Yahoo News DWP review of Universal Credit and PIP in drive to get 424,000 back to work
A major review is set to be carried out over benefit payments - in an effort to reduce the number of people who are 'economically inactive'. The focus on Universal Credit and Personal Independence Payment (PIP) comes following a speech by Prime Minister Rishi Sunak in which he outlined a "moral mission" to review the disability benefits system.
Mr Sunak is aiming to reduce the growing number of people who are economically inactive. This has increased by 850,000 since the pandemic due to long-term sickness keeping people from working - and in half of all the cases, this is down to anxiety and depression.
BirminghamLive reports how those on Universal Credit who are assessed as being unable to work for health reasons can receive an additional £416 a month. Many also claim the separate disability benefit PIP which pays up to £737 every four weeks. But the Government believes more people need to be helped to get a job instead of being "parked on welfare."
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A consultation on Personal Independence Payment (PIP) will be published in the coming days on changes to the eligibility criteria, assessments and the types of support that can be offered so it is "more closely linked to a person's condition rather than the current 'one size fits all' approach."
The reforms come as many more working-age people are being awarded PIP for mental health conditions and amid concerns that the assessment process is "significantly easier to game by individuals who seek to exploit the system." People could be offered mental health therapy or home adaptations such as stairlifts rather than PIP payments totalling up to £9,500 a year.
Universal Credit's disability provision, the 'limited capability for work and work-related activity' payment, is also undergoing changes. Currently, after submitting three months' worth of doctor's sick notes and completing an assessment, individuals can access this payment and become exempt from any further work expectations.
However, this assessment is to become more stringent to push those with less severe conditions back into the workforce. The Government said: "Under the current work capability assessment, too many people are effectively being written off as unable to work without the chance to access vital support which could help them enter employment."
"We know that work plays an important role in supporting good mental and physical wellbeing and helps people to lead independent and fulfilling lives. That is why, as a result of these changes, more people with less severe conditions will be expected to look for work and will be provided with tailored support to help them do so."
These assessments will be scrapped altogether for new Universal Credit applicants from 2026/2027, in favour of "a new personalised, tailored approach to employment support", with existing claimants later moved on to the new system. The Government says this will mean 424,000 more people will need to prepare to go back to work by 2028/29.
In addition, the Prime Minister has unveiled plans to overhaul the current sick note system, which he argues is too quick to write off individuals as unable to work. Last year alone saw 11 million sick notes issued to people, with a staggering 94 per cent of those deemed "not fit for work." Responsibility for issuing these notes will be transferred from GPs to specialist work and health professionals.
Health and Social Care Secretary Victoria Atkins said: "These ambitious reforms will give people the help they need in their return to and stay in work. We know that people in work often lead happier, healthier lives which is why it's fundamental to shift attitudes away from sick notes towards fit notes."
"We are seeking the advice of those who understand the system best so we can break down these unnecessary barriers to work. Through tailored care and reasonable adjustments, we can build a healthier workforce for a healthier economy."
