Hundreds of thousands of people with mobility and mental health problems may have their benefits slashed under plans considered by Rachel Reeves ahead of her Budget.
Reported reforms under consideration would include tightening welfare eligibility rules, cutting the benefits of more than 400,000 people, costing them up to £4,900 a year.
The plans, developed under the previous Conservative Government, are estimated to save £2.8bn, but have been condemned by disability charities as being a “reckless and dangerous” way to raise funds.
Ms Reeves is expected to follow the Tory proposals, although work and pensions minister Alison McGovern has claimed that Labour will be making its “own reforms” to the benefits system despite the party not alluding to what they may be, officially.
Here, i takes a closer look at the proposals, who they might affect and how.
What reforms are being considered?
The proposed reforms, laid out by former Tory chancellor Jeremy Hunt in his 2023 Autumn Statement, would lead to an overhaul of the Work Capability Assessment (WCA), used to assess people’s ability to work, and introduce a “new personalised, tailored approach to employment support”.
The WCA for universal credit health benefits would be reformed, making it harder for people with mobility problems to qualify for incapacity benefit.
The plans would also make it harder to claim benefits under safety-net rules, designed for people at risk of suicide. The rules assign incapacity to those who would not otherwise qualify if there is a “substantial risk” to their mental or physical health.
How many people would have their benefits cut?
About 85,000 people who are signed off long-term would be assessed as needing to prepare for work by 2025/26 under the reforms, with their benefits being cut by up to £4,900 a year.
A further 7,000 people with a limited capability to work would be classified as being fit for work and no longer be eligible for sickness benefits by 2025/26.
By 2028/29, a total of 424,000 people who are signed off long-term would be assessed as needing to prepare for work, while an additional 33,000 with a limited capability to work would be classified as being fit for work.
How much would the reforms save?
The changes are estimated to save £125m next year for the Treasury, with the figure rising each year as more people become subject to the reforms.
By 2026/27, over £500m would be saved. This figure is expected to climb to £1.3bn in 2028/29.
In total, the reforms would save around £2.8bn over the next four years.
However, disability charities have warned the Government that the reforms may push more disabled people into poverty, with many already being “unable to afford the essentials”.
Evan John, Policy advisor at the national disability charity Sense, told i: “We are glad that the government has recognised the need for better support to get disabled people into work, and the role job centres can play in this.
“We hope this is followed up with a commitment to fund £5 million for assistive technology in job centres. This would buy key accessibility items such as braille displays and screen readers, which are currently missing in every job centre.
“However, it’s important the government also keeps in mind that not every disabled person can work, and nobody should financially suffer because of this. The benefits system is currently leaving disabled people unable to afford the essentials; cutting it further without properly addressing what needs reforming first shouldn’t even be on the table.”
i has contacted the Department for Work and Pensions for a comment.
