Tag: DWP

Welfare bill ‘will protect the most vulnerable and help households with income boost’

TRUSSELL: The new Universal Credit and PIP bill will push nearly HALF A MILLION more people into severe hardship and towards the doors of food banks

Additional protections for millions of vulnerable people on benefits are set to be written into law, under new measures being introduced to Parliament yesterday [18 June 2025].

  • New welfare legislation to ensure there are robust protections in place to support the most vulnerable and severely disabled.
  • Nearly 4 million households to benefit from uprating of Universal Credit standard rate, the largest, permanent real-terms increase to basic out of work support since 1980, according to the IFS.
  • More than 200,000 people with most severe, lifelong conditions to be protected from future reassessment for Universal Credit entitlement.
  • 13-week period of financial support for those affected by PIP changes as part of upcoming welfare reforms.
  • Comes alongside £1 billion employment support package that will unlock opportunity and grow the economy as part of the Plan for Change.

The Universal Credit and Personal Independence Payment Bill will provide 13-weeks of additional financial security to existing claimants affected by changes to the PIP daily living component, including those who their lose eligibility to Carers Allowance and the carer’s element of Universal Credit, according to the UK government – but charity Trussell says the bill will push nearly HALF A MILLION more people into severe hardship.

The 13-week additional protection will give people who will be affected by the changes time to adapt, access new, tailored employment support, and plan for their future once they are reassessed and their entitlement ends.

This transitional cover is one of the most generous ever and more than three times the length of protection provided for the transition from DLA to PIP.

The Labour government says it inherited a broken social security system, with costs spiralling at an unsustainable rate and millions of people trapped out of work. The case for change is stark:

  • Since the pandemic, the number of PIP awards has more than doubled – up from 13,000 a month to 34,000 a month. That is around 1,000 people signing on to PIP every day – that is roughly the size of Leicester signing up every year.
  • The surge has been largely by driven by a substantial increase in the number of people who report anxiety and depression as their main condition. Before the pandemic (in 2019), 2,500 people a month were awarded PIP for these conditions, this has more than tripled to 8,200 a month in 2023.
  • Almost 1 million young people – 1 in 8 – are not in education, employment or training.
  • 1-in-10 people of working age are now claiming a sickness or disability benefit.
  • Without reform, the number of working age people on disability benefits is set to more than double this decade to 4.3 million.
  • Spending on working age disability and incapacity benefits is up £20 billion since the pandemic and is set to increase by almost that much again by the end of this Parliament, to a staggering £70 billion a year.

Labour says that’s why, through the introduction of this Bill; the government is fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.

Work and Pensions Secretary Liz Kendall said: “Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it.

“This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity.

“This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.”

As part of our (i.e. the Westminster govertnment’s) commitment to protect the most vulnerable and severely disabled, peace of mind will also be given to 200,000 individuals in the Severe Conditions Criteria group – individuals with the most severe and permanently disabling conditions who will never be able to work – as they will not be called for reassessed for Universal Credit (UC) under new legislation.

Those protected from reassessment will also be paid the higher rate of UC health top up of £97 per week, so they can live with dignity and security, knowing the reforms to the welfare system mean it will always be there to support them.

In the coming weeks, legislation will also be drafted for a Right to Try Guarantee. This will ensure that trying work will not, in and of itself, lead to a reassessment or award review, breaking down barriers to employment.

Reforms being delivered by the legislation introduced today go hand in hand with a £1 billion employment support package to support more people with health conditions back into work, unlocking opportunity and growing the economy as part of the Plan for Change.

Funding will offer personalised employment and health support for individuals on out of work benefits, with 500,000 people having already been supported into employment. This is a quadrupling the level of annual spend on supporting sick and disabled people into work, from the £275m in 2024/25 we inherited, to over £1bn in 2029/30.

Nearly 4 million households will also receive an income boost with the main rate of Universal Credit set to increase above inflation every year for the next four years – estimated to be worth £725 by 2029/30 for a single household 25 or over. This is around £250 higher than an inflation only increases.

The Bill will also rebalance Universal Credit rates by reducing the health element for new UC claims to £50 from April 2026, fixing a system which encourages sickness by paying health element recipients more than double the standard amount.

To open up opportunities to work, everyone affected by changes to the UC health element from April 2026 will be offered support from a dedicated Pathways to Work adviser, with 1,000 advisers in place across Britain.

All of those affected by reforms will be actively contacted and given the offer of a conversation about their support needs, goals and aspirations; offered one-to-one follow-on support, and given help to access additional work, health and skills support that can meet their needs.

The reforms build on the Get Britain Working White Paper that will overhaul Jobcentres, empower Mayors and local leaders to tackle inactivity, and deliver a Youth Guarantee so every young person is either earning or learning, as part of the Government’s ambition to deliver an 80% employment rate.

Additional information

  • The Bill will introduce a new additional eligibility requirement for the daily living component of PIP so that a minimum of 4 points must be scored on at least one daily living activity to be eligible for the daily living component. It will also rebalance Universal Credit.
  • The Work and Pensions Secretary gave a speech at the IPPR on setting out the case for reforming the welfare system: Welfare reform: Speech to the IPPR by Work and Pensions Secretary – GOV.UK
  • Based on current forecasts, the rebalancing mean single households 25 or over, will see their standard allowance rise to around £106pw by the end of this parliament.
  • Current UC health top up is more than double the UC standard allowance for a single claimant.

There are 4 criteria for the healthcare professional to consider, all of which must apply for the claimant to meet the SCC, namely whether:

  • The individual’s level of function will always meet LCWRA
  • The individual’s condition will last for the rest of their life
  • There is no realistic prospect of recovery of function, and
  • The condition has been diagnosed by an appropriately qualified healthcare professional in the course of the provision of NHS services.

Scotland’s Social Justice Secretary: “Scrap damaging welfare reforms”

Social Justice Secretary Shirley-Anne Somerville has urged the UK Government to protect and enhance social security rather than making cuts.

The UK Government’s Universal Credit and Personal Independence Payment Bill has been published today, which includes the details of the first set of changes to ill-health and disability benefits. The Scottish Government will not mirror the Personal Independence Payment (PIP) changes in Adult Disability Payment in Scotland.

Social Justice Secretary Shirley-Anne Somerville said: “The UK Government’s proposed reforms will be hugely damaging to those who rely on social security support, particularly during the ongoing cost of living crisis.

“These plans have yet to be passed at Westminster, so there is still time for the UK Government to step back from this damaging policy and I strongly urge them to scrap their harmful proposals.

“The UK Government’s own analysis highlights how the proposals will push 250,000 more people across the UK into poverty – including 50,000 children. With around half of all children in poverty in Scotland living in a household with a disabled person, the changes threaten to undermine the progress that we are making to reduce child poverty, and the work of the UK Government’s Child Poverty Taskforce.

“That the UK Government is prioritising deep cuts to disabled people’s support is made even worse by their failure to abolish the two-child limit, which is estimated to have pushed more than 35,000 children into poverty since July last year.

“The reforms do not reflect the Scottish Government’s values. We will not let disabled people down or cast them aside as the UK Government has done. We will not cut Scotland’s Adult Disability Payment.

“The UK Government should follow our lead and protect the social security safety system, rather than dismantling it. If they do not, then disabled people can draw no other conclusion than the UK Government remain content to balance the books on the backs of the most vulnerable.”

Responding to the publication of the bill, Helen Barnard, Director of policy at Trussell said: “The UK government’s new Universal Credit and PIP bill, put before Parliament today, does almost nothing to ease the concerns of hundreds of the thousands of disabled people who fear that their social security support will be ripped from them.

“In fact, this bill will push nearly half a million more people into severe hardship and towards the doors of food banks.

“It is easy to see why so many MPs have voiced concerns about the damage this bill will do. What has been published today offers little for MPs deeply concerned about the impact of these cuts on their constituents.

“The last minute details on protections offer something for a small proportion of people, but even they will still see a real-terms cut. The reality of this bill is still record cuts in support for disabled people, and the biggest cuts to social security since 2015.

“It is shocking that MPs are being asked to vote through cuts without a full assessment of their impact, and especially worrying as we know that already three in four people referred to the Trussell community are disabled or live with someone who is.

“We know hunger and hardship already pushes up public service costs alone by £13.7 billion. MPs are being asked to vote for a Bill that will drive up hunger and hardship and undermine the UK government’s promises on economic growth and ending the need for emergency food.”

Today, the UK government published a bill, aimed at reforming the benefits system. Unfortunately, as it stands, this will be a disaster for disabled people – and is likely to worsen people’s living conditions, undermine their mental health, and increase the risk of suicide, says Mental Health Foundation.

These plans will not help reduce the number of disabled people out of work. Instead, they are counterproductive and cruel.

A more effective alternative for the government would be to move forward with its progressive policies that encourage people to return to work, such as the Right to Try scheme and improvements to support in job centres, and look at how well those work, without cutting support for disabled people.

UK Government urged to abandon ‘immoral’ disability benefit cuts

Social Justice Secretary Shirley-Anne Somerville has written to UK Work and Pensions Secretary Liz Kendall, calling for an urgent change to the UK Government’s “immoral and reckless” social security reforms.

Ms Somerville welcomed the suggestion by Prime Minister Keir Starmer that cuts to winter fuel payment could be eased, but said this was not enough.

In the letter the Social Justice Secretary said: ‘I was pleased to hear the Prime Minister announce plans to ease the Winter Fuel Payment cuts in Parliament last week.

‘I am also aware of various media reports suggesting that a change in the UK Government’s two-child limit may be announced shortly. I welcome these developments and recognise that it is a step in the right direction to delivering a more robust Social Security system.

‘However, deep concerns remain around the UK government’s damaging social security reforms, including those announced in the ‘Pathways to Work’ Green Paper.

‘Given the speculation on the reversal or partial reversal of policies on Winter Fuel Payment and Two Child Cap, I call on you to urgently scrap these immoral proposals on disabled benefits.

‘These plans will only push more into poverty. It is therefore reckless and totally unacceptable for the UK Government to press ahead, not least due to the expected severity of the impact they will have on all our efforts to end child poverty – completely undermining the work of the UK Child Poverty Taskforce.’ 

£2,492,000 winter heating help paid to people in the City of Edinburgh

Over 34,240 people in Edinburgh get payments for winter 2024/2025

Last winter over 34,240 children and families across the City of Edinburgh enjoyed warmer homes after receiving a total of £2,492,000 towards their heating bills from Social Security Scotland.

Winter Heating Payment is paid automatically to people who get certain low-income benefits, including households with young children, disabled people or older people. It has replaced the Department for Work and Pensions’ (DWP) Cold Weather Payment in Scotland.

It is a guaranteed payment that everyone who is eligible receives, no matter what the weather. Cold Weather Payment is only paid if the average temperature falls – or is forecast to fall – to freezing or below for a full week. 

Child Winter Heating Payment was introduced by the Scottish Government in November 2020 and is only available in Scotland. It is paid once a year to children and young people if they are under 19 years old and get certain benefits.

A total of 31,745 Winter Heating Payments, worth £1,865,000 were made for 2024/2025, along with 2,495 Child Winter Heating Payments, worth £627,000.

The figures, taken from statistics released on Tuesday 29 April, also show that 95% of Winter Heating Payments were made by December 2024 and 93% of Child Winter Heating Payments were made by October 2024.

Social Justice Secretary Shirley-Anne Somerville said: “We have issued over 505,100 payments to families on low incomes, and those supporting children or young people with a disability, to help with the cost of heating their homes.

“Many people are struggling with the cost-of-living crisis and higher energy bills. The importance of these payments was brought home to everyone this month with the Energy Price Cap rising by 6.4%. Ofgem estimates that this will add £9.25 a month to the typical household’s energy bill. 

“This year we will also be providing extra support to pensioners. While the DWP’s Winter Fuel Payment will only be available to some pensioners, Pension Age Winter Heating Payment will provide money to every pensioner household in the country. The Scottish Government will continue to protect pensioners and people on low incomes in Scotland.”

BACKGROUND:

Energy price cap will rise by 6.4% from April | Ofgem

The information for Winter Heating Payments comes from the Department of Work and Pensions (DWP). The last of four data files was received from the DWP in late March 2025.

Winter Heating Payment is paid automatically to people who were getting any of these benefits during the qualifying week:

  • Universal Credit
  • Pension Credit
  • Income Support
  • Income-based Jobseekers Allowance
  • Support for Mortgage Interest

Some restrictions apply for some of these benefits. For example, for those qualifying through Income Support may also have to have a child under 5, a disability premium or a pensioner premium.

Children and young people in Scotland can get Child Winter Heating Payment if they are under 19 years old and get one of the following qualifying benefits:

  • highest rate of the care component of Child Disability Payment
  • highest rate of the care component of Disability Living Allowance for children
  • enhanced rate of the daily living component of Personal Independence Payment
  • enhanced rate of the daily living component of Adult Disability Payment

They must be getting this on at least one day in the week starting with the third Monday of September (called the ‘qualifying week’). In 2024, this was Monday 16 September to Sunday 22 September.

The qualifying week for Winter Heating Payment was Monday 4 November 2024 to Sunday 10 November 2024.

We will introduce a universal Pension Age Winter Heating Payment in winter 2025/2026 for all pensioner households in Scotland. This universal payment will provide much needed support not available anywhere else in the UK and will support older people across Scotland as we had always intended to do before the UK Government’s decision to cut the payment.

From winter 2025/26, pensioners in Scotland in receipt of a relevant qualifying benefit, such as Pension Credit, and who will receive payments of £200 or £300 this winter, depending on their age, will continue to receive those payments automatically.

Additionally, we will introduce universal payments of £100 to every other pensioner household.

Universal Credit change ‘brings £420 boost to over a million households’

More than one million households struggling with debt will get to keep an average £420 more of their benefits each year, under a change to Universal Credit coming into force today

  • Around 1.2 million of the poorest households – including 700,000 with children – will keep an extra £420 a year on average, due to Universal Credit change.
  • New Fair Repayment Rate – which comes into force today – caps Universal Credit deductions at 15%, down from 25%.
  • Comes as part of the Government’s Plan for Change to make working people better off by helping them into jobs and extending support for low-income families.

More than one million households struggling with debt will get to keep an average £420 more of their benefits each year, under a change to Universal Credit coming into force today [Wednesday 30 April 2025].

The Fair Repayment Rate places a limit on how much people in debt can have taken off their benefits to pay what they owe. The maximum amount that can be taken from someone’s Universal Credit standard allowance payment to repay debt has been 25% – but from today this is reduced to 15%.

This will mean an average £420 extra a year for 1.2 million of the poorest households, including 700,000 households with children, while helping people to pay down their debts in a sustainable way.

It forms part of the Government’s Plan for Change to put more money into people’s pockets and boost living standards and marks the Government’s first step in a wider review of Universal Credit to ensure it is still doing its job.

The Fair Repayment Rate was introduced by the Chancellor at the Autumn Budget, as part of broader efforts to raise living standards, combat poverty, and tackle the cost-of-living crisis.

Chancellor of the Exchequer Rachel Reeves said: “As announced at the budget, from today, 1.2 million households will keep more of their Universal Credit and will be on average £420 better off a year.

This is our plan for change delivering, easing the cost of living and putting more money into the pockets of working people.

“With as many as 2.8 million households seeing deductions made to their Universal Credit award to pay off debt each month, the new rate is designed to ensure money is repaid where it is owed, and people can still cover their day-to-day needs.”

Work and Pensions Secretary Liz Kendall said: “As part of our Plan for Change, we are taking decisive action to ensure working people keep more of the benefits they’re entitled to – which will boost financial security and improve living standards up and down the country.

“We’re delivering meaningful change to ensure everyone has a fair chance, the support they need, and real hope for the future.”

The Fair Repayment Rate is one of a number of bold measures the Government is taking as part of its Plan for Change to kickstart growth and spread prosperity across the country.

Viewing work as a key route out of poverty, the Government set out the Get Britain Working White Paper – aiming to achieve its target 80% employment rate by overhauling Jobcentres, introducing a new jobs and careers service, and launching a youth guarantee so every young person is earning or learning.

This comes on top of increasing the National Minimum and National Living Wage to ensure being in work pays.

To support those in greatest need, the Household Support Fund has been extended another year – backed by £742 million, so local councils can continue to support low-income households with energy bills, food and essential items, while also funding long-term solutions, like home insulation, to help people at risk of falling into poverty.

The Government is also working to tackle child poverty, rolling out free breakfast clubs in all primary schools in England as the dedicated ministerial taskforce builds its ambitious strategy to ensure every child has the best start in life.

Additional information:

  • The change will be applied to all assessment periods that start on or after 30 April.
  • The 15% deductions cap continues to support customers to repay their debts at a sustainable rate.

£37.3 million winter heating help paid to people in Scotland

Over half a million people get payments for winter 2024/2025

Last winter over half a million children and families across Scotland enjoyed warmer homes after receiving a total of £37.3million towards their heating bills from Social Security Scotland.

Winter Heating Payment is paid automatically to people who get certain low-income benefits, including households with young children, disabled people or older people. It has replaced the Department for Work and Pensions’ (DWP) Cold Weather Payment in Scotland.

It is a guaranteed payment that everyone who is eligible receives, no matter what the weather. Cold Weather Payment is only paid if the average temperature falls – or is forecast to fall – to freezing or below for a full week. 

Child Winter Heating Payment was introduced by the Scottish Government in November 2020 and is only available in Scotland.

It is paid once a year to children and young people if they are under 19 years old and get certain benefits.

The figures, taken from statistics released today (Tuesday 29 April), also show that 95% of Winter Heating Payments were made by December 2024 and 93% of Child Winter Heating Payments were made by October 2024.

A total of 465,510 Winter Heating Payments, worth £27.3 million, were made for 2024/2025, along with 39,590 Child Winter Heating Payments, worth £10 million.

 Social Justice Secretary Shirley-Anne Somerville said: “We have issued over 505,100 payments to families on low incomes, and those supporting children or young people with a disability, to help with the cost of heating their homes.

“Many people are struggling with the cost-of-living crisis and higher energy bills. The importance of these payments was brought home to everyone this month with the Energy Price Cap rising by 6.4%. Ofgem estimates that this will add £9.25 a month to the typical household’s energy bill.  

“This year we will also be providing extra support to pensioners. While the DWP’s Winter Fuel Payment will only be available to some pensioners, Pension Age Winter Heating Payment will provide money to every pensioner household in the country. The Scottish Government will continue to protect pensioners and people on low incomes in Scotland.”

Government to ‘listen, learn and deliver’ as consultation on welfare reforms begins

Welfare reforms must be shaped by and for disabled people, the Minister for Social Security and Disability Sir Stephen Timms said today [Monday 7th April], as the official consultation on the government’s proposals begins.

  • Publication of all accessible versions set to trigger the start of official consultation into welfare reforms announced by Work and Pensions Secretary.
  • Disabled people and those with health conditions are encouraged to have their say so their views are at the heart of the new system.
  • Reforms will fix the broken welfare system by giving people genuine support to unlock work and boost living standards as part of the government’s Plan for Change.

Welfare reforms must be shaped by and for disabled people, the Minister for Social Security and Disability Sir Stephen Timms said today [Monday 07 April], as the official consultation on the Government’s proposals begins.

It comes as the government commits to the establishment of ‘collaboration committees’ to further develop the reforms, bringing together groups of people for specific work areas to provide discussion, challenge, and make recommendations. 

Announced on Tuesday 18 March, the proposed reforms will ensure that sick and disabled people have the same opportunities to work as anyone else, and will unlock work, boost living standards, and help grow the economy as part of the government’s Plan for Change.

They will also seek to overhaul the broken benefits system so it supports those who need it, while helping those who can work into jobs and delivering fairness to the taxpayer. 

The Minister for Social Security and Disability is urging those likely to be affected by the changes – either individually or through disability charities and organisations – to have their say through the consultation, ensuring their views help shape the proposed changes.

Minister for Social Security and Disability Sir Stephen Timms said: “We inherited a broken welfare system, which incentivises ill-health, locks people out of work and isn’t fit for a future in which so many of us will face long-term health conditions.

“We want a system that genuinely works for disabled people and those with health conditions, as well as the country and the economy, and we want to hear their views and voices at the heart of the new system. 

“I encourage people to engage so they can have their say as we listen, learn and deliver support which will help millions into work, put welfare spending on a more sustainable path, and unlock growth as part of our Plan for Change.”

The 12-week consultation on reforms to health and disability support officially launches today with publication of all accessible versions of the Pathways to Work Green Paper. 

The proposed reforms aim to support people into work, protect people who can never work and put the welfare system on a sustainable footing so that it can continue to support those in need now and into the future. One in three of us faces a long-term health condition, so we all need a system that can support us to stay in work or get back into work.

The measures are the latest step in the government’s drive to build a modern welfare system that helps people get jobs rather than creating unnecessary barriers, with ministers’ proposed plans set to:

  • Provide more tailored employment support for those who can work, breaking down barriers to opportunity.
  • Simplify the system and reduce unnecessary assessments, cutting bureaucracy and making it easier to navigate.
  • Improve the way financial support is assessed and delivered, ensuring it reaches those who need it most and that people using the system have a better experience and are treated with dignity and respect.
  • Build a more flexible approach that recognises the diverse needs of disabled people and those with long-term health conditions.

Without changes, it is forecast that the system could cost as much as £70 billion a year by the end of the decade and risk not being there for people when they need it in future.

Issues open for consultation include:

  • Supporting people to thrive with the new support offer.
  • Supporting employers and making work more accessible.
  • Reforming the structure of the health and disability benefits system.

These are part of the wider reforms that also include reintroducing reassessments for people on incapacity benefits who have the capability to work to ensure they have the right support and aren’t indefinitely written off, targeting Personal Independence Payments for those with higher needs, and rebalancing payment levels in Universal Credit.

Income boost for millions of pensioners and working people

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.

Broken Benefits? Almost two million people on Universal Credit not supported to look for work

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’.

Work coach shortage leads DWP to reduce support for Universal Credit claimants

  • 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.

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.”