Changes to the benefit system - an early broad brush look at what it could mean

On Tuesday 18th March,  the Work and Pensions Secretary Liz Kendall introduced the “largest welfare reforms for a generation to help sick and disabled people who can and have the potential to work into jobs”.

There’s a lot of detail in these proposals, but people are concerned and want to know how it will affect them, so whilst we work through the detail here’s our broad brush take on what it could mean.

(left photo courtesy of House of Commons)

Disability and Universal Credit Proposed Changes

· Reintroducing reassessments for people on incapacity benefits who have the capability to work to ensure they have the right support and aren’t indefinitely written off.

· Targeting Personal Independence Payments (PIP) for those with higher needs by changing the eligibility requirement to a minimum score of four on at least one of the daily living activities to receive the daily living element of the benefit, in addition to the existing eligibility criteria. This raises the bar for eligibility.

· Rebalancing payment levels in Universal Credit to improve the Standard Allowance. Raising it above inflation by 2029/30, adding £775 annually in cash terms.

· Consulting on delaying access to the health element of Universal Credit until someone is aged 22 and reinvesting savings into work support and training opportunities through the Youth Guarantee.

Possible Positives to the Proposed Changes

· Above inflation increase in standard element of Universal Credit.

· No changes to the eligibility criteria for mobility component of PIP.

· Review of Personal Independence Payment assessment processes.

· No second assessment for work capability – one PIP assessment adjudicates both.

· No reassessments for severe, long-term conditions.

· Migration from DLA for Children to PIP moved from 16 to 18

· The ‘right to try’ – where people’s claims will not need to be restarted if they try a job but it doesn’t work out. Currently, if you start a new UC claim there is a waiting period of a minimum of five weeks before you receive your first payment, so stopping and starting benefits can be very disruptive.

Possible Negatives

· Huge uncertainty for millions of people currently claiming these benefits.

· Health Component (aka LCWRA) will be halved for those who qualify.

· Health Component of UC cannot be claimed until 22.

· Harder to achieve the daily living component of PIP.

Could Go Either Way

· No second assessment for work capability – one PIP assessment adjudicates both.  Depending on the system adopted, this could be good or bad.  It’s one chance to qualify, but the work Capability Assessment is notoriously stressful and unpopular.

· Migration from DLA for Children to PIP moved from 16 to 18.  Again depending on circumstances, this could be a good or bad thing. The transfer to PIP can be a very difficult thing to do with a school age child.

Our early thoughts

· Like all proposals for benefits changes – and many of these are consultations – change, or the threat of change will inevitably cause stress and anxiety for thousands of families around the country, uncertain of their financial future.

· Similarly, as with any change in legislation, the devil will be in the detail but whatever happens the Citizens Advice and other similar advice agencies will be there to support people to navigate the system.  Don't delay, get in touch if you are worried.

· The changes rely upon there being good, well paying jobs available that can and will accommodate people with disabilities. If there are not – and there are currently far more people who potentially need a job than there are vacancies as it is – then we risk taking money away from people who cannot get the jobs, or placing them in jobs that are unsuitable for their health needs.

· The restriction of the health component of UC to 22+ is a part of the benefits safety net that presumes all young people have supportive families, and where they do not that somehow food, utilities, housing etc. is cheaper for them and therefore they need less money. This is simply not true, and causes real hardship.

Feeling uncertain? Need help?

If you are feeling uncertain and/or need help, do get in touch with your local Citizens Advice or similar advice agency, and for those who live, work or study in Gateshead Council postcode area, remember your local Citizens Advice Gateshead is open seven days a week.