Tag: DWP

Government announces new welfare reforms to ‘help thousands into work’

Disabled people and those with health conditions, who are currently being held back from improving their lives through work, will be better supported to realise their potential under UK Government plans unveiled yesterday.

  • As part of Government’s mission to support more people into work, the Department for Work and Pensions (DWP) has today launched a consultation on changes to the Work Capability Assessment, following the landmark Health and Disability White Paper published earlier this year
  • Changes represent the next step in welfare reform, reflecting the rise of flexible and home working and better employer support for disabled people and people with health conditions
  • Changes also reflect that one in five of those with no work preparation requirements would like to work at some point in the future, with the right support

A consultation, launched yesterday (Tuesday 5 September), will consider changes to the Work Capability Assessment, with proposals to ensure it is delivering the right outcomes for supporting those most in need.

The consultation will look at updating the Work Capability Assessment’s categories so they better reflect the modern world of work and the opportunities more readily available to disabled people.

Earlier this year, Government confirmed investment worth £2 billion to support disabled people and those with long-term health conditions into work, while delivering on the Prime Minister’s priority to grow the economy. Today’s consultation will go further to facilitate appropriate work opportunities for people, by reviewing a range of categories in the assessment – representing its first significant update since 2011.

These categories are designed to determine what activity people can do and how that affects their ability to work. This then informs assessors’ decisions on what additional financial support people can receive through their benefits, and if claimants need to do anything to prepare themselves for work.

The consultation’s proposals include updating the categories associated with mobility and social interaction, reflecting improved employer support in recent years for flexible and home working – and minimising the risk of these issues causing problems for workers.

Those who were found capable of work preparation activity in light of the proposed changes would receive tailored support, safely helping them to move closer to work and ensuring a significant proportion of people are not automatically excluded from the support available.

Prime Minister Rishi Sunak MP said: “Work transforms lives – providing not just greater financial security, but also providing purpose that has the power to benefit individuals, their families, and their communities.

“That’s why we’re doing everything we can to help more people thrive in work – by reflecting the complexity of people’s health needs, helping them take advantage of modern working environments, and connecting them to the best support available.

“The steps we’re taking today will ensure no one is held back from reaching their full potential through work, which is key to ensuring our economy is growing and fit for the future.”

Secretary of State for Work and Pensions Mel Stride MP said: “Health assessments haven’t been reviewed in more than a decade and don’t reflect the realities of the world of work today. That’s why we’re consulting on reforms which will mean that many of those currently excluded from the labour market can realise their ambition of working.

“Anyone helped towards work through these proposals would receive appropriate support tailored to their individual circumstances, allowing them to safely access the life-changing impacts that work can provide.”

Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce, said: “Across the country, businesses are crying out for workers to fill job vacancies.  Being employed has many positive benefits for people, so it makes sense to help everyone who wants to work to find a good job that meets their needs and personal circumstances.

“Employers understand this and want to be as flexible as possible to assist. To be effective, it’s crucial that, both sides, have the right support in place for as long as needed to help people find work, stay in work and have fulfilling careers.”

The UK Government is spending £25.9 billion on incapacity benefits this year, a 62% real-terms rise on 2013/14 (£15.9 billion), with current projections predicting a further 13% real-terms rise to £29.3 billion – with an extra 500,000 people coming onto these benefits – by 2027/28 if nothing changes.

This is fuelled in large part by the proportion of new claimants for incapacity benefits assessed as the highest possible award (no work-related requirements) rising from 21% in 2011 to 65% in 2022.

The Work Capability Assessment is being reviewed to ensure it reflects the latest opportunities for employment support, so that growing numbers of people are not missing out on the help available, particularly given the known health benefits from working. This is especially important when research shows that one in five of them would like to work at some point in the future.

Representing the latest step to support people with health conditions into work, this follows last year’s milestone of getting over one million more disabled people into employment compared to five years ago.

Minister for Disabled People, Health and Work Tom Pursglove MP added: “I am incredibly passionate about supporting disabled people to have the most fulfilling life possible, including through work, and these proposals would enable us to provide help to people who could benefit greatly from it.

“We will continue to look at ways to safely support more disabled people into work, unlocking all the positive wellbeing benefits that brings, whilst meeting the Prime Minister’s pledge to grow the economy.”

These proposed changes, due to come into force in 2025, come as part of the Government’s wider multi-billion pound plan to tackle inactivity and boost economic growth.

One of the measures the Government is also consulting on is the substantial risk category, where claimants who would otherwise be capable of work-related activity are excluded from work preparation requirements, on the basis that this could put them at risk to themselves or others.

The consultation will consider whether the application of this category is being applied too broadly, in turn excluding a significant number of vulnerable people from support that would prepare them to move closer to work, financial independence and a more fulfilling life.

This cohort could also benefit from the Government’s £2 billion investment to help those with long-term illnesses and disabilities get into work, and also from funding for work coaches to help people who need further support.

This includes the new Universal Support programme, which will help disabled people and people with health conditions by matching them with vacancies and providing support and training to help them start and stay in that role.

The Individual Placement and Support in Primary Care programme is part of this scheme, with £58 million being invested to help more than 25,000 people in this group start and stay in work.

The DWP is also currently running a consultation on occupational health, which is looking at ways to encourage employers to expand their occupational health offer.

And the Spring 2023 Budget provided around £250 million of funding to modernise and digitise mental health services in England, providing wellness and clinical apps, piloting cutting-edge digital therapies and digitising the NHS Talking Therapies programme.

New plans to boost health in the workplace to keep people in work

Plans to boost UK employment through widening access to high-quality health support in the workplace are being unveiled today by the Westminster Government

  • Ministers are urging employers to do more to keep workers healthy and reduce the numbers out of work due to long-term sickness
  • Consultation launching on measures to increase employer uptake and widen reach of Occupational Health
  • Plans include a new standard for businesses to adopt to boost health in the workplace
  • Better workplace support expected to grow the economy and tackle inactivity by improving productivity and preventing health-related job losses

The Department for Work and Pensions (DWP) and Department of Health and Social Care (DHSC) are today publishing a consultation on ways to increase uptake of Occupational Health provision.

Employers will be encouraged to take up Occupational Health offers to help employees access vital mental and physical health support at work, particularly for those working in small and medium-sized enterprises.

These proposals include introducing a national “health at work” standard for all employers to provide a baseline for quality Occupational Health provision, which includes guidance, an option to pursue accreditation, and additional government support services – for example outreach workers to support SMEs to meet the standards.

It also seeks views on developing longer-term workforce capacity to help meet any increased demand for Occupational Health services in the future by:

  • Encouraging NHS leavers or those who are considering a career change to pivot towards the Occupational Health specialism
  • Developing a longer-term, multi-disciplinary workforce to provide Occupational Health services

The consultation will also ask employers to share their examples of good Occupational Health provision to help inform other businesses and encourage them to provide the same.

Secretary of State for Work and Pensions, Mel Stride MP, said: “This Government is investing billions in getting people back to work and growing the economy. We need employers to keep playing their part too.

“Healthy businesses need healthy workers – employers will benefit from higher retention rates, more productive workers, and fewer work days lost due to sickness. Improving health in the workplace is a vital piece of the puzzle in our drive to increase employment.”

Minister for Disabled People, Health and Work, Tom Pursglove MP, said: “Long-term sickness is a huge contributor to economic inactivity, and while of course some people are unable to work, better accommodation of health problems in the workplace will open up a wider workforce to employers and support employees with a range of needs.

“Many small and medium-sized business owners already invest significantly in the health and wellbeing of their workforce, but this will be a gamechanger in identifying and removing obstacles to people with health conditions starting, staying and succeeding in work.”

To also help keep people in work, the government will today also publish a separate consultation looking at options to increase investment in Occupational Health services by UK wide employers through the tax system.

This follows its announcement at the Spring Budget where it committed to consult on incentivising greater provision of Occupational Health through the tax system.

The government wants to explore the case for providing additional tax relief to businesses on their Occupational Health costs.

In particular, the consultation asks respondents for their experiences of providing Occupational Health, including what services they provide and any barriers they experience. It also asks for evidence on the effectiveness of existing tax incentives and asks respondents for their views on the merits of expanding the existing Benefit-in-Kind relief, and thoughts on any alternative tax incentives.

Tax reliefs on Benefits-in-Kind are already available for certain occupational health services. This consultation will test if expanding these reliefs or introducing new ones could be an effective lever to achieve greater Occupational Health provision, as well as thoughts on any alternative tax incentives. The consultation will determine if expanding tax incentives is an appropriate measure to boost Occupational Health provision.

This is all a key component of the measures in the 2023 Spring Budget to grow labour market participation, reduce economic inactivity and get more people into work. The Department is helping millions to return to work with inactivity falling by 360,000 since the peak of the pandemic.

Long-term sickness is currently the main reason people of working-age give for being economically inactive, but just under half of workers have access to Occupational Health services. Over 90% of large employers offer Occupational Health support, compared to under a fifth of small ones.

Occupational Health provision can help employers provide work-based support to manage their employees’ health conditions, leading to better retention and return-to-work prospects, and improving business productivity, which can be adversely impacted by sickness absence.

Secretary of State for Health and Social Care, Steve Barclay said: “High quality Occupational Health support in more workplaces would not only help to reduce economic inactivity, but it can lead to a healthier, happier workforce.

“The individual health benefits are clear and by focusing on preventative measures, we can reduce the burden on the NHS and help to bring waiting lists down, which is one of the government’s top priorities.”

Angela Rowntree, Occupational Health Physician for the John Lewis Partnership, said: “At John Lewis Partnership we are moving away from reactively managing sickness to proactively supporting our Partners’ health and wellbeing at work.

“Our founder, Spedan Lewis understood this when he launched an in-house health service for all Partners in 1929 – nearly 20 years before the NHS was established – and we’re proud to be part of his legacy today, providing advice and support to help our Partners achieve their potential in the workplace.

“We welcome this new focus on ensuring other businesses and their employees are able to access better workplace health.”

The Occupational Health consultation will run until 23:59 on Thursday 12 October .

Over six million disabled people start receiving £150 Cost of Living payment

· Government’s £150 Disability Cost of Living payments paid from today (Tuesday 20 June)

· Payments will be made automatically over two-week period between 20 June and 4 July 2023

· Anyone in receipt of certain disability benefits on 1 April 2023 is entitled and will receive the payment

· One-off disability cash forms part of wider support package worth up to £1,350 for the most vulnerable

More than six million disabled people across the UK are set to receive a £150 Disability Cost of Living Payment from today.

The one-off payments, issued by the Department for Work and Pensions throughout a two-week window, will help disabled people with the extra costs they face.

It comes as part of a wider package of Cost of Living support worth up to £1,350 to the most vulnerable households, underlining the Government’s commitment to supporting these those most in need.

The Government is also working hard to ease cost of living pressures by working towards the goal of halving inflation, which will lay the foundation for the long-term growth needed to improve living standards for everyone.

Secretary of State for Work and Pensions, Mel Stride MP, said: “We recognise that some of the most vulnerable UK households continue to face cost of living pressures, in particular those who are disabled.

“Our commitment to halving inflation and ultimately getting it back to the 2% target will relieve a lot of financial pressure for us all, but this extra support will help over six million disabled people right now as we work towards that goal.”

The Chancellor of the Exchequer, Jeremy Hunt MP, said: “The additional costs faced by disabled people mean inflation is particularly challenging, which is why halving it this year and getting back to the Bank of England’s 2% target is our priority.

“The £150 we’re sending disabled people over the next two weeks is part of a major cost-of-living support package worth just under £100 billion, providing some peace of mind to the most vulnerable in society.”

Minister for Disabled People, Health and Work, Tom Pursglove MP, said: “We understand the additional financial pressures disabled people are facing, which is why we are putting another £150 in their pockets from today.

“This is on top of further cost of living payments for low-income benefit claimants, as we’re committed to providing support where it is needed most.”

As the payment is made automatically, those eligible for the support do not need to take any action. The payment reference on bank statements will appear as the individual’s National Insurance number followed by “DWP COL”.

The full list of benefit recipients that qualify for the Disability Cost of Living Payment between 20 June and 4 July are those who receive any of the following:

· Disability Living Allowance

· Personal Independence Payment

· Attendance Allowance

· Scottish Disability Benefits (Adult Disability Payment and Child Disability Payment)

· Armed Forces Independence Payment

· Constant Attendance Allowance

· War Pension Mobility Supplement

A small number of payments will be made after 4 July, where claimants were still awaiting confirmation of their eligibility or entitlement to qualifying disability benefits on 1 April.

This new payment is in addition to the £150 Disability Cost of Living Payment that was paid last September. Pensioners will also receive a further £300 payment later this year and people on eligible means-tested benefits will be paid up to two more Cost of Living payments through to next Spring totalling £900.

Deadline for voluntary National Insurance contributions extended to April 2025

Taxpayers now have until 5 April 2025 to fill gaps in their National Insurance record from April 2006 that may increase their State Pension – an extension of nearly two years – the UK Government has announced.

Extending the voluntary National Insurance contributions deadline until 2025 means that people have more time to properly consider whether paying voluntary contributions is right for them and ensures no-one need miss out on the possibility of boosting their State Pension entitlements.

The original deadline was extended to 31 July 2023 earlier this year, and tens of thousands of people have taken advantage to pay voluntary contributions to HM Revenue and Customs (HMRC) since then. The revised deadline is expected to enable tens of thousands more to do the same.

Victoria Atkins, Financial Secretary to the Treasury, said: “People who have worked hard all their lives deserve to receive their State Pension entitlement, and filling gaps in National Insurance records can make a real difference.

“With the deadline extended, there is no immediate rush for people to complete gaps in their record and they will have more time to spread the cost.”

Laura Trott, Minister for Pensions, Department for Work and Pensions, said: “I am pleased to see so many people taking steps to review their State Pension, which is why we have extended the deadline for customers to add extra years to their National Insurance record.

“This extension means thousands more people will have time to check their entitlement, and in many cases, increase the amount they receive when they retire.”

The extension means that taxpayers have a longer period to enable them to afford to fill any gaps if they choose to do so. All relevant voluntary National Insurance contributions payments will be accepted at the rates applicable in 2022 to 2023 until 5 April 2025.

Individuals who are planning for their retirement could benefit from the opportunity to complete gaps in their National Insurance record. Other people who may benefit include those who may have been:

·         employed but with low earnings

·         unemployed and not claiming benefits

·         self-employed who did not pay contributions because of small profits

·         living or working outside of the UK

Paying voluntary contributions does not always increase your State Pension. Before starting the process, eligible individuals with gaps in their National Insurance record from April 2006 onwards should check whether they would benefit from filling those gaps.

They can find out how to check their National Insurance record, obtain a State Pension forecast, decide if making a voluntary National Insurance contribution is worthwhile for them and their pension, and how to make a payment on GOV.UK.

Taxpayers can check their National Insurance record through their Personal Tax Account.

Payment window for £150 Disability Cost of Living Payment announced

  • Vast majority of £150 payments set to be made automatically over two-week period between 20 June and 4 July 2023
  • More than six million disabled people will receive payment and benefit from extra cost of living support
  • Comes as part of wider package of Government support, including separate means-tested Cost of Living Payments totalling up to £900, and £300 Pensioner Payments

More than six million disabled people in the UK will receive their one-off £150 Disability Cost of Living Payment from 20 June.

This follows the £150 Disability Cost of Living Payment that was paid last September, demonstrating the Government’s commitment to supporting the most vulnerable in society while delivering on its commitment to halve inflation this year and grow the economy.

Those being paid a disability benefit that qualifies them for the payment will receive it automatically during a two-week window starting on 20 June and finishing on 4 July.

At a time when costs are rising for everyone, this payment recognises the extra costs disabled people in particular often face, such as care and mobility needs.

A small proportion of payments will be made after this date, where claimants were still awaiting confirmation of their eligibility or entitlement to disability benefits on 1 April.

There will also be further payments of £300 for pensioners due later this year, meaning some of the most vulnerable households can receive up to £1,350 in direct Cost of Living Payments.

Secretary of State for Work and Pensions, Mel Stride MP, said: “This payment helps protect those who need our support the most, providing a vital financial boost to six million disabled people.

“Our multi-billion-pound package of support reinforces our commitment to help UK households with the rising cost of living. It comes on top of record increases to benefits and the national living wage.”

Minister for Disabled People, Health and Work, Tom Pursglove MP, said: “We know the cost of living has gone up for disabled people, which is why we are taking action to reduce the financial pressures they face.

“This £150 Disability Cost of Living Payment is on top of up to £900 that most low-income benefit claimants will also receive, helping ensure the most vulnerable in our society are protected from rising costs during this challenging period.”

The full list of benefit recipients that qualify for the upcoming Disability Cost of Living payment are those who receive:

  • Disability Living Allowance
  • Personal Independence Payment
  • Attendance Allowance
  • Scottish Disability Benefits (Adult Disability Payment and Child Disability Payment)
  • Armed Forces Independence Payment
  • Constant Attendance Allowance
  • War Pension Mobility Supplement
  • They must have received a payment (or later receive a payment) of one of these qualifying benefits for 1 April 2023 to get the payment. For those who were awaiting confirmation of their entitlement to disability benefits on 1 April, or who are waiting to be assessed for eligibility to receive disability benefits, the process may take longer, but payments will still be automatic.
  • Disabled people on low incomes in receipt of means-tested benefits may previously have been eligible for £301 this spring, and stand to be eligible for a further £300 this autumn and £299 in spring 2024. The £150 payment will be made on top of these Cost of Living Payments, with disabled people who wouldn’t qualify for the means-tested support, but who are in receipt of disability support, also receiving the payment.
  • You can read more about the Government’s cost of living support on the Help with the cost of living page.

Pensioners: Don’t miss out on Cost of Living Payment

Don’t miss out on the £301 Cost of Living Payment as a recipient of Pension Credit – submit your application for Pension Credit before FRIDAY – 19 May.

Did you know, if you get Pension Credit you could also get a help with your council tax, housing costs, broadband fees and energy bills?

You could be on average £3,500 a year better off.

To check your eligibility and to apply, visit: http://ow.ly/KfW350Oh0na

#HelpForHouseholds

Just ten days left to claim Pension Credit and qualify for £301 Cost of Living Payment

All pensioners on a low income should check if they qualify for Pension Credit in order to also receive a Cost of Living Payment

  • Pensioners urged to check if they could be eligible for Pension Credit, worth over £3,500 a year on average
  • Those who successfully claim by 19 May could also receive a £301 Cost of Living payment – demonstrating Government’s focus on delivering the five priorities, including halving inflation, growing the economy and reducing debt
  • Pensioners can check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator

There are just TEN DAYS to go for people to claim Pension Credit and still qualify for the latest £301 payment, which they will receive direct into their bank accounts.

Provided a claim is made before 19 May, it can be backdated for up to three months so long as the applicant was also eligible to receive it during that time.

This builds on the extensive support that was delivered to pensioners last year, alongside measures such as holding down households’ energy bills and freezing fuel and alcohol duty, which deliver on Government’s priorities to halve inflation and grow the economy.

Minister for Pensions Laura Trott said: “Pension Credit can make a real difference and I am determined to make sure this support – worth an average of £3,500 a year – is reaching everyone who needs it, particularly as we know how much pressure households across the country have been under.

“Please check if you or your loved ones can claim for this extra support, and if you do it by 19 May you could qualify for the £301 Cost of Living Payment – giving another financial boost to those who need it most.”

Pension Credit is designed to help people over State Pension age and on a low income with daily living costs, though you do not need to be in receipt of State Pension to receive it.

It tops up a person’s income to a minimum of £201.05 per week for single pensioners and to £306.85 for couples or more if a person has a disability or caring responsibilities.

Worth on average over £3,500 a year, even a small Pension Credit award can provide access to a wide range of other benefits – such as help with housing costs, council tax or heating bills – in addition to the extra cost of living payments, worth up to £900 this financial year.

Further Information:

  • Applications for Pension Credit can be made:
  • On the How to Claim page
  • Over the phone by calling 0800 99 1234 (Monday to Friday 8am to 6pm)
  • By printing out and filling in a paper application form
  • Currently, around 1.4 million pensioners in Britain receive Pension Credit. However, many are still not claiming this extra financial help.
  • Pension Credit can be claimed by phone and online, ensuring that older people can apply safely and easily, wherever they are. The online Pension Credit calculator is also on hand to help pensioners check if they’re likely to be eligible and get an estimate of what they may receive
  • This help comes on top of the biggest State Pension increase in history, which means the full rate of the New State Pension will exceed £10,000 a year for the first time.

Over 7 million households receive £301 Cost of Living Payment from DWP in just 8 days

99% of households initially eligible through DWP will have been directly paid £301 by the government by end of today (3 May 2023)

  • The payments are the first of 3 new Cost of Living Payments worth up to £900 in 2023/24 for those eligible – though some people will receive up to £1,350.
  • Those remaining will continue to be paid between now and 17 May by DWP, with no need to contact anyone.

More than 7 million households across the UK will have been paid a £301 Cost of Living Payment by the end of today (3 May 2023).

This means the vast majority of eligible households have received the support in just 8 days of the rollout starting, with the small number of payments outstanding to be made by 17 May.

The payment is the first of 3 Cost of Living Payments being made this year and the next, illustrating the government’s commitment to supporting vulnerable families with financial pressures. This comes alongside work to deliver on the government’s 5 priorities, including halving inflation and growing the economy, which will ultimately help put more money in people’s bank accounts at the end of the month.

Mel Stride, Secretary of State for Work and Pensions, said: “Paying more than 7 million households £301 in a little over a week underlines our commitment to ensure those on the lowest income are protected from the worst of rising prices and give them peace of mind.

“With further payments due to be made later this year and in 2024, we will continue to provide support to those who need it most while we tackle inflation and grow the economy.”

Jeremy Hunt, Chancellor of the Exchequer, added: “We know the impact that rising prices are having on families, which is why we are providing significant support to millions through these direct cash payments. This is alongside other support, including holding down energy bills, uplifting benefits and the State Pension by 10%, and increasing the National Living Wage by a record amount.

“The single best way to ease cost of living pressures is to bear down on inflation. We are on track to halve it this year, laying the foundation for the long-term growth needed to improve everyone’s living standards.”

The Cost of Living Payments, spread across 2023/24, are worth up to £900 for those on means-tested benefits. The next payment for those on means-tested benefits is due in the autumn, with the third instalment due next spring.

These are accompanied by a £150 payment for people on eligible disability benefits this summer, and a £300 payment to top up Winter Fuel Payments for pensioners at the end of 2023 – meaning some will receive up to £1,350.

This makes up part of the government’s significant cost of living support – now worth an average of £3,300 per household over this year and last.

People will be eligible for the £301 Cost of Living Payment if they have been entitled to a payment for one of 7 benefits between 26 January and 25 February 2023. The eligible benefits are:

  • Universal Credit
  • Pension Credit
  • Income-based Jobseekers Allowance
  • Income-related Employment and Support Allowance
  • Income Support
  • Working Tax Credit
  • Child Tax Credit

The DWP encourages anyone who thinks they may be eligible for a qualifying benefit to use a benefits calculator to check their entitlement. In particular, low-income pensioners should check their eligibility for Pension Credit, as they may still be able to receive the £301 Cost of Living Payment, and subsequent payments, if they make a successful backdated application by 19 May 2023.

The small number of payments outstanding will continue to be made between now and 17 May, and anyone eligible still waiting for a payment does not need to contact the Department for Work and Pensions (DWP) before then.

After this date, if someone thinks they may be missing a payment they are entitled to, a form can be filled out on the GOV.UK website to make a claim.

One million eligible families, receiving tax credits only, will get their £301 Cost of Living Payment from HM Revenue and Customs (HMRC) between Tuesday 2 and Tuesday 9 May with the banking reference ‘HMRC COLS’.

This payment comes on top of extensive support given to low-income households in 2022, including up to £1,100 in Cost of Living Payments. The Household Support Fund, worth over £2 billion across its lifetime, continues to offer support to people across England, and those in need should contact their local council to see what support is available in their area.