Rishi Sunak has outlined a series of reforms aimed at those on PIP, Universal Credit, legacy benefits or those on long-term illness, with the aim of reining in escalating costs and tackling issues such as inactivity, long-term illness and benefits fraud. The Prime Minister described the overhaul of the welfare system as a “moral mission” during his speech on April 19, which has since sparked controversy and led to claims that the plans represent an “all-out attack on people with disabilities.”
Sunak highlighted the shortcomings of the current system, particularly the lack of focus on what work claimants could potentially undertake. He clarified that the proposed changes, which include changes to the Fit Note procedure, the discontinuation of benefits for failure to comply with work coach guidelines and a commitment to ‘tighten’ the work capacity assessment, are not just about cost-saving measures .
In addition, he unveiled plans for a significant overhaul of the Personal Independence Payment (PIP) system, with an upcoming consultation to explore possible changes to the eligibility criteria, assessment process and the variety of support available through the disability benefit.
Mr Sunak has stated that the proposed changes to PIP will result in a “more objective and rigorous approach” within the benefits system. He suggested that more medical evidence might be needed to support a PIP claim, and that people with mental health problems could be offered talking therapies or respite care instead of cash transfers.
The Prime Minister stated that “people with less serious mental health problems should be expected to engage in the world of work,” outlining the British government’s new plans, the Daily Record reports. However, disability equality charity Scope expressed surprise at the extent of the proposed PIP changes, describing it as “an outright attack on disabled people” that could leave some “destitute”.
The PIP reform would only apply in England and Wales, as 218,859 people in Scotland currently receiving PIP will move to the Adult Disability Payment (ADP) and Social Security Scotland’s decentralized IT system by the end of 2025. Scope’s James Taylor revealed there had been calls “flooding into our helpline” from concerned disabled people.
He commented: “In a cost of living crisis, cutting disabled people’s incomes by tackling PIP is a horrific proposition. Sanctions and ending claims will leave people at the sharp end of our cost of living crisis of livelihood will only bring more misery.”
Other proposed changes to the benefits system
Prime Minister Rishi Sunak has announced plans to make the following changes to the welfare system.
Scrapping benefits for long-term unemployed people who do not accept a job
More than 450,000 people have been unemployed for six months and more than 250,000 have been unemployed for a year. The UK government claims there is no reason why these people should not be working, given the current availability of more than 900,000 vacancies.
New legislation will be proposed in the coming parliament to change the rules. This means that anyone who has been receiving benefits for a year and does not meet the conditions set by their work coach – including accepting available work – will have their unemployment application terminated and their benefits completely withdrawn.
Changes to work ability assessments
The Prime Minister confirmed plans to strengthen the Work Capability Assessment so that people with less severe conditions are expected to engage and be supported in the employment sector.
He pointed out that under the existing Work Capability Assessment, too many people are effectively classified as disabled without being offered the opportunity to access crucial support that could help them find work.
He clarified that the UK Government is committed to the complete abolition of the Work Capability Assessment (WCA) and the introduction of a new personalized approach to employment support. The goal is to help people with disabilities and those with health problems reach their full potential.
The expected reforms are expected to reduce the number of people who do not need to prepare for work by 424,000 by 2028/2029.
Review of the Fit Note process
The Prime Minister has also announced a review of the Fit Note system to prevent people from being automatically categorized as ‘not fit to work’. Instead, he aims to design a new scheme where each fit-note discussion emphasizes what individuals are capable of, given the right support, rather than highlighting their limitations.
This means the UK government is considering transferring responsibility for issuing Fit Notes from primary care to free up crucial time for GPs. This is all aimed at creating a system that better meets an individual’s health and occupational needs.
The government has published a request for evidence to gather responses from different points of view. This includes people with first-hand experience, healthcare professionals and employers, who provide input on how current procedures work and how they can increase support for people with health conditions to initiate, maintain and thrive in work.
It is vital to remember that while the Fit Note policy and laws apply to Great Britain, Fit Notes are managed within healthcare systems, which are undergoing devolution, indicating that this shift may not happen in Scotland .
Accelerating the transition from legacy benefits to Universal Credit
The rollout of Universal Credit will be accelerated to move all those still on Employment and Support Allowance (ESA) onto the modern IT system.
Adjustments to the administrative income threshold
The Prime Minister has announced that people who work less than half of a full-time week will have to look for additional work from next month. The UK government has already outlined plans to increase the Administrative Earnings Threshold (AET), which determines how much support an individual receives based on their current earnings and hours worked.
Those earning below the AET will be placed in the Intensive Work Search Group and will be required to meet regularly with their work coach.
The threshold will increase from May from £743 to £892 for individual claimants and from £1,189 to £1,437 for couples – equivalent to 18 hours at the National Living Wage per week for an individual.
The UK government has stated that these changes will result in more than 180,000 Universal Credit claimants being moved from the Light Touch group to the Intensive Work Search group.
This means that another 400,000 applicants will receive more intensive support from Work Coaches. The claimant’s obligations will be tailored to their personal circumstances, taking into account caring responsibilities and any health conditions.
Fraud prevention
A new fraud bill will be introduced in the next parliament.
The measures in the bill will give the UK government new powers to:
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execute search warrants
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seizures and arrests
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enforce civil penalties more consistently and flexibly, and to a broader range of offenders
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provide new powers to collect information from more information holders as part of Department for Work and Pensions (DWP)-led investigations into fraud
These new measures complement the Data Protection and Digital Information Bill, which the UK government is introducing. This legislation will allow the DWP to access third party information that could potentially indicate fraudulent activity.
British authorities have said this is one of the most significant changes to fraud laws in more than two decades, predicting savings for taxpayers of £600 million by 2028/2029.
They further explained that this plan aims to create a welfare system that is “fit for the future, by providing essential support only to those who need it most and ensuring they are supported to live with dignity and independence life, while ensuring that everyone who can work is expected and supported to do so.”
However, Erica Young – the social justice policy officer at Citizens Advice Scotland – expressed differing views: “The Prime Minister is right to want to help people into work and about the positive effects work can have on people with chronic conditions. but the rhetoric around ‘sick letter culture’ simply does not reflect the reality of our welfare system, and the importance of supportive relationships with GPs for those struggling with work due to their health.
“More and more CABs are counseling people who don’t have enough to live on as years of rising bills have wiped out their financial resilience. Many disabled clients receiving Social Security benefits choose between purchasing food or billing for essential medical equipment. Many do not have access to any support at all.”
She further stated: “There is a real risk that this type of language could create a culture of fear and deter people from seeking any form of help, including the support provided in Scotland based on the principles of dignity, fairness and respect.”