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
