The DWP has announced welfare reforms
The Department for Work and Pensions (DWP) has unveiled welfare reforms aimed at reconfiguring the benefits system and bringing more people into employment as part of its latest plans. It comes as Universal Credit legislation is presented in Parliament by Government ministers.
The current system, inherited from the previous Government, results in those receiving Universal Credit for health reasons being paid over double the amount of a single jobseeker, without providing adequate support to transition closer to, or directly into, employment.
In an effort to provide the long-overdue support, the Labour Party government has pledged to invest over £3.5 billion in employment assistance by the end of the decade. This ensures that everyone affected by the Universal Credit changes will receive personalised support to develop the necessary skills, secure stable employment, and improve their living standards – fostering a thriving workforce and economy for the future.
As part of the Government’s commitment to addressing the cost of living, the changes will also result in nearly four million households on the standard rate of Universal Credit experiencing the first sustained above-inflation increase to the benefit.
This uplift equates to approximately an additional £295 this year for a single person aged 25 or over, escalating to £760 by the end of the decade. Consequently, those seeking employment and those already employed will have more disposable income as they strive to enter and progress in the workplace, reports Birmingham Live.
The DWP said: “It comes alongside a wider support offer that meets sick or disabled people where they are. WorkWell is now rolling out across England supporting up to 250,000 more people, whilst Connect to Work will provide personalised help for 300,000 people over the next five years.
“With 2.8 million people currently out of work due to long-term sickness, these measures are central to the government’s Plan for Change to break down barriers to opportunity and get Britain working.”
What is Universal Credit?
According to gov.uk, Universal Credit is a payment to help with your living costs. It’s paid monthly – or twice a month for some people in Scotland. You may be able to get it if you’re on a low income, out of work or you cannot work.
Universal Credit is replacing the following benefits:
- Housing Benefit
- Income Support
- income-based Jobseeker’s Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
If you’re getting any of these benefits, you do not need to do anything unless either:
- your circumstances change
- you get a letter called a ‘Migration Notice’ telling you that you must claim Universal Credit
You’ll stop getting these benefits when you or your partner claims Universal Credit. If you or your partner gets Pension Credit, this will also stop if one of you claims Universal Credit.
You’ll continue getting any other benefits you already receive, such as Personal Independence Payment (PIP) or Carer’s Allowance. If you get certain other benefits at the same time as Universal Credit, the amount of Universal Credit you receive will be reduced.
