Worksop Guardian 01.05.2024
Our plan for welfare and the disability benefits system
We have taken significant steps to reform the broken welfare system we inherited from Labour. However, the nature of ill health and disability in Britain has changed profoundly in recent years and we must go further to better support claimants and be fair to the taxpayer.
That’s why we are creating a welfare system that delivers a better future for those using it, providing vital support for those who need it most, whilst making sure that everyone who can work is expected and supported to do so.
There are now 2.6 million people of working age claiming Personal Independence Payments (PIP) and Disability Living Allowance (DLA). This is around seven per cent of the working age population in England and Wales, with a further 33,000 claims for PIP are being awarded each month.
Total spending on working age disability and ill-health benefits has increased by almost two-thirds since the pandemic. Spending on working age disability and ill-health benefits has increased from £42.3 billion to £69 billion since 2020, meaning we now spend more on these benefits than our core schools’ budget or on policing.
By 2028-29, the disability benefits bill is expected to reach £28 billion a year. This is a 110 per cent increase in spending since 2019 and is being driven by the rise in people receiving PIP for mental health conditions such as mixed anxiety and depressive disorders, with monthly awards doubling since 2019.
We are consulting on reforms to disability benefits including: redesigning the Personal Independence Payment (PIP); reforming the PIP eligibility criteria, making it fairer, more objective and harder to exploit; removing PIP assessments for people with the most severe health conditions or disabilities, so they don’t have to jump through hoops to get the help they need; scrapping the ‘one size fits all’ approach, looking at what support is most appropriate to help people live independent lives.
We are reforming the welfare system by strengthening our sanctions regime to ensure unemployment benefits remain a safety net, not a lifestyle choice. Anyone who does not comply with conditions set by their Work Coach, including accepting an available job will, after 12 months, have their claim closed, and benefits removed entirely.
We are also: reforming how we assess someone’s capability to work, helping people to engage with employment; improving the fit note system, stopping people being written off as not fit for work by default; investing £6 billion in employment support, helping more people into work.