AN overhaul of the welfare system will see the assessment process for some health benefits scrapped and reform to disability benefits in a plan expected to save billions by the end of the decade.
Work and Pensions Secretary Liz Kendall said the current social security system is “failing the very people it is supposed to help and holding our country back”.
Groups representing disabled people condemned the “cruel cuts” as “immoral and devastating” as they argued the changes will “push more disabled people into poverty, and worsen people’s health”.
While PIP is being phased out in Scotland, with the devolved Adult Disability Payments (ADP) administered by Social Security Scotland expected to fully replace it by the end of 2025, the UK welfare cuts will reduce the money returning to Scotland for ADP.
Here's the at-a-glance overview of what's changing.
- Changes to PIP will mean cuts to the tune of around £5 billion by 2029/2030.
- Around £1bn per year will be put into employment support.
- The “complex” and “time-consuming” work capability assessment (WCA) for Universal Credit is to be scrapped in 2028.
- The UK Government will bring in a “permanent, above-inflation rise” to the standard allowance of Universal Credit as well as legislating to “rebalance” payments for the benefit.
- Universal Credit claimants with severe, lifelong disabilities will not usually face benefits reassessments.
- The UK Government will consult on merging jobseeker’s allowance and employment support allowance which will allow people who have paid into the system to get higher benefit payments for a period of time.
- Labour will legislate for a “right to try”, which will allow people to try to get into work without instantly losing their benefits.
Kendall confirmed the Government will not freeze personal independence payment (PIP), as had been rumoured.
The Work and Pension Secretary said there would be a “decisive shift” in favour of prevention and early intervention, to stop people leaving the workforce.
Kendall said nearly four million people are in work, despite having a work-limiting health condition, and 300,000 stop work ever year. Chances of people returning to work are five times higher within the first year of them being signed off.
The Disability Benefits Consortium, an umbrella body representing more than 100 charities and organisations, said changes to PIP will make it harder for disabled people to manage “the overwhelming additional costs of their condition, from wheelchairs to visits from carers”.
“Any targeted cuts to disabled people on Universal Credit and employment and support allowance will largely hit those who are unable to work and rely on these benefits to survive,” he said.
“We are united in urging the Government to abandon these cruel cuts.”
Of the overall plan, Kendall said: “This is a significant reform package that is expected to save over £5 billion in 2029/30 and the OBR (Office for Budget Responsibility) will set out their final assessment of the costings next week.”
