UK government plans to scale back sickness benefits

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The UK government unveiled reforms to the benefits system on Tuesday, aimed at encouraging more individuals with disabilities and long-term health conditions to seek employment.

Secretary of State for Work and Pensions, Mel Stride, claimed that the proposed changes to the work capability assessment, which currently exempts certain individuals from job-search requirements, would not only benefit individuals, but also boost the economy and the labour market.

Stride emphasized the need to update health assessments, as they have not been reviewed in over a decade and do not reflect the current realities of the job market. He believes that these reforms will provide opportunities for those currently excluded from the labour market to pursue their ambitions of working.

The government argues that the increased acceptance of remote working and workplace flexibility, as a result of the post-pandemic situation, enables individuals who previously struggled to hold down a job to now work from home or find accommodating employers.

The proposed reforms, open for consultation, include expecting individuals with mobility issues, social engagement difficulties, and bowel and bladder control challenges to actively seek employment.

The government is also considering removing the provision that exempts individuals from job-search requirements when there is a substantial risk to their mental or physical health. Stride believes that tailored support to enter the workforce might be more effective for those with mental conditions who currently use this provision extensively.

However, unions and think-tanks criticize the proposals, claiming that they are simply an attempt to reduce welfare expenses and will leave vulnerable individuals in hardship, without significantly increasing employment rates.

Vicki Nash, Head of Policy, Campaigns, and Public Affairs at the mental health charity Mind, argues that reducing the number of people eligible for sickness benefits will not magically make them well enough to work, and it will only remove much-needed financial support.

The government’s spending on incapacity benefits has increased by 62% in real terms from 2013-14 to £25.9bn this year, and is projected to rise to £29.3bn by 2027-28. The number of people receiving the highest benefit award, without job-related requirements, has also risen by 30% over the past three years to over 2.3 million.

According to Kate Bell, Assistant General Secretary of the Trades Union Congress, the proposals are more focused on cost-cutting than supporting individuals in the workplace. She argues that disabled workers still lack sufficient protection under UK law to secure the flexibility they need from employers.

Sam Ray-Chaudhuri, a research economist at the Institute for Fiscal Studies, points out that previous attempts to reduce the cost of disability benefits have not yielded the intended savings. He believes that since the government plans to phase out the work capability assessment entirely over time, the proposed changes will only provide short-term savings before becoming irrelevant.

Tom Pollard, Head of Social Policy at the New Economics Foundation, suggests that the government is using conditionality to push people into support schemes and pay them lower benefits rates. He emphasizes that genuine engagement with employment services can only occur if people feel safe, secure, and trust the support being offered.

Tony Wilson, Director of the Institute for Employment Studies, critiques the government’s approach of linking benefit eligibility with employment support. He argues that this leads people to view jobcentres as hostile environments, ultimately hindering productive engagement.

The consultation period for the proposed reforms ends in eight weeks, with any policy changes taking effect no earlier than 2025, following the government’s Budget on November 22.

Reference

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