The WCA is used by the DWP to decide whether or not you are fit for work for ESA and Universal Credit.
The Resolution Foundation is an independent think-tank focused on improving living standards for those on low to middle incomes.
The think tank says: “The suggested changes to the WCA would make it less likely that claimants with certain conditions will qualify for the Limited Capability for Work Related Activity (LCWRA) element of Universal Credit (UC), currently worth £390.06 a month.
The change would also make it more likely that claimants will be subject to work-search requirements.
Given that the WCA relates primarily to means-tested benefits, it is unsurprising that lower-income adults are more likely to be affected: three-quarters of those in receipt of means-tested health-related benefits are in the bottom half of the income distribution.”
The briefing highlights that the majority of those in receipt of means-tested health-related benefits are in the LCWRA group (i.e., with a higher benefit entitlement and no requirements to look for or prepare for work). Of the 3.2 million claimants at the end of 2022, three-quarters (2.4 million) were in the LCWRA group.
In 2022, two-thirds of those who went through a WCA were placed into the LCWRA group, up from 21 per cent of new claimants of the equivalent benefits in 2011.
In its overview of the consultation, the Foundation explains that it focuses on two possible reforms: changes to the specific activities and descriptors used in the WCA, and changes to the substantial risk criteria. We discuss both of these below.
The consultation sets out possible changes to four of the 17 WCA activities: Mobilising, Continence, Social Engagement and Getting About.
For each of these four activities, the Government is considering removing the activity from the WCA entirely, or reducing the points awarded.
For the Mobilising and Continence activities, the Government is also considering changing the threshold at which people are deemed to be unable to perform the activity.
All of these changes would make it less likely that people with certain conditions would be placed in the LCWRA group.
Currently, it is possible for a claimant to be treated as having LCWRA, even if they had not scored enough points under the functional activities and descriptors, if there is a “substantial risk”’ to their mental or physical health if they were found not to have LCWRA.
The Government has argued that this was intended to be a rare situation, but around one in six (15 per cent) of new claims are now awarded LCWRA in this way.
It suggests either removing the “substantial risk”’ definition entirely or amending it to reflect that this would not apply where a person could take part in tailored or minimal work preparation activity, or where reasonable adjustments could be put in place to enable that person to engage with work preparation.
Reflecting on one of the Government’s justifications for the changes, the rise of remote working, it is not obvious that this wider availability of remote working has transformed the labour market opportunities afforded to adults with disabilities: “The rise in remote working since the start of the Covid-19 pandemic for adults with disabilities has tracked the overall rise almost identically.
“And, of course, not all jobs can be done remotely – and it is low-paid workers who are least likely to have the chance to work remotely, with only 8 per cent of low-paid workers mainly working remotely in the second quarter of 2023.”
The Resolution Foundation concludes that: “There is certainly reason to think that the current system, which effectively labels people as being either fit for work or unable to work, can be improved.
But if the Government’s sole aim was to boost back-to-work support for Disabled people, then it could have done so without announcing cuts to level of benefits paid to some claimants, so it is clear that yesterday’s announcement is also part of the Government’s efforts to cut public spending, by reducing the amount paid in means-tested health-related benefits (Universal Credit and ESA) – and the timing of the consultation (which will close on 30 October) means that any resulting policy proposals can be costed and included in time for November’s Autumn Statement.”
In final remarks, the think tank adds that: “The rising incidence of ill-health and disability among our working-age population – and the coinciding rise in health- and disability-related benefit claims – is a real problem, but tweaking benefit entitlement alone is unlikely to be an adequate or effective solution: the Government must also focus on improving healthcare provision to prevent people getting ill in the first place and provide better support to help those claimants who are able to work, to help them find good-quality, sustained employment.”
The briefing Reassessing the WCA; What might the proposed changes to the WCA mean for low-to-middle income families? is available from resolutionfoundation.org.
See also our related news story DWP launches WCA changes consultation aimed at reducing the number of claimants in ‘limited capability for work-related activity’ group.