Tag: Department for Work and Pensions

  • PRESS RELEASE : Former M&S Chief Executive hired to spearhead Government drive to help young people into work [May 2026]

    PRESS RELEASE : Former M&S Chief Executive hired to spearhead Government drive to help young people into work [May 2026]

    The press release issued by the Department for Work and Pensions on 30 May 2026.

    A business leader with decades of experience at the most senior levels has been appointed to drive forward the Government’s Youth Guarantee and ensure all young people have the chance to earn or learn.

    • Marc Bolland appointed Lead Non-Executive Director at DWP, tasked with convening business leaders to help address the number of young people not in education, employment or training (NEET).
    • Bolland – whose charity Movement to Work has helped over 200,000 unemployed young people into work – will help drive delivery of the Government’s Youth Guarantee to ensure every young person can earn or learn.
    • Appointment confirmed after interim findings of the Government-commissioned Alan Milburn review which set out the scale and complexity of the youth unemployment crisis.

    Former Marks & Spencer Chief Executive Marc Bolland has been tasked with convening CEOs across sectors to help implement Youth Guarantee reforms, bringing the voice of businesses into policy delivery. This will help create opportunity for young people and tackle the crisis of one million not in employment, education or training (NEET).

    As well as leading major companies including Marks & Spencer, Morrisons supermarkets and Heineken, Marc is founder chairman of the charity Movement to Work, which working with the DWP has helped over 200,000 unemployed young people into work.

    In his new role as Lead Non-Executive Director at the Department for Work and Pensions (DWP), Marc will convene leading Chief Executives across sectors to help expand opportunity, create clear routes into work and tackle the long-standing challenge of youth unemployment.

    He will also advise Work and Pensions Secretary Pat McFadden on the Government’s response to the Alan Milburn Review, which has just released its interim report. In this role he will be asked to place partnership with business and the third sector at the heart of the Government’s approach.

    Work and Pensions Secretary Pat McFadden said:

    The number of young people not in education, employment or training is a serious challenge that has been allowed to persist for too long. That is why I asked Alan Milburn to look hard at the underlying causes and what it will take to fix them.

    Marc Bolland’s appointment sends a clear signal that we are serious about tackling that challenge. His track record in business and through Movement to Work make him uniquely placed to bring employers together and open up real opportunities for young people who need them most.

    I’ve also commissioned senior officials in my department to look at how we go even further in the support we provide young people – particularly young people with health conditions. And I’ve asked that that be done together with employers, charities, disabled people’s organisations and young people themselves.

    Marc’s role will:

    • Turbo-charge delivery of the Government’s Youth Guarantee, helping ensure 1 million young people, including those with a disability or health condition, have access to employment, training or education – backed by £2.5 billion investment.
    • Convene employers to business support for youth employment, alongside disabled people’s organisations, charities and young people
    • Advise the Secretary of State on the Government’s response to the Milburn review – putting partnership with business and the third sector and disabled people’s organisations at the heart of Government’s response.

    Marc Bolland said:

    As founder and chairman of Movement to Work we have, in close cooperation with DWP, brought over 200,000 NEETs into work and I am honoured and passionate to join the DWP now.

    I believe the Government is serious about tackling this generational crisis of youth unemployment, and I know that working hand in hand with business to support young people gives them the best possible chance of success.

    Marc brings experience at the most senior levels of business, having served as Chief Executive of Marks & Spencer plc, Chief Executive of Morrisons supermarkets, and Chief Operating Officer at Heineken.

    He also brings a deep passion for improving young people’s lives through work, as demonstrated in his role as founding chairman of Movement to Work, a charity that offers free support to businesses to create youth employability programmes. The organisation has so far delivered more than 200,000 opportunities for 16 to 30-year-olds facing barriers to work.

    Marc will help bring business into solving this national crisis – with some employers already stepping in to be part of the solution.

    Severn Trent is the latest major employer to back the Government’s Youth Guarantee, which aims to give every young person the chance to earn or learn. Other supporters include the Premier League, Channel 4, Royal Shakespeare Company and Pinewood Studios.

    The Government has commissioned Alan Milburn to look into the root causes of youth inactivity and identify what more can be done to support young people into work and learning. Last week, Alan Milburn published his interim findings which highlighted calls for a system reset to support more young people into work.

    The report found that, without urgent action, the number of young people who are NEET – not in education, employment, or training – will rise from 1-in-8 to 1-in-6 young people within five years, representing 1.25 million young lives.

    The government is prioritising early intervention, ensuring young people are supported before they reach crisis point, identifying and supporting children with Special Educational Needs and Disabilities (SEND), speech delays, and behavioural risks as early as possible to improve long-term outcomes.

    Marc is the latest major figure from the world of business brought in by the department to utilise their extensive experience and expertise. Last year, former John Lewis boss Sir Charlie Mayfield was asked to lead the Keep Britain Working Review which, with the support of employers, has been looking at ways to help people return to or stay in work.

    Additional information

    • Marc Bolland is founder chairman of Movement to Work, a registered charity offering free support to businesses to create youth employability programmes. It has delivered more than 200,000 opportunities for 16 to 30-year-olds facing barriers to work.
    • The Youth Guarantee aims to ensure every young person aged 18 to 21 has access to employment, training or education.
    • Alan Milburn was commissioned by the Secretary of State to conduct an independent review into youth inactivity. Final recommendations for fundamental system reform will follow later this year.
    • Sir Charlie Mayfield’s Keep Britain Working review has gained the support of some 150 organisations employing 1.5million people across 24 sectors, 10 mayoral and strategic authorities and all nations of the UK: Keep Britain Working: Final report – GOV.UK
  • PRESS RELEASE : Employment lifeline for young people across the country as Government offers 300,000 new work experience and training placements [May 2026]

    PRESS RELEASE : Employment lifeline for young people across the country as Government offers 300,000 new work experience and training placements [May 2026]

    The press release issued by the Department for Work and Pensions on 29 May 2026.

    Young people across the country will be helped onto the career ladder thanks to the creation of 300,000 new work experience and training placements in sectors including construction, health and social care and hospitality.

    • New placements announced as Government accelerates its Youth Guarantee to give every young person the chance to earn or learn.
    • Expansion of support will help thousands more young people gain hands-on experience, build skills and move into work over the next three years.
    • Move comes after Alan Milburn’s interim report into youth unemployment highlighted the vital importance of work experience.

    Young people across the country will be helped onto the career ladder thanks to the creation of 300,000 new work experience and training placements in sectors including construction, health and social care and hospitality.

    The new placements, part of a £2.5 billion youth employment support package, will see young people gain hands-on experience, build real skills and move into sustained work.

    They come as the Government accelerates its Youth Guarantee to give every young person the chance to earn or learn and reverse the rising numbers not in education, employment, or training (NEET) – currently standing at just over/under one million.

    Work experience is widely recognised as a key way to help young people gain the skills and confidence to succeed, and Alan Milburn’s interim report published yesterday (28 May) warned that the first rung of the career ladder has thinned.

    The report, commissioned by the Government to identify the root causes of youth unemployment, warned that Britain risks a lost generation unless young people are given real opportunities to gain work experience.

    Work and Pensions Secretary Pat McFadden said:

    The evidence is clear, give young people real work experience and the chances of them building a lasting career increase dramatically.

    That’s why we are creating 300,000 new placements, backed by some of Britain’s biggest employers, to give young people the skills, confidence and connections they need to get on.

    This generation deserves every opportunity to succeed, and this Government is determined to deliver it.

    The 300,000 placements will be made up of work experience and Sector-based Work Academy Programmes (SWAPs), reaching young people in every corner of the country.

    SWAPs are short government-funded programmes for jobseekers claiming benefits, offering training, hands-on experience of the workplace and a guaranteed job interview.

    Recent analysis shows around four in ten SWAP participants move into sustained work within six months, earning an average of £1,400 a month, a powerful demonstration that the programme is delivering real, lasting change for young people.

    Major employers including Manchester Airport Group, JD and Gatwick Airport are already backing SWAPs, with the construction industry leading the way.

    Chief Executive of London Gatwick, Pierre-Hugues Schmit said:

    We’re delighted to welcome the Secretary of State for Work and Pensions to London Gatwick. As a major employer and economic driver in the South-East, we recognise the importance of opening doors for young people.

    We are proud of our initiatives such as our long-standing apprenticeship programme, internship opportunities, community outreach and the London Gatwick Aviation Academy.

    This SWAP programme delivered in partnership with the DWP and Jobcentre Plus has seen 81 participants achieve a Level 1 NCFE qualification in ‘Introduction to Aviation’, with over half progressing into employment at the airport since February 2026.

    At London Gatwick, we are committed to creating clear pathways into well-rewarded, high-skilled careers.

    Construction SWAPs broke records in 2025/26, with almost 17,000 starts helping to power the pipeline of skilled workers Britain needs to deliver on its housebuilding and infrastructure ambitions.

    The Youth Guarantee package will deliver a range of opportunities to young people – including a £3,000 Youth Jobs Grant and 50,000 additional youth apprenticeships, supporting the Government’s mission to ensure that getting Britain’s young people into good, productive jobs is central to its wider plan for economic growth.

    Additional information

    • Nearly 100,000 SWAPs were delivered in 2025/26, an increase of almost 15,000 on the previous year, with a record 25,000 young people aged 16 to 24 starting a SWAP, up from 21,000 the year before.
    • Plans are already in place to push delivery even further, with an ambitious target of 115,000 starts next year.
  • PRESS RELEASE : Broken fit note system to be overhauled [May 2026]

    PRESS RELEASE : Broken fit note system to be overhauled [May 2026]

    The press release issued by the Department for Work and Pensions on 20 May 2026.

    • Radical overhaul of broken fit note system to be piloted so it works for patients, employers, and healthcare professionals.
    • Trials to be delivered through selected NHS WorkWell sites and major employers.
    • Comes as new report shows just 29% of primary care staff see issuing fit notes as a good use of GP time.

    Patients, employers and GPs are set to benefit from an overhaul of the broken fit note system following the launch of several pilots by the Government today to reform the system for workers who fall ill.

    The current system sees some 11 million fit notes issued every year, with more than nine in ten declaring the person ‘not fit for work’.

    Four pilots, in different areas, in England will look at the best way to end this tick-box exercise which does not offer any support or guidance and replace it with personalised ‘stay in work’ and ‘return to work’ plans for workers who fall ill.

    The pilots will cover up to 100,000 appointments and last up to a year, with continuous testing, in order to narrow down the most effective approach to tackling the inherited steep increase in number of fit notes issued.

    Patients will be offered either an initial fit note from a GP and then referred to community health workers – or go through the whole process without an initial fit note from a GP, and will instead be supported by a separate service staffed by clinical and non-clinical practitioners.

    They will provide a range of work and health support, including three-way conversations between patients, employers, and trained professionals – covering reasonable adjustments and keeping people connected to their workplace from the first day of absence, helping more people to stay in work with support.

    It is the first step in the Government’s ambition for radical fit note reform – with pilot findings due to be shaped by patients, healthcare staff, and employers – before the Government brings forward legislation to further reform the broken system.

    Work and Pensions Secretary Pat McFadden, said:

    Fit notes are too often a dead end – a piece of paper that tells people they can’t work but does nothing to help them get better.

    We’re changing that. By bringing employers, the NHS, and patients together we can help people recover faster, stay connected to their jobs, and get the economy firing on all cylinders.

    That’s what these pilots are about, and that’s what this Government is committed to – fixing what is broken.

    The launch comes as the Government publishes the Fit Note Call for Evidence which shows just three in 10 Healthcare Professionals in Primary Care say fit notes are a good use of GPs time, while six in 10 employers think the current process is ineffective at supporting their employees’ work and health needs.

    Trials of a new approach was recommended by the former John Lewis chairman Sir Charlie Mayfield in his landmark Keep Britain Working Review into economic inactivity, which noted that the fit note system is “not working as intended” and had become a barrier to contact with employers.

    Minister of State for Care Stephen Kinnock said:

    Ever since I was appointed Minister of State for Care in July 2024, NHS staff have been telling me that the current fit note system isn’t working – not for patients, and not for the clinicians who sign them off.

    These pilots mark the beginning of the end for that broken system, giving people personalised support to get back into work and freeing up GPs from unnecessary admin so they can focus on what they do best: caring for their patients.

    This is what our 10 Year Health Plan is all about – earlier support, from the right people, in the right place.

    From July, the NHS will test new approaches through four existing WorkWell sites, backed by £3 million in the first year. The areas will test the following models:

    • Birmingham and Solihull – GPs issue the first fit note where needed, with all patients referred to a new support service led primarily by non-clinical staff, including social prescribers and work and health coaches
    • Coventry and Warwickshire – GPs issue the first fit note, with patients able to be referred to a support service made up of both clinical and non-clinical staff
    • Cornwall and the Isles of Scilly – GPs refer patients directly to a non-clinical support service, without issuing a fit note
    • Lancashire and South Cumbria – GPs refer patients to a support service made up of both clinical and non-clinical staff, without issuing a fit note.

    BMA’s Practice Business policy lead for GPs committee England Dr Clare Bannon said:

    The BMA has contributed to the design of these pilots with DWP to overhaul the fit note system as we feel the current system is not working for GPs or patients. We welcome the opportunity to test how different models work and ensure the new process reduces unnecessary appointments for GPs, but most importantly provides support to patients.

    We will continue to input into the pilots to ensure they have appropriate occupational health support and do not inadvertently increase pressure on general practice or affect patient care. While we are supportive of this pilot, it must be underpinned by appropriate training, clinical oversight and clear governance.

    Professor Victoria Tzortziou Brown, President of the Royal College of GPs, said:

    GPs take our responsibility to appropriately issue fit notes seriously, but the current system can involve significant administrative work that takes time away from patient care.

    We are open to exploring evidence-based reforms that could help improve outcomes for patients. However, any reform of the fit note process must put the health and wellbeing of patients first, be fully resourced and avoid creating additional workload for general practice. As such we look forward to seeing a comprehensive evaluation of this pilot.

    The Government is also confirming local funding allocations for WorkWell – the proven health-and-employment service through which the NHS-based fit note pilots will be delivered – as the programme expands nationally to support up to 250,000 people with a disability or health condition to get into or stay in work.

    WorkWell is a local, health-led service connecting NHS, council and community support to keep people in work and help them return quickly if they don’t.

    It comes as part of the Government’s wider £3.5 billion employment support package which meets sick and disabled people where they are, and builds on recent changes including the right for people on benefits to try work without fear of immediate reassessment, and the redeployment of 1,000 Pathways to Work advisers who are supporting those left behind by the previous Government.

    Those who need time off to recover will still get it, with the Government’s Statutory Sick Pay reforms meaning employees receive support from day one of sickness absence, putting an extra £400 million a year into people’s pockets.

    Alongside the NHS pilots, Keep Britain Working Vanguard businesses – including EDF Energy – will work out how employers can play a practical role in preventing absence where possible, and supporting safe, swift returns when it does occur.

    Jacob Lant, Chief Executive of National Voices, said:

    The current tick-box system for fit notes isn’t working for anyone, particularly patients. It makes people who are unwell jump through unnecessary admin hoops, and yet the process rarely offers people the support they need to get well and manage their conditions long-term.

    The Department for Work and Pensions is absolutely right to test out new ways of supporting those who are signed off, and it is vital that patients are fully involved in that testing process, able to feed back over what works and what doesn’t. This is the only way to reliably avoid unintended consequences and create a system that actually helps both those who can’t work and those who would be able to with the appropriate support.

    Ultimately the goal has to be about focusing on improving people’s health and getting them well, this is the hallmark of a compassionate state. In the end, investing in this approach will also pay dividends in terms of more people feeling able to work and being able to enjoy all the positives that come as a result.

    Nottingham GP Dr Sanjoy Kumar said:

    I am really pleased the government is looking seriously at new approaches to fit notes, a change which is urgently needed. As a GP for over 25 years, I know how much of our clinical time is taken up with issuing these, which for many patients is not the right approach.

    Dr Steve Taylor GP Co-Lead Doctors Association UK said:

    The Doctors Association UK has been involved in discussions over the past few months with the Department of Work and Pensions around Fit Note reform. These discussions were broad and included many groups: GPs, employers, patients and occupational health. We agree that the current system of fit-notes isn’t working well for patients, GPs and employers. It often lacks the nuance to deal with specific work situations and reasons that people have for not being able to work their full or part of their role.

    We hope these pilots will give the opportunity to explore a different way for people to engage with the periods of ill health and ways to make work more accessible and achievable. This recognises that GPs aren’t always best equipped to understand the options for work and we hope that active engagement between patients, GPs, employers and this new service will provide a better experience for everyone.

    It is important that no one is forced to work who cannot, but it is also important that those who can, should be encouraged and given options to work. This could be a great improvement and we look forward to seeing the outcomes from these 4 pilots.

    Chief Policy & Campaigns Officer John Foster at Confederation of British Industry said:

    The fit note system is broken and fails employers, workers, and the economy. Business welcomes these pilots. They are an important step towards building a better system.

    Employers have increased their investment in supporting employee health and wellbeing and hope that these pilots will direct efforts to interventions that have the greatest impact.

    An improved system also needs to restore employers’ confidence that absence from work is only recommended when it is justified.

    Professor Neil Greenberg, the Society of Occupational Medicine said:

    The Society of Occupational Medicine (SOM) welcomes DWP’s proposed fit note pilots, particularly the workability plan. The current fit note system is not working. Too many people who could potentially be supported to stay and return to work are not.

    The fit note reform offers clear benefits for employees, employers, and the NHS. SOM anticipate the pilots will generate useful data to improve how fit notes will support employees, alleviate GP pressures and help bridge the gap between employers and employees.

    SOM will be interested to see if the pilots will support better health outcomes through reduced absenteeism, and improved retention. SOM looks forward to working with the DWP to achieve a better fit note system.

    Charlotte Osborn-Forde, Chief Executive of The National Academy for Social Prescribing:

    We are pleased that social prescribers – also known as link workers – will play a part in the fit note pilots. Link workers can support people with social issues that affect their health, including loneliness, isolation and problems with debt or housing. They focus on what matters to people and connect them to community-based support – including advice on money or housing, carers’ support, physical activity groups or local activities. There is strong evidence that this approach can benefit wellbeing and mental health.

    No one who is unable to work should be pressured into doing so, but this voluntary scheme should help join the dots between the NHS, employers and communities, and help people get the right support for wider issues that affect their health.

    Head of Policy and Practice at the Royal College of Occupational Therapists, Joe Brunwin, said:

    These pilots are a real chance to help more people stay in or return to work and are centred around a core skill of occupational therapy: understanding people as individuals and considering how their environment and circumstances affect their ability to work.

    Fit note evaluations and pilots show occupational therapists are more likely to take a work-focused approach, using ‘may be fit’ advice and adjustments to support return to work. As well as signing fit notes occupational therapists can provide clinical supervision and governance for non-clinical staff.

    It’s encouraging to see a shift away from a purely medical approach to work absence, towards taking a more holistic approach. We look forward to seeing how this initiative makes use of occupational therapy expertise and how we can continue to work together as part of a multidisciplinary team, supporting people to stay in, return to and thrive in work.

    Additional information

    • The previous government launched a Call for Evidence in April 2024 and this government has now published its findings: Fit Note Reform: Call for Evidence – Results – GOV.UK
    • The initial focus is on people who are in work, while continuing to explore how reforms interact with the benefits system and support people who are out of work. Patients will be able to use the stay in work and return to work plans for Statutory Sick Pay, which the government recently strengthened through the Plan to Make Work Pay.
    • The NHS pilots will test different models of fit note reform – including some GPs issuing the first fit note in a sickness absence. In other areas, fit notes will be wholly replaced by the new plans.
    • The Keep Britain Working Vanguards are early adopters who will develop and refine workplace health approaches over the next three years to build the evidence base for what works.
    • WorkWell allocations:
    RegionMaximum Funding Allocation
    East of England£24.2m
    London£40.3m
    Midlands£47.1m
    North East & Yorkshire£36.3m
    North West£35.4m
    South East£30.5m
    South West£21.6m
  • PRESS RELEASE : Huge recruitment boost to tackle backlog in vital disability work scheme [May 2026]

    PRESS RELEASE : Huge recruitment boost to tackle backlog in vital disability work scheme [May 2026]

    The press release issued by the Department for Work and Pensions on 19 May 2026.

    Tens of thousands of disabled people needing support to move into or stay in work will have their claims processed quicker, thanks to action taken by the Department for Work and Pensions.

    • Nearly 500 additional staff to be recruited to clear inherited backlog in the Access to Work scheme.
    • Comes as payment delays already eliminated and 96 percent of urgent cases cleared within 28 days.
    • Action taken will allow thousands more disabled people and people with health conditions to start or remain in work.

    Tens of thousands of disabled people needing support to move into or stay in work will have their claims processed quicker, thanks to action taken by the Department for Work and Pensions. 

    The Access to Work scheme can help fund specialist equipment, support workers including BSL interpreters, and the costs of travelling to work for people with health conditions and disabilities.  

    Demand for the scheme has surged in recent years, with the number of claims more than doubling since 2018/19. This, coupled with the backlog inherited from the previous Government – of 48,270 applications awaiting a decision at the end of June 2024 – means around 60,000 applicants are awaiting a decision. 

    As part of its efforts to move from a welfare state to a working state, the DWP is taking action to address the backlog by recruiting nearly 500 new members of staff to speed up processing times and help people get the support they need quicker. 

    The change is part of a range of measures to break down barriers for sick or disabled people left behind by the previous Government. 

    This includes:  

    • Investing £3.5 billion into employment support of sick or disabled people by the end of the decade.
    • Connect to Work which delivers tailored, personalised, local support that will help 300,000 people into work by the end of this parliament.
    • The national expansion of WorkWell backed by £259mn, helping up to 250,000 people with health conditions to stay in or return to work.
    • Allowing sick or disabled people to try work without the immediate fear of reassessment through the Right to Try. 
    • The redeployment of 1,000 Pathways to Work advisers who’ve already helped tens of thousands of people the previous Government wrote off.

    Pat McFadden, Secretary of State for Work and Pensions said: 

    Access to Work is a lifeline for disabled people and those with health conditions, helping them to start and stay in work, but when I came to the DWP it was clear there was a major issue with people waiting for a decision. 

    That’s why I’m taking action to clear the backlog, because we know that the right support can change lives.  

    This is part of our wider commitment to move from a welfare state to a working state, building an economy that works for everyone.

    The recruitment drive will see 480 new case managers and caseworkers employed to help fix the inherited backlog by September 2027 – representing a 72 percent increase to the 658 people working on the scheme.  

    New case managers will receive extensive training to handle complex applications, ensuring disabled people receive timely support to secure and sustain employment. Alongside recruitment, the government is already prioritising cases where applicants are due to start work within four weeks. 

    Jon Sparkes OBE, Chief Executive of learning disability charity Mencap:  

    We welcome the government taking action to clear the Access to Work backlog. Payment delays are putting enormous pressure on disabled people who rely on this vital support to get into and stay in work, as well as charities like Mencap who employ and support them.  

    People with a learning disability can be fantastic employees, but many will need the right support to thrive in the workplace. Access to Work is one of the best ways to support disabled people in work, for example funding dedicated job coaches who help people with a learning disability to develop their skills in the workplace, build confidence, and sustain paid employment.   

    This recruitment drive is a positive step in tackling the systematic delays and bogged down administration that has threatened this vital programme. If Access to Work runs as intended, it will help reduce the disability employment gap and get more people with a learning disability into paid work. We look forward to seeing this announcement translate into real, lasting improvement.

    Laura Davis, CEO at BASE said:

    Access to Work remains a lifeline for disabled people, enabling access to good careers and providing the practical support that helps individuals not just enter work, but flourish within it. It is wonderful to see the government joining the dots to create an environment where more disabled people can access good careers. 

    At the same time, the current backlog is creating significant pressure across the system. For many providers, delays in decisions and payments are impacting their confidence to sustain and grow provision, with some concerned about their ability to continue offering support at all. This has implications not only for individuals, but for employers who are >ready to recruit and retain disabled talent.

    We welcome the steps being taken to increase capacity and prioritise urgent cases. Addressing the backlog at pace, and ensuring timely payments to individuals, providers and employers, will be critical in restoring confidence and stability. This will enable the sector to focus fully on delivery, supporting more disabled people into sustainable employment and contributing to the wider ambition of building an economy that works for everyone.

    Harriet Oppenheimer, Chief Executive of RNID, said: 

    We are pleased to see the Government have acknowledged the scale and impact that Access to Work delays are having on disabled people and are investing in clearing the scheme’s backlog. 

    Being able to access the tools and support needed to work is essential. For many people who are deaf, especially British Sign Language (BSL) users who rely on interpretation, the Access to Work scheme is vital to get the communication support they need to be able to do their jobs effectively. RNID’s research shows that Access to Work delays have forced people to change how they work or reduce their hours, while some people have been forced to cover the costs out of their own pocket.  

    An effective Access to Work scheme is crucial to ensure deaf people have equal access to the workplace. We hope this announcement will help to ensure this vital scheme genuinely works for those who need it by reducing the waiting times people >are experiencing through Access to Work.

    Today’s announcement builds on action already taken by the Government. Staff numbers have increased by around 30 percent since March 2024, payment delays have been eliminated, and 96 percent of urgent start-date cases are now decided within 28 days. 

    It comes alongside wider work on Keep Britain Working where Government is partnering with Employers and stakeholders to develop practices and approaches to better support disabled people and those with health conditions in the workplace. 

    Wider reforms to ensure Access to Work remains fair and sustainable are also being considered, with evidence gathered from disabled people, employers, and representative organisations to shape future changes. 

    Further information: 

    • Access to Work provides practical and financial support to disabled people and those with health conditions to help them start or stay in work. Further information is available at gov.uk.
  • PRESS RELEASE : Britain is undersaving for retirement warns Pensions Commission [May 2026]

    PRESS RELEASE : Britain is undersaving for retirement warns Pensions Commission [May 2026]

    The press release issued by the Department for Work and Pensions on 19 May 2026.

    The Pensions Commission has today (19 May) published its interim report on the state of retirement saving in the UK, setting out the key challenges facing the current system and where it will focus its work next.

    • Interim report highlights key challenges in retirement saving across the UK with 15 million people currently undersaving for retirement.
    • Findings sets direction for further work to improve retirement outcomes ahead of final recommendations in 2027.
    • Commission set up as part of government’s wider reforms to pensions system to help more people retire with dignity.

    The Pensions Commission has today (19 May) published its interim report on the state of retirement saving in the UK, setting out the key challenges facing the current system and where it will focus its work next.

    The report highlights that many people are not saving enough for retirement, particularly among low and middle earners, the self‑employed and women, and points to the need for the system to evolve to meet modern working lives.

    There are currently 15 million people under saving for retirement which could reach 19 million without action, leaving large groups across the UK facing a severe cliff-edge when they retire, according to a new report from the Pensions Commission.

    Set up by the Government in July 2025, the Commission aims to address a savings challenge that has been building for decades, examining why tomorrow’s retirees’ risk being worse off than today’s and making recommendations to reverse this.

    This follows the success of the 2002 to 2006 Commission which built a consensus for the roll-out of Automatic Enrolment into pension saving, resulting in 89% of eligible employees now saving into their pensions, up from 55% in 2012.

    Its findings include:

    • Low and middle earners are most at risk, with around half saving only at minimum Automatic Enrolment levels with little else to fall back on.
    • 45% of working-age adults – around 18 million people – are not saving into a pension at all, despite nearly half of them being in work.
    • Where employers are contributing about the statutory minimum this is largely benefiting higher earners.
    • Just 4% – one in 25 – of wholly self-employed workers are saving for retirement, and it’s even lower among younger self-employed people.
    • On current trends around 3 in 10 private pension pots are accessed at the earliest possible opportunity with half of all pots taken out in full. Nearly half of these are spent on large expenses like a car, holiday or renovations.

    The Commission examined why tomorrow’s retirees are on track to be poorer than today’s with too many working age adults are saving nothing at all into a pension. A final report with recommendations will follow in early 2027.

    Pensions Commissioner, Baroness Jeannie Drake said:

    Over the past two decades since the Turner Commission there is no doubt pensions reform can be described as a success. Yet the second Pensions Commission is looking forward and seeing many people not saving enough and millions not saving at all.

    This demands a renewed national settlement on pensions.

    Achieving this will require clarity of purpose, but it also offers a moment of opportunity; to renew a social contract that commands confidence across the country.

    The recommendations we present in our final report will address the need to secure adequate income in later life and a pension system that is fit for decades to come.

    The Commission will set out the course to improving future outcomes whilst ensuring the system is fair and sustainable within and between generations.

    Minister for Pensions, Torsten Bell MP, said:

    Britain has got back into the pension saving habit, but the job is only half done with tomorrow’s pensioners still on track to be poorer than today’s.

    The Pensions Commission sets out clearly the scale of the challenge: not enough people are saving for retirement, and many of those that are aren’t saving enough.

    The Commission warns that without action millions more people could be at risk of becoming reliant on state support in retirement.

    It adds that there is much for public policy to do to shape the future of pensions, whilst maintaining the broad political consensus pensions has had since the Turner Commission in the 2000s. The Commission is clear that change must happen in the right way, with any recommendations for change implemented gradually. The Government has ruled out any changes to Automatic Enrolment contributions this Parliament.

    Dr Yvonne Braun, ABI Director of Long-Term Savings Policy said:

    The report makes a powerful case for a new national settlement for pensions. Automatic enrolment is a sturdy foundation, but must evolve to meet the scale of the challenges ahead.

    We and our members stand ready to work with the Commission to deepen saving, extend coverage and support better decisions in retirement, so that everyone can look forward to greater financial security in later life.

    Over the next year the Commission will hear a wide range of views before presenting its final report and recommendations in early 2027. A call for views from all interested parties has also launched today.

    Rocio Concha, Director of Policy and Advocacy at Which? said:

    Which? welcomes this interim report from the Pensions Commission and the valuable evidence it brings together on the UK’s pension adequacy challenge. It is very encouraging to see recognition of the need to increase private pension saving rates and coverage, while also acknowledging the financial pressures caused by the cost of living crisis.

    The report rightly highlights that too many working people are projected to reach later life without sufficient savings, and that women, carers, the self-employed and many ethnic minority groups continue to face structural barriers. It is also promising to see a strong focus on how to support people to use their pension savings throughout retirement.

    Which? looks forward to continuing to work with the Commission, industry and wider civil society groups to help drive the reforms needed so people are better prepared for retirement.

    Julian Mund, Chief Executive of Pensions UK, said:

    Pensions UK welcomes the breadth and ambition of this report, and shares the Commission’s view that we need a new national settlement on pensions.

    Evidence presented in the report clearly strengthens the case for more pension saving over longer working lives, alongside systemic change that delivers sustainable incomes – building on welcome reforms in the Pension Schemes Act.

    We look forward to working with Government to explore how that diagnosis can be turned into a practical roadmap for reform, well before the next generation fall short of the retirement incomes they expect and deserve.

    Caroline Abrahams, Charity Director at Age UK:

    We welcome this new report from the Pensions Commission, which provides an excellent analysis of the problems facing our pensions system today. This is the first and necessary step for ensuring the pensions system of the future enables tomorrow’s older people to have a decent standard of living.

    There’s a clear need to improve the way the State Pension and private pension systems work together; otherwise people on low incomes are at risk of falling through the cracks and hurtling towards their retirements without the required funds, or the time to make up the shortfall. We look forward to working with the Commission as it explores the best solutions for future pensioners.

    Aside from the commission, the government is also reforming the pension landscape and improving retirement for today’s workers. The Pension Schemes Act, passed this month, will benefit 22 million workers by up to £29,000 by the time they retire, driving down costs, boosting returns and enabling the automatic consolation of small pension pots to ensure every pound saved works harder for working people.

    Louise Hellem, Chief Economist, CBI, said:

    The publication of the Pensions Commission’s interim report is an important step towards building a long-term framework that delivers adequate living standards in retirement. Getting this right requires the government, businesses and individuals all to play their role in supporting better saving.

    As the debate progresses, it is vital that retirement adequacy is considered hand in hand with the UK’s growth ambitions. Strong economic growth underpins sustainable pension outcomes by supporting employment and higher sustainable wage growth, enabling individuals to save, and driving stronger investment returns over time. It is only growth that can sufficiently reduce difficult trade-offs and maintain political, public and business support for change.

    TUC General Secretary Paul Nowak said:

    Workers deserve a pension system that guarantees against poverty in retirement and enables them to maintain their standard of living.

    Although millions more people are now building up workplace pensions, far too many on low and middle incomes are not heading for a decent retirement – with women, Black and minority ethnic and disabled workers, and those in the gig economy at highest risk.

    The Commission must now develop a bold plan to fix this, which will need to include higher employer contributions and a fair deal for those currently missing out.

    Nausicaa Delfas, Chief Executive of The Pensions Regulator, said:

    The pensions system is still unfinished business with too many people on track for an inadequate retirement income. That is why we welcome the Pensions Commission report, and look forward to continuing to work with the Commission, Government and industry to create a system which delivers what matters most: a sustainable income in retirement for everyone.

  • PRESS RELEASE : Government turning the tide for young people in the Midlands with jobs backing from Severn Trent [May 2026]

    PRESS RELEASE : Government turning the tide for young people in the Midlands with jobs backing from Severn Trent [May 2026]

    The press release issued by the Department for Work and Pensions on 19 May 2026.

    Young people across the East and West Midlands will have more work opportunities as Severn Trent becomes the latest backer of a government drive to tackle youth unemployment, pledging 400 roles in the water industry.

    • Severn Trent is the latest backer of the Youth Guarantee, the Government’s scheme to give every young person the chance to earn or learn  
    • The company is creating 400 employment opportunities for young people across the Midlands, supporting Government action to tackle the water sector’s skills shortage 
    • Youth Guarantee has already received backing of major employers including McDonald’s and the Premier League 

    Severn Trent, one of the largest water and sewage companies in England and Wales, says the opportunities for 16 to 24-year-olds will be created over the next three years as part of a new programme. They will include six-month paid work placements across a wide range of roles within the company, including a variety of operational roles and customer support agents.

    To support those from all backgrounds, 25 of the opportunities each year will be ringfenced for young people who have experience being in care. 

    Severn Trent is the latest major employer to back the Government’s Youth Guarantee, which aims to give every young person the chance to earn or learn. Other supporters include the Premier League, Channel 4, Royal Shakespeare Company and Pinewood Studios.  

    The Youth Guarantee and Growth and Skills Levy reforms are backed by £2.5 billion investment, providing employment support for almost a million young people and unlocking up to 200,000 jobs and apprenticeship opportunities. 

    This comes in response to the rise in recent years of young people not in employment, education or training (NEET), which is close to one million.   

    Severn Trent’s commitment also comes as an important step in tackling the serious skills shortage facing the water sector, with 35% of skilled jobs currently going unfilled.  

    To mark the new partnership, the Minister for Skills Jacqui Smith visited Severn Trent’s training academy in Coventry, which opened in 2021, to meet young apprentices developing skills in operations, engineering and other specialist roles. At the site, learners train by practicing real repairs using indoor and outdoor rigs that simulate live water networks. 

    Baroness Jaqui Smith, Minister for Skills said: 

    Every young person deserves the opportunity to build a career they’re proud of and that is exactly what we are making happen through the Youth Guarantee.

    It is great to see Severn Trent joining a growing number of household businesses backing our mission to open doors and deliver real opportunity across the country.

    Their commitment shows how working hand in hand with businesses provides young people with the skills, the confidence and the chances they need to succeed.

    Daniel Jackson, 19 Water technician who led the tour with Minister Smith said:  

    To be asked to lead the tour with the Minister was a real privilege. I started as an apprentice, and the Academy really helped give me the learning and opportunity to do well. I completed my programme and am now part of the leakage team – finding and fixing leaks and supporting our customers, and I love it. I’m excited about where my career will take me. 

    Neil Morrison, HR Director at Severn Trent said:  

    We know giving a young person that first opportunity can be game changing, and at Severn Trent we are committed to providing experiences that result in positive outcomes. The Youth Guarantee is a great example on how we can come together to do just that. 

    Welcoming talented young people into our organisation, who bring with them new ideas and fresh perspectives ultimately help us be better as a business. We firmly believe no matter what organisation or business you are, there’s a role to play in unlocking genuine pathways for young people.

    The Government is working to boost opportunities for young people more widely in the water and utilities sector, with conversations ongoing with Anglian Water, the RPS Group and M Group.

    The new placements build on the 500 work experience placements Severn Trent already provide annually, and 100 new apprenticeship opportunities each year, providing a vital route into skilled employment for young people at the start of their careers.

    The Government is working hand in hand with sector leaders to open up early career routes for young people, through both the Youth Guarantee and the Energy & Utility Skills Sector Entry Pilot.

    The pilot is delivered jointly by DWP and Energy & Utility Skills, and offers nine accredited training modules, guaranteed interviews and has an expected 75% progression rate into work. Industry leaders including the National Grid, M Group, Murphy’s and Severn Trent have already committed to the scheme.

    The package of measures under the Youth Guarantee include a Youth Jobs Grant worth £3,000 for employers for every young person they hire aged 18-24 who has been on UC for six months, an expanded Jobs Guarantee offering subsidised work for eligible 18 to 24-year-olds, and new foundation apprenticeships in key sectors, including hospitality.

    On top of this, the government is continuing its commitment to delivering Youth Hubs to every local area in Great Britain to establish a national network and address the almost one million young people not earning or learning – a rise of 248,000 between 2021 to 2024 – so that every young person can progress wherever they live.

    Alongside these measures, JobHelp provides young people with free, practical support to navigate their job search from CV tips and interview guidance to training opportunities and government support all in one place.  

  • PRESS RELEASE : Unpaid carers impacted by unclear guidance to have debts cancelled [April 2026]

    PRESS RELEASE : Unpaid carers impacted by unclear guidance to have debts cancelled [April 2026]

    The press release issued by the Department for Work and Pensions on 13 April 2026.

    Tens of thousands of unpaid carers affected by confusing guidance on their earnings are set to have their debts reduced, cancelled, or refunded, in a major reassessment of cases launched by the government.

    • Over 200,000 Carer’s Allowance cases affected by confusing guidance will be reviewed, with debts potentially reduced, cancelled or refunded for around 25,000 unpaid carers.
    • Unclear government guidance on fluctuating earnings, in place from 2015 to 2025, left busy carers facing unexpected debts without realising they had broken the rules.
    • Carers do not need to take any action now as this government steps in to put right the failures in the system it inherited.

    Tens of thousands of unpaid carers affected by confusing guidance on their earnings are set to have their debts reduced, cancelled, or refunded, in a major reassessment of cases launched by the government.

    The move follows ministers’ acceptance of 38 of the 40 recommendations made by the independent Sayce Review into Carer’s Allowance overpayments in November 2025.

    From April 2015 to September 2025, guidance on how to average irregularly fluctuating earnings was unclear and did not accurately reflect the law.

    Carers juggling paid work alongside at least 35 hours of unpaid caring built up debts without realising they had exceeded the weekly earnings limit. That was a failure of the system, and this government is taking action to put it right.

    The DWP will now review over 200,000 cases. Around 25,000 carers could see their debts reduced, cancelled entirely, or receive refunds where money has already been repaid. In most cases, DWP holds all the information it needs. Carers do not need to contact DWP — the department will get in touch if it needs anything further.

    The exercise comes after the government took action to improve lives for carers, including increasing the weekly Carer’s Allowance earnings limit by a record amount in April 2025, and increasing again to £204 net per week for 2026/27. That means some unpaid carers can now earn around £10,000 a year and still receive the benefit.

    Work and Pensions Secretary Pat McFadden said:

    We inherited a system that left unpaid carers building up debt through no fault of their own, something we’re determined to put right.

    That’s why we accepted the vast majority of the Sayce Review’s recommendations and are now getting to work implementing them, kicking off the reassessment exercise to review cases impacted by unclear guidance.

    Carers are vital to our communities, and we are committed to taking action to rebuild their trust.

    Helen Walker, Chief Executive of Carers UK, said:

    We are pleased to see the government taking decisive action to start putting right the failings of the past and provide carers with the redress they deserve. The reassessment process marks an important step in tackling these systemic failures.

    Carers UK has been campaigning on the issue of Carer’s Allowance overpayments for more than seven years, and during that time we have heard from hundreds of carers who have experienced severe financial strain and emotional distress as a result.

    As we mark the 50th anniversary of Carer’s Allowance this week, it is encouraging to hear that the government is also exploring further options for reform. This is sorely needed to ensure that it properly supports and recognises the contribution of unpaid carers, while protecting them from financial hardship.

    Kirsty McHugh, Chief Executive Officer of Carers Trust, said:

    Carers Trust warmly welcome the Government’s willingness to get on with the reassessment exercise and undo historic mistakes. This will have a huge impact on thousands of unpaid carers who were penalised for no fault of their own. It has been reassuring to see the Government accept the vast majority of the recommendations of the Sayce Review, whilst the £75 million allocated by last year’s Budget is further evidence the Government is serious about righting these wrongs.

    We thank Liz Sayce for her work, alongside the carers and local carer services who shared their stories to make the Review as effective as possible. We’ll now be helping our network of 130 local carers services support carers as the reassessment exercise gets underway.

    Around half of those changes have already been made, with further reforms under way to modernise the benefit and prevent problems like this from arising again.

    As well as increasing the weekly Carer’s Allowance earnings limit as part of wider efforts to bear down on the cost of living, the government is also exploring whether earnings calculations can be automated and whether the current cliff-edge earnings rule can be replaced with a tapered system, to reduce the risk of overpayments in future.

    The government has also updated its guidance on fluctuating earnings to ensure that averaging is properly considered and has worked with carers and carers’ organisations to make sure its communications are clear and accessible.

    2026 marks 50 years since Carer’s Allowance was introduced. The next few years will see some of the most significant reform to the benefit in its history, reflecting the government’s commitment to building fair public services that people can rely on, as part of its Plan for Change.

    Additional information

    • The reassessment exercise covers cases from April 2015 to September 2025 in which earnings-related Carer’s Allowance overpayments arose due to guidance that did not accurately reflect the statutory position on averaging irregularly fluctuating earnings.
    • Advice and support for anyone whose Carer’s Allowance case is or might be involved in the reassessment exercise will be available – at no cost – from the Department or from trusted partner organisations such as Carers UK and Carers Trust.
    • The government response to the Sayce Review was published in November 2025.
    • Further information for affected carers is available: Contact the Carer’s Allowance Unit.
    • This reassessment exercise is specifically limited to cases where overpayments arose due to the guidance that did not accurately reflect the statutory position on averaging irregularly fluctuating earnings between April 2015 and September 2025. Carers whose overpayments arose for other reasons are not in scope for this exercise.
  • PRESS RELEASE : Thousands to be supported into work as government reforms welfare system [April 2026]

    PRESS RELEASE : Thousands to be supported into work as government reforms welfare system [April 2026]

    The press release issued by the Department for Work and Pensions on 6 April 2026.

    Hundreds of thousands of sick or disabled people will be offered voluntary help towards employment as part of a package of measures coming into force today (6 April) that will encourage work and save taxpayers around £1 billion.

    • Incentives that discourage work and trap people on benefits to be removed via legislation coming into force today.
    • Nearly £1 billion taxpayer money expected to be saved thanks to measures to narrow the gap between payments for people on health-related benefits and those actively seeking work.
    • Comes alongside employment support package of £3.5 billion, with 65,000 disabled people or those with health conditions already given tailored help.

    The system inherited from the previous Government encouraged more people to stay on benefits without support to move into work.

    Reforms coming into force today will change that, tackling perverse incentives by introducing a lower Universal Credit health element rate of £217.26 per month for new claimants, compared to the higher rate of £429.80.

    Those with the most severe, lifelong conditions, those nearing end of life, and all existing Universal Credit health claimants will continue to receive the higher rate.

    Anyone affected by the changes to Universal Credit will be entitled to voluntary employment support, with more than 65,000 people with limited capability for work and work-related activity taking up the offer since March 2025 – exceeding the target.

    And as the Government continues to bear down on the cost of living, the changes will also see almost four million households on the standard rate of Universal Credit receive a boost worth around £295 extra this year in cash terms, around £110 above inflation, for a single person aged 25 or over.

    Minister for Social Security and Disability Sir Stephen Timms said:

    The welfare system we inherited has for too long locked disabled people and people with long term conditions out of work.

    Laws coming into force today will change that, reducing projected expenditure on Universal Credit by almost £1 billion.

    Simultaneously boosting the standard allowance and investing £3.5 billion in employment support means we’re creating a welfare system that backs people to work and helps them build a better future.

    From 8 April, customers with limited capability for work or work-related activity will also see a new notification on their Universal Credit account giving information on the support available and allowing them to opt in to being contacted to find out more about the support.

    This will trigger a conversation with a Pathways to Work adviser, who can offer personalised appointments and refer individuals to programmes such as Connect to Work, WorkWell, or local Trailblazer schemes.

    The changes come alongside the £3.5 billion investment the Government is making to help disabled people and those with long-term health conditions move closer to the labour market, offering personalised support aimed at improving employment and living standards.

    This includes the Connect to Work programme, which will provide tailored help to 300,000 people over the next five years, and the groundbreaking WorkWell programme, set to support a further 250,000 people to stay in or return to work.

    With 2.7 million people on Universal Credit assessed as having limited capability for work- and work-related activity, the tailored employment support aims to open up opportunities and remove barriers to work, rather than leave people stuck on benefits.

    Additional information

    • Based in every Jobcentre across England, Wales and Scotland, the advisers offer one-to-one support to people with Limited Capability for Work and Work-Related Activity (LCWRA) status – those who receive benefits without any requirement to look for work
    • The Act delivers the first sustained, above inflation uplift to UC’s standard allowance. The four rates of standard allowance will rise above the rate of inflation in each of the years from 2026/27 to 2029/30. From April 2026, monthly rates increase to:
      • £338.58 – Single under 25
      • £424.90 – Single 25+
      • £528.34 – Couple under 25
      • £666.97 – Couple 25+
    • The previous system means that people receiving the Universal Credit health top-up were paid more than twice as much as a single person on the standard rate who is looking for work, without any support to move into employment.
  • PRESS RELEASE : Over 12 million pensioners to receive £575 State Pension boost [April 2026]

    PRESS RELEASE : Over 12 million pensioners to receive £575 State Pension boost [April 2026]

    The press release issued by the Department for Work and Pensions on 4 April 2026.

    Over 12 million pensioners will see their State Pension rise by up to £575 from Monday (6 April), as both the basic and new State Pensions increase by 4.8% under the Triple Lock guarantee.

    • Millions of pensioners to receive up to an additional £575 in their State Pension this year.
    • The Government’s Triple Lock commitment means pensioners’ incomes will rise by up to £2,100 over this parliament.
    • This year’s uprating of State Pensions and working-age benefits will help millions of people across the UK in the face of cost-of-living pressures.

    The Government has already delivered above-inflation increases worth up to £395 in real terms over this Parliament. By its end, pensioners’ annual incomes are expected to rise by up to £2,100 – boosting financial security for millions.

    Pension Credit will also rise by 4.8% and be worth an average of £4,300 a year, unlocking further support including help with housing costs, council tax and free television licenses. Between 2026 and 2027, the government will provide a £6 billion boost to spending on State Pensions and pensioner benefits.

    The increases come into effect as the government takes wider action to ease pressure on household finances, including raising the National Living Wage, cutting an average of £150 from household energy bills, lifting the two child limit and freezing rail fares and prescription charges.

    Work and Pensions Secretary Pat McFadden said:

    I know global shocks, and the effects they have on our living costs, will be increasing anxiety for many households.

    This government will always protect our pensioners, and that’s why we are raising the full rate of new State Pension by up to £575 this coming year.

    Minister for Pensions Torsten Bell said:

    After a lifetime of work and contribution, people deserve a decent retirement. Raising the State Pensions faster than prices, ensuring it is a pension they can rely on, is how we make that a reality for millions.

    In addition to the range of action being taken by government to support families, most working-age benefits, and other benefits for people below State Pension age, will also increase by 3.8% helping millions of households.

    This comes alongside action the Government is taking to incentivise work and tackle ill-health, including boosting the standard rate of Universal Credit by 6.2% – the first ever permanent, above-inflation increase – and tackling perverse incentives by introducing a lower Universal Credit health element rate of £217.26 per month for new claimants, compared to the higher rate of £429.80.

    Additional information

    • The majority of the new rates will apply from Monday 6 April 2025. Please see here for a full list of rising benefits: Benefit and pension rates 2026 to 2027 – GOV.UK
    • The full rate of the new State Pension will increase by 4.8% in line with the increase in average earnings from £230.25 to £241.30 a week. The full basic State Pension will increase from £176.45 to £184.90 a week.
    • The Standard Minimum Guarantee in Pension Credit will increase by 4.8% in line with the increase in average earnings. From April, it will be £238.00 a week for a single pensioner and £363.25 a week for a couple.
    • Details of when the State Pension is paid can be found on GOV.UK: The new State Pension – GOV.UK
    • Most working-age benefits and other benefits for people below State Pension age will also increase by 3.8%; including Statutory Payments such as Statutory Sick Pay and Statutory Maternity Pay and the personal allowances of Income Support, Housing Benefit and Jobseeker’s Allowance.
    • Universal Credit will be up-rated by September CPI plus an additional 2.3%.
    • The increased expenditure as a result of uprating in 2026/27 is estimated to be £11 billion. This includes £6 billion more to be spent on State Pensions and pensioner benefits, £3 billion on working-age benefits, and £2 billion on disability and carers benefits.
  • PRESS RELEASE : Two-child limit scrapped as historic Bill to lift 450,000 children out of poverty becomes law [March 2026]

    PRESS RELEASE : Two-child limit scrapped as historic Bill to lift 450,000 children out of poverty becomes law [March 2026]

    The press release issued by the Department for Work and Pensions on 19 March 2026.

    Historic legislation to end the two-child limit has become law, putting 450,000 children on a pathway out of poverty in the final year of this Parliament.

    • Two child-limit – which pushed 100 children a day into hardship – to be scrapped as child poverty bill becomes law.
    • 450,000 children to be lifted out of poverty in the final year of this Parliament – the largest reduction in child poverty since records began.
    • Comes as part of Government’s wider plan to break down barriers to opportunity and give every child the best start in life.

    Historic legislation to end the two-child limit has become law, putting 450,000 children on a pathway out of poverty in the final year of this Parliament.

    Since its introduction in 2017, the two-child limit has been the biggest single driver of child poverty and today, 2.6 million children in the UK don’t have enough food at home, over 172,000 have no permanent home, and babies born in the poorest areas are twice as likely to die before their first birthday.

    The policy’s removal is the single most cost-effective measure available to the Government to drive down poverty rates. Up to 1.5 million children across Great Britain could be helped by the change, representing the most significant action to tackle child poverty since comparable records began.

    This will predominantly help working families — around sixty per cent of households affected by the two-child limit have a parent in work, and nearly half were not on Universal Credit when any of their children were born.

    Removing the two-child limit sits at the heart of the Child Poverty Strategy which brings together action across government to increase family incomes, cut the cost of essentials and strengthen local services. Alongside measures such as expanding free school meals, extending childcare support, and supporting parents in work, the strategy is set to lift 550,000 children out of poverty in the final year of this parliament.

    Secretary of State for Work and Pensions Pat McFadden, said:

    Today is an historic day, marking a turning point for 450,000 children across Britain.

    Scrapping the two-child limit is about more than family finances today, it’s about the Britain we’re building for tomorrow.

    Children growing up in poverty are far more likely to leave school without qualifications and end up not in work or education as young adults, and we’re determined to break that cycle once and for all and give every child the best start in life.

    Children in the poorest areas are four times more likely to have mental health problems, twice as likely to suffer from obesity and tooth decay, and disadvantaged pupils are twice as likely to be persistently absent from school — with hunger and unsuitable housing making it harder to come to school ready to learn.

    These early disadvantages have lasting consequences: children growing up in poverty are more likely to leave school without good GCSEs, less likely to find work, and go on to earn around 50% less by the age of 40 than their better-off peers, making early action both a moral imperative and sound economic policy.

    Minister for Employment Dame Diana Johnson, said:

    For too long, the two-child limit has held children back through no fault of their own.

    With the law now changed, hundreds of thousands of children will grow up with greater security and opportunity.

    We’re determined to break the link between a child’s background and their life chances and today brings us a step closer to that goal.

    The change removes the existing restriction in Universal Credit and Child Tax Credit that limited support to a family’s first two children. It takes effect from 6 April 2026, with families already claiming Universal Credit seeing the update applied automatically with no action needed.

    This comes as the government continues to take wider action to help families by driving down the cost of living with measures including increasing the National Living Wage, cutting an average £150 from household energy bills and freezing rail and prescription charges.