Millions of pensioners will receive as much as £470 more a year added to their State Pension from today, thanks to the government’s’ ‘ironclad commitment’ to the pensions Triple Lock throughout this parliament
Millions of pensioners to receive up to an additional £470 in their State Pension this year.
Triple Lock means those receiving the State Pension are set to increase by up to £1,900 over the term of this Parliament.
Over five million households receiving working-age benefits such as Universal Credit will also see an average boost of £150, with Plan for Change putting more money in working people’s pockets.
This comes alongside the annual uprating of working-age benefits such as Universal Credit, with people receiving those set to receive an extra £150 on average over the course of this year – an increase set to benefit 5.7 million working-age households. Disability benefits such as Disability Living Allowance, Carers Allowance and child benefits are also set to increase by the same amount.
The Triple Lock – which guarantees that the State Pension increases annually by the highest of inflation, average earnings growth or 2.5% – means the basic and new State Pensions are increasing by 4.1%, well above the current level of inflation.
These changes come alongside increases to the National Minimum Wage and National Living Wage, benefiting three million eligible workers across the country. With the National Living Wage increasing to £12.21 for those aged 21 and over and the National Minimum Wage for those aged 18 to 20 seeing a record increase to £10 an hour, three million workers will benefit, with eligible full-time workers set to see an increase in their annual salary of £1,400.
This support is securing Britain’s future through the Plan for Change, which is delivering security and renewal by kick-starting economic growth to put more money in working people’s pockets and rebuilding the NHS.
Work and Pensions Secretary Liz Kendall said: “Our ironclad commitment to the Triple Lock gives pensioners across the country the certainty and security they need to live a full life in retirement.
“We are putting more money in people’s pockets and driving up household income as part of our Plan for Change.”
Minister for Pensions Torsten Bell said: “Raising the State Pension and rescuing the NHS – these are this government’s priorities to give all pensioners the dignity they deserve in their retirement. Those who have worked hard throughout their lives, paying into the system, are owed nothing less.
“We’re improving the lives of millions of pensioners through our £7.84 billion additional funding for the State Pension this year.
“That means up to £470 extra in pensioners’ pockets from this week and comes alongside our work to boost Pension Credit uptake, and the £26 billion we’ve invested in the NHS that has seen waiting lists in England fall for 5 months in a row.”
Chancellor of the Exchequer Rachel Reeves said: “With today’s increase in working-age benefits, and our ironclad commitment to pensioners through the Triple Lock, we are making the decisions that support those who need it in Britain, putting money into people’s pockets and delivering our Plan for Change.“
The uprating of State Pensions and working-age benefits amounts to a cash boost of over £6.9 billion, demonstrating our commitment to ensuring pensioners enjoy the dignity and respect they deserve in retirement, while also supporting low-income families.
It also comes alongside proposals for the biggest welfare reforms for a generation. These measures are designed to ensure a welfare system that is fit for purpose and available for future generations – opening up employment opportunities, boosting economic growth and tackling the spiralling benefits bill while also ensuring those who cannot work get the support they need.
That support also includes help for pensioners. The government’s drive to support low-income pensioners has led to 50,000 extra Pension Credit awards since the summer – an increase of 64% compared to the same period last year.
Pension Credit is worth on average £4,300 a year and also unlocks support including help with Housing Costs, Council Tax and free television licenses.
Support also includes a £742 million extension of the Household Support Fund in England, from 1 April 2025 until 31 March 2026, providing support with the cost of essentials such as food, heating and bills.
Number of people receiving the highest level of support across UC and other benefits has increased by 50% since the start of the pandemic
Figures show 1.8 million people now in Limited Capability for Work Related Activity (LCWRA) category as broken Work Capability Assessment continues to push people out of work.
New figures emerge ahead of proposals to reform health and disability benefits and builds on the plan to get Britain working.
1.8 million people on Universal Credit are getting no support to find work, according to latest data.
Whilst an increase was expected, as people move from other benefits to Universal Credit, the rise has increased above expectations, with the number of people receiving the highest level of support across UC and other benefits increasing 50% since the start of the pandemic, between February 2020 and August 2024.
The government is already taking action to get people into work through its plan to get Britain working which will empower local mayors to tackle economic inactivity, overhaul Jobcentres, and deliver a Youth Guarantee so every young person is either earning or learning.
Building on the biggest employment reforms for a generation, Work and Pensions Secretary Liz Kendall is due to announce radical welfare reforms to create a thriving and inclusive labour market – as part of the government’s Plan for Change to unlock work, boost growth and raise living standards.
Work and Pensions Secretary, Rt Hon. Liz Kendall MP, said: “Millions of people have been locked out of work by a failing welfare system which abandons people – when we know there are at least 200,000 people who want to work, and are crying out for the right support and a fair chance.
“This government is determined to fix the broken benefits system we inherited so it genuinely supports people, unlocks work, boosts living standards while putting the welfare bill on a more sustainable footing.”
In the current ‘dysfunctional’ system, a person is placed in binary categories of either “fit for work” or “not fit for work” through the Work Capability Assessment (WCA) – an assessment the government has said it will either reform or replace, so it no longer drives people who want to work to a life on benefits.
Through this process, those not fit for work are told they have Limited Capability for Work Related Activity (LCWRA) – meaning they won’t receive employment support or further engagement from the system at any point following their assessment – effectively abandoning and locking them out of work indefinitely.
The current system, in which people 25 and over on the standard rate of UC get £393.45 a month and those with a health condition get an additional £416.19, gives an incentive for people to say they can’t work – and get locked out of help and support – simply to get by financially.
Over the past five years, 67% of people on Universal Credit who have been through a WCA were considered LCWRA – a symptom of the assessment system pushing people to prove their inability to work for a more generous payout.
The Labour government says it has ‘hit the ground running’ to tackle health-related inactivity at its root, improving the country’s wellness by investing £26 billion in the NHS, delivering 2 million extra appointments to tackle medical waiting lists, and hiring an extra 8,500 mental health workers, so people get the treatment they need to stay healthy and in work.
This comes alongside the £250 million plan to get Britain working and the recently announced 1,000 Work Coaches will be redeployed to offer intensive employment support to around 65,000 sick and disabled people – a ‘downpayment’ on Labour’s plan ‘to restore fairness to our welfare system’.
Number of Universal Credit (UC) claimants in categories where the Department for Work & Pensions (DWP) could require them to receive support from a work coach increased from 2.6 million in October 2023 to 3 million in October 2024.
2,100 fewer work coaches employed on average by DWP than it estimated it needed in the first six months of 2024-25.
57% of jobcentres reduced their support for claimants between September 2023 and November 2024 when work coach caseloads were too high.
Proportion of UC claimants in lowest earning category who move into work each month has declined in the past two years to below pre-pandemic levels.
The Department for Work & Pensions (DWP) has reduced the level of support it offers to Universal Credit (UC) claimants due to a shortage of available work coaches at jobcentres, amid government plans to get more people into work and progressing in their careers, according to a new National Audit Office (NAO) report.
DWP relies on its network of 646 jobcentres across Great Britain to help people move into work and to support those already in work to progress. In November 2024, the government set out its plans for reforming employment support, including the role of jobcentres.
DWP tailors jobcentre support for UC claimants based on their earnings and personal circumstances. The number of claimants in categories where DWP could require them to receive support from a work coach – which includes the ‘Intensive Work Search’ category for those with the lowest earnings – grew from 2.6 million in October 2023 to 3 million in October 2024.
DWP has increased the number of Intensive Work Search claimants by raising the earnings threshold.
Work coaches play a critical role working directly with claimants to identify their needs and provide support. But partly due to funding constraints, DWP has not had enough work coaches to meet the expected demand for jobcentre support, with shortfalls in five of its seven regions in 2023-24.
DWP has also faced challenges in recruiting and retaining work coaches.
To help manage the shortfall, DWP has prioritised supporting claimants in the Intensive Work Search category and postponed plans to require ‘Light Touch’ claimants to meet regularly with a work coach.
This resulted in DWP needing an estimated 900 fewer work coaches in 2024-25 than it otherwise would have done.
DWP has also set out measures that jobcentres can implement if work coaches’ caseloads are too high.
A shortage of work coaches at jobcentres has led The Department for Work & Pension to reduce the level of support it provides to Universal Credit claimants.
From September 2023 to November 2024, 57% of jobcentres used these flexibilities to reduce the support they provide for claimants.
The proportion of Intensive Work Search claimants who move into work each month has declined in the past two years to below pre-pandemic levels.
There is also substantial variation in performance across DWP’s seven jobcentre regions and 37 districts. At district level, from December 2023 to November 2024, Birmingham and Solihull had the lowest average monthly into-work rate (5.5%) and Northern Scotland had the highest (10.8%).
In November 2024, the government published a white paper that set out its plans for reforming employment support. The plans include creating a jobs and careers service, bringing together jobcentres with the National Careers Service in England.
The NAO recommends that DWP assesses the impact of the shortfall in work coaches on jobcentres’ ability to provide people with the intended level of support, and uses the findings to inform the design of its future operating model for employment support.
DWP should also set out the information it will use to monitor jobcentres’ performance so that it can identify and share good practice from those that are doing well, as well as improve how it measures and reports outcomes, with metrics covering factors such as the sustainability and quality of employment.
Gareth Davies, head of the NAO, said: “Helping people move into and progress in work is crucial to boosting productivity and reducing economic inactivity.
“As it takes forward the government’s plans for reforming employment support, DWP should pay close attention to how it can make best use of its work coaches and ensure that people get the support they need.
“Given the key role jobcentres will play in supporting the government’s ambition to increase the employment rate, DWP should also be transparent about how effective they are and evaluate the impact of its changes on the system of employment support.”
Sir Geoffrey Clifton-Brown MP, Chair of the Committee of Public Accounts, said: “Jobcentres play an important role in supporting people to access and progress in work. However, a shortage of work coaches is limiting the support available to the growing number of Universal Credit claimants, with over half of jobcentres having to scale back their services.
“Future reforms to employment support will be frustrated without clear evidence on what works in supporting benefit claimants into employment. DWP must strengthen its monitoring of the performance of jobcentres, ensuring every pound spent delivers positive outcomes for individuals and the wider economy.”
Chancellor Rachel Reeves: “We believe if you can work, you should work. But if you can’t work, you should be properly supported”
Significant welfare reforms were announced to build the economy and get Britain working in the Spring Statement
£1 billion will be invested to provide personalised employment, health and skills support from 2026-2027 to help people start or stay in work
This will build on existing support from WorkWell, Connect to Work and the Get Britain Working trailblazers
Universal Credit Standard Allowance will be increased for new and existing claims above inflation from 2026-2027 This means the standard allowance weekly rate for a single person aged 25 and over, will increase from £92 in 2025-2026 to £106 in 2029-2030.
To ensure PIP is focused on those with higher needs, a new eligibility requirement will be introduced Please be assured there will be no immediate changes to your health and disability related benefit payment.
Number of people on the highest rate of Universal Credit with no support to look for work has almost quadrupled since the Covid pandemic
Figures show 1.8 million people now in Limited Capability for Work Related Activity (LCWRA) category as broken Work Capability Assessment continues to push people out of work
New figures emerge ahead of proposals to reform health and disability benefits and builds on the plan to get Britain working
1.8 million people on Universal Credit are getting no support to find work, according to new data released yesterday (Thursday 13 March).
The number has almost quadrupled since the start of the pandemic when 360,000 people were considered too sick to look for work – a 383% rise in less than five years. In the last year alone, the number has risen by from 1.4 million people to 1.8 million.
The number of young people aged 16 to 24 on LCWRA has risen by 249% from 46,000 to 160,000 since the pandemic – demonstrating a worrying increase in the number people becoming trapped in inactivity early in life, with almost one million young people not in education, employment, or training.
The government is already taking action to get people into work through its plan to get Britain working which will empower local mayors to tackle economic inactivity, overhaul Jobcentres, and deliver a Youth Guarantee so every young person is either earning or learning.
Building on the biggest employment reforms for a generation, Liz Kendall is due to announce radical welfare reforms to create a thriving and inclusive labour market – as part of the government’s Plan for Change to unlock work, boost growth and raise living standards.
Work and Pensions Secretary, Rt Hon. Liz Kendall MP, said: “Millions of people have been locked out of work by a failing welfare system which abandons people – when we know there are at least 200,000 people who want to work, and are crying out for the right support and a fair chance.
“This government is determined to fix the broken benefits system we inherited so it genuinely supports people, unlocks work, boosts living standards while putting the welfare bill on a more sustainable footing.”
In the current dysfunctional system, a person is placed in binary categories of either “fit for work” or “not fit for work” through the Work Capability Assessment (WCA) – an assessment the government has said it will either reform or replace, so it no longer drives people who want to work to a life on benefits.
Through this process, those not fit for work are told they have Limited Capability for Work Related Activity (LCWRA) – meaning they won’t receive employment support or further engagement from the system at any point following their assessment – effectively abandoning and locking them out of work indefinitely.
The current system, in which people 25 and over on the standard rate of UC get £393.45 a month and those with a health condition get an additional £416.19, gives an incentive for people to say they can’t work – and get locked out of help and support – simply to get by financially.
Over the past five years, 67% of people on Universal Credit who have been through a WCA were considered LCWRA – a symptom of the assessment system pushing people to prove their inability to work for a more generous payout.
The government says it has hit the ground running to tackle health-related inactivity at its root, improving the country’s wellness by investing £26 billion in the NHS, delivering 2 million extra appointments to tackle medical waiting lists, and hiring an extra 8,500 mental health workers, so people get the treatment they need to stay healthy and in work.
This comes alongside the £250 million plan to get Britain working and the recently announced 1,000 Work Coaches will be redeployed to offer intensive employment support to around 65,000 sick and disabled people – a ‘downpayment’ on our plan to restore fairness to our welfare system.
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.
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.
