Tag: DWP

Universal Credit cuts voted through

DISABLED PEOPLE WILL LOSE OUT ON THOUSANDS OF POUNDS

The Labour government claims nearly 4 million households will see an annual income boost estimated to be worth £725 cash as the controversial Bill to overhaul the welfare system completed the next stage of its passage through Parliament last night.

  • Bill to introduce biggest permanent boost to out-of-work support since 1980 progresses through Parliament.
  • Legislation will remove perverse disincentives to work that exist in the welfare system while protecting 200,000 of those with the most severe, lifelong conditions who are not expected to ever be able to work.
  • Alongside the Bill, disabled people and those with health conditions will have legal protections to try work without fear of reassessment.
  • Reforms to the welfare system aimed at improving living standards across the country and breaking down barriers to opportunity as part of the Government’s Plan for Change.

KEIR Starmer’s Labour government says nearly 4 million households will see an annual income boost estimated to be worth £725 cash as a Bill to overhaul the welfare system completes the next stage of its passage through Parliament.

For the first time ever, the Universal Credit standard allowance will permanently rise above inflation, amounting to £725 by 2029/30 in cash terms for a single person aged 25 or over.

This is the highest permanent real terms increase to the main rate of out-of-work support since 1980, according to the IFS.

Reforms set out in the Universal Credit Bill will look to rebalance the core payment and health top up in Universal Credit (UC). This will address the fundamental imbalance in the system which creates perverse incentives that drive people into dependency.

The Bill, which will legislate to make these changes, today successfully cleared the House of Commons. It will now be introduced into the House of Lords to continue its passage through Parliament towards Royal Assent.

Alongside these changes, we have published significant new measures, giving people receiving health and disability benefits the right to try work without fear of reassessment.

The new Right to Try Guarantee enshrines this in law for the first time and includes disabled people and people with health conditions – such as those recovering from illness – who want to return to work now their health has improved.

Work and Pensions Secretary Liz Kendall said: Our reforms are built on the principle of fairness, fixing a system that for too long has left people trapped in a cycle of dependence.

“We are giving extra support to millions of households across the country, while offering disabled people the chance to work without fear of the repercussions if things don’t work out.

“These reforms will change the lives of people across the country, so they have a real chance for a better future.”

The Labour fovernment says as part of their ‘commitment to protect the most vulnerable and severely disabled’, 200,000 in the Severe Conditions Criteria group – individuals with the most severe, lifelong conditions who are unlikely to recover – will not be called for a UC reassessment.

All existing recipients of the UC health element and new customers with 12 months or less to live or who meet the Severe Conditions Criteria will also see their standard allowance combined with their UC health element rise at least in line with inflation every year from 2026/27 to 2029/30. This means they can live with dignity and security, knowing the reforms to the welfare system mean it will always be there to support them.

Starmer’s government says they are also ‘putting disabled people at the heart of a ministerial review of the Personal Independence Payment (PIP) assessment’ led by Disability Minister Stephen Timms and co-produced with disabled people, along with the organisations that represent them, experts, MPs and other stakeholders – making sure it is fair and fit for the future. However this review was only introduced following a substantial revolt by the party’s own backbench MPs on the introduction of the controversial legislation.

The government says they will be engaging widely over the summer to design the process for the review and consider how it can best be co-produced to ensure that expertise from a range of different perspectives is drawn upon.

They say the reforms are ‘underpinned by a major investment in employment support for sick and disabled people’ – worth £3.8 billion over the Parliament. Funding will be brought forward for tailored employment, health and skills support to help disabled people and those with health conditions get into work as part of our Pathways to Work guarantee.

This ‘investment’ will accelerate the pace of new investments in employment support programmes, building on and learning from successes such as the Connect to Work programme, which are already rolling out to provide disabled people and people with health conditions with one-to-one support at the point when they feel ready to work.

The Labour government says the welfare 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.

CRITICS – INCLUDING 47 LABOUR MPs – SEE THE LEGISLATION AS AN ATTACK ON THE POOREST PEOPLE IN OUR COUNTRY, HOWEVER …

Parkisnon’s UK SAID: “The government’s decision to cut Universal Credit costs is appalling. We believe that, despite the government’s claims, savings are being made by effectively making people with Parkinson’s ineligible for the higher rate health element.

Helen Barnard, director of policy, research and impact at Trussell, said: “We are deeply concerned about the cuts being made to Universal Credit health payments for disabled and ill people applying in the future.

“The scale of the remaining cuts in this ill-conceived bill will still be devastating and risks pushing more disabled people to food banks. 

“Life costs more if you’re disabled. Cutting this part of our social security system will mean 9 in 10 disabled people newly claiming the Universal Credit health element will miss out on around £3,000 worth of support on average by 2029/30. It makes no sense to rip support away from people in the future, just because their health has worsened, they become disabled, or their income drops after an arbitrary date. 

“By contrast, the uplift to the basic rate of Universal Credit that this bill will bring in is a very welcome and long overdue step towards ensuring our social security system covers the cost of essentials like food, bills and toiletries. Further clarity on how the government will work with disabled people, MPs and charities is also important. 

“We applaud disabled people, MPs and community organisations like food banks for persistently raising their voices and ensuring many disabled people have been protected from deep financial losses during the progress of this bill.

“The UK government must now build on this to deliver a more compassionate, effective and fair social security system that, at the very least, protects disabled people from hunger and hardship.” 

Work is underway to move the benefit awards of over 66,000 people to Scottish Adult Disability Living Allowance.

People getting DLA from the DWP don’t need to do anything as the transfer will happen automatically.

More at https://bit.ly/ScottishAdultDLA

Pensions Bill: Workers in line for £29,000 boost

Bill to ‘transform pensions landscape for years to come’

  • Pension Schemes Bill could boost returns to pension saving by thousands of pounds
  • Changes will also make it easier for savers to access and manage their pensions

Working people on an average salary who save into a pension pot over their career, could benefit by up to £29,000 by the time they retire thanks to major Government reforms that will consolidate small pension pots, ensure schemes are value for money, and create larger pension schemes.

The figure was revealed as the Pension Schemes Bill returns to Parliament for its second reading today.

Reforms in the Bill, which have received wide-spread support from the pensions industry and consumer groups, will support 20 million pension savers to get more from their pension pots and be better prepared for retirement.

The Bill will bring together small pension pots worth £1,000 or less into one pension scheme that is certified as delivering good value to savers, making pension saving less hassle and more rewarding. At present many people struggle to keep track of multiple small pensions as they move jobs and can pay high fees as a result.

In future pension schemes will also need to prove they are value for money, helping savers understand whether their scheme is giving them good returns and protecting them from getting stuck in underperforming schemes for years on end.

These measures will lay the foundation for the upcoming Pensions Review to examine how we get to a fair and sustainable pensions system, supporting growth and delivering on the government’s Plan for Change by putting more money into people’s pockets.

Minister for Pensions Torsten Bell said: “We’re ramping up the pace of pension reform, to ensure that people’s pension savings works as hard for them as they worked to save.

“The measures in our Pension Schemes Bill will drive costs down and returns up on workers’ retirement savings – putting more money in people’s pockets to the tune of up to £29,000 for an average earner and delivering on our Plan for Change.”

Other measures include:

  • New rules creating multi-employer DC scheme “megafunds” of at least £25 billion, so that bigger and better pension schemes can drive down costs and invest in a wider range of assets.
  • Simplifying retirement choices, with all pension schemes offering default routes to an income in retirement.
  • Increased flexibility for Defined Benefit (DB) pension schemes to safely release surplus worth collectively £160 billion, to support employers’ investment plans and to benefit scheme members.

The reforms will also unlock long-term investment in the UK economy by removing barriers to growth, strengthening the security and governance of pension schemes and ultimately delivering better returns for people saving for their retirement.

The pace of pension reform has ramped up with measures in the Bill set to revolutionise the pensions landscape in the coming years. While the benefits of the Bill are clear, significant challenges still remains with these benefits varied for different workers and different groups.

This is why the upcoming Pensions Review will examine challenges such as pension adequacy to ensure underserved groups do not miss out on the benefits arising from these measures.

Reforms announced as part of the Bill will also future proof the Local Government Pension Scheme (LGPS) by leading to the consolidation of all £400 billion of assets into a small number of expert asset pools which can invest in local areas infrastructure, housing and clean energy.

Minister for Local Government and English Devolution Jim McMahon OBE said: “This Bill will ensure the Local Government Pension Scheme is fit for the future and harness its full potential, with assets due to reach £1 trillion by 2040, and will strengthen investment in local communities to accelerate growth as part of our Plan for Change.

Zoe Alexander, Director of Policy and Advocacy for PLSA: “The introduction of the Pension Schemes Bill is a significant milestone, bringing forward necessary legislation to enact important reforms that have the full backing of the pensions industry.

“This includes small pots consolidation, the Value for Money regime, decumulation options and changes to give DB funds more options for securing member benefits over the long-term.

“Once fully implemented, these measures should reduce the cost of administering pensions, remove complexity for savers and help ensure schemes are maximising the value they provide members.”

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.