Chancellor Rachel Reeves is looking to cut £3billion off of the government’s benefits bill with changes set to be confirmed in the upcoming Autumn Budget
Labour is reportedly pushing ahead with changes to disability benefit assessments – but what would this mean for you?
Chancellor Rachel Reeves is looking to cut £3billion off of the government’s benefits bill with changes set to be confirmed in the upcoming Autumn Budget. One of her plans is to reportedly reform Universal Credit’s Work Capability Assessment (WCA).
Under the current benefits system, claimants who have health conditions or disabilities have to undergo a work capability assessment (WCA) to decide whether they’re capable of working and if they’re eligible for cash top-ups when they claim Universal Credit.
Back in 2023, the former Tory government announced reforms to this assessment, and according to Department for Work and Pensions (DWP) data, the proposed changes would see around 450,000 fewer people be considered to have a “limited capability for work”.
Labour also committed to reforming the WCA, noting that the current system was “not working” and has emphasised its own plans to “radically” shake up benefits for people whose health limits their ability to work. Rachel Reeves is reportedly planning to stick with plans announced by her Conservative predecessor Jeremy Hunt to make changes to the WCA, which the Tories claimed would save an estimated £1.3billion a year by 2028-29.
Labour has also promised a “proper plan to support disabled people to work”, as well as plans to ensure all young people aged between 18 to 21 years are either “earning or learning”. The government has not confirmed its plans, and it has been reported that the proposed changes will be published later this autumn. Chancellor
Under the former Tory plans, the WCA reforms would change the descriptors used to assess eligibility for certain benefits, and these were:
- Removing the “Mobilising” activity used to assess limited capability for work and work-related activity (LCWRA)
- Realigning the LCWRA Substantial Risk rules with the original policy intent of only applying in exceptional circumstances
- Reducing points for some of the descriptors under the Getting About activity used to assess limited capability for work (LCW)
Labour has been warned that changes to the WCA could not be made “in haste”. The Resolution Foundation think tank noted that the reform could cut benefits for those unable to work due to health by potentially £4,900 a year. The report said: “They will degrade living standards for low-income families, with 47% of families who receive these incapacity benefits coming from the bottom 30% of the income distribution.”
The report said the government needed to allow “sufficient time” to ensure effective implementation and took issue with the previous government’s logic that the changes would encourage more people into work, arguing “it is in reality a straightforward cost-saving measure”. Its research shows only around 3% of those affected – which equates to around 15,400 people – would move into work, with the rest still unable to work while also nearly £5,000 worse off.
A DWP spokesperson said: “Spiralling inactivity and millions of people denied the right support is holding the country back and stifling the economy. We believe the Work Capability Assessment is not working and needs to be reformed or replaced, alongside a proper plan to support disabled people. We will deliver the change the country needs; supporting those who can work, into work, and delivering growth in every part of the country.”
