Work and Pensions Secretary Pat McFadden recently emphasized the necessity for reforming the welfare system in the UK. In his first public comments following his new role, he highlighted the importance of changes aimed at ensuring adequate support for individuals while addressing the escalating costs associated with benefits.
In June, the government abandoned a major initiative designed to reduce spending on disability and health-related benefits by nearly £5 billion. This decision followed pressure from Labour MPs, leading the government to reassess its approach. As part of the new direction, McFadden announced that individuals receiving sickness benefits, who are currently not required to seek employment, will be offered skills and employment support to facilitate their return to the workforce.
These pledges come after the government reversed proposed modifications to personal independence payments (PIP) and elements of universal credit. The previously planned reforms aimed to achieve savings of approximately £5 billion annually by 2029-30. However, analysts now predict that the Chancellor may need to find an additional £20 billion to £30 billion through tax increases or spending cuts ahead of the forthcoming Budget.
The government has initiated a review of the PIP system, led by Disability Minister Sir Stephen Timms, but findings will not be available for another year. Nonetheless, McFadden indicated that ongoing reforms should not stall in the interim. He also noted that no changes, including tightening eligibility for universal credit or addressing health-related benefits for individuals under 22, should be dismissed.
Currently, around 3.7 million working-age individuals receive health-related benefits. The independent Office for Budget Responsibility projects that spending on these benefits may reach £100 billion by 2030. During a visit to a Job Centre Plus in Barking, East London, McFadden met several women whose life experiences contributed to their current health issues and time on sickness benefits. Each expressed a desire to work, but under the existing system, they are not compelled to engage with job centre resources. McFadden mentioned the creation of a “binary divide” within the current system and highlighted plans for 1,000 specialized job centre staff to provide support for individuals on sickness benefits.
Source: https://www.bbc.com/news/articles/ckg3jl0ylkyo?at_medium=RSS&at_campaign=rss