bill has grown to £48 billion for the financial year 2023-24, with projections suggesting an increase to £67 billion by 2029-30, surpassing the current schools budget.
These reforms have drawn criticism from various quarters.
Debbie Abrahams, chairwoman of the Commons Work and Pensions Committee, highlighted the significant nature of the proposed savings, marking the most substantial reduction in social security support since 2015. Former shadow chancellor John McDonnell expressed concerns that the changes could lead to detrimental outcomes for vulnerable individuals, emphasizing the potential for increased suffering.
Charities representing disabled individuals have condemned the proposals as immoral.
The Disability Benefits Consortium warned that the cuts could exacerbate poverty among disabled people.
The Prime Minister’s official spokesperson defended the changes, arguing they aim to address a social security system that leaves a segment of the population dependent on welfare and does not effectively encourage pathways back into employment.
Mayor of London, Sir Sadiq Khan, and Andy Burnham, Mayor of Greater Manchester, have voiced their support for maintaining essential safety nets for vulnerable individuals, emphasizing the need to ensure that those reliant on benefits do not suffer as a result of the reforms.
Meanwhile, the Government insists that it is committed to supporting the most severely disabled while creating a more effective welfare system.
