DWP claimants face benefit cuts in new reforms to get more people back to work
DWP benefit claimants will face sanctions if they refuse to take up job opportunities, a Cabinet minister has warned head of announcing measures to cut the welfare bill. Work and Pensions Secretary Liz Kendall said people have a "responsibility" to engage with training or employment programmes and will lose financial support if they persistently fail to do so.
The Labour Government has said it will stick to a commitment under the former Tory administration to reduce spending on incapacity benefits by £3 billion over five years but says it will bring forward its own ways of achieving this. Under the previous government, the DWP work assessment that decides if someone is medically fit enough to get a job would have been tightened so hundreds of thousands of people who are signed off long-term - and receiving £416 'limited work capability' payments on top of their Universal Credit - would be denied the extra cash and instead have to find work.
These work capability assessments would have been toughened up from 2025 and then scrapped altogether for new Universal Credit applicants from 2026/2027. This would mean 424,000 more people would need to start looking for a job, rather than being written off as unfit for work, by 2028/2029.
Speaking to broadcasters on Sunday, Ms Kendall declined to reveal exactly how Labour will trim the rising costs, saying only the Government will introduce its own reforms. A new Get Britain Working white paper will be unveiled on Tuesday to outline the new measures.
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The Work and Pensions Secretary told Sunday Morning With Trevor Phillips on Sky News: "If people repeatedly refuse to take up the training or work responsibilities, there will be sanctions on their benefits. The reason why we believe this so strongly is that we believe in our responsibility to provide those opportunities, which is what we will do.
"We will transform those opportunities, but young people will be required to take them up." Ms Kendall said she believed "many millions" of people with disabilities and long-term health problems want to work, and "we need to break down the barriers to that happening."
Asked whether some 400,000 people would ultimately be denied their current incapacity benefits, she told the BBC politics show Sunday With Laura Kuenssberg: "I’m saying we will bring forward our own reforms. You wouldn’t expect me to announce this on your programme. But my objective is that disabled people should have the same chances and rights to work as everybody else."
The latest official forecasts published by the Government show the number of people claiming incapacity benefits is expected to climb from around 2.5 million in 2019 to 4.2 million in 2029. Last year there were just over three million claimants.
Ms Kendall's white paper is expected to include the placement of work coaches in mental health clinics and a "youth guarantee" aimed at ensuring those aged 18-21 are working or studying. The Cabinet minister said the reasons for the increased number of claims are "complex" and that Britain is "an older and also sicker nation." But she added that many young people aged 16 to 21 were also neither earning nor learning and this must be addressed.
She suggested some people have "self-diagnosed" mental health problems, but added there is a "genuine problem" with mental illness in the UK. "I think there are a combination of factors here," she said. "I do think we are seeing an increase in the number of people with mental health problems, both self-diagnosed – I think it's good that stigma has been reduced – but also diagnosed by doctors.
"We’re also seeing more people in their 50s and above, often women, with bad knees, hips, joints. We've got a real problem with our health service."
Asked whether she believes "normal feelings" are being "over-medicalised", Ms Kendall told the BBC: "I genuinely believe there’s not one simple thing. You know, the last government said people were too bluesy to work. I mean, I don't know who they were speaking to. There is a genuine problem with mental health in this country."
It comes after Sir Keir Starmer wrote in the Mail On Sunday to pledge a crackdown on benefit cheats who "game the system." The Prime Minister wrote: "In the coming months, readers will see even more sweeping changes. Because make no mistake, we will get to grips with the bulging benefits bill blighting our society.
"Don't get me wrong, we will crack down hard on anyone who tries to game the system, to tackle fraud, so we can take cash straight from the banks of fraudsters. There will be a zero-tolerance approach to these criminals. My pledge to readers is this: I will grip this problem once and for all."
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