PIP and Universal Credit claimants are facing changes to eligibility requirements
Disabled people will have the right to try employment without the risk of losing their benefits under plans set to be announced as part of the Government’s welfare reforms.
Work and Pensions Secretary Liz Kendall is expected to announce legislation to introduce a “right to try guarantee” that will prevent people who recieve health-related benefits from having their entitlements automatically re-assessed if they enter employment.
The move is said to be in response to surveys suggesting disabled people and those with long-term health conditions fear they will not get their benefits back if they try employment, but it does not work out.
It comes as the Government prepares to unveil a series of welfare reforms next week in an attempt to cut the benefits bill.
A recent Department for Work and Pensions (DWP) survey found 200,000 people receiving health-related or disability benefits were ready to work if the right job or support was available.
Nearly four million working-age adults in England and Wales currently claim incapacity or disability benefits, up from 2.8 million before the pandemic.
“The broken welfare system we inherited is trapping thousands of people in a life on benefits with no means of support, or any hope for a future of life in work,” a Government source told PA.
“It doesn’t account for the reality of people’s health conditions, many of whom fear that they will be punished for taking a chance on work.
“As part of our plan for change, our reforms will deliver fairness and opportunity for disabled people, and those with long-term health conditions, protecting the welfare system so it is sustainable for the future and will always be there for those who need it.”
Downing Street has warned that without action, benefits will “swallow more taxpayers’ money and leave more people trapped in a life of unemployment and inactivity”.
What benefits could be changed under the welfare reforms?
An estimated one million people could have their benefits cut under the Government’s proposed welfare reforms.
Changes to personal independence payments (PIP) are understood to make up the majority of the anticipated £6bn savings.
Ministers are looking to both tighten eligibility requirements for the non-means-tested benefit – given, regardless of employment status, to those with a long-term condition or disability that causes them difficulty in doing certain everyday tasks or getting around – and freeze it so it does not rise with inflation.
Universal credit is also being targeted by the reforms, with payments to those judged to have limited capability for work and work-related activity (LCWRA) expected to be cut.
However, it is expected that some of the welfare savings will be spent on raising the basic rate of universal credit for those who are deemed fit to work, and a £1bn package for employment support.
Click here for more on what benefits changes could be implemented.
Chancellor Rachel Reeves has previously said the Government must “get a grip” on benefits, but uncertainty about Labour’s plans have led some of the party’s backbenchers to express concern about the potential impact on disabled people.
The Scottish National Party (SNP) has also attacked the Government, saying Sir Keir Starmer should “apologise” to disabled people for “allowing damaging speculation to run wild”.
Kirsty Blackman, the party’s work and pensions spokeswoman, said any planned cuts to disability payments should be “abandoned” and accused Labour of “deliberately fuelling speculation” in the media about its intentions.
Asked about the Government’s welfare plans during a press conference on Saturday, the Prime Minister said: “I have made the principles clear enough. We need to support those who need support, and to protect them.
“But at the same time we need to make sure that we support and protect those who need to and are able to get into work, which the current arrangements I don’t think adequately do.
“That’s why it’s important we make the case for reforming welfare, which is what we are doing.”
A Conservative Party spokesperson said: “Labour is failing to take the action needed to tackle the unsustainable welfare bill. Their inaction has already cost the taxpayer £2.5bn and counting.
“The Conservatives are united in the belief that those who can work should, which is why we had a bold plan at the election to save £12bn from the welfare bill.
“Labour have done no original thinking of their own. The dithering, delay and division over the need to bring spending on benefits down is not fair for British taxpayers.”
With agencies
