All the upcoming DWP and benefits changes you need to know about

Major changes to the UK's benefits system have been announced. It means there will be a change for people claiming benefits including Personal Independence Payments (PIP), Universal Credit, legacy benefits and those on long-term sick leave.

Prime Minister Rushi Sunak announced changes which are said to have been designed to reduce the number of people claiming benefits. The proposed changes include alterations to the Fit Note procedure, stopping benefits for non-compliance with Work Coach directives and a pledge to 'tighten' the Work Capability Assessment.

He claimed the measures were not just about cost-cutting. The Prime Minister announced plans for a significant overhaul of the Personal Independence Payment (PIP) system.

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A consultation will explore potential changes to the eligibility criteria, assessment process and the support available. Reforming PIP would only apply in England and Wales. These are the changes you need to know about.

Removing benefits from 'long term unemployed' who 'refuse' jobs

The Government intends to remove benefits for long-term unemployed individuals who refuse job offers. More than 450,000 people are unemployed for six months and more than 250,000 unemployed for a year.

The government claims there is no reason why these individuals should not be in work given that there are currently more than 900,000 job vacancies. In the upcoming parliament, new legislation will be proposed to change the rules.

This means anyone on benefits for a year and who is failing to meet conditions set by their Work Coach will have their unemployment claim terminated. Their benefits from the Department for Work and Pensions (DWP) will be withdrawn.

Work Capability Assessments

The Prime Minister confirmed plans to tighten the Work Capability Assessment. It means that people with less severe conditions are expected to engage with the employment sector and receive support to do so.

Under the existing Work Capability Assessment, many people are effectively dismissed as unfit for work without being offered the chance to access support which could help them find a job. Mr Sunak said the Government is committed to abolishing the Work Capability Assessment (WCA) entirely.

It wants to introduce a new personalised approach to employment support so disabled individuals and those with health conditions can reach their full potential. The Government is set to overhaul the welfare system, with reforms expected to result in 424,000 fewer people being classified as not needing to work by 2028/29.

Fit note process review

The Prime Minister has announced a review of the Fit Note process in a bid to stop people from being automatically deemed 'not fit for work'. The new approach will focus on what people can do with the right support, rather than their limitations.

Plans will consider shifting the responsibility for issuing Fit Notes away from primary care, so GPs are given more time. A call for evidence has been launched by the government, with healthcare professionals and employers being called on to help shed light on how to improve support for those with health conditions so they can work.

Accelerating the transition of legacy benefits to Universal Credit

The transition from legacy benefits to Universal Credit is set to be pushed forward. The rollout of Universal Credit will be accelerated to move all those still on Employment and Support Allowance (ESA) onto the modern IT system.

Changes to Administrative Earnings Threshold

Mr Sunak said people working less than half of a full-time week will need to seek additional employment from next month. The Government has detailed plans to increase the Administrative Earnings Threshold (AET), which determines the level of support someone receives based on their current earnings and hours worked.

Anyone earning below the AET will be placed in the Intensive Work Search Group and will have to regularly meet with their Work Coach. The threshold is set to rise in May from £743 to £892 for individual claimants and from £1,189 to £1,437 for couples - equivalent to 18 hours at the National Living Wage per week for an individual.

The Government said changes will lead to more than 180,000 Universal Credit claimants being moved into the Intensive Work Search group from the Light Touch group. This means an extra 400,000 claimants will receive more intensive support from Work Coaches.

Claimant commitments will be tailored to personal circumstances, considering caring responsibilities and any health conditions.

Fraud prevention

A new Fraud Bill will be introduced in the next Parliament. The measures will grant the Government new powers to:

• carry out warrants for searches

• seizures and arrests

• enforce civil penalties more consistently and flexibly, and to a wider group of offenders

• provide new powers to gather information from more information holders as part of DWP-led investigations into fraud
  

The Government says it is bolstering its fight against benefit fraud, with the new measures set to complement the Data Protection and Digital Information Bill. Changes will empower the DWP to access third-party data which could flag fraudulent activity.

It has been dubbed one of the most significant overhauls in benefit fraud legislation in over two decade. Officials estimate taxpayers could save a hefty £600 million by the fiscal year 2028/29.

Authorities say they want to sculpt a welfare system that's 'fit for the future by providing vital support only to those who need it most and ensuring they are supported to live with dignity and independence, whilst making sure that everyone who can work is expected and supported to do so'.