He added that the UK will be "rewarded" with tax cuts if the Government is able to make it harder for people to claim ‘incapacity benefits’:
“The system is not working as it was designed to work and now we are bringing forward reforms that will mean that we look at the eligibility for who is signed-off sick.
“That won’t affect all those on existing benefits. It will come in over time on people who are newly presenting to the welfare system.”
In his Autumn Statement 2023, the Chancellor announced that the Government would push ahead with cost-cutting plans to tighten the work capability assessment (WCA), aimed to save the Department for Work and Pensions (DWP) nearly £1.3 billion a year by 2028.
While the WCA for existing claimants is not subject to change, new claimants of employment and support allowance (ESA) and universal credit (UC) would be subject to a revised test from 2025.
The WCA is used in Universal Credit (UC) to determine what work-related conditions a Disabled person must meet to keep getting their benefit.
If you are found to have a ‘limited capability for work-related activity’ (LCWRA), no work-related activity conditions will apply to you, and you will also be entitled to an extra amount of benefit.
If you are found to have a limited capability for work (LCW) while you have no work search conditionality, you are expected to undertake work related activity.
Those in the UC LCWRA group receive an extra payment of £390 per month and don’t face the risk of benefit sanctions.
The WCA changes are aimed at reducing the number of claimants in the LCWRA group by:
- Amending the LCWRA “Substantial Risk” regulations to realign Substantial Risk with its “original intention” of only applying in exceptional circumstances.
- Removing the LCWRA Mobilising activity
- Reducing the points awarded for the LCW “Getting About” outside descriptors.
Ken Butler DR UK’s Welfare Rights and Policy Adviser said: “The growing number of people who are out of work due to Disability and ill health is a reflection of major societal changes such as an aging population, a later retirement age, increasing mental health amongst younger people and changes to the labour market. In addition, far too many employers fail to remove barriers and or to implement reasonable adjustments as required by the Equality Act.
“The focus needs to be on understanding the root causes of increasing disability and taking radical measures to make work more flexible and equal, not on threatening and penalising Disabled people by cutting the social security safety net that we are all entitled to turn to when in need.
“Some Disabled people aren’t able to work, or engage in work preparation activities. This is equally true for those who acquire impairments or health conditions and those who have claimed benefits for some time.
“The proposed changes will mean that thousands of Disabled people whose health conditions make it difficult or impossible to work will be forced to carry out work preparation activity without a real prospect of a job. Whilst having their benefit cut by £4,680 a year, with the added threat of sanctions.
”The WCA reforms will reduce the LCWRA claimant caseload by 37 times more than it will increase employment.
”In its Economic and fiscal outlook: November 2023, the Office for Budget Responsibility (OBR) says that the WCA changes are: “... estimated to reduce the caseload of those with the most severe incapacities [LCWRA] by 371,000 (13 per cent) by 2028/2029.”
“However, the OBR also says that: “We expect the WCA reform to raise employment by around 10,000 by 2028/2029..."
So, the LCWRA caseload will reduce by 371,000.
But the rise in employment will only be 10,000.
Meaning that the number of those losing the higher LCWRA amount will be 37 times higher than the number who gain employment.
“The Prime Minister maintains that the WCA changes are to increase the number of Disabled people in employment.
“However, the OBR’s conclusions as to the effects of WCA reforms are a shocking refutation of this.
Since 2008 welfare reforms have included the introduction of the WCA, personal independence payment, the bedroom tax, the benefit cap, the two child limit, and UC, all of which have negatively impacted on Disabled people.
Disabled people have lost benefit payments of around £1,200 on average each year, as a result of the changes. Non-disabled people have seen a reduction of around £300.
Last year, Scope published its new Disability Price Tag 2023 research report that highlights that, due to the extra costs of disability, on average, disabled households (with at least one disabled adult or child) need an additional £975 a month to have the same standard of living as non-disabled households.
“Tax cuts funded by cutting Disabled people’s benefits will only cause significant harm or worse. Fairness doesn’t come into it.
“The Prime Minister’s aim to support more Disabled people into work will not be achieved through subjecting people to greater sanctions and reducing the social security safety net.
More Disabled people will be pushed into poverty, we will see more deaths and greater deterioration in health.”
For more information see our related news articles:
- Disability Rights UK's response to WCA Consultation
- Deep Concern and Dismay at WCA Reforms: Open Letter From DPOs And Charities to Work And Pensions Secretary