Tag: welfare

Pathways to Work? Health and disability Green Paper analysis

Welfare Green Paper: what we know and what we don’t know

Work and Pension Secretary Liz Kendall made a statement to the House of Commons yesterday outlining the main areas of ‘Pathways to Work”, the UK Government’s Green Paper that has been in the rumour mill for weeks. The statement contained some well trailed announcements and some new details, although there are also still some significant gaps in our understanding (writes FRASER of ALLANDER INSTITUTE team).

PIP will not be frozen, but eligibility will be restricted

The Secretary of State’s headline announcement was in line with news over the weekend, which suggested that rates will not be frozen. Instead, the criteria for getting the daily living element of the Personal Independence Payment (PIP) will be raised, with a minimum of four points on one daily living activity.

The Green Paper in this section is heavily focussed on the ‘sustainability’ of the disability benefits system, and on needing to make the system more ‘pro-work.’ It’s worth noting, however, that work status is unrelated to being in receipt of disability benefits, which are designed to address the additional costs of living with a disability, whether or not someone is in work.

Sustainability too is a nebulous concept in this space. But while it makes sense to talk about sustainability of the public finances as a whole, it is not immediately clear that a growing area of spending is necessarily unsustainable, especially when responding to a clear need in society. The Government has choices – for example, to raise taxes or to cut other areas of spending. So far from being a macroeconomic imperative, to focus on disability benefits seems clearly a political choice.

There is little in the way of details of how much the UK Government intends to save in the Green Paper, but the Secretary of State mentioned the much bandied about £5bn by 2029-30 that it intends to include in the OBR forecast. We do not know how much of this figure will be generated from PIP rather than other changes.

What we now know is that the whole of the spending reductions on PIP will come from the lower end of the average award, as it is being driven through the raising the bar for claiming. But that also means that all else equal, even more people will lose access to the benefit. A quick calculation suggests that for every £1bn a year saved, it could mean around a quarter of a million fewer people receiving PIP, which would be a huge change.

Work capability assessment scrapped from 2028

This is a significant change, and one for which consequences in Scotland are still unknown. At the moment, the work capability assessment (WCA) is used to assess fitness for work. From 2028, the assessment for PIP will instead be used as the basis for universal credit (UC) elements related to health conditions.

This creates an issue in Scotland, because Social Security Scotland runs its own (different) assessment for Adult Disability Payment (ADP), which is the devolved equivalent of PIP. But UC is a reserved benefit administered by DWP, and that means that potential claimants in Scotland would not have access to the PIP assessment that would be used for determining eligibility for health-related UC elements. And with the PIP assessment being tightened, it will be likely further out of step with ADP.

We’ll have to wait and see what solution there will be to this – the Green Paper merely states that “consideration will be needed.” But this is an important issue that requires action on the part of both UK and Scottish departments to ensure access by claimants to this is maintained. It highlights a broader issue of the interaction between the benefits systems which is likely to be put under further strain as systems evolve separately in Scotland.

On a broader point, these proposed changes come at a time when people in receipt of Employment and Support Allowance are due to be migrated to UC by the end of 2026. Our research with people with learning disabilities showed that many are already really concerned about the upcoming changes, and these will be further changes to an already complex system. It will be crucial to clearly communicate all the changes, particularly in accessible formats.

UC rates to be rebalanced, and access to health elements restricted for those under 22

The Secretary of State also announced a big change in the relative levels of the standard and health elements of UC. The health element of UC – which is paid on top of the standard allowance – will be frozen in cash terms for the rest of the decade for those already in receipt of it, and new claims will be paid at around half the current rate (£50/week compared with the current £97/week). Alongside this, the UK Government says it will uprate the UC standard allowance by more than inflation (6% in 2026-27).

The health element of UC will also be tightened in several ways. One is that claimants will be expected to have “much more active engagement and support” in relation to work. The other large change proposed is the consultation on delaying access to the health element of UC until potential claimants are 22, with the justification being the lower likelihood of those in receipt of that element being in employment as well as the fact that those under 22 will be covered by the Youth Guarantee of employment support, training or an apprenticeship.

We note, however, that employability is an area of devolved competence, and indeed a similar scheme already exists in Scotland.

A consultation on a new ‘unemployment insurance’

The UK Government is consulting on an interesting proposal for a unified ‘unemployment insurance’ benefit, which would replace both contribution-based Jobseeker’s Allowance and Employment and Support Allowance with a single, time-limited entitlement. This is a step more in the direction of most European systems, in which contributory systems provide a much higher level of income replacement than UC, although for a limited period of time. The proposed rate is much higher than contributory JSA, which has never been a big part of the welfare system in the UK.

Higher income replacement systems are the basis of highly successful active labour market policy systems such as the Danish ‘flexicurity’ approach, and which could help smooth out cliff-edges in the labour market and incentivise retraining, but this proposal – while probably a good idea – falls well short of that kind of system. In any case, it’s also purely consultative – and as it might well cost money on net (at least in the short run), we wait to see if anything will come of this.

‘Right to try’ – a welcome development

One of the measures mentioned in the Green Paper that could have a big positive impact is the announcement of legislation to guarantee that simply starting work will not lead to a reassessment or award review. The fact that this can happen at the moment is acts as a barrier to entering employment, especially if people want to work but are unsure if it will be a good fit for their situation as they might have to reapply for benefits subsequently.

Our research with people with learning disabilities indicates that this ‘right to try’ approach might work well, as the binary ‘can work/can’t work’ doesn’t fit well for them. Many people want to work and just need the right support – so we are hopeful that some of these changes will provide just that.

We know very little about how most of the announcements will affect Scotland

PIP is being replaced in Scotland with ADP, and migration is expected to be concluded this year. None of the announcements therefore affect Scottish claimants of ADP, but they do affect the finances of the Scottish Government. As we discussed last week, the Scottish Government’s block grant adjustment is based on the projected expenditure in England and Wales, and therefore a tightening of access to PIP will (all else equal) make the Scottish Budget worse off. It is then the Scottish Government’s decision to move in lockstep or to find the additional funds from other sources.

Because the Green Paper has no costings for how much of the £5bn a year in savings comes from PIP, it’s impossible for us to say how much this will mean for the Scottish Government’s Budget. But the ready-reckoner we provided last time out – showing an effect of £90-115m for every £1bn reduction in PIP spending by the UK Government – still applies.

As we discussed before, the use of the PIP assessment for health-related UC claims is problematic in the absence of any further action, as this is not available in Scotland and the systems are diverging. The UK Government’s Green Paper says this will require “consideration”, but this is a pretty substantial change that we hope will be solved in good time. Given the proposal is for this to be done from April 2026, it is fairly urgent to get this resolved.

Employability support is a devolved area, but the UK Government says it will include an additional £1 billion to create a guarantee of personalised employment, health and skills support. Given that, we’d expect Barnett consequentials to flow from this, but the Green Paper does not explicitly state that – we’ll wait to see if there are news on this.

The restrictions on health-related UC claims for under 22s will apply in Scotland, as it’s a reserved benefit. Notwithstanding the issues with the PIP/ADP assessment compatibility, this is an area where there has certainly been growth in the past few years: in December 2024, 11,300 people aged 16-21 were in receipt of the health element of UC, compared with 4,600 in December 2019.

This gives us a first glimpse of the amount of people that might be affected by this change if it were to be introduced.

Green Paper delivers tiny income gains for up to four million households, at cost of major income losses for those who are too ill to work or no longer qualify for disability benefit support, says RESOLUTION FOUNDATION

The Health and Disability Green Paper will boost Universal Credit (UC) support for up to four million families without any health conditions or disability by around £3 a week. But these tiny gains are overshadowed by reforms that risk causing major income losses for those who are too ill to work, or those who no longer qualify for disability benefits, the Resolution Foundation said yesterday (Tuesday).

The Green Paper today sets out major reforms on entrances into the benefits system, entitlements within the system, and exits into work that aim to cut spending by £5 billion a year by the end of the decade, and change how people interact with the system.

The main savings are to be achieved through restricting entitlement to PIP – a benefit that is paid regardless of whether someone is in work, to compensate for the additional costs of being disabled.

The Foundation says that if the Government plans to save £5 billion from restricting PIP by making it harder to qualify for the ‘daily living’ component, this would mean between 800,000 and 1.2 million people losing support of between £4,200 and £6,300 per year by 2029-30.

With seven-in-ten PIP claimants living in families in the poorest half of the income distribution, these losses will be heavily concentrated among lower-income households. This looks like a short-term ‘scored’ savings exercise, rather than a long-term reform, says the Foundation, given that Ministers have also said they will look again at how PIP is assessed in the future.

Further savings are to be achieved by cutting the level of the health-related LWCRA element within UC, which is currently claimed by 1.6 million people. The proposed cuts are focused on young people (aged 16-21), who may no longer be eligible for any extra support, and those who fall ill in the future, as their additional support will be halved, from £97 per week in 2024-25 to £50 per week in 2026-27.

Reinvesting some of the cuts to health-related UC into boosting the basic award for UC (which, at around £3 more per week, is roughly a sixth of the temporary £20 a week uplift to UC during the pandemic), and greater support for the newly unemployed should benefit up to four million families who don’t receive health-related UC.

Reducing the financial gap between health-related and basic UC should reduce the incentive for people to claim incapacity benefits (which, for a single adult, is over twice as much as basic UC at present). Along with the additional employment support provided to people on UC, the Government hopes this will boost employment, although figures will not be available until the Office for Budget Responsibility publishes its spring forecast next week.

Louise Murphy, Senior Economist at the Resolution Foundation, said: “The package of measures announced in today’s Green Paper should encourage more people into work. But any living standards gains risk being completely over-shadowed by the scale of income losses faced by those who will receive reduced or no support at all – irrespective of whether they’re able to work.

“Around one million people are potentially at risk of losing support from tighter restrictions on PIP, while young people and those who fall ill in the future will lose support from a huge scaling back of incapacity benefits.

“The irony of this Health and Disability Green Paper is that the main beneficiaries are those without health problems or a disability. And while it includes some sensible reforms, too many of the proposals have been driven by the need for short-term savings to meet fiscal rules, rather than long-term reform.The result risks being a major income shock for millions of low-income households.”

Money and Mental Health Policy Institute: Response to government welfare green paper

The government has published its welfare green paper, which outlines its proposals to reform the welfare system.

In particular, the green paper sets out plans to make it harder for people to qualify for Personal Independence Payments (PIP) — a benefit which people with disabilities and long-term ill-health can claim to help cover the extra costs associated with their disability, and which is not connected to work. In addition, people aged under 22 will not be able to qualify for the health top-up element of Universal Credit.

The government has also announced £1bn additional funding for personalised employment support to help people with disabilities move into work, and that people receiving benefits will be given a “right to try” work without losing their benefits entitlement.

Commenting on the proposals, Helen Undy, Chief Executive of the Money and Mental Health Policy Institute, said: “PIP is an absolute lifeline for thousands of people with mental health problems. It can be the difference between being able to afford basic things like a phone to call your crisis team or help to clean your home, or living in disarray and increasing isolation.

“Making it harder to access will jeopardise people’s financial security and cause serious distress, which won’t set up people to go back into work and to thrive. 

“These changes will mean that needing help to wash or get dressed because of your mental health wouldn’t be enough to qualify for PIP.

“The government says it will ensure people with ‘genuine need’ aren’t affected, but we’re really concerned that these new reforms will take us further back to the days when people with mental health problems were treated as less worthy of help than those with physical health issues.

“The new ‘right to try’ a job without losing the benefits is welcome, as is the funding for personalised employment support for people with disabilities or health conditions. But introducing these measures alongside cuts to PIP and stopping young people from getting incapacity benefits will do more harm than good.

“It is a short sighted approach that will have a devastating impact on many people’s finances and mental health, and we urge the government to rethink these plans.”

DWP: Almost two million people on Universal Credit not supported to look for work

Number of people on the highest rate of Universal Credit with no support to look for work has almost quadrupled since the Covid pandemic

  • Figures show 1.8 million people now in Limited Capability for Work Related Activity (LCWRA) category as broken Work Capability Assessment continues to push people out of work
  • New figures emerge ahead of proposals to reform health and disability benefits and builds on the plan to get Britain working

1.8 million people on Universal Credit are getting no support to find work, according to new data released yesterday (Thursday 13 March).

The number has almost quadrupled since the start of the pandemic when 360,000 people were considered too sick to look for work – a 383% rise in less than five years. In the last year alone, the number has risen by from 1.4 million people to 1.8 million. 

The number of young people aged 16 to 24 on LCWRA has risen by 249% from 46,000 to 160,000 since the pandemic – demonstrating a worrying increase in the number people becoming trapped in inactivity early in life, with almost one million young people not in education, employment, or training.

The government is already taking action to get people into work through its plan to get Britain working which will empower local mayors to tackle economic inactivity, overhaul Jobcentres, and deliver a Youth Guarantee so every young person is either earning or learning.

Building on the biggest employment reforms for a generation, Liz Kendall is due to announce radical welfare reforms to create a thriving and inclusive labour market – as part of the government’s Plan for Change to unlock work, boost growth and raise living standards.

Work and Pensions Secretary, Rt Hon. Liz Kendall MP, said: “Millions of people have been locked out of work by a failing welfare system which abandons people – when we know there are at least 200,000 people who want to work, and are crying out for the right support and a fair chance.

“This government is determined to fix the broken benefits system we inherited so it genuinely supports people, unlocks work, boosts living standards while putting the welfare bill on a more sustainable footing.”

In the current dysfunctional system, a person is placed in binary categories of either “fit for work” or “not fit for work” through the Work Capability Assessment (WCA) – an assessment the government has said it will either reform or replace, so it no longer drives people who want to work to a life on benefits.  

Through this process, those not fit for work are told they have Limited Capability for Work Related Activity (LCWRA) – meaning they won’t receive employment support or further engagement from the system at any point following their assessment – effectively abandoning and locking them out of work indefinitely. 

The current system, in which people 25 and over on the standard rate of UC get £393.45 a month and those with a health condition get an additional £416.19, gives an incentive for people to say they can’t work – and get locked out of help and support – simply to get by financially. 

Over the past five years, 67% of people on Universal Credit who have been through a WCA were considered LCWRA – a symptom of the assessment system pushing people to prove their inability to work for a more generous payout. 

The government says it has hit the ground running to tackle health-related inactivity at its root, improving the country’s wellness by investing £26 billion in the NHS, delivering 2 million extra appointments to tackle medical waiting lists, and hiring an extra 8,500 mental health workers, so people get the treatment they need to stay healthy and in work. 

This comes alongside the £250 million plan to get Britain working and the recently announced 1,000 Work Coaches will be redeployed to offer intensive employment support to around 65,000 sick and disabled people – a ‘downpayment’ on our plan to restore fairness to our welfare system.

Fraser of Allander analysis: The welfare bill under pressure

We have heard this week that the UK Government Chancellor Rachel Reeves intends to make cuts to the welfare bill to bring UK Government borrowing down in line with her fiscal rules ahead of the next OBR forecasts due at the end of the month (writes Fraser of Allander Institute’s EMMA CONGREVE). 

Reports state that the axe is likely to fall on health and disability related benefits for working age people.

Here we produce a bit of an explainer to get people up to speed on the benefits in scope and what has been happening in recent years.

Which benefits could be in line for cuts?

There are two types of benefits in Great Britain (benefits in Northern Ireland are arranged differently) that working age people with disabilities and ill health can claim.

Incapacity Benefits

The first type is an income replacement benefit that tops up income for families where the disability or health condition limits their ability to work, commonly referred to as incapacity benefits. They are means tested so that the amount you receive depends on your household income and reduces as income (e.g. from a partner’s earnings) rises.

Chart: Caseload of incapacity benefits for working age adults, Scotland

Notes: Universal credit and ESA exclude those in the assessment phase in line with OBR Welfare Trends Report analysis. Northern Ireland not included.

Sources: DWP, ONS

Universal Credit (UC) has been slowly replacing Employment and Support Allowance (ESA) for this group of people since 2018 so the reduction in ESA over time reflects migration over to UC rather than a change in disability/health status.

Disability Benefits

The second type of support for those with disabilities and ill health comes from payments to cover additional costs, for example due to reduced mobility, and are commonly referred to as disability benefits. They are not means tested and people do work whilst they are on these benefits.

In Scotland this type of benefit is now devolved, with Adult Disability Payment (ADP) slowly replacing Personal Independent Payment (PIP). PIP itself was a replacement for Disability Living Allowance (DLA) which no longer takes new applications and has a caseload that is reducing over time.

Chart: Caseload of disability benefits for working age adults, Scotland

Note: Adult Disability Payment started to replace PIP in Scotland from 2022. In England and Wales, PIP remains the main payment.

Source: DWP, ONS, Social Security Scotland

Which benefits are devolved?

Incapacity benefits (UC and ESA) are reserved benefits which means they largely operate in the same way across Great Britian, with the cost of the benefit in Scotland met by the UK Government. Any cuts made by the UK Government would apply in Scotland.

Disability benefits (PIP. SDA and ADP) are devolved, and there are differences in how the benefits operate in Scotland. The Scottish Government meets the costs of the benefit. To offset this, an amount is paid from the UK Government in the block grant, equivalent to the UK Government’s spending in Scotland if the benefits hadn’t been devolved and if spending had grown at the same per capita rate as in England and Wales.  

The Scottish Government has to find additional money if expenditure on Scotland starts to diverge from the rest of GB trend due to policy changes (or perhaps, if our population gets relatively sicker).

Any cuts to PIP or SDA made by the UK Government would not apply in Scotland, but the block grant from UK Government would fall. If the Scottish Government did not replicate the cuts, they would have to find additional money from elsewhere in the Scottish Budget to offset the fall.

What has changed since the pandemic and has it been the same in Scotland as the rest of Great Britain?

As the above charts show, the caseload (the number of people claiming these benefits) has been rising steadily in recent years for both these benefits across GB and is forecast to continue to do so.

The caseload in Scotland has long been higher than in England and Wales due to a higher prevalence of people with disabilities and long-term health conditions.

In recent years, incapacity benefits caseload growth has been slower (49% in Scotland compared to 59% in rGB between May 2019 and August 2024) but due to different levels of population growth caseload per capita (which is the caseload measure shown in the charts) has been slightly higher in Scotland (7% to 11% of working age population compared to 5 % to 8% for rGB).

For disability benefits, the introduction of Adult Disability Payment makes it difficult to compare like-with-like. Although eligibility has remained broadly the same, the application process has been made more accessible and this appears to have led to an increase in people applying following its introduction.

For more detail on this, see this paper from our sister organisation the Scottish Health Equity Research Unit (SHERU). It’s also possible that some people in Scotland delayed making a PIP application to DWP in anticipation of ADP opening for applications.

This may help to explain why, since 2019, the growth in the caseload in Scotland has been only slightly higher than rGB (63% increase in Scotland between May 2019 and Aug 2024 compared to 61% for rGB). In per-capita terms, due to lower population growth in Scotland, the growth has been a bit more significant (increase from 8% of the working age population to 14% in Scotland between May 2019 and Aug 2024, compared to 6% to 9% for rGB).

Do we know why rates have increased?

There are many theories as to why rates have increased but, for a number of reasons, it has been difficult to fully evidence exactly what is going on.

We know from IFS research that rates have increased more in Great Britain than they have in other countries. The IFS also looked at entry and exit rates for disability benefits England and Wales and concluded that around 2/3 of the increase is due to people starting claims and 1/3 is due to fewer people ending their claim.

There are likely to be a number of intersecting factors. We summarise some of these issues below but overall emphasise that we don’t fully know the extent to which these interact.

The working age population is getting older

On average, people’s health deteriorates as they age. With falling birth rates there are currently proportionally fewer younger working age people than older working age people. Coupled with this, pension age changes mean that more older people have become classified as ‘working age’ in recent years. The Resolution Foundation have calculated that an ageing working age population accounts for 1/5 of the rise in caseloads for health-related benefits since the pandemic.

The increases for younger people are concerning but the biggest impact on expenditure would come from tackling ill-health and disability in older age groups

For disability benefits, the growth has been highest in the older working age population, with then broadly comparable rises across other age groups. For incapacity benefits, after the 55-64 age group the second largest rise has come from 25-34 year olds. Growth in the number of young people out of work due to disability and ill health are concerning and needs attention, but if rates are going to come down, focussing on the older generation is key. Whilst we can’t fully attribute the rise to longer waiting times in the NHS, this is likely to be part of the explanation.

Some of the rise may be due to people struggling financially and needing to maximise benefit income

This rise in benefit caseloads has coincided with relatively high rates of inflation and the ‘cost of living crisis’. People struggling financially may have been more likely to make claims during this period compared to previous years when they did not feel they needed the extra income.

There is also some suggestion that people may have switched the type of claim they make for out-of-work benefits to benefit so they can receive a higher level of payment for disability and ill-health related claims. The fact that they are successful in these claims means that people are simply claiming what they are entitled to rather than somehow ‘gaming the system’.

Mental health related claims have grown, but so have claims related to other conditions

The largest absolute rise in claims for disability benefits has been related to mental health conditions, but across Great Britain, there have been rises in a range of physical conditions too (see IFS and SHERU work on this linked above). The extent to which this is due to an increased prevalence of health conditions versus an increased likelihood to claim a health-related benefit is difficult to disentangle.

There has been a rise in the in-work population reporting a disability as well and it may be that people are becoming more comfortable with disclosing mental health conditions. This could mean that people with multiple health conditions are more comfortable with citing mental health as their primary condition in benefit claims now than was previously the case.

We don’t know how much is due to long-covid or longer-term impacts of the pandemic

The extent of available data frustrates efforts to pin down the emergence of new or worsened conditions due to the pandemic and how this has changed people’s financial circumstances (for example, ability to work).

Issues with the official Labour Force Survey have limited the usefulness of the data collected there on reasons for ill health and inactivity (see SHERU blog on this issue here) and qualitative research that is able to produce more in-depth insights usually can’t be scaled up to population level.

As more longitudinal data is made available that tracks people through the period, alongside progress towards more routine data linkage of health records to other administrative data sources such as tax records, we might be able to get a better picture of the intersecting factors that have changed people’s health, benefit and work status in recent years.

What happens next?

The Spring Statement is due on the 26th March. When we know what the proposals are, we’ll be able to unpick what this will mean for people in Scotland and for Scottish Government budgets.

Whilst cuts to welfare spending may help in the short term, longer term solutions are tied up with efforts to improve both living standards and the ability of public services to support people further upstream (for example, through the NHS and employability services) which can reduce their need to recourse to the social security system.

Any decision to make cuts could come with fiscal risks. Cutting benefits for people already experiencing ill health and disability could make their conditions worse and increase demand for public services and/or lead to longer-term reliance on non-health related benefits.

A recent BBC verify article also provides a note of caution: reducing spending on the welfare bill is historically difficult and estimates of savings are often not achieved.

As well as looking at the details of the cuts, we’ll be looking at what the OBR say regarding their effectiveness of cutting UK Government spending with a keen eye.

Trussell: Welfare and disability benefit cuts risk pushing even more people to food banks 

CHARITIES CALL FOR ESSENTIALS GUARANTEE

  • Almost one in five people receiving Universal Credit and disability benefits used a food bank in the last month
  • Hunger and hardship are already at record levels. Welfare and disability benefit cuts risk pushing even more people to the doors of food banks, says anti-poverty charity Trussell 
  • More than three quarters (77%) of people claiming Universal Credit and disability benefits have gone without essentials in the last six months. 
  • Just over four in ten (43%) people claiming Universal Credit and disability benefit have skipped meals to keep up with other essential costs in the last three months. 
  • The anti-poverty charity is urging the UK government not to cut welfare and disability benefits, which are already not enough to live on. 
  • Trussell is calling on the UK government to take steps towards an Essentials Guarantee in Universal Credit, so the basic rate at least always covers the cost of life’s essentials. 

Trussell has published new research that demonstrates the inadequacy of social security for disabled people across the UK.  

The research, conducted by YouGov on behalf of Trussell, reveals that almost one in five (19%) people receiving Universal Credit and disability benefits have used a food bank in the last month, while a shocking 77% have gone without essentials in the last six months. 

Just over four in ten (43%) people claiming Universal Credit and disability benefits have skipped meals to keep up with other essential costs in the last three months, while more than a third (37%) said they had not been able to keep their home warm enough this winter.

Meanwhile, a quarter (25%) of people in receipt of Universal Credit and disability benefits have had to choose between paying for heating/food, or getting a bed/bedding in the last three months.  

“I’m terrified the government will stop or cut disability benefits and if they do, I can’t bear to think of the outcome,” said one person in their survey response.  

Another person said: “It’s just going to get worse, my health will get worse. I won’t be able to renew my car insurance in March, or get an MOT this year. I think I’ll soon fall behind with gas and electric bills. If the government switch to a voucher scheme for disability payments, I’ll probably starve!” 

A quarter (25%) of people claiming Universal Credit and disability benefits have been unable to afford pain relief or other over the counter medication in the last three months. Four in ten (37%) participants were behind on bills, with 28% behind on gas or electricity in particular.  

Just over half (52%) of people claiming Universal Credit were pessimistic about their own financial situation over the next year. Additionally, 58% said the UK government is doing badly at improving living standards for people in their situation.  

Trussell is an anti-poverty charity and community of 1,400 food banks across the UK. Disabled people are overrepresented at food banks, as 75% of people referred to a food bank in the Trussell community said that they or a member of their household are disabled.  

To fulfil its long-term ambitions, Trussell says the UK government must take serious action to reduce hunger and hardship by investing in social security. Focusing on short term cuts will just push more people deeper into poverty and to hunger and hardship, and this will harm us all. 

Trussell has joined together with hundreds of communities, food banks and charities including the Joseph Rowntree Foundation, in calling on the UK government to create an Essentials Guarantee in Universal Credit, which means the basic rate at least cover’s life’s essentials and that support can never be pulled below that level.  

The majority of participants in the new survey agree, with 83% saying they would support an Essentials Guarantee. 

Sumi Rabindrakumar, head of policy and research at Trussell, said: “Trussell’s heartbreaking new findings show that Universal Credit and disability benefits are failing to cover the cost of living, with 77% of people receiving them having gone without the essentials in the last six months.

“Not only that, but one in five people have had to use a food bank. This should not be the case in one of the richest countries in the world. 

“We agree with the UK government that disability benefits urgently need reform. But balancing the books cannot come at the expense of people already having to survive on incredibly low incomes, and people with physical and mental ill health conditions.

“Our data shows that disabled people are far more likely to need support from a food bank, which likely reflects that life costs more for disabled people, with additional costs like therapies, treatments, specialist kit to help with day-to-day activities and paid care to think about on top of food, bills and toiletries. 

“Welfare and disability benefit cuts risk pushing even more people to the doors of food banks. Many disabled people are terrified of the prospect of cuts to disability benefits, which are already not enough to live on.

“If the UK government is committed to its promise to end the need for emergency food, it must address underlying barriers to work and flaws in our social security system. It must also commit to creating an Essentials Guarantee which would ensure everyone can at the very least afford the essentials we all need, such as food, bills and toiletries- not whip away lifelines from people who need them most.” 

Britain’s ‘new approach’ to Welfare

UK Government Work Scheme delivers almost 100,000 placements

Almost 100,000 workplace training places have been delivered in the past year for jobseekers, smashing the Government’s 80,000 annual target, new data has revealed.

  • Record number of workplace training places have been delivered this year helping boost jobseeker skills and the economy 
  • Significant milestone hit as Prime Minister sets out welfare reforms to jumpstart UK labour market
  • DWP working directly with businesses to hire work-ready Brits and reduce dependence on foreign labour  
  • Comes in week that NICs cuts worth £900 hit pay packets ensuring work pays

Part of the Westminster Government’s plan to help people back to work and grow the economy, Sector-based Work Academy Programmes (SWAPs) help benefit claimants move off welfare and into work by providing tailored training and work experience before a guaranteed job interview.

Businesses who are actively hiring help craft these six-weeks on-the-job programmes, so that participants gain the right experience and skills for their roles.

The latest figures published this week show that in the last year 98,710 places were delivered – the highest annual figure yet. It brings the total number of SWAP starts to 283,930 – in sectors ranging from coding to hospitality, construction, health and social care. 

It comes in the week that the Government’s NICs cuts worth £900 to the average worker hits pay packets as part of the plan to cut taxes, grow the economy and build a brighter future for hard-working families.

Backed by industry giants such as UKHospitality, the British Chamber of Commerce and Business in the Community, alongside household brands like Amazon, JD Sports and Lidl, jobseekers leave SWAPs work ready as they apply for live job roles. 

The milestone follows the UK Government’s ‘bold new vision’ for welfare, with the Prime Minister outlining reforms to tackle inactivity as we give more Brits the skills and support to get back into work as we bring down migration levels. 

Secretary of State for Work & Pensions, Mel Stride MP said: “Our Jobcentres are a proven route to changing lives through work and the learning and upskilling opportunities they provide are second to none.

“As part of our plan to build our new welfare settlement for Britain and grow the economy, this major milestone helps people get on with the skills they need to secure a great job, a higher wage, and a brighter future for their family.

After the Prime Minister announced the accelerated rollout of Universal Credit last week, together with increases to the Administrative Earnings Threshold (AET), even more claimants will benefit from the dedicated employment support offered through our Jobcentres.

This includes all the programmes under the Department for Work and Pensions’ (DWP) £2.5bn Back to Work Plan, which is set to help over a million people, including those with long-term health conditions to break down barriers to work.

Keith, 47, from St Austell was looking to change careers after he finished a previous role. He said: “I was very interested in getting into Mental Health Care, but I had no qualifications or experience in the area. My Work Coach Tom was really supportive and told me how I could get experience in the sector through a SWAP with the NHS.

“The SWAP opened my eyes to the type of roles available within the NHS and gave me the confidence I needed to kickstart my new career. I’m now working as a Developmental Mental Health Assistant and cannot believe I’ve reached my dream of working in Mental Health so quickly with the help of SWAPs.”

Whether it’s someone’s first job or a career change, jobseekers of any age and experience can access invaluable work experience through SWAPs for a role actively being recruited for. 

Andrew Bush, CPO of Greene King, said: “We were really pleased to be part of the sector-based work academy in partnership with the Department for Work and Pensions and other hospitality employers.

“Through collaboration, we were able to create a programme that gave candidates a greater insight into our exciting industry, providing opportunities for many to achieve a fulfilling career in hospitality.”

The UK Government is taking the long-term decisions to ensure the resilience of the UK’s labour market, building a strong economy where hard work is rewarded and where everyone has a brighter future.

Alexandra Hall-Chen, Principal Advisor for Employment and Skills with the Institute of Directors said: “At a time when many businesses are struggling to recruit the skills they need, SWAPs provide a valuable means by which employers can tap into a wider pool of candidates.

“By providing jobseekers with support and training targeted at key sectors, SWAPs are a key tool in tackling both skills shortages and barriers to employment.”

BPS supports Essentials Guarantee

BPS SUPPORTS CAMPAIGN TO MAKE UNIVERSAL CREDIT ENOUGH FOR PEOPLE TO AFFORD TO COVER ESSENTIALS

The British Psychological Society has joined the Joseph Rowntree Foundation (JRF), the Trussell Trust, and other leading health and care organisations and charities to call for an “Essentials Guarantee”, a new law to make sure Universal Credit’s basic rate is always at least enough for people to afford the essentials. 

The organisations are warning that so many people are routinely going without the essentials it poses a serious risk to the UK’s health.

Together, they have written to the Prime Minister to express their worry that, as the high prices of everyday essentials like food and housing persist, too many people are expected to live with what can be devastating knock-on consequences. 

JRF’s own analysis shows the weekly Universal Credit standard allowance is £35 less than the cost of essential items for a single person, contributing to millions of people forced to use food banks because they can’t make ends meet.

Dr Roman Raczka, President-Elect of the British Psychological Society, and Chair of its Division for Clinical Psychology, said: “Nobody should be in a position of being unable to afford the essentials they and their families need to sustain their health and wellbeing, and it’s clear the current level of Universal Credit falls woefully short.  

“Poverty is one of the major risk factors for the development of physical and mental health problems, and we know that children growing up in poverty are three-to-four times more likely to develop mental health problems, which also leads to long-term impacts upon their education, life chances and quality of life.

“If the government is truly committed to preventing health inequalities from widening further, tackling poverty, and reducing pressure on our already stretched and underfunded public services, it must commit to the Essentials Guarantee to protect this generation, and generations to come.”

About the Essentials Guarantee

The Essentials Guarantee would embed in our social security system the widely supported principle that, at a minimum, Universal Credit should protect people from going without essentials.

Developed in line with public attitude insights and focus groups, this policy would enshrine in legislation:

  1. an independent process to regularly determine the Essentials Guarantee level, based on the cost of essentials (such as food, utilities and vital household items) for the adults in a household (excluding rent and council tax);
  2. that Universal Credit’s standard allowance must at least meet this level; and
  3. that deductions (such as debt repayments to government, or as a result of the benefit cap) can never pull support below this level.

The UK Government would be required to set the level of the Essentials Guarantee at least annually, based on the recommendation of the independent process. JRF analysis indicates that it would need to be at least around £120 a week for a single adult and £200 for a couple.

Bridge the Gap!

Charities appeal to First Minister to double Scottish Child Payment bridging payments NOW

We can turn compassion and justice into action to support children in low-income households.

120 charities and community organisations are calling on the Scottish Government @scotgov to continue to do the right thing by doubling Scottish Child Payment bridging payments.

See the letter to First Minister Nicola Sturgeon (below):

Letter-to-First-Minister-doubling-of-bridging-payments-_0Download

#BridgeTheGap

https://bit.ly/3JWCIGJ

Adult Disability Payment roll out continues into seven more areas

People in Aberdeenshire, City of Aberdeen, Fife, Moray, East Ayrshire, North Ayrshire, and South Ayrshire are now able to apply for Adult Disability Payment.

This means Adult Disability Payment is now available in 13 council areas ahead of opening nationwide on 29 August.

It is the twelfth and most complex benefit to be delivered by the Scottish Government and replaces the UK Government’s Personal Independence Payment. The benefit provides financial support to people aged between 16 and state pension age, who are disabled, have a long-term health condition or have a terminal illness.

People already receiving the UK Government’s Personal Independence Payment and Disability Living Allowance do not need to make an application for Adult Disability Payment. These existing awards will transfer automatically from the DWP to Social Security Scotland. Cases will transfer in stages starting from this summer and this process is expected to be completed by the end of 2025.

Minister for Social Security Ben Macpherson said: “We are taking a positive, responsible and compassionate approach to delivering disability benefits. This is in contrast to aspects of the current UK Government system.

“The Scottish Government is committed to treating people with dignity, fairness and respect and we start from a position of trust.

“Adult Disability Payment is an important financial support to provide security and help people live well. I would encourage anyone in Scotland who could be eligible to please check and apply. We want people to get support that they’re entitled to, because social security is a shared investment to help build a fairer and better society together.

“When people apply for our disability benefits, we are focused on making the right decisions first time to reduce the need for people to go through a redetermination or appeal. When Social Security Scotland is making a decision it will only need one formal piece of supporting information from a professional, such as a social care assessment, medical report or prescription list, and if required we will obtain that information for people.

“We will never use the private sector to carry out health assessments and there won’t be any degrading functional examinations such as asking a client to ‘touch their toes’.”

Susan Burt, People First (Fife) said: “People First are pleased to see the new Adult Disability Payment. Our needs are being better understood by using face to face local delivery teams and an easier application process.

“We hope this will help people with a learning disability to have better and fairer access to their benefits.”

“Significant achievement” in delivery of social security – but “huge amount of work remains”

More than £3.9 billion to benefit 1 million people in 2022-23

A report published today by Audit Scotland has highlighted the Scottish Government’s “significant achievement” in the scale and pace of delivering the devolved programme of social security benefits in Scotland, including seven new payments unavailable anywhere else in the UK.

The report notes that this work continued despite ongoing challenges due to the pandemic. The report further acknowledges that the Scottish Government has continued to successfully deliver existing social security benefits and introduce complex new ones – including Scottish Child Payment, Child Disability Payment and Adult Disability Payment – in challenging circumstances.

The report also recognises the importance of social security in our collective national mission to tackle child poverty, mitigating the cost of living crisis and addressing inequalities.

In line with Scottish Fiscal Commission forecasts, the Scottish Government has committed over £3.9bn for benefit expenditure in 2022-23, providing support to more than one million people. This is over £360m above the level of funding to be received from the UK Government through Block Grant Adjustments.

Stephen Boyle, Auditor General for Scotland, said: “Successfully launching new benefits during the pandemic has been a significant achievement for the Scottish Government, but a huge amount of work remains.

“The government now needs to plan how it will manage to pay for greater social security spending alongside other policy initiatives.

“To demonstrate how it is achieving value for money, it also needs to be clearer about how this extra spending will improve the lives of people living in Scotland.”

Responding to the report, Minister for Social Security Ben Macpherson said: “I am pleased that this Audit Scotland report recognises the significant progress we have made in building a new public service from scratch since 2018 and delivering 12 benefits – seven of which are completely new forms of financial support that are not available anywhere else in the UK.

“We have successfully introduced a range of benefits that are now supporting carers and low-income families with their living costs, including with heating and we are helping disabled people to live full and independent lives.

“This year will see us deliver even more for the people of Scotland. Our Scottish Child Payment will be extended to eligible children aged under 16 and be increased to £25 per week per child by the end of the year, supporting over 430,000 eligible children; and in winter 2022/23 we will introduce our new winter heating payment for low-income households – a stable £50 payment that will support 400,000 low-income households with their heating costs.

“We will also continue to roll out Adult Disability Payment, our most complex benefit, and significantly progress transferring tens of thousands of Scottish disability benefit cases from the DWP to Social Security Scotland.

“I am proud that we have built our social security system with the people who will use it, and appreciate that the report acknowledges our focus has delivered a service built on our principles of dignity, fairness and respect. The report also notes the positive feedback people have shared about their experiences of engaging with Social Security Scotland.

“We have been ambitious in our delivery timeline – including introducing new benefits while dealing with the pandemic – and we are ensuring that we transfer tens of thousands of cases safely and securely from the DWP to Social Security Scotland.

“As well as delivering benefits now and in the period ahead, we are responsibly and ambitiously developing a new social security system that will serve Scotland for many years to come, putting people at the heart of everything we do.”

Social Security Scotland currently administers 12 benefits:

Carer’s Allowance Supplement
Pregnancy and Baby Payment
Early Learning Payment
School Age Payment
Best Start Foods
Funeral Support Payment
Young Carer Grant
Job Start Payment
Scottish Child Payment
Child Winter Heating Assistance
Child Disability Payment

Adult Disability Payment is the replacement for the UK Government’s Personal Independence Payment. It is being introduced in phases ahead of national rollout on 29 August.

nr_220519_social_securityDownload

No barriers to Scottish healthcare for fleeing Ukrainians

People who ordinarily live in Ukraine will be able to access NHS services at no charge on the same basis as people living in Scotland.

An amendment to current legislation will ensure that people who have fled Ukraine can access services such as maternity care, mental health services and treatment for specific conditions at no charge while they remain here.

This will also apply to people from Ukraine who were in Scotland on short-term visas when the conflict began and who apply to extend or switch visas because they cannot return home. 

Anyone in Scotland, regardless of their nationality, residence status or length of time they will be in the country, is already entitled to receive emergency treatment at an A&E or casualty department, and can register with a GP Practice to receive general medical services, at no charge.

In addition, emergency legislation which came into force on Tuesday 22 March will allow people coming to Scotland from Ukraine to meet residency conditions for Scottish social security benefits.

This means that those fleeing war in Ukraine, and who are eligible, will have immediate access to benefits such as Scottish Child Payment and Child Disability Payment.

Health Secretary Humza Yousaf said: “We are determined to do everything in our power to give displaced people from Ukraine the warmest welcome possible when they arrive and this includes offering healthcare to those who need it.

“We fully recognise that they may have been through very traumatic experiences and could require specialist treatment and care. Removing charges for healthcare and providing access to benefits is a practical step in ensuring those who have been forced to flee their homes and country can live safely and comfortably in Scotland for as long as they need to.”