Tag: DWP

Fraser of Allander analysis: The welfare bill under pressure

We have heard this week that the UK Government Chancellor Rachel Reeves intends to make cuts to the welfare bill to bring UK Government borrowing down in line with her fiscal rules ahead of the next OBR forecasts due at the end of the month (writes Fraser of Allander Institute’s EMMA CONGREVE). 

Reports state that the axe is likely to fall on health and disability related benefits for working age people.

Here we produce a bit of an explainer to get people up to speed on the benefits in scope and what has been happening in recent years.

Which benefits could be in line for cuts?

There are two types of benefits in Great Britain (benefits in Northern Ireland are arranged differently) that working age people with disabilities and ill health can claim.

Incapacity Benefits

The first type is an income replacement benefit that tops up income for families where the disability or health condition limits their ability to work, commonly referred to as incapacity benefits. They are means tested so that the amount you receive depends on your household income and reduces as income (e.g. from a partner’s earnings) rises.

Chart: Caseload of incapacity benefits for working age adults, Scotland

Notes: Universal credit and ESA exclude those in the assessment phase in line with OBR Welfare Trends Report analysis. Northern Ireland not included.

Sources: DWP, ONS

Universal Credit (UC) has been slowly replacing Employment and Support Allowance (ESA) for this group of people since 2018 so the reduction in ESA over time reflects migration over to UC rather than a change in disability/health status.

Disability Benefits

The second type of support for those with disabilities and ill health comes from payments to cover additional costs, for example due to reduced mobility, and are commonly referred to as disability benefits. They are not means tested and people do work whilst they are on these benefits.

In Scotland this type of benefit is now devolved, with Adult Disability Payment (ADP) slowly replacing Personal Independent Payment (PIP). PIP itself was a replacement for Disability Living Allowance (DLA) which no longer takes new applications and has a caseload that is reducing over time.

Chart: Caseload of disability benefits for working age adults, Scotland

Note: Adult Disability Payment started to replace PIP in Scotland from 2022. In England and Wales, PIP remains the main payment.

Source: DWP, ONS, Social Security Scotland

Which benefits are devolved?

Incapacity benefits (UC and ESA) are reserved benefits which means they largely operate in the same way across Great Britian, with the cost of the benefit in Scotland met by the UK Government. Any cuts made by the UK Government would apply in Scotland.

Disability benefits (PIP. SDA and ADP) are devolved, and there are differences in how the benefits operate in Scotland. The Scottish Government meets the costs of the benefit. To offset this, an amount is paid from the UK Government in the block grant, equivalent to the UK Government’s spending in Scotland if the benefits hadn’t been devolved and if spending had grown at the same per capita rate as in England and Wales.  

The Scottish Government has to find additional money if expenditure on Scotland starts to diverge from the rest of GB trend due to policy changes (or perhaps, if our population gets relatively sicker).

Any cuts to PIP or SDA made by the UK Government would not apply in Scotland, but the block grant from UK Government would fall. If the Scottish Government did not replicate the cuts, they would have to find additional money from elsewhere in the Scottish Budget to offset the fall.

What has changed since the pandemic and has it been the same in Scotland as the rest of Great Britain?

As the above charts show, the caseload (the number of people claiming these benefits) has been rising steadily in recent years for both these benefits across GB and is forecast to continue to do so.

The caseload in Scotland has long been higher than in England and Wales due to a higher prevalence of people with disabilities and long-term health conditions.

In recent years, incapacity benefits caseload growth has been slower (49% in Scotland compared to 59% in rGB between May 2019 and August 2024) but due to different levels of population growth caseload per capita (which is the caseload measure shown in the charts) has been slightly higher in Scotland (7% to 11% of working age population compared to 5 % to 8% for rGB).

For disability benefits, the introduction of Adult Disability Payment makes it difficult to compare like-with-like. Although eligibility has remained broadly the same, the application process has been made more accessible and this appears to have led to an increase in people applying following its introduction.

For more detail on this, see this paper from our sister organisation the Scottish Health Equity Research Unit (SHERU). It’s also possible that some people in Scotland delayed making a PIP application to DWP in anticipation of ADP opening for applications.

This may help to explain why, since 2019, the growth in the caseload in Scotland has been only slightly higher than rGB (63% increase in Scotland between May 2019 and Aug 2024 compared to 61% for rGB). In per-capita terms, due to lower population growth in Scotland, the growth has been a bit more significant (increase from 8% of the working age population to 14% in Scotland between May 2019 and Aug 2024, compared to 6% to 9% for rGB).

Do we know why rates have increased?

There are many theories as to why rates have increased but, for a number of reasons, it has been difficult to fully evidence exactly what is going on.

We know from IFS research that rates have increased more in Great Britain than they have in other countries. The IFS also looked at entry and exit rates for disability benefits England and Wales and concluded that around 2/3 of the increase is due to people starting claims and 1/3 is due to fewer people ending their claim.

There are likely to be a number of intersecting factors. We summarise some of these issues below but overall emphasise that we don’t fully know the extent to which these interact.

The working age population is getting older

On average, people’s health deteriorates as they age. With falling birth rates there are currently proportionally fewer younger working age people than older working age people. Coupled with this, pension age changes mean that more older people have become classified as ‘working age’ in recent years. The Resolution Foundation have calculated that an ageing working age population accounts for 1/5 of the rise in caseloads for health-related benefits since the pandemic.

The increases for younger people are concerning but the biggest impact on expenditure would come from tackling ill-health and disability in older age groups

For disability benefits, the growth has been highest in the older working age population, with then broadly comparable rises across other age groups. For incapacity benefits, after the 55-64 age group the second largest rise has come from 25-34 year olds. Growth in the number of young people out of work due to disability and ill health are concerning and needs attention, but if rates are going to come down, focussing on the older generation is key. Whilst we can’t fully attribute the rise to longer waiting times in the NHS, this is likely to be part of the explanation.

Some of the rise may be due to people struggling financially and needing to maximise benefit income

This rise in benefit caseloads has coincided with relatively high rates of inflation and the ‘cost of living crisis’. People struggling financially may have been more likely to make claims during this period compared to previous years when they did not feel they needed the extra income.

There is also some suggestion that people may have switched the type of claim they make for out-of-work benefits to benefit so they can receive a higher level of payment for disability and ill-health related claims. The fact that they are successful in these claims means that people are simply claiming what they are entitled to rather than somehow ‘gaming the system’.

Mental health related claims have grown, but so have claims related to other conditions

The largest absolute rise in claims for disability benefits has been related to mental health conditions, but across Great Britain, there have been rises in a range of physical conditions too (see IFS and SHERU work on this linked above). The extent to which this is due to an increased prevalence of health conditions versus an increased likelihood to claim a health-related benefit is difficult to disentangle.

There has been a rise in the in-work population reporting a disability as well and it may be that people are becoming more comfortable with disclosing mental health conditions. This could mean that people with multiple health conditions are more comfortable with citing mental health as their primary condition in benefit claims now than was previously the case.

We don’t know how much is due to long-covid or longer-term impacts of the pandemic

The extent of available data frustrates efforts to pin down the emergence of new or worsened conditions due to the pandemic and how this has changed people’s financial circumstances (for example, ability to work).

Issues with the official Labour Force Survey have limited the usefulness of the data collected there on reasons for ill health and inactivity (see SHERU blog on this issue here) and qualitative research that is able to produce more in-depth insights usually can’t be scaled up to population level.

As more longitudinal data is made available that tracks people through the period, alongside progress towards more routine data linkage of health records to other administrative data sources such as tax records, we might be able to get a better picture of the intersecting factors that have changed people’s health, benefit and work status in recent years.

What happens next?

The Spring Statement is due on the 26th March. When we know what the proposals are, we’ll be able to unpick what this will mean for people in Scotland and for Scottish Government budgets.

Whilst cuts to welfare spending may help in the short term, longer term solutions are tied up with efforts to improve both living standards and the ability of public services to support people further upstream (for example, through the NHS and employability services) which can reduce their need to recourse to the social security system.

Any decision to make cuts could come with fiscal risks. Cutting benefits for people already experiencing ill health and disability could make their conditions worse and increase demand for public services and/or lead to longer-term reliance on non-health related benefits.

A recent BBC verify article also provides a note of caution: reducing spending on the welfare bill is historically difficult and estimates of savings are often not achieved.

As well as looking at the details of the cuts, we’ll be looking at what the OBR say regarding their effectiveness of cutting UK Government spending with a keen eye.

UK Government ‘to unlock work’ for sick and disabled people

Work will be unlocked for thousands of sick and disabled people through new measures that will bolster the support offered in Jobcentres and make the welfare system more sustainable, the Department for Work and Pensions has announced today

  • New plans to improve employment support brought forward ahead of wider reform package to fix broken welfare system. 
  • 1,000 work coaches deployed to deliver intensive employment support to sick and disabled people as part of the government’s Plan for Change which will break down barriers to opportunity.
  • It comes as a new survey reveals scale of the broken system with nearly half of disabled people and those with a health condition saying they don’t trust DWP to support them.

The plans will see 1,000 existing Work Coaches deployed in 2025/26 to deliver intensive voluntary support to around 65,000 sick and disabled people – helping them to break down barriers to opportunity, drive growth and unlock the benefits of work.

This intensive support for people on health-related benefits – including those furthest away from work – will see Work Coaches providing tailored and personalised employment support, and help claimants access other support such as writing CVs and interview techniques. They will also access a range of DWP employment programmes to help claimants unlock work based on conversations with their Work Coaches.

The additional help will be delivered by reprioritising work coach time so they can focus on tackling economic inactivity in order to make the welfare system more sustainable. The 1,000 redeployed Work Coaches are a “downpayment” on wide-ranging plans to overhaul employment support, which are set to be unveiled in just a few weeks’ time. 

It is part of the Government’s Plan for Change – which will boost living standards and grow the economy by unlocking work for the 2.8 million people who are economically inactive due to long-term sickness – the highest in the G7 – and bring down spending on incapacity benefits which is expected to reach £70 billion by the end of this parliament. 

It comes as new survey results show the current system isn’t just failing the taxpayer, it’s also failing the people it’s meant to help, with 44% of disabled people and people with a health condition believing DWP does not provide enough support to people who are out of work due to disability, ill health, or a long-term health condition.

Work and Pensions Secretary, Rt Hon Liz Kendall MP said: “We inherited a broken welfare system that is failing sick and disabled people, is bad for the taxpayer, and holding the economy back. 

“For too long, sick and disabled people have been told they can’t work, denied support, and locked out of jobs, with all the benefits that good work brings.

“But many sick and disabled people want and can work, with the right support. And we know that good work is good for people – for their living standards, for their mental and physical health, and for their ability to live independently. 

“We’re determined to fix the broken benefits system as part of our Plan for Change by reforming the welfare system and delivering proper support to help people get into work and get on at work, so we can get Britain working and deliver our ambition of an 80% employment rate.”

The data from the DWP Perceptions Survey – soon to be published in full – also shows:  

  • 35% of disabled people and people with a health condition believe DWP does not provide enough support to people of working age who are out of work, to help them get back into work. 
  • 44% of disabled people and people with a health condition don’t trust the DWP to help people reach their full career potential. 
  • Nearly 2 in 5 (39%) disabled people and people with a health condition do not trust DWP to take its customers’ needs into account in how it provides services. 

These figures follow recently released data which shows that there are over three million people on Universal Credit with no obligation to engage in work-related activity, despite over a quarter (27%) of health and disability benefit claimants believing that work could be possible in the future if their health improves and 200,000 saying they would be ready to work now.

Data also shows the number of working-age people on the health element of Universal Credit or claiming Employment Support Allowance (ESA) has risen to 3.1 million, a staggering 319% increase since the pandemic, reflecting the alarming rate at which young and working aged people are increasingly falling out of work and claiming incapacity benefits. 

Behind each of these statistics is a person with hopes and ambitions, who can provide businesses with much-needed skills and experience, helping to grow our economy.

To give people the support they deserve, and restore trust and fairness to our welfare system, reforms to the welfare system are expected to be announced in just a few weeks. 

These reforms will recognise that some people will be unable to work at points in their life and ensure they are provided with support while transforming the broken benefits system that: 

  • Asks people to demonstrate their incapacity to work to access higher benefits, which also then means they fear taking steps to get into work.
  • Is built around a fixed “can versus can’t work” divide that does not reflect the variety of jobs, the reality of fluctuating health conditions, or the potential for people to expand what they can do, with the right support.
  • Directs disabled people or those with a work-limiting health condition to a queue for an assessment, followed by no contact, no expectations, and no support if the state labels them as “unable” to work. 
  • Fails to intervene early to prevent people falling out of work and misses opportunities to support a return to work.
  • Pushes people towards economic inactivity due to the stark and binary divide between benefits rates and conditionality rules for jobseekers compared to those left behind on the health element of Universal Credit.  
  • Has become defined by poor experiences and low trust among many people who use it, particularly on the assessment process.

The government’s plans to fix the broken benefit system will build on the biggest employment reforms in a generation announced in the Get Britain Working White Paper, which will empower mayors to drive down economic inactivity, deliver a Youth Guarantee so every young person is either earning or learning, and overhaul jobcentres across the country. 

Former John Lewis boss Sir Charlie Mayfield is leading an independent review investigating how government and employers can work together to help disabled people and those with ill health who may be at risk of falling out work stay on in employment, with the findings of the discovery phase expected in the spring.

The government is also investing an additional £26 billion to cut NHS waiting lists and get Britain back to health and back to work. 

The government has already delivered on its pledge, providing two million extra appointments in five months and as a result, around 160,000 fewer patients on waiting lists today than in July.

Teams of clinicians will also introduce new ways of working at 20 hospital sites in areas with the highest levels of economic inactivity to help patients return to the workforce faster.

This is alongside the recruitment of an additional 8,500 mental health workers to ensure mental health is given the same attention as physical health.

New survey suggests benefits system is letting down people with mental health conditions who want to work

Many sick and disabled people say they want to work to help boost their living standards – but aren’t given the right support, according to new data published on Time to Talk day [6 February].

  • New survey suggests 200k people claiming health and disability benefits are ready for work now if the right job or support were available.
  • Comes as number of young people with a mental health condition who are economically inactive due to long-term sickness reaches over a quarter of a million (270,000).
  • Overhaul of health and disability benefit system set to be unveiled in Spring to ensure it provides meaningful support to help long term sick back into work.

New research published by the Department for Work and Pensions shows that nearly half (44%) of people with a mental health condition expect to be able to work in future if their health improves.

This comes as the number of young people (aged 16 to 34) who are economically inactive due to long-term sickness and have a mental condition reaches 270,000. This number has been rising consistently over the past decade and has increased by 60,000 (26%) in the last year alone. The equivalent figure for all people of working-age (16 to 64) is 790,000 – an increase of 140,000 (22%) over the last year.

The Work Aspirations of Health and Disability Claimants survey also finds that a third (32%) of those claiming health and disability benefits believe they can work now or in future.  (5%) say that they would be ready now if the right job or support were available. This equates to around 200,000 individuals.

The survey also finds that those out of jobs overwhelmingly see work as a key part of their identity and a route to higher self-esteem, happiness and security.

In further evidence that the current system pushes people away from work, the survey revealed that 50% of people who are on health and disability benefits and are not currently in work said they were worried they would not get their benefits back if they tried paid employment and it did not work out.

 It comes as the Work and Pensions Secretary Liz Kendall visited Workbridge charity which offers support to people who are unable to work due to mental ill health, to hear how they’re supporting people with mental health conditions into work.

Responding to the stark survey results, the Work and Pensions Secretary has said the report demonstrates the need to reform the current welfare system, so that it offers better, meaningful support to give disabled people and people with long-term health conditions a real opportunity to find work.

The upcoming reforms will be a key part of the government’s Plan for Change to boost employment by breaking down barriers to opportunity – creating a welfare system that promotes tailored pathways into work and accommodates the complex nature of disabilities and health conditions – and consequently, improving people’s living standards.

Work and Pensions Secretary, Rt Hon Liz Kendall MP said: “Today’s report shows that the broken benefits system is letting down people with mental health conditions who want to work.

“People claiming Health and Disability benefits have been classed by the system as “can’t work” and shut out of jobs and have been ignored – when they’ve been crying out for support.

“That is a serious failure. It’s bad for people, bad for businesses, which miss out on considerable talent, and bad for the economy.

“For young people in particular, being out of work can have a scarring effect that lasts a lifetime.

“On Time to Talk day, it’s time to change how we support people with long-term health conditions, such as a mental health condition, so that they have a fair chance and choice to work.”

On her visit to Workbridge, Kendall spoke to experts to hear their insights on how government and employers can better accommodate the fluctuating nature of people’s mental health – ensuring that people’s views and voices are at the heart of changes that affect them.

Being in work has a positive effect on people’s mental and physical health – providing people with confidence and independence, as well as financial benefits.

The UK remains the only G7 country that has higher levels of economic inactivity now than before the pandemic, with the benefits bill spiralling – largely driven by the increase in people claiming incapacity benefits for mental health conditions, who had not received the care and treatment they deserve.

The reforms to the health & disability benefit system due to be unveiled in a Green Paper in Spring will consider these issues and how the government can tackle these barriers to employment, and the government will work closely alongside charities, organisations and disabled people to ensure their voices help shape any proposals for reform.

The Green Paper will set key ambitions for creating a system that is fairer on disabled people – offering support into work which takes into consideration the realities of their health condition and life circumstances, and fairness for the taxpayer by bringing down the benefits bill.

The reforms are expected to build on the Get Britain Working White Paper, which set out the first steps to achieving the government’s target 80% employment rate, driving up growth and driving down poverty in every corner of our country. 

Successful steps have already been taken to offer work and life-changing support, with a record number of people with mental health conditions receiving employment advice through the NHS Talking Therapies programme.

Alongside this support, the Laobur Government has settled record funding for the NHS – so that all people can get the care they need – and have pledged:

  • 8,500 more mental health staff
  • Mental health support teams in every school
  • Open-access mental health hubs in every community

DWP plans to overhaul employer support to ‘Get Britain Working’

Ministers are encouraging UK businesses to work with Jobcentres to fill the thousands of jobs currently vacant as the UK goes for growth, the Work and Pensions Secretary Liz Kendall set out this week

  • Following the Chancellor’s growth speech this week, Work and Pensions Secretary Liz Kendall visited fast growing UK retailer B&M – who successfully filled almost 3,000 vacancies using local jobcentres in 2024. 
  • The Work and Pensions Secretary has set out overhaul the DWP’s approach to supporting employers to Get Britain Working again as part of Plan for Change.
  • Comes as just one in six businesses has ever used a Jobcentre to recruit with the latest data showing tens of thousands of vacancies in key sectors. 
  • New DWP team have built partnerships with 37 new industry leaders in just a few week as department transforms Jobcentres.
https://twitter.com/i/status/1885364008649134558

It comes as the Work & Pensions Secretary visits B&M – a retailer that has had huge success using the Jobcentre network. As a fast growing UK retailer, B&M has filled almost 3,000 vacancies through the jobcentre network, with over 85% of new recruits coming directly through the DWP – benefiting jobseekers and the businesses’ growth. 

The DWP has hit the ground running to reset engagement with employers through new teams to support employers, with dedicated account managers and a focus on growing the number of Jobcentre training programmes tailored to employer’s needs.

As B&M has opened new stores across the country, it has teamed up with the local DWP team to run information sessions – offering interested candidates a guaranteed interview. 

Over 73,000 jobs have been added to the labour market since the start of this Parliament according to the ONS, with new announcements in the Chancellor’s speech yesterday expected to add thousands more roles to the UK jobs market – including over 100,000 jobs in the local area around Heathrow. 

However, new figures show only 1 in 6 employers surveyed reported using the JobCentre Plus network to hire for their business – highlighting the need for genuine reform. 

That’s why as part of the Get Britain Working plan, the government will reform jobcentres by bringing it together with the National Careers Service to ensure people have better access to training and address local skills gaps and help train the workforce businesses need.

The reforms to get Britain working and modernise the employment support offer are just one part of the Government’s Plan for Change, which will lay strong foundations to kickstart economic growth and break down barriers to opportunity across the country. 

Work and Pensions Secretary Liz Kendall said: “To get Britain growing again, we need to get Britain working again.  

“As the HR department for the Government’s growth mission, our job is to work with businesses to meet their recruitment needs.

“To help employers grow, hire new staff, and boost opportunity in every corner of the country, we are determined to change our approach.

“As part of reforming Jobcentres we will overhaul our service to better meet employer’s needs – turning the DWP into a genuine public employment service. So businesses can fill jobs and people can build a better life for themselves and their families.”

A B&M spokesperson said: “There is a wealth of talent and experience in Jobcentres across the UK. We encourage other businesses to get in touch with their local Jobcentre and discover the talent that’s available in their community.“

The new dedicated team set up to support businesses of all sizes across the country with their recruitment needs has already added 37 new employers to the department’s roster in recent weeks, with notable names including Home Bargains, KFC and Swissport.

In a letter to CEOs from 10 of the UK’s top businesses, DWP ministers said that at a time when recruitment can be a major cost, the DWP “provides a service to help businesses grow and support people into work“.

To help other businesses replicate B&M’s success, the department is transforming its service for employers by:

  1. Hosting summits with employers and stakeholder representatives across sectors crucial to growth – including construction, social care and clean energy in the next three months. 
  2. Boosting the number of training programmes in these sectors on offer at Jobcentres to upskill jobseekers and provide employers with the work ready staff they need.   
  3. Serving employers through a dedicated team with highly experienced experts to provide recruitment support, including designing tailored campaigns to tackle large numbers of vacancies. 
  4. Providing an account manager for employers to get more information about how the JCP can help them and provide recruitment support – following feedback from businesses that they wanted an establish a single contact. 
  5. Commissioning Sir Charlie Mayfield to lead an independent review into the role of employers in reducing health-related inactivity and promoting healthy and inclusive workplaces – which is already underway.

Disability benefits claimants at increased risk of hardship as DWP underpayments rise

Report warns service provided to customers is a mixed bag with levels of fraud remaining unacceptably high

Disability benefits claimants receive an unacceptably poor level of service from the Department for Work and Pensions (DWP). In a report published today, the Public Accounts Committee (PAC) warns that the DWP’s understanding of vulnerable customers’ experience is not good enough, with how it provides customer service overall also falling short.

The report finds that benefit claimants received over £4bn less than they were entitled to in 2023-24. This increases the risk of financial hardship for the people losing out. This figure of underpayments has risen from £3.5bn in 2022-23. Underpayment rates are highest for disability benefits, such as Personal Independent Payment (PIP) and Employment and Support Allowance (ESA).

The inquiry heard that disabled peoples’ experiences of the benefit system are often negative due to issues with the design of the system and how DWP communicates, with evidence that 43% of claimants with complex disabilities do not have their needs met through DWP’s communications.

Not informing DWP of a change in circumstances is the most common reason for underpayments – the report notes that many claimants need to call DWP to do so, but a significant proportion of calls go unanswered.

The PAC is warning that DWP does not understand well enough the experience of vulnerable customers and customers with additional or complex needs, and should gather the data it needs to gain this understanding.

The DWP conceded to the PAC that, while it had been using artificial intelligence to help identify vulnerable customers at the time of the Committee’s inquiry, it did not have a system to identify such customers on the telephone.*

The report raises continuing concerns about the potential negative impact on protected groups and vulnerable customers of DWP’s use of machine learning to identify potential fraud, and seeks reassurance from Government that claimants are not being treated unfairly through its use.

Recipients of PIP and ESA, the report finds, receive an unacceptably poor service from DWP. ESA claimants have to wait an average of nearly 30 minutes for DWP to answer their calls (compared to approximately 2 minutes for Universal Credit claimants). For new PIP claimants, only half of these are processed on time (as compared to 96% of new State Pension claims).

While benefits underpayments are climbing, the report also warns that overpayments are also on the rise, with £9.5bn of benefit expenditure (excluding State Pension) overpaid in 2023-24 – up from £8.2bn in 2022-23.

The report calls out DWP’s defence of its current performance: by referring to the challenge of working against a “headwind” of an increasing propensity for fraud in society. The PAC sees this as a dangerous mindset, stressing that it is the DWP’s job to improve its defences and ensure benefit claimants receive the right amount of money.

Sir Geoffrey Clifton-Brown MP, Chair of the Committee, said: “Our report’s disheartening findings illustrate the stark disparity of experience between claimants for disability benefit and other users of the system.

“In some cases, claimants are literally calling for help and receiving no answer, resulting in increasing risks to their financial security. The British public would be forgiven for thinking the state is AWOL just when it needs it most.

“The DWP must do more to ensure that claimants are reunited with the money to which they are entitled, as well as to understand the needs of vulnerable claimants.

“Our Committee is closely scrutinising the use of AI in Government. While this Committee would welcome the use of AI for the benefit of the public, the onus is also on the DWP to prove it is using these powerful tools in a safe and fair manner.

!We are also as concerned at the picture of growing underpayments as we are with overpayments, and have little sympathy for the DWP’s argument that this rise is driven by a growing propensity for fraud in society.

“This amounts to saying that the DWP’s job is too hard to do well – not a defence that this Committee is prepared to accept.”

Ex-high street boss to ‘keep Britain working’

Review into business support for disabled and long-term sick

A new “Keep Britain Working” review has been launched today (Friday 24 January) to explore how to urgently support people with long-term illnesses or disabilities back into work, and to stay in work.

  • Independent review led by former John Lewis boss, Sir Charlie Mayfield, officially underway.
  • Review to investigate how government and businesses can work together to support ill and disabled people into work, boost living standards and grow the economy as part of Plan for Change.
  • Intervention comes as government is expected to publish major health and disability benefit reforms this Spring.

Former chairman of John Lewis Partnership, Sir Charlie Mayfield, will lead the Keep Britain Working Review to investigate the factors behind spiralling levels of inactivity, and how government and businesses can work together to turn this around, to get Britain working again. 

The review will be the first of its kind, and following the launch of the Get Britain Working White Paper, will be one part of the government’s Plan for Change to kickstart economic growth in partnership with businesses, drive up prosperity and raise living standards across the UK.

With over a third of working age people reporting a long-term health condition and around a quarter classed as disabled, the latter group being three times more likely to be not in work or looking for work, the scale of the challenge is stark.

Beginning today, the review will move at pace concluding in the Autumn, with Sir Charlie Mayfield meeting businesses and health and disability organisations across the country to identify the scale, trends, obstacles and opportunities for companies when recruiting and retaining ill and disabled people. 

This phase will conclude in Spring with a report based on the findings from his conversations with company bosses, employees who have been supported to stay in work, and organisations who help those out of work, to inform wider engagement. Recommendations to the government are expected later this year.

This will be part of the government’s plan to boost employment by breaking down barriers to opportunity and improving people’s living standards through work and life-changing support, building on the latest data this week showing real earnings have increased by 2.5% on the year.

Sir Charlie Mayfield, who was also Chair of the British Retail Consortium and Chair of the UK Commission for Employment and Skills, said: “Losing people from the workforce because of ill-health or disability is bad for many of the individuals, for the businesses employing them, and for the wider economy.

“It’s a growing problem for us all and it’s one that’s more likely to be resolved by business and government working together.

“I’m looking forward to engaging closely with businesses, government departments and the many organisations committed to improving our performance here.”

The review, which will identify measures to help ill and disabled people get into work and stay in work, comes ahead of significant reforms to health and disability benefits expected in the Spring. 

Work and Pensions Secretary, Rt Hon Liz Kendall MP, said: “Millions of people have been left without support to get into work and on at work, and completely held back from reaching their potential for far too long, and the record-high cost of long-term sickness benefits is evidence of that fact.

“That’s why I am pleased to have Sir Charlie leading this review, bringing a wealth of experience and helping us to get people into work, and most importantly keep them in work, so we can boost living standards and get our economy growing.”

Business and Trade Secretary, Rt Hon Jonathan Reynolds, said: “It isn’t right that too many businesses are missing out on the people they need, while those who want to work can’t because of long-term sickness. 

“Solving this problem is one of the greatest challenges facing the labour market, with years of poor support blocking those with great talent from helping drive our economy forward.

“The government is on the side of working people and is unashamedly pro-business. That’s why this review will be critical in getting businesses the people they need to unlock their full potential.”

Rain Newton-Smith, CEO of the CBI, said: “Lower rates of employment for people with long-term health conditions or disabilities is a tragic waste of potential that holds back economic growth and impacts on well-being. 

“It denies people the opportunity to improve their personal financial security through work and prevents businesses from using their valuable skills and experience to grow the economy. 

“Sir Charlie’s review is a welcome opportunity for business and government to co-design solutions that have a real impact.”

This business engagement is part of the Westminster government’s Get Britain Working White Paper which is currently progressing the biggest employment reforms in a generation so the UK can reach an ambitious 80% employment rate. 

As part of the plan, Jobcentre’s are to change their focus from monitoring and managing benefit claims to skills and careers, mental health support will be expanded to reduce waiting lists in areas with the highest levels of economic inactivity, and mayors will be empowered to join up local work, health and skills support to tackle the root causes of inactivity in their areas.

Biggest fraud crackdown in a generation

Welfare fraudsters who cheated the taxpayer out of £7 billion last year could be banned from driving if they fail to reimburse the public and repay their debt

  • Benefit cheats to be stripped of driving licences under new plans in government’s biggest fraud crackdown in a generation
  • New Public Authorities (Fraud, Error & Recovery) Bill introduces measures to be tough on criminals and fairer to taxpayers.
  • The Bill alone is expected to save the Department £1.5 billion over the next five years, and forms part of wider government plans to save a total of £8.6 billion over 5 years in the biggest welfare fraud and error budget package in recent history, as part of Plan for Change

As part of new legislation set to be introduced in Parliament today to deliver the biggest fraud crackdown in a generation, benefit cheats could be disqualified from driving for periods of up to two years if they refuse all opportunities to repay the money they owe.

The Department or Work and Pensions (DWP) will be able to apply to the court with the justification to suspend fraudsters from driving, provided the debts is £1,000 or over and frequent requests to repay the debt have been ignored.

DWP’s serious organised crime authorised investigators are also expected to be handed powers to apply to a court for search warrants. It means that for the first time, they will be able to support Police and search premises and seize items such as computers and smartphones as evidence against fraudsters.

The Bill alone is expected to save the Department £1.5 billion over the next five years, and forms part of wider government plans to save a total of £4.3 billion in 2029/30 in the biggest welfare fraud and error budget package in recent history.

 The new legislation is being brought forward after the government inherited a broken welfare system, with fraud and error in the social security system currently costing the taxpayer almost £10 billion a year and, since the pandemic, a total of £35 billion of taxpayers’ money has been incorrectly paid to those not entitled to the money.

This Bill comes as the government seeks to bring forward measures to overhaul the health and disability welfare system as part of its Plan for Change, so it better supports people to enter and remain in work and to tackle the spiralling welfare bill – with new proposals for reforming the health and disability benefits system expected in the Spring.

This legislation also delivers on the government’s manifesto commitment to safeguard taxpayers’ money and demonstrates the government’s commitment to not tolerate fraud, error or waste anywhere in public services, including the social security system. 

The measures in the Bill will be underpinned by a principle of fairness and proportionality – the priority is always to negotiate affordable and sustainable repayment plans, with these powers to be used as a last resort. 

Secretary of State for Work and Pensions, Liz Kendall, said: “We are turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money.

“This means greater consequences for fraudsters who cheat and evade the system, including as a last resort in the most serious cases removing their driving licence. Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are used proportionately and safely.

“People need to have confidence the Government is opening all available doors to tackle fraud and eliminate waste, as we continue the most ambitious programme for government in a generation – with a laser-like focus on outcomes which will make the biggest difference to their lives as part of our Plan for Change.”

DWP will also have the power to recover money directly from bank accounts of those not on benefits or in PAYE employment who owe the Department and refuse to pay up, despite having the means to do so. The Bill will allow DWP to request bank statements to prove these debtors have sufficient funds to fairly repay what they owe. However, DWP will not have direct access to people’s bank accounts.

Modernising the approach to catching fraudsters, preventing overpayments and introducing new safeguards to further protect vulnerable customers means the DWP can keep pace with the sophisticated nature of fraud, while also ensuring law-abiding customers get the right benefits – preventing them from falling further into debt.

The Bill will also include safeguarding measures to protect vulnerable customers. Staff will be trained to the highest standards on the appropriate use of any new powers, and we will introduce new oversight and reporting mechanisms, to monitor these new powers.

The government will also bring forward Codes of Practice which will be consulted on during the passage of the Bill to provide further assurance on the safe use of the powers, and we have a clearly defined scope and clear limitations for the use of all the powers including the right to appeal the decision.

The Cabinet Office’s Public Sector Fraud Authority will also be given more powers under the legislation being introduced in Parliament today.

A brand-new measure will see the time limit for civil claims against Covid fraud doubled from six to twelve years. This step change in the ability to fight fraud committed during the pandemic will give the Covid Corruption Commissioner and the Public Sector Fraud Authority more time to investigate complex cases and apply their new powers retrospectively – including the ability to raid properties and retrieve money from Covid fraudsters’ bank accounts.

Georgia Gould, Minister in the Cabinet Office, said: “During the pandemic, when people and businesses needed government support the most, some people stole public money for their own personal gain.

“This legislation gives the government tough new powers that can be used to investigate and recover money stolen from the public during covid and doubles the time we have to bring fraudsters to justice.”

Taken together, these measures show the government’s commitment to taking a responsible approach to public finances which is required for long-term economic growth, in order to deliver for working people up and down the country.

Additional Information

The new law will deliver on this government’s manifesto commitment to safeguard taxpayers’ money – ensuring every pound is spent wisely and effectively:  

  • New powers of search and seizure – so DWP can control investigations into criminal gangs defrauding the taxpayer 
  • Allowing DWP to recover debts from individuals no longer on benefits and not in PAYE employment who can pay money back but have avoided doing so. 
  • New requirements for banks and building societies to flag where there is an indication that there may be a breach of eligibility rules for benefits – preventing debts accruing 
  • All the powers will include strong safeguards to ensure they are only used appropriately and proportionately – including new inspection and reporting mechanisms. 
  • We have a clearly defined scope and clear limitations for the use of all the powers we are introducing, and our staff will be trained to the highest possible standards. 

The measures in this Bill will enable the PSFA to:

  • reduce fraud against the public sector by using its expertise to take action on behalf of other departments, against those who attack the public sector.
  • better detect and prevent incorrect payments across the public sector through new information gathering and sharing powers.
  • Use strong non-criminal sanctions and civil penalties to provide an alternative to criminal prosecution and to deter fraud 
  • improve the government’s ability to recover public money, through new debt recovery and enforcement powers. 
  • Use new powers of entry, search and seizure to reduce the burdens on the police in the most serious criminal investigations.
  • improve fraud management in future emergencies by creating specialist time limited powers to be used in crisis management situations – building on lessons learned during COVID-19.

The PSFA will implement a ‘test and learn’ approach when utilising these powers, piloting different approaches and expertise to find the best way to tackle public sector fraud.

Business leaders join forces to get thousands of offenders into work

Major new drive to get offenders into stable jobs and away from a life of crime

  • New Employment Councils to bring probation, prisons and local businesses together
  • Household UK names including the Co-op and Oliver Bonas backing new initiative
  • Scheme aims to get more offenders into work to cut crime as part of Plan for Change

Bosses from household names including Greggs, Iceland and COOK will be among those to sit on new Employment Councils supporting offenders serving their sentence in the community into work.

They will build on the success of prison Employment Advisory Boards, which were created by Lord Timpson before he became a government minister. These have brought local business leaders into jails to improve education and prisoners’ ability to get work when released.

The new regional Employment Councils will expand this model out to the Probation Service and the tens of thousands of offenders serving their sentences in the community.

Each council will also have a representative from the Department for Work and Pensions (DWP) to help improve links with local job centres.

The initiative was a manifesto commitment and will play a crucial role in the Government’s mission to make streets safer by tackling reoffending under the Plan for Change.

Around 80% of all crime is reoffending but latest data shows offenders employed six weeks after leaving prison had a reoffending rate around half of those out of work.

Alongside breaking the cycle of crime, getting offenders into work helps employers fill vacancies, build their businesses, plug skill gaps and boost the UK economy.

Minister for Probation, Prisons and Reducing Reoffending, James Timpson, said: “Getting former offenders into stable work is a sure way of cutting crime and making our streets safer. That’s why partnering with businesses to get more former offenders into work is a win-win.

“The Employment Advisory Boards I spear-headed have made huge progress and now these Employment Councils will expand that success to steer even more offenders away from crime as part of our Plan for Change.”

Employment Councils will provide support to frontline probation staff already involved in getting offenders into work. They will provide them with a greater understanding of the local labour market and help build better relationships with suitable employers.

Further support from the DWP will help link offenders with work coaches placed at job centres throughout the country.

These coaches will be on hand to get offenders job-ready through mock interviews, CV advice and by sharing tips on how to secure further training opportunities in the community.

DWP Lords Minister, Baroness Maeve Sherlock, said: ”As well as making our streets safer, helping offenders into work will enable employers to fill vacancies and plug our skills gaps.

“This work is vital in our Plan for Change as we begin our task of fixing the fundamentals of the social security system and progress with wider work to reduce poverty, put more money in people’s pockets and keep our streets safe.

“That’s why I am pleased that DWP staff will also be a part of the new regional Employment Councils to directly connect them with the frontline support delivered every day by Jobcentre staff across the country – offering work experience and access to our employment programmes.”

Research from the Ministry of Justice shows that 90% of businesses that employ ex-offenders agreed that they are good attenders, motivated and trustworthy

Rosie Brown, co-CEO of COOK, said: “A job provides a key way to help people restore their lives and relationships following a stretch in prison.

“In return, we get committed, loyal team members to help us build our business.  Re-offending is reduced, and families, communities, and society as a whole wins.”

Employment Councils will serve as the successor to regional Employment Advisory Boards and will officially bring together probation, prisons, local employers and DWP under one umbrella for the first time, with a renewed focus on broadening support to offenders in the community.

The Boards will continue at 93 individual prisons but the addition of regional Employment Councils will help prison leavers look for work across an entire region, not just the immediate vicinity of the last prison they were in.

Edinburgh claimants stop Jobcentre breaking benefit rule

Currently, benefit claimants on Employment and Support Allowance (ESA) are being transferred over to Universal Credit. According to law the vast majority of disabled ESA claimants keep their ‘not fit for work status’ while being transferred over, and continue to receive disability-related payments.

High Riggs Jobcentre in Edinburgh was illegally forcing transferred disabled claimants to obtain a fit note from their GP and go through unnecessary ‘work capability assessments’.  A local anti-poverty group found out about this, through voluntarily accompanying benefit claimants to their appointments, and providing moral support.

Edinburgh Coalition Against Poverty is a community group which helps local people access benefits, register complaints, and voice their concerns over government response to the cost of living crisis.

ECAP held a demonstration outside High Riggs jobcentre on 30th September.

Four local claimants went in, delivering a letter for and requesting a meeting with the local manager. Jobcentre staff told ECAP that they were “unavailable”, and refused to give any contact details.

Local benefit claimants were told that staff would pass on the letter, and that the manager would contact ECAP the next day.

However despite this promise ECAP received no further contact contact from High Riggs Jobcentre, or the DWP.

A second protest was organised to occur at High Riggs jobcentre at 3PM on 30 October, a day before Halloween.

Members of the local community held placards proclaiming “Cutting Disability Benefits Kills”, and a protestor dressed as the “DWP Grim Reaper” brandished their scythe menacingly. Meanwhile an ECAP delegation swerved past security guards into the Jobcentre where they met the manager of High Riggs Jobcentre.

The manager admitted that the jobcentre had been wrongly telling migrating ESA claimants they needed to get a Fit Note. They told us that all High Riggs work coaches had now received instructions that ESA claimants migrating to Universal Credit kept their existing “not fit for work” status and did not need to go through another Work Capability Assessment.

The Manager assured ECAP that if there were any future problems a meeting could be arranged to sort matters.

If you are in this position and have problems contact ecapmail@gmail.com.

An ECAP spokesperson said: “This victory was only achieved by numbers of people mobilising and taking action”.

More information available at edinburghagainstpoverty.org.uk
and in particular at https://edinburghagainstpoverty.org.uk/?p=3463

Contact ecapmail@gmail.com

Police lead day of action to tackle human trafficking and modern slavery

Police Scotland led a multi-agency day of action in Kirkcaldy in relation to an ongoing human trafficking and modern slavery investigation.

One male aged 18 was arrested for human trafficking and modern slavery offences and has been released pending further enquiry.

A 52-year-old woman and a 46-year-old man were arrested for immigration offences and enquiries are ongoing.

Officers visited a business in the area on the morning of Thursday, 10 October, 2024, following intelligence received.

Representatives from Her Majesty’s Revenue and Customs (HMRC), Department for Work and Pensions (DWP), the Gangmasters and Labour Exploitation Authority (GLAA) and Justice and Care were also in attendance.

Detective Inspector Scott Wilson from Dumfries CID said: “Human trafficking and modern slavery are happening in our communities and this operation demonstrates our commitment to tackling this issue.

“We work closely with our partners to identify situations where this criminality is taking place and provide appropriate support to victims. However we cannot do this alone, and it is important that we increase awareness of the warning signs so that reporting can increase.

“Signs that someone could be being exploited at work can include being paid no legal wage and having little or no money, living in poor conditions and having their time on and off duty controlled by their employers.

“If you suspect modern slavery is happening in your community it is vital that you report this and enable us to protect victims and take action against those responsible for this exploitation.”

Anyone with information can contact Police Scotland on 101 or Crimestoppers anonymously on 0800 555 111.