Labour has decided to move forward with the Conservative government’s plan to cut £1.3 billion from UK sickness benefits, impacting around 450,000 people. The party will also maintain the Tories’ 2023 changes to the Work Capability Assessment, instead focusing on helping disabled individuals enter the workforce.
Labour Retains Conservative Changes to Sickness Benefits
Work and Pensions Secretary Liz Kendall has confirmed that the Labour government will not reverse the £1.3bn cuts to sickness benefits announced in the previous Budget by the Conservatives. According to sources, Labour will keep the changes to the Work Capability Assessment, which was introduced under former Prime Minister Rishi Sunak.
The Work Capability Assessment is used to determine whether individuals qualify for working-age incapacity benefits. Since 2019, the number of claimants has risen by 25%, reaching around 3.1 million people. The cost to taxpayers has increased to 1% of GDP, compared to 0.74% in 2019-2020.
Concerns from Disability Rights Activists
Disability rights groups have voiced concerns, urging Kendall to reverse these changes. Activists argue that the reforms could endanger vulnerable individuals living with mental and physical health conditions. The Resolution Foundation, a think tank, warned that rushing these cuts would “degrade living standards” for poorer households, pushing many into financial hardship.
Under these reforms, close to 500,000 people could lose eligibility for more generous benefits due to their long-term health conditions, potentially losing up to £4,900 a year in support. However, reversing the cuts would require the Department for Work and Pensions (DWP) to find alternative savings.
Focus on Employment for Disabled Individuals
Labour’s manifesto indicated plans to change the current benefits system, stating that the Work Capability Assessment is “not working” and needs to be “reformed or replaced.” While many charities agree that the system discourages disabled people from seeking employment, the cuts primarily narrow eligibility for incapacity benefits, particularly for individuals with mobility constraints or mental health conditions.
The DWP acknowledged the need for reform, adding that the current system prevents many people from receiving the proper support they need to rejoin the workforce.
Long-Term Impact of the Cuts
The changes will primarily affect new applicants for disability benefits, with the full £1.3bn in savings projected to be realised by 2028-2029. However, campaigners warn that existing claimants could also be affected if their circumstances change, such as moving house.
David Finch, assistant director at the Health Foundation, criticised the cuts as a “cost-saving exercise” that could push people into hardship quickly. According to the Office for Budget Responsibility, the cuts will result in minimal employment gains, with an expected increase of only 10,000 jobs.
The DWP responded by stating, “Spiraling inactivity and millions of people being denied the right support are holding the country back and stifling the economy. We believe the Work Capability Assessment needs to be reformed or replaced.”
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