- The UK Benefits System is on the verge of major changes that will redefine the way its citizens interact with the Department for Work and Pensions (DWP). These include people claiming Personal Independence Payments (PIP), Universal Credit, legacy benefits and people on long-term sick leave.
DWP and Benefits Key Changes
Prime Minister Rushi Sunak unveiled plans to reduce the number of benefit claimants and boost employment rates in a recent speech. The proposed changes include alterations to the fit note process, the likely cessation of benefits for non-compliance with the guidance of employment specialists, and a promise to ‘strengthen’ the work capability assessment.
Major Revamp of the PIP System
The Prime Minister has announced a forthcoming consultation to debate potential changes to eligibility criteria, the assessment process and the range of support available through Incapacity Benefit.
This reform would only apply to England and Wales, with Scotland expected to move its 218,859 PIP recipients to ADP (Adult Disability Payment) by the end of 2025.
Tougher Rules for Long-term Unemployed
The UK government is considering removing benefit eligibility for long-term unemployed people who refuse job offers. Over 450,000 people who have been unemployed for six months or more and over 250,000 people who have been unemployed for a year are targeted by this measure.
However, with over 900,000 job offers currently available, the government maintains that these people should be able to find work. These changes could mean an abrupt end to benefits for the long-term unemployed if they do not comply with the conditions set by their employment specialist.
Tightening of Work Capability Assessment
Stricter work capability assessments are to be introduced, to ensure that people with less serious conditions can enter the employment sector and receive the support they need. Strengthening the assessment of work capacity could reduce the number of people classified as 'unfit for work', which would encourage them to seek employment and support services.
The Prime Minister further stated that the UK Government is committed to fully replacing the Work Capability Assessment (WCA) and introducing a new personalised approach to employment support. The objective is to help disabled people and those with health problems to reach their full potential.
Fit Note Process Review
An overhaul of the Fit Note Process has been announced to avoid people being automatically deemed 'Unfit for Work'. Instead, the new approach will focus on what people can do with the right support, rather than on their limitations.
A revision of the Fit Note process would shift the responsibility for issuing valid notes from primary care, giving GPs more time. The government has launched a call for evidence from stakeholders, health professionals and employers on how to improve support for people with health problems to help them start, stay and succeed in work.
Faster Migration From Legacy Benefits to Universal Credit
The transition from legacy benefits to Universal Credit will be accelerated. The roll-out of Universal Credit will be fast-tracked to allow all people still in receipt of Employment and Support Allowance (ESA) to move to the modern IT system.
An accelerated transition from old benefits to Universal Credit could mean that a large proportion of individuals will have to adapt to a new system of claiming benefits.
Changes to Administrative Earnings Threshold
Starting next month, individuals working less than half a normal week will have to look for additional work. The Administrative Earnings Threshold (AET) determines the level of support a person receives based on their current income and hours worked.
These Adjustments could allow more than 180,000 Universal Credit recipients to move into the intensive job search group and benefit from more intensified support from employment specialists.
Fraud Prevention
New legislation on fraud is due to be brought forward in the next Parliament. This Bill will give the UK 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 Department for Work and Pensions (DWP) led investigations into fraud
British government claims tougher action against benefit fraud with new measures to complement the Data Protection and Digital Information Bill.
In particular, it will enable the Department for Work and Pensions (DWP) to access data from third parties who may report fraudulent activity. Fraud prevention measures could be enforced more strictly, saving taxpayers around £600 million by the 2028/29 tax year.