Tag: welfare reforms

Sunak vows to tackle Britain’s ‘sick note culture’

TORIES TO OVERHAUL BENEFITS SYSTEM

THE Prime Minister has unveiled a package of welfare reform measures to tackle the unprecedented rise in economic inactivity and ensure the benefits system is ‘better targeted at those who need it most’.

  • PM to announce plans to overhaul benefits system to ensure people who are fit to work aren’t left behind on benefits 
  • Fit note system to be reviewed after 11 million fit notes issued last year with 94% written off as unfit to work
  • Comes amid unprecedented rise in inactivity due to long term sickness with latest figures showing almost a third of working age adults are inactive

The Prime Minister’s new plan for welfare will end Britain’s “sick note culture”, which has resulted in a significant rise in people being unnecessarily written off work and parked on welfare. 

It comes amid concerns that the fit note system has opened the floodgates for millions of people to be written off work and into welfare without getting the right support and treatment they might need to help them stay in work.

Data recently published by the NHS shows almost 11 million fit notes were issued last year, with an overwhelming 94% of those signed “not fit for work”. A large proportion of these are repeat fit notes which are issued without any advice, resulting in a missed opportunity to help people get the appropriate support they may need to remain in work.

To address this, the Prime Minister yesterday announced a review of the fit note system to stop people being written off as “not fit for work” by default and instead design a new system where each fit note conversation focuses on what people can do with the right support in place, rather than what they can’t do.

As part of this, the government will consider shifting the responsibility for issuing the fit note away from already stretched GPs, towards specialist work and health professionals who have the dedicated time and expertise to provide an objective assessment of someone’s ability to work and the tailored support they may need.   

A call for evidence will be published later today to seek responses from a diverse range of perspectives, including those with lived experiences, healthcare professionals and employers, both on how the current process works and how it can better support people with health conditions to start, stay, and succeed in work.

The Prime Minister said: “We don’t just need to change the sick note, we need to change the sick note culture so the default becomes what work you can do – not what you can’t.  

“Building on the pilots we’ve already started we’re going to design a new system where people have easy and rapid access to specialised work and health support to help them back to work from the very first Fit Note conversation.  

“We’re also going to test shifting the responsibility for assessment from GPs and giving it to specialist work and health professionals who have the dedicated time to provide an objective assessment of someone’s ability to work and the tailored support they need to do so.”  

Setting out his vision for a “new welfare settlement for Britain”, the Prime Minister outlined the new challenges that have emerged since the pandemic particularly the unprecedented rise in inactivity and how the government plans to tackle them.

Before the pandemic, we had the second lowest inactivity rate in the G7, lower than France, Germany, Italy, USA and Canada. But since the pandemic, a significant number of working aged people have become inactive due to long term sickness which has in large part been driven by mental health conditions.

Latest figures from the Office for National Statistics suggest there are currently 2.8 million people who are ‘economically inactive’ due to long-term sickness, a near-record high. Of those inactive due to long term sickness at the start of last year, 53% reported that they had depression, bad nerves or anxiety.

This is also driving an unsustainable increase in welfare spending as more people claiming disability benefits are now assessed as having anxiety or depression as their main condition. 

Since the pandemic, total spending on working age disability and ill-health benefits increased by almost two-thirds from £42.3 billion to £69 billion and we now spend more on these benefits than our core schools’ budget or on policing.

The fit note process is often the first step to someone falling out of work and acts as a gateway towards some ill health and disability benefit assessments. There is also clear evidence that the longer someone is out of work, the lower the likelihood that they return to work – further exacerbating the rise in inactivity.

The Prime Minister made the case that we need to be more ambitious about how we help people, particularly with mental health conditions, back into work and ensure they are not left behind on the benefits system.

The Prime Minister added: “We should see it as a sign of progress that people can talk openly about mental health conditions in a way that only a few years ago would’ve been unthinkable, and I will never dismiss or downplay the illnesses people have. 

“But just as it would be wrong to dismiss this growing trend, so it would be wrong merely to sit back and accept it because it’s too hard; or too controversial; or for fear of causing offence. Doing so, would let down many of the people our welfare system was designed to help. 

“Because if you believe as I do, that work gives you the chance not just to earn but to contribute, to belong, to overcome feelings of loneliness and social isolation and if you believe, as I do, the growing body of evidence that good work can actually improve mental and physical health…

“…then it becomes clear: we need to be more ambitious about helping people back to work and more honest about the risk of over-medicalising the everyday challenges and worries of life.” 

 Yesterday’s fit note review builds on the significant steps the UK Government has taken so far to break down barriers to work and tackle inactivity.

This includes through our £2.5 billion Back to Work Plan which is already helping over a million people, including those with mental health conditions, break down barriers to work by expanding access to mental health services and putting an additional 384,000 people through NHS Talking Therapies.

The new WorkWell pilot is also being rolled out and will support almost 60,000 long-term sick or disabled people to start, stay and succeed in work once it has gone live in approximately 15 areas across England.

The WorkWell services provides a single, joined-up assessment and gateway into local employment support services, to help people manage their health conditions and get back to work sooner. This is part of an ambitious programme to support disabled people and people with health conditions to start, stay and succeed in work. 

DWP are also testing reforms of the fit note process to integrate it more closely with WorkWell, enabling the people who need it to have a work and health conversation, with a single, joined-up assessment and gateway into local employment support services.

It will also complement the role of Occupational Health in ensuring employers understand and benefit from more expert work and health support to retain and support those in work.

The fit note call for evidence is part of five key reforms the Prime Minister outlined in his speech to put work at the heart of welfare and modernise the welfare system to ensure it is fit for the future.

Chancellor Kwasi Kwarteng ‘to get Britain working again’

  • The Chancellor is expected to announce reforms to the welfare system that will encourage thousands more into work and to boost their earnings, helping grow the economy.
  • Around 120,000 more benefit claimants will be asked to take active steps to seek more and better paid work, or face having their benefits reduced.
  • Over 50s to get more support to find work, boosting economic growth.

The Chancellor is this week expected to announce changes to Britain’s welfare system that will help boost people’s earnings, get them into work and support economic growth.

Changes to Universal Credit expected to be announced later this week will require benefit claimants working up to 15 hours a week at National Living Wage to meet regularly with their Work Coach and take active steps to increase their earnings or face having their benefits reduced.

This gradual expansion is an increase from the 12-hour threshold and will bring an additional 120,000 benefit claimants into the Intensive Work Search Regime.

With more than 1.2 million job vacancies across the UK, Work Coaches will set clear expectations with claimants and make sure they stick to their commitments. These commitments could include applying for jobs, attending interviews or increasing their hours. People who don’t fulfil their job-search commitments without good reason could have their benefits reduced in line with existing benefit sanctions policy.

Eligible claimants over 50 years old, including new claimants and the long-term unemployed, will also get extra support from Work Coaches. The newly unemployed will get 9 months of targeted sessions, and people who are long-term unemployed will receive a booster session followed by 3 months of intensive employment support.

Rising economic inactivity in the over 50s is contributing to shortages in the jobs market, driving up inflation and limiting growth. Returning to pre-pandemic activity rates in the over 50s could boost the level of GDP by up to 1 percentage point.

Chancellor Kwasi Kwarteng said: “Our jobs market is remarkably resilient, but it is not perfect. While unemployment is at is at its lowest rate for nearly fifty years, the high number of vacancies that still exist and inactivity in the labour market is limiting economic growth.

“We must get Britain working again. These gradual changes focus on getting people back into work and maximising the hours people take on to help grow the economy and raise living standards for all.

“It’s a win-win. It boosts incomes for families and helps businesses get the domestic workers they need, all while supporting economic growth.”

Secretary of State for Work and Pensions Chloe Smith MP said: “As we continue to face economic challenges and labour market shortages, we are committed to helping people on lower incomes to boost their pay – because we know work is one of the best ways to support your family and help grow our economy.

“Whether it’s increasing their hours in their current role, entering a new sector or switching careers, we want people of all ages and all stages to be able to progress into fulfilling careers.

“The expertise our dedicated DWP Work Coaches bring, will help to drive this change by removing barriers to progression and opening up opportunities for training and building skills, to increase earnings.”

These changes will be Great Britain-wide and, in line with usual practice, the UK Government will work with the Northern Ireland Civil Service to determine the most suitable way to deliver support in Northern Ireland in due course.

Certain groups will remain exempt from sanctions, including people who are unable to work due to long-term sickness or a disability.

Welfare Reform: Reverse the changes!

New report on impact of UK Government policies on families in Scotland

A new report estimates 70,000 people in Scotland, including 30,000 children, would be lifted out of poverty by 2024 if UK Government welfare reforms introduced since 2015 were reversed.

The cost of reversing changes, including the removal of the £20 per week Universal Credit uplift and the two child benefit cap would be around £780 million a year, according to estimates in the Scottish Government’s Welfare Reform – Impact on Families with Children report.

Last month the Scottish Government published its second Tackling Child Poverty Delivery Plan – Best Start, Bright Futures – which sets out immediate and longer term actions to support people out of poverty and to tackle its deep-seated causes.

Social Justice Secretary Shona Robison said: “Tackling child poverty is our national mission and we are helping to lift thousands of children out of poverty in Scotland within our limited powers. This report lays bare the cost of repeated UK Government welfare reforms since 2015 and the challenge we face in lifting children and families out of poverty for good.

“We are determined to tackle the cost of living crisis and we’re already helping to lift thousands of children out of poverty. We invested almost £6 billion from 2018-21 to support low income households, including around £2.18 billion to directly support children. We are also taking steps to mitigate the impact of the UK Government’s bedroom tax and benefit cap as fully as we can within our limited powers.

“We have introduced a package of five family benefits, including the Scottish Child Payment that we will raise to £25 a week by the end of 2022. We are also investing in employment support for parents, through new skills and training opportunities and key worker support to help reduce household costs and drive longer term change.”

welfare-reform-report-impact-families-childrenDownload

Scotland in crisis

The amount given in crisis grants to those most in need has increased by more than a third, latest figures show. The Scottish Welfare Fund paid out a total of £3.2 million in crisis grants between July and September 2019 – 34% more than the same period the previous year.

The Scottish Welfare Fund is distributed by local authorities and provides Crisis Grants and Community Care Grants.

Crisis Grants help families on low incomes with unexpected expenses arising out of an emergency or a disaster. Community Care Grants help those on low incomes live independently in the community or to help people maintain their home in the face of exceptional pressure.

The most common reason families said they applied for emergency funding was because their benefits or other income had been spent – up 33% on the previous year.

Estimates suggest the UK Government’s social security spending in Scotland is set to reduce by £3.7 billion per year by 2021. In addition, the benefit freeze and benefit cap are now in their fourth year.

Social Security Secretary Shirley-Anne Somerville said: “This is the latest evidence that the UK Government’s swingeing benefit cuts are hitting the poorest in Scotland hardest.

“The large increase in people applying for emergency funding shows how much those on low incomes are struggling just to make ends meet.

“The Scottish Government will not stand by and let people who are already in need continue to face a reliance on food banks and the stress of debt and rent arrears.

“That’s why we are continuing to spend over £100 million each year to mitigate the worst effects of the UK Government welfare cuts – part of the £1.4 billion we spent last year to support low income households.

“This is money we should be able to invest elsewhere to help pull people out of poverty but we instead we need to use it to protect the most vulnerable in our communities.

“We are introducing the Scottish Child Payment to tackle child poverty head on which will start for eligible families with a child under six by Christmas. But there is no doubt that without the cuts inflicted on families by the UK Government this could go so much further.”

Over 100,000 children to be hit by Two-Child Cap in Edinburgh

TORY GOVERNMENT MUST SCRAP “HEARTLESS” POLICY – SNP

13.1% of the total number of children in Edinburgh could be affected by the two-child cap, according to new research – prompting more calls for the UK Government to scrap the “heartless” policy.

The “two-child policy” allows low-income families to claim child tax credits or universal credit for their first two children only.

New research from the Child Poverty Action Group (CPAG) (see report, below)has revealed that 160,000 families have had their income slashed by the two-child limit to-date. The charity estimates that more than 3 million children across the UK could eventually be affected by the benefit cap.

SNP MSP Gordon Macdonald said: “Social security should be a safety net for all of us, but the two-child limit is having a devastating effect on families up and down the country, with 10,305 children in Edinburgh set to be affected by it. 

“All families are valuable and worthy of support, but this heartless policy turns people away when they most need support, and leaves children to grow up in hardship – which can have lifelong consequences for their health and wellbeing.

“The SNP government has been left to pick up the pieces, investing over £125 million to mitigate callous Tory welfare policies.

“In addition, the Scottish Government is introducing a Scottish Child Payment to tackle child poverty. Without the two-child cap, this payment could go so much further.

“We have an aging population and we will be relying on children and young people in the years to come.

 “The next Tory Prime Minister should make it a priority to tackle the unacceptable levels of poverty we are seeing as a direct result of the UK Government’s welfare policies, starting with reversing the two-child limit and horrendous ‘rape clause.”

All Kids Count report FINAL_0

Universal Credit responsible for increasing rent arrears, says Holyrood Committee

The introduction of Universal Credit has greatly increased rent arrears and a Scottish Parliament Committee has called for immediate action to tackle this issue. Continue reading Universal Credit responsible for increasing rent arrears, says Holyrood Committee

MSPs demand UK Government protect date of Universal Credit claim

A new service launched by the DWP which does not protect the date a Universal Credit claim begins has been described as ‘deeply alarming’ by Holyrood’s Social Security Committee. Continue reading MSPs demand UK Government protect date of Universal Credit claim

Charity calls for end to Universal Credit five week wait as food bank demand soars

New data released today shows April 2018 to March 2019 to be the busiest year for food banks in the Trussell Trust’s network since the charity opened.

During the past year, 1,583,668 three-day emergency food supplies were given to people in crisis in the UK; more than half a million of these (577,618) went to children. This is an 18.8% increase on the previous year. Continue reading Charity calls for end to Universal Credit five week wait as food bank demand soars