A Controversial Plan to Reduce Welfare Spending and Improve Support

A Closer Look

The Labour government's plans to reform sickness and disability benefits are set to begin in early 2025. This follows an update from Downing Street on the Department for Work and Pensions (DWP) plans.

The party will launch a consultation in Spring 2024 to gather feedback and ensure the system effectively supports individuals. This consultation will build upon the ideas outlined in the 'Get Britain Working Again' white paper.

At the heart of the white paper are reforms to health and disability benefits. The current system is deemed "not well designed to promote and enable employment," and Labour aims to address this. Additionally, the party seeks to reduce the welfare spending bill by £3 billion over the next four years.

"We have inherited a situation of inactivity and a spiralling benefits bill. Millions of people with long-term illness or disability are out of work and not receiving the support they need. We are determined to fix this."

The consultation in Spring will focus on measures to improve the system's support for individuals, including young people, to help them find and maintain employment. The government acknowledges the challenge's complexity and emphasizes its commitment to tackling the root causes of the issue.

Expected changes include adjustments to Personal Independence Payments (PIP), potentially increasing the eligibility threshold and reducing the number of people receiving the disability benefit. However, the DWP has indicated that a significant focus will be placed on overhauling the Work Capability Assessment (WCA).

Under previous Conservative plans, WCA reforms would have altered the descriptors used to assess eligibility for certain benefits, making it harder for people to qualify. While the Treasury has denied Labour's commitment to these specific changes, they have confirmed matching the £3 billion in welfare cuts previously planned by the Conservative government.

"Tightening up conditions so that disabled people are forced to look for work when they are unwell will be disastrous."

The DWP responded to these criticisms, emphasizing their commitment to supporting individuals with long-term illness or disability who are currently out of work and not receiving adequate support. They reiterated their commitment to working closely with charities, organizations, and individuals to ensure their voices are heard as they develop their plans.