She announced the work capability assessment (WCA) will be scrapped in 2028, an increase in benefit claim reassessments and a new ‘Right to try’ scheme to allow people to find work.
Liz Kendall says impact assessment will be made amid backlash
As part of its reforms, the Government also said it will invest an additional £1 billion a year by 2029/2030 to help support people into work including through one-to-one help.
But the planned changes have been met with anger from Labour MPs, unions and charities.
Labour MP Debbie Abrahams, chairwoman of the Commons Work and Pensions Committee, suggested “there are alternative, more compassionate ways to balance the books rather than on the back of sick and disabled people”.
Ms Kendall, confirming that impact assessments on the changes will be published alongside the spring statement next week, insisted that spending on working-age sickness and disability benefits “will continue to rise over this parliament”.
She told MPs: “The last forecast was that it would continue to rise by £18 billion. It is not a cut.”
What are the key benefit changes in Labour’s welfare overhaul?
Labour revealed the extent of its welfare reforms on Tuesday as work and pensions secretary Liz Kendall delivered an announcement in Commons on the plans.
Taking to the stand, the minister said the welfare system is “failing the very people it is supposed to help and holding our country back”.
“This government is ambitious for our people and our country and we believe unleashing the talents of the British people is the key to our future success,” she added.
Northern Ireland’s First Minister expresses concern over benefits shake-up
Northern Ireland’s First Minister has expressed concern over benefit reforms described as the biggest shake-up to the welfare system in a generation.
Measures proposed by the Government include legislating to tighten the eligibility for the personal independence payment (Pip), as well as scrapping the work capability assessment for universal credit.
Asked about the plans during questions for the Executive Office in the Stormont Assembly, First Minister Michelle O’Neill said she plans to raise it with the Government.
“I think that this is yet again, more of the same from this Government in London,” she said, referencing the previous cut to winter fuel payments and an increase to national insurance contributions.
“Now they’re reaching for people with disabilities, and those that are sick and vulnerable in our society,” she said.
“These are political choices, political choices being made in London that are impacting detrimentally on our lives here, and we don’t have a say in that.
“So I think that targeting the most vulnerable in our society through these punitive taxes is clearly a political choice in London, but it does not serve the interests of our people here.
“But I can assure you that, yes, we will take every opportunity to raise these issues with the relevant people in London.”
One million youngsters are not in education, training, or work – is it Gen Z’s fault or ours?
Recently, figures showed that nearly one million people aged 16-24 are Neets (not in education, employment, or training) – representing a rise of 42 per cent in the last three years – made for grim reading.
The problem is more pronounced in young men, with 150,000 more male Neets than female. The usual suspects were blamed for this rise in youth economic inactivity: the pandemic, illness and mental health issues, and too few targeted initiatives, often making it difficult for young people who actively want to work to find employment.
This cohort is firmly in the sight of the government who wants to get the young working again. While a cut to sickness benefits is being some by unnecessarily harsh, Alison McGovern, the employment minister, said she is determined that no one “is left on the scrap-heap”.
As the biggest cuts to the sickness benefits are announced, generational expert Chloe Combi examines why more young people are claiming them than ever and some surprisingly simple solutions - which may start at home.
Liz Kendall refuses to rule out further welfare cuts
Liz Kendall has refused to rule out making further cuts to the welfare budget during the course of this Parliament, after making sweeping reforms to the system on Tuesday.
Asked if there will be further cuts coming down the line, she told Sky News: “Well, the truth is, as you said at the beginning, spending on working age, disability and sickness benefits will still rise over the Parliament. But we will be making savings by getting more people into work and by focusing on those benefits.”
Asked whether she is saying there will be billions more savings from the welfare bill in this Parliament, Ms Kendall responded: “I'm not saying that. I'm saying this is a major package.”
Pressed on whether she would rule out any further savings, the work and pensions secretary said: “Let’s talk about the proposals we are actually making and not those which we aren't.”
How benefit claimants can have a say on the changes
Following today’s announcement, the DWP has launched a consultation on its new Pathways to Work Green Paper.
This will give anyone affected by the changes an opportunity to share their thoughts on the policies that have been put forward today.
A statement from the DWP says: “We are keen to hear views from a wide group of people, in particular disabled people and people with health conditions and disability organisations.”
There will also be several accessible events in the near future, both virtual and face-to-face. Those interested can respond online, or email Consultation.pathwaystowork@dwp.gov.uk
No 10 not drawn on prospect of rebel Labour MPs losing the whip
Downing Street would not be drawn into saying if Labour MPs could lose the whip for voting against the Government’s welfare reforms in Parliament.
“I wouldn’t get into that. That is not for me,” a No 10 spokesman said when asked what the punishment could be for rebel MPs.
Asked if Sir Keir Starmer believed it was morally right to reform eligibility for disability benefits, after describing the current system as “morally bankrupt”, the spokesman replied: “What’s morally bankrupt is a system that fails people and incentivises, wrongly, people not to work.
“The Prime Minister has been very clear that he sees this as a really important reform to turn things around, get more people back into work, provide the kind of support needed for the most vulnerable in society.”
When put to him Pip (personal independence payments) was not a work-related benefit, he replied: “On Pip more broadly, the claims, as I said, are rising at an unsustainable rate.
“We’re now in a situation where a thousand people are claiming Pip every day, and claims for disability benefits rising much faster than the number of disabled people in the country.”
Labour MP Jon Trickett said he plans to vote against the Government’s “cruel” benefits cuts.
He posted on X: “Cutting welfare payments to sick people is wrong morally, fiscally and economically and it’s cruel. We are better than this as a country. I will vote against when the time comes.”
Proposals driven by 'short-term savings' than longlasting reform, says think tank
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.”
Man with terminal cancer praises decision to scrap assessment process
A man living with terminal cancer has described the Government’s decision to scrap the assessment process for people living with lifelong conditions as “a bonus”.
Des Longstaff, 39, from Lytham St Annes in Lancashire, was diagnosed with stage 4 advanced oesophageal adenocarcinoma on December 23 last year and was told by doctors he may only have 12 months to live.
He said he welcomes Work and Pensions Secretary Liz Kendall’s decision to help disabled people living with a lifelong condition after he spent one hour and 40 minutes on the phone with the Department for Work and Pensions (DWP) to apply for personal independence payment (Pip).
“I had to prove that I only had 12 months to live and that was a bit outrageous. When I’m poorly, I’m having to go through all this stress on top of the stress of being poorly,” he told the PA news agency.
He said being without Pip would be “a total disaster” but added Ms Kendall’s decision to scrap the assessment process “would help really… you don’t have to go through all the messing and stuff like that, that’d be a bonus.”
Mr Longstaff created a Go Fund Me with the aim of raising more than £44,000 to fund life-changing treatment in Germany and hopes the fundraiser will “open people’s eyes about oesophageal cancer because it’s not a common cancer”.
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