Rishi Sunak has unveiled a series of proposed changes to the Department for Work and Pensions (DWP) that could impact those on Personal Independence Payment (PIP), Universal Credit, legacy benefits, or those who are long-term sick.
The Tory Prime Minister’s plans, which he described as a “moral mission” during his speech on April 19, claim to be aiming to curb rising costs and tackle what the Tories see as ongoing issues – ‘inactivity’, ‘long-term sickness’, and benefit fraud.
However, these proposals have sparked controversy, with critics claiming they represent a “full-on assault on disabled people”. Sunak has been accused of trying to make life harder for people struggling with poor health after announcing the “chilling” set of reforms to force people back to work. He was forced to deny lacking compassion as he threatened to take benefits away from people suffering from anxiety and depression.
James Taylor of disability charity Scope said: “This feels like a full-on assault on disabled people. These proposals are dangerous and risk leaving disabled people destitute. In a cost of living crisis looking to slash disabled people’s income by hitting PIP is a horrific proposal.”
Sunak highlighted what he claimed were the current system’s shortcomings, including what he called its lack of focus on what work claimants could potentially do. He argues that the proposed changes, including alterations to the Fit Note procedure, stopping benefits for non-compliance with Work Coach directives, and a pledge to “tighten” the Work Capability Assessment, are not merely about cost-cutting.
Furthermore, he announced plans for a significant overhaul of the Personal Independence Payment (PIP) system. An upcoming consultation will explore potential changes to the eligibility criteria, assessment process, and the range of support available through the disability benefit.
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Mr Sunak has said that the proposed alterations to PIP will lead to a “more objective and rigorous approach” in the benefits system. He hinted that increased medical evidence would be required to back a PIP claim and that those suffering from mental health conditions may be provided with talking therapies or respite care instead of financial aid.
The Prime Minister conveyed that “people with less severe mental health conditions should be expected to engage with the world of work”, outlining the UK Government’s fresh plans.
The reformation of PIP would only apply in England and Wales, as 218,859 individuals in Scotland currently receiving PIP will shift to Adult Disability Payment (ADP) and the devolved Social Security Scotland IT system by year end of 2025. James Taylor of Scope revealed that calls were “pouring into our helpline” from concerned disabled persons.
He remarked: “In a cost of living crisis, looking to slash disabled people’s income by hitting PIP is a horrific proposal. Sanctions and ending claims will only heap more misery on people at the sharp end of our cost of living crisis.”
Prime Minister Rishi Sunak has set forth plans to make the following changes to the welfare system:
Removing benefits from ‘long term unemployed’ who ‘refuse’ jobs
The UK Government is set to remove benefits from long-term unemployed individuals who refuse job offers. With over 450,000 people jobless for six months or more and over 250,000 unemployed for a year, the government insists there’s no reason these individuals shouldn’t be in work given the current availability of over 900,000 job vacancies.
In the upcoming parliament, new legislation will be proposed to change the rules. This means anyone who has been on benefits for a year and fails to meet the conditions set by their Work Coach – including accepting available work – will have their unemployment claim terminated and their benefits completely withdrawn.
Work Capability Assessments
The Prime Minister has also confirmed plans to tighten the Work Capability Assessment so that those with less severe conditions are expected to engage with the employment sector and receive support to do so.
He highlighted that under the existing Work Capability Assessment, too many individuals are effectively dismissed as unfit for work without being offered the chance to access crucial support that could help them find a job.
He further clarified that the UK Government is committed to abolishing the Work Capability Assessment (WCA) entirely and introducing a new personalised approach to employment support. The aim is to assist disabled individuals and those with health conditions to reach their full potential.
The government is set to overhaul the welfare system, with reforms expected to result in 424,000 fewer people being classified as not needing to work by 2028/29.
Fit note process review
In a bid to revamp the Fit Note process, the Prime Minister has announced a review aimed at preventing individuals from being automatically deemed “not fit for work”. The new approach will focus on what people can do with the right support, rather than their limitations.
Plans are also afoot to consider shifting the responsibility for issuing Fit Notes away from primary care, to give GPs more time. The goal is to create a system that better addresses the health and occupational needs of individuals.
A call for evidence has been launched by the government, seeking insights from those affected, healthcare professionals, and employers on how to improve support for those with health conditions to help them start, stay in, and succeed at work.
It’s important to note that while Fit Note policies and legislation apply to Great Britain, health systems are devolved, so these changes may not take place in Scotland.
Accelerating the transition of legacy benefits to Universal Credit
The transition from legacy benefits to Universal Credit is also set to be accelerated.
The rollout of Universal Credit will be accelerated to transition all those still on Employment and Support Allowance (ESA) onto the modern IT system.
Changes to Administrative Earnings Threshold
The Prime Minister has declared that from next month, individuals working less than half of a full-time week will need to seek additional employment. The UK Government has already detailed plans to increase the Administrative Earnings Threshold (AET), which determines the level of support an individual receives based on their current earnings and hours worked.
Those earning below the AET will be placed in the Intensive Work Search Group and will have to regularly meet with their Work Coach.
The threshold is set to rise from £743 to £892 for individual claimants and from £1,189 to £1,437 for couples – equivalent to 18 hours at the National Living Wage per week for an individual, starting in May.
The UK Government has stated that these changes will result in over 180,000 Universal Credit claimants being moved into the Intensive Work Search group, from the Light Touch group.
This means that an extra 400,000 claimants will receive more intensive support from Work Coaches. Claimant commitments will be tailored to personal circumstances, considering caring responsibilities and any health conditions.
Fraud prevention
A new Fraud Bill will be introduced in the next Parliament.
The measures in the Bill will grant the UK Government new powers to:
- carry out warrants for searches
- seizures and arrests
- enforce civil penalties more consistently and flexibly, and to a wider group of offenders
- provide new powers to gather information from more information holders as part of Department for Work and Pensions (DWP) led investigations into fraud
The UK Government claims it is bolstering its fight against benefit fraud with the new measures set to complement the Data Protection and Digital Information Bill. These changes will empower the Department for Work and Pensions (DWP) to access third-party data that could flag fraudulent activity.
Touted as one of the most significant overhauls in benefit fraud legislation in over two decades, officials estimate these efforts could save taxpayers a hefty £600 million by the fiscal year 2028/29.
Authorities have outlined their goal with this initiative: to sculpt a welfare system that’s “fit for the future by providing vital support only to those who need it most and ensuring they are supported to live with dignity and independence, whilst making sure that everyone who can work is expected and supported to do so”.
Yet, Erica Young, Social Justice policy officer at Citizens Advice Scotland, has voiced concerns: “The Prime Minister is right to want to support people into work and about the positive effects work can have for people living with a chronic condition, but rhetoric around ‘sick note culture’ simply does not match the reality of our social security system, and the importance of supportive relationships with GPs to those struggling with work due to their health.”
The spokesperson passionately warned: “Increasingly CABs are advising people who do not have enough to live on because years of soaring bills have wiped out their financial resilience. Many disabled clients in receipt of social security payments are choosing between buying food and charging essential medical equipment. Many are not accessing support at all.”
She added with concern: “There is a real risk this sort of language can create a culture of fear and put people off seeking any type of help, including the support offered in Scotland based on the principles of dignity, fairness and respect.”
