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 .