Rishi Sunak has set out a series of reforms targeting individuals on PIP, Universal Credit, legacy benefits, or those who are long-term ill, with the aim of driving costs back up and addressing issues such as inactivity, long-term illness, and benefit fraud. The Prime Minister described the overhaul of the welfare system as a “moral mission” during his speech on April 19, which has since sparked controversy and led to claims that the plans represent an “all-out attack on disabled people”. .
Sunak highlighted the failings of the current system, particularly its lack of focus on the work claimants could do. He clarified that the proposed changes, including modifications to the Suitability Note procedure, the end of benefits for non-compliance with Work Coach instructions, and a commitment to “toughen up” the Work Capability Assessment with cost-cutting measures only.
He also revealed plans for a significant reform of the Personal Independence Payment (PIP) system, with a series of consultations about to take place on possible changes to the eligibility criteria, assessment process, and the variety of support available through the disability benefit. to investigate.
Mr Sunak has said the proposed changes to PIP will lead to a “more objective and rigorous approach” within the benefits system. He suggested that more medical evidence might be needed to support a PIP claim, and that individuals with mental health problems could be offered talk therapy or respite care instead of cash transfers.
The Prime Minister said “people with less severe mental health conditions should be expected to cope with the world of work”, outlining the UK Government’s new plans, the Daily Record reports. However, disability equality charity Scope has expressed surprise at the scale of the proposed PIP changes, describing it as feeling “like an all-out attack on disabled people” which could leave some “ex-members”.
The PIP reform would only apply in England and Wales, as 218,859 people in Scotland currently receiving PIP will eventually switch to the Adult Disability Payment (ADP) and Social Security Scotland’s devolved IT system 2025. Scope’s James Taylor reported that calls were “pouring into our helpline” from worried disabled people.
He said: “In a cost of living crisis, cutting disabled people’s incomes by hitting PIP is a terrible proposition. Sanctions and ending claims will only cause more misery for people at the sharp end of the cost of living crisis.”
Other proposed changes to the benefits system
Prime Minister Rishi Sunak has announced plans to make the following changes to the social welfare system.
Withdrawal of benefits from long-term unemployed people who do not take a job
Over 450,000 people have been out of work for six months and over 250,000 have been unemployed over the past year. The UK Government asserts that there is no reason why these people should not be employed given the current availability of over 900,000 vacancies.
In the coming parliament, new legislation will be proposed to change the rules. This means that anyone who has been on benefits for a year and does not meet the conditions set by their Work Coach – including accepting work that is available.
Amending Work Capability Assessments
The Prime Minister confirmed plans to tighten the Work Capacity Assessment so that those with less severe conditions are expected to contact the employment sector and receive support to do so.
He pointed out that under the current Work Capability Assessment, too many people are dismissed as unable to work without the opportunity to access vital support that could help them find a job to find.
He clarified that the UK Government is committed to completely abolishing the Work Capability Assessment (WCA) and introducing a new, personalized approach to employment support. The goal is to help people with disabilities and those with health conditions reach their full potential.
The expected reforms are projected to reduce the number of people assessed as not needing to prepare for work by 424,000 by 2028/29.
Review of the Note Fit process
The Prime Minister has also announced a review of the Fit Note system to prevent people being automatically categorized as “unfit for work”. Instead, it aims to design a new scheme in which all appropriate note discussions emphasize what individuals are capable of, provided they are properly supported, rather than emphasizing their limitations.
This means that the UK Government is considering shifting responsibility for issuing Practice Notes from primary care to free up critical time for GPs. All of this is aimed at creating a system that better meets a person’s health and career needs.
The government has published a request for evidence to gather responses from different perspectives. These include those with personal experience, healthcare professionals, and employers, offering input on how current procedures work and how they can improve support for people with health conditions in initiating employment, maintain and be successful.
It is important to remember that although Fit Notes policies and laws apply to Great Britain, Fit Notes are administered within health systems, which are devolved, indicating that this change may not occur in Scotland.
Speeding up the transfer of inheritance benefit to Universal Credit
The roll out of Universal Credit will be accelerated to transfer all those remaining on Employment and Support Allowance (ELS) to the modern IT system.
Adjustments to Administrative Earnings Threshold
The Prime Minister has announced that from next month, individuals who work less than half a full-time week will have to seek additional employment. The UK Government has already set out plans to raise the Administrative Earnings Threshold (AET), which determines the level of support a person receives based on their current earnings and hours worked.
Those earning below the AET will be placed in the Intensive Search Group and will have to meet regularly with their Work Coach.
The threshold is set to increase from £743 to £892 for single claimants and from £1,189 to £1,437 for couples – the equivalent of 18 hours of the National Living Wage per week for an individual, starting in the month of May.
The UK Government has said that over 180,000 Universal Credit claimants will be moved into the Intensive Jobseeker group from the Light Touch group as a result of these changes.
This means an additional 400,000 claimants will receive more intensive support from Work Coaches. Claimants’ commitments will be tailored to their personal circumstances, taking into account caring responsibilities and any health conditions.
Prevention of fraud
A new Fraud Bill will be introduced in the next Parliament.
The measures in the Bill will give the UK Government new powers to:
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warrants for conducting searches
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seizures and arrests
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enforce civil penalties more consistently and flexibly, and on a wider group of offenders
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provide new powers to collect information from additional information holders as part of Department for Work and Pensions (DWP)-led fraud investigations
These new measures will complement the Data Protection and Digital Information Bill, which is being introduced by the UK Government. This legislation will allow the DWP to access third party information that may indicate fraudulent activity.
UK authorities have described this as one of the most significant reforms to benefit fraud laws in over 20 years, predicting savings of £600 million for taxpayers by 2028/29.
They also explained that this scheme aims to establish a welfare system that is “fit for the future by providing vital support only to those who need it most and ensuring that they are supported to live with dignity and independence, while at the same time ensuring that everyone who is able to work. expected and supported for that”.
However, Erica Young – the Social Justice policy officer at Citizens Advice Scotland – expressed different views: “The Prime Minister is right to want to support people to work and about the effects can work for people with a chronic condition, but the rhetoric of ‘sick note culture’ does not match the reality of our welfare system, and the importance of supportive relationships with GPs for those struggle to work because of her health.”
“CABs are increasingly advising people who don’t have enough to live on because their financial resilience has been eroded by years of rising bills. Many disabled clients receiving social security payments choosing between buying food and cutting essential medical equipment. support at all.”
She added: “There is a risk that this kind of language will create a culture of fear and prevent people from seeking help of any kind, including the support provided in Scotland based on the principles of dignity , of fairness and respect.”