Summary of Welfare Benefits Shake Up to Save £5bn by 2030

Yesterday, Work and Pensions Secretary, Liz Kendall unveiled planned changes to the benefits system in a shakeup to save costs and try and stem the flow of £billions that is paid out in welfare benefits for sickness and disability given there are now the 4.3m people of working age people today claiming Personal Independence Payments (PIP), that’s more than double the 2 million in 2021 and costs the taxpayer £34.1 billion per year.  These figures are projected to spiral out of control to over £70bn by 2030 with no changes to the current system. 

After the covid-19 pandemic, stress, anxiety and depression appear to be the new ‘Bad Back’ with Labour blaming the ‘Work Capability Assessment’ as being flawed in that it pushes people to dependency on benefits rather than seeking gainful employment. 

The government is in an untenable position in that we cannot afford £70bn on sickness welfar when we need to spend more on the NHS and Defence and appears it needs to take action with its new “Get Britain working:  Biggest shake up to welfare system in a generation”.

Summary of Main Points

• £1bn Employment Support measure to help the disabled and long-term sick people into work.
• Stricter PIP Qualification tests from November 2026 meaning many may face a reduction or even total withdrawal of PIP.
• More frequent reassessment of PIP qualification but no reasessments for PIP for those that are serverely disabled with long term conditions.
• Simplifying all benefit claimants to just one, all-encompassing assessment rather than multiple assessments and reassessments.
• Incapacity benefits to be frozen from April 2026 but there will be an increase in the standard allowance for universal credit.

Comment

Social security benefit policy makers should learn from employer sickness schemes. 

• In the pubic sector, there is usually a much better and more robust sickness scheme of say 6 months full pay, 6 months half pay in addition to Statutory Sick Pay.  Many people ‘go sick’ then return to work before 12 months is up and soon after go sick again
• In the private sector, many smaller employers offer no 'gold plated' sickness scheme and only offer the minimum Staturory Sick Pay.

Guess which employment sector has the highest number of long term sick?

Our view is that those that are disabled or have severe mental problems should get all the financial help and support that they need without question.

Those that are not severely disabled with long term conditions should at least do something to contribute to society even in the smallest way.

• If you are off with depression but can cook, why can you not be required to make a meal for elderly or disabled neighbours on your good days?
• If you are off with depression but are physically able, why can you not be required to do some gardening or companion visiting to elderly or disabled neighbours on your good days or even litter pick or clean up graffitti?
• If you are wheelchair bound but can talk and use a telephone or the internet, why can you not be employed or volunteer to help in a government call centre or even a charity.
• Why do we have cars that you can choose from for mobility car users?   Why do we not go back to the sky blue ‘invacar’?  We wonder how many people would drop trying to get a mobility car if there were only those little blue invalid 3 wheelers called ‘invacars’?