Universal Credit crackdown warning as two million claimants signed off from work
The Department for Work and Pensions has released the latest figures for Universal Credit, showing that almost one-third of claimants are unable to work because of ill-health. The new statistics reveal that 2.1 million people are signed off on health grounds, which was 31 per cent of the number of Universal Credit claimants at that point.
Of those, 1.5 million were assessed as having what's known as limited capability for work and work-related activity (LCWRA) which means an extra £416 a month on top of their Universal Credit. They are also excused from having to look for a job.
Another 362,000 people are in a lower incapacity tier called limited capability for work (LCW), which does not offer any additional financial support and means they will have to prepare to find a job in future, while 259,000 have submitted GP sick notes and are awaiting an assessment to see whether or not they are fit for work.
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The figures come just a month after Labour confirmed it plans to overhaul assessments so that more people are found fit for some kind of work and helped back into the employment market. DWP Minister for Social Security and Disabilities Sir Stephen Timms said in August: "The government is committed to reforming or replacing the Work Capability Assessment, alongside putting in place a proper plan to support disabled people into work.
"We will also give disabled people the confidence to start working without fear of an immediate benefit reassessment if it does not work out. More disabled people and those with health conditions will be supported to enter and stay in work, by devolving more power to local areas so they can shape a joined-up work, health, and skills offer that suits the needs of the people they serve. These plans are central to our missions of kickstarting economic growth and breaking down barriers to opportunity."
The number of people who are too sick to work has risen by an astonishing 22 per cent over the past year. Two-thirds of people who are unable to work have mental or behavioural disorders, the majority are female, and 38 per cent are over 50.
The latest figures, all relating to June 2024, also show that in the West Midlands, 29 per cent of Universal Credit claimants are signed off from work. The region with the highest proportion is Scotland, with 39 per cent, and then Wales (38 per cent) and the North East (36 per cent).
Alongside Labour's plans for changes to Universal Credit assessments, Work and Pensions Secretary Liz Kendall has pledged to reduce economic inactivity and get more people back into the workforce.
Setting out the new Government's Back to Work Plan, Ms Kendall said in July that rising levels of economic inactivity were unacceptable and that immediate action must be taken. Britain's bleak statistics show that 9.4 million people are now economically inactive, a record 2.8 million people are out of work due to long-term sickness, and 900,000 young people are not in education, employment, or training.
Ms Kendall said: "Growth is our number one mission and, as the Chancellor said, our Back to Work Plan is central to achieving our plans. Economic inactivity is holding Britain back – it's bad for people, it’s bad for businesses, and it's bad for growth.
"It's not good enough that the UK is the only G7 country with employment not back to pre-pandemic levels. It is time for change in every corner of the country. We'll create more good jobs, make work pay, transform skills, and overhaul jobcentres, alongside action to tackle the root causes of worklessness including poor physical and mental health.
"Change delivered by local areas for local people, driving growth and delivering opportunity and prosperity to everyone, wherever they live."
The three pillars of the Government’s Back to Work Plan are a new national jobs and career service to help get more people into work; new work, health and skills plans for the economically inactive, led by mayors and local areas; and a youth guarantee for all young people aged 18 to 21.
Under the DWP's plan, Jobcentre Plus and the National Careers Service will be merged to get more people into work and to support those who want to find better-paid work. The Youth Guarantee will mean more opportunities for training and an apprenticeship or help to find work for all young people aged 18-21 years old, to prevent young people becoming excluded from the world of work at a young age.
Meanwhile, more disabled people and those with health conditions will be supported to enter and stay in work, by devolving more power to local areas so they can shape a joined-up work, health, and skills offer that suits the needs of the people they serve.
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