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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Biggest fraud crackdown in a generation

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Additional Information

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

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

The measures in this Bill will enable the PSFA to:

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

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