Tag: Department for Work and Pensions

The press release issued by the Department for Work and Pensions on 16 October 2023.

Vulnerable households have received more than 26 million awards from the DWP’s Household Support Fund since its launch in October 2021, according to new figures.

• Almost £800 million paid to households with children to support with cost of living
• Comes as Department for Work and Pensions launches Household Support Fund Awareness Week
• People in need encouraged to speak to their local council as this year’s £842 million fund continues to be used to deliver local support

Vulnerable households have received more than 26 million awards from the DWP’s Household Support Fund since its launch in October 2021, according to new figures.

The Government has invested over £2 billion into the fund over the last two years, with almost £800 million already paid to households with children to ease the cost of living between October 2021 and March 2023.

The money is available for councils in England to help those most in need by drawing from local knowledge and making direct contact with people in the community. Support is available to help with covering the costs of essentials like groceries, toiletries, warm clothes, and energy bills.

The figures come as DWP launches its Household Support Fund Awareness Week, to recognise the efforts of councils who distribute the Fund while encouraging vulnerable people across England to contact their councils to find out what support is available in their area.

More than three million households from today will also get told they qualify for the Warm Home Discount. The automatic one-off £150 payment will help eligible, low-income customers in England, Scotland and Wales pay their energy bills over the winter.

Secretary of State for Work and Pensions, Mel Stride MP, said:

“The best way we can protect family finances is by driving down inflation, but as it reduces, we recognise that cost of living pressures remain for some of the most vulnerable households.

“Our record £842 million cash injection to the Household Support Fund in England this year means that people most in need will be able to get extra support locally to cover the essentials.

“And alongside this unprecedented cost of living support, we’re taking the long-term decisions to reform the welfare system to help thousands more people benefit from the income boost provided by employment.”

Councils are using their allocation in many innovative ways to support local people. In Buckinghamshire, a warm box scheme will ensure people can stay warm in the colder weather, in Kent essential white goods and furniture is financed for those who can’t afford it, and in Devon, the District Council Hardship Fund is providing targeted support for the most in need.

This support comes on top of wider government support to help families with costs – including up to £900 in direct Cost of Living payments for those on means-tested benefits, £300 for pensioners and an extra £150 available for disabled people. Average energy prices have also fallen again this month – down by 55% since their peak.

Minister for Social Mobility, Youth and Progression, Mims Davies MP, said:

“Thanks to this Government’s massive extension to the Household Support Fund for every community throughout England, plus money for devolved Governments, we have seen some wonderfully innovative and locally focused uses of the additional money by local councils to ensure support is delivered to those families and those needing extra help in tough times.

“In my own area, West Sussex, over £9 million is helping locally to finance door-to-door food box deliveries and supermarket vouchers to the most vulnerable. Vital support will also be available to help with the cost of vehicle repairs, white goods and public transport fares to ensure people stay connected, and this is on top of previous allocations.

“This Household Support Fund Awareness Week, I do encourage anyone in the country who is struggling to cover costs to speak to their local council about what extra support is available in their area. I know local MPs will be keen to do the same, so their constituents know the additional help available on their doorstep.”

Today, the Government is also teaming up with Amazon Alexa to relaunch a public information campaign that helped British households save an estimated £120 million last winter.

Through a free partnership between the Government and Amazon, anyone asking Alexa – including the free mobile phone app – how to save money on their energy bill will receive advice on preparing their home for winter and use less energy in the long-term, which could save at least £100 a year.

The partnership is part of today’s relaunch of the Government’s It All Adds Up campaign, which last year saw 80% of people in the UK saying they had taken at least one of the money-saving actions. Alongside Alexa, advice is available online via the Help for Households website and through a public information campaign including partnerships, billboards and radio adverts later in the autumn.

People in England can find out how much their council was allocated on GOV.UK.

Further information

• Between October 2021 and March 2022, £421 million was injected into the fund, followed by two further investments of £421 million between April and September 2022 and October 2022 to March 2023. The current record investment of £842 million – bringing the total lifetime value of the fund to over £2 billion – is being used by councils to support the most vulnerable up until March 2024
• Over 26 million awards is calculated by aggregating the number of awards in the first, second and third iterations of the Household Support Fund between October 2021 and March 2023
• The Household Support Fund comes on top of extensive support for those in need with many receiving direct payments in 2023/24.
  • Millions of UK households are set to receive the second Cost of Living Payment of £300 from 31 October.
  • Over eight million pensioner households will also receive a further £300 payment later this year in addition to the Winter Fuel Payment.
• The Household Support Fund was first launched on 6 October 2021, and has been extended several times. This latest extension lasts until 31 March 2024, representing the fourth edition of the fund.
• Local Authorities have discretion on how they design and deliver their scheme depending on local need, within the parameters of the guidance set out by the Department for Work and Pensions.
• Funding distribution is targeted at the areas with the most vulnerable households.
• Devolved administrations have also been allocated funding in parallel as a result of the Barnett Formula to spend at their discretion, bringing the total amount of new funding for 2023/24 to almost £1 billion.
• To qualify for the Warm Home Discount, customers must have an account with one of 17 participating electricity suppliers and claim either (a) the Guarantee Credit portion of Pension Credit or, if they have high energy costs, (b) a different ‘qualifying benefit’ such as the Savings Credit portion of Pension Credit, Universal Credit or Housing Benefit.
• Customers can check if they qualify by searching for the ‘Warm Home Discount’ on GOV.UK and using our eligibility tracker.
• Those who qualify for the Warm Home Discount in England and Wales will receive a letter from October onward explaining the discount and instructions on what they need to do next, while customers in Scotland will need to apply directly with their energy supplier as soon as possible.

The press release issued by the Department for Work and Pensions on 2 October 2023.

Parents who refuse to pay child maintenance will face accelerated sanctions as Ministers announce the introduction of new powers to speed up strong enforcement action and other reforms to make the Child Maintenance Service (CMS) fairer.

• Government introducing long-term changes to make the system fairer for children and parents
• Enforcement process to be made almost four times faster and non-compliance will be detected and dealt with more quickly
• Application fee will be removed to ensure the service is accessible to all

Today (02/10/2023) the Government is announcing a Liability Orders consultation to speed up enforcement action, the removal of the application fee to the CMS and longer-term changes.

Work and Pensions Secretary Mel Stride said:

Parents need to take financial responsibility for their children. It’s completely unfair that it can take so long to get children support they are due. I am determined to go after those parents who are refusing to pay up when we know they can.

Child maintenance makes a real difference to the life chances of many thousands of children. The CMS can and does enforce compliance, but we want to enable it to act much faster.

DWP Minister Viscount Younger of Leckie said:

We always act fairly and carefully to protect children in separated families so they are supported by both their parents to have a good start in life.

These new powers will improve how the Child Maintenance Service supports children of separated parents, helping families receive child maintenance faster and preventing further arrears.

Liability Orders consultation

A consultation published today lays the groundwork for new regulations that will accelerate tough sanctions on non-paying parents – such as forcing the sale of property – by modernising the enforcement process.

Families will be paid faster as the Child Maintenance Service (CMS) will be able to use an administrative liability order to recover unpaid child maintenance instead of applying to the courts and waiting up to 22 weeks. It’s anticipated this change could reduce the wait for further action to around six to eight weeks.

Around 10,000 parents a year who wilfully refuse to pay maintenance are estimated to be affected by the new liability order regulations, to the benefit of thousands of children and parents for whom child maintenance is a key source of financial security.

Removal of the £20 application fee

There is currently a £20 application fee to apply to the CMS for assistance securing the financial support a parent is owed, although victims of domestic abuse and applicants aged under 19 are exempt.

The Government will remove this application fee for all parents so that children in the poorest families are not unfairly disadvantaged if their parent cannot afford the £20.

Changes to maintenance calculations

The Government will legislate to ensure unearned income, such as savings, investment, dividend and property income, is taken into account automatically when the maintenance calculation is made. This will make it more difficult for the small number of parents who avoid paying the correct amount.

Improvements to collection of payments

The Government has also committed to consulting on the way the CMS collects and makes payments so it can act on non-compliance more quickly.  Changes will mean the CMS can use its strong enforcement powers more quickly to go after those who wilfully avoid their financial obligations to their children.

This follows the Child Support (Enforcement) Act 2023 and The Child Support Collection (Domestic Abuse) Act 2023 receiving royal assent in the summer. These Acts provide the basis for the CMS to act swiftly, progressing enforcement action faster with the aim of getting money to children more quickly, establishing compliance, preventing further arrears and bolstering domestic abuse protections for parents.

The CMS helps around 930,000 children get the financial support they are entitled to and between June 2022-2023 arranged a record £1.2 billion on their behalf. Overall, child maintenance payments help to keep 160,000 children out of poverty each year.

The liability order consultation is published here www.gov.uk/government/consultations/child-maintenance-accelerating-enforcement and closes on 24 November.

The press release issued by the Department for Work and Pensions on 25 September 2023.

The expansion of the Youth Offer to inactive claimants, for the first time, will begin immediately to help young people into work and improve wellbeing.

• Department for Work and Pensions’ Youth Offer to expand, providing tens of thousands more young people support to find work.
• More young people claiming Universal Credit will have access to jobs support – including Work Coaches and interview preparation assistance.

Tens of thousands of 16-24-year-olds will be given access to additional support in finding and securing work following the expansion of the Department for Work and Pensions’ Youth Offer, it has been announced today [Monday 25 September].

Despite youth unemployment being down by over 43% since 2010, young people are more likely to be economically inactive than the rest of the population. Today’s announcement expands the DWP’s Youth Offer to economically inactive claimants, who were previously ineligible, as part of welfare reforms the Government is introducing to reduce economic inactivity and help more people back into work.

The Youth Offer is an integral part of support offered to young Universal Credit claimants which until today was only available to young people deemed closest to work. The expansion will see this support offered to thousands of economically inactive claimants – those who are seen as further away from and who face more challenges finding long term work.

This will give over 30,000 of 16-24-year-olds the option to access three types of support through the Youth Offer: additional time with a Work Coach early in their claim; access to Youth Hubs; and Youth Employability Coaches.

Evidence shows that work is an effective way to improve wellbeing. This ranges from reducing the risk of depression to improving physical health, as well as helping to build self-confidence and providing a place where people can socialise and form friendships.

Secretary of State for Work and Pensions, Mel Stride MP said:

My department is introducing the next generation of welfare reforms to reduce economic inactivity and help thousands more people into work.

Expanding the Youth Offer will not only help to grow the economy, it will change lives – providing more young people with the pay, purpose and mental health advantages that we know work brings.

The Youth Offer consists of three key elements, the cornerstone of which is offering claimants additional Work Coach time early in their claim and help in referring young people to the appropriate support.

Work coaches give claimants support, guidance, and advice to get into work. This could range from identifying transferable skills which fit the local job market, updating CVs and interview coaching.

Alongside this, Youth Hubs across Great Britain give advice and guidance to young people seeking work, and some offer this help on a drop-in basis. They are located within other organisations to provide access to more services in one location.

Young claimants with more serious and complex barriers to work, such as problems with addiction or finding somewhere permanent to live also have access to Youth Employability Coaches. These coaches can provide tailored and intensive support to young claimants before, during and after they have entered work, which alongside the other aspects of the Youth Offer, help to ensure that everyone can enjoy the physical and mental benefits of good employment, regardless of their situation.

Minister for Social Mobility, Youth and Progression, Mims Davies MP said:

The best way to get on in life, improve wellbeing and make friends is through work, and the expanded DWP Youth Offer gives our young people the key tools and support they need to find fulfilling and meaningful work.

We are delivering for young people across the country, and I’m delighted that tens of thousands of them will be able to access life-changing support to progress in employment through the expanded DWP Youth Offer.

Barry Fletcher, CEO of Youth Futures Foundation said:

We welcome the extension of the Youth Offer, which will provide support to more young people in their search for a job.

Evidence shows that some groups of young people, including young parents and carers, face additional challenges in their search for work and we are pleased to see the start of the expansion today, enabling more young people to benefit from the accessibility of Youth Hubs and the guidance specialist coaches can provide.

Today’s expansion is part of the £3.5 billion package of measures announced in the 2023 Spring Statement from the Chancellor to get more people into work. This includes £485 million of investment in support for unemployed people who are on Universal Credit, as well as people working less than full time hours.

For more information about how you can apply for Universal Credit and access the Youth Offer see here.

The press release issued by the Department for Work and Pensions on 20 September 2023.

Millions of households across the UK will receive £300 directly from the Department for Work and Pensions (DWP) between 31 October and 19 November.

• Millions of households to receive £300 from DWP between 31 October and 19 November 2023
• This is the second of 3 payments totalling up to £900 supporting eligible people on means-tested benefits with the cost of living
• Payments make up part of government’s record financial support for the most vulnerable worth an average of £3,300 per household
• Tax credits-only customers who do not qualify for a payment from DWP will receive £300 from HMRC between 10 and 19 November 2023

Millions of households across the UK will receive £300 directly from the Department for Work and Pensions (DWP) between 31 October and 19 November.

This is the second of 3 payments totalling up to £900 for those eligible and on means-tested benefits, such as Universal Credit, Pension Credit, or tax credits, in 2023 to 2024, and eligible pensioner households will also receive a further £300 payment later this year as an addition to the Winter Fuel Payment.

The £300 Cost of Living Payment will be sent out automatically and directly to recipients, meaning those eligible do not need to apply, contact the Government, or take any action to receive it. This includes tax credits-only customers who will receive the payment from HM Revenue and Customs (HMRC) between 10 and 19 November 2023.

The payment reference for bank accounts will be the recipient’s National Insurance Number followed by DWP COL or HMRC COLS.

Mel Stride, Secretary of State for Work and Pensions, said:

The best way we can boost bank balances is by bearing down on inflation, but as we get there, we are ensuring the most vulnerable households are cushioned from high prices with a further Cost of Living payment.

Alongside this, thousands of Work Coaches across the country are helping find work, increase their hours and boost their skills. I encourage anyone who wants to progress their career and strengthen their finances to visit their local Jobcentre to find out what help is available.

Jeremy Hunt, Chancellor of the Exchequer, added:

Halving inflation and getting price rises under control is the best way to support households struggling with their bills. But it is also right that we are helping the most vulnerable in our society, and this latest Cost of Living payment is part of a package of support worth £3,300 per household on average over this year and last to help those struggling the most.

The full list of benefit recipients that qualify for the second Cost of Living Payment are those who are eligible and receive at least one of the following:

• Universal Credit
• Income-based Jobseekers Allowance
• Income-related Employment and Support Allowance
• Income Support
• Working Tax Credit
• Child Tax Credit
• Pension Credit

To be eligible for the Cost of Living Payment from DWP, you need to have been entitled to a payment for a qualifying benefit between 18 August 2023 and 17 September 2023, or payment for an assessment period, ending between these dates. From HMRC, you need to have received a payment of tax credits for any day in the period between 18 August 2023 and 17 September 2023.

The DWP continues to encourage low-income pensioners not already getting Pension Credit to check their eligibility, as – thanks to Pension Credit backdating rules – they could still qualify for both the second Cost of Living Payment as well as the third payment due in Spring 2024. Over eight million pensioner households will also receive a further £300 payment later this year in addition to the Winter Fuel Payment.

Additional information

• These payments are tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
• The 3 means-tested Cost of Living Payments for 2023 to 2024, worth up to £900 in total, are being delivered in three slightly different amounts, each relating to a specific qualifying period before the payment is made. This allows DWP and HMRC to ensure support is targeted at those who need it and are eligible; to determine if a payee received the correct payments and identify the payment value; and to reduce the risk of fraud.
• To get the £300 payment someone must (subject to a very limited exception) have been entitled to a payment of a qualifying benefit as follows:
  • for Universal Credit, payment for an assessment period ending between 18 August 2023 to 17 September 2023
  • for all other DWP means-tested benefits, payment in respect of any day between 18 August 2023 to 17 September 2023
  • for tax credits-only customers, a payment of tax credits in respect of any day in the period 18 August 2023 to 17 September 2023, or later be paid in respect of any day in this period
  • those on DWP benefits other than Universal Credit who are entitled to less than 10 pence and meet all other qualifying criteria but who do not receive a benefit payment, will still receive a Cost of Living Payment
• For joint tax credits claimants, where one claimant receives Working Tax Credit and the other claimant receives Child Tax Credit, payments will be made into the same bank account as the Child Tax Credit.
• Payment windows and eligibility criteria for the third Cost of Living Payment will be announced in due course.
• For more information on these payments, please visit Cost of Living Payments 2023 to 2024
• For those requiring an extra layer of cost of living support, people are encouraged to visit their council website to find out what extra help is available at a local level. Councils in England are continuing to offer various forms of support to cover the cost of essentials thanks to DWP’s £842 million extension to the Household Support Fund this year
• DWP will pay over seven million households and HMRC will follow with around 830,000 more, bringing the total number of households eligible for the Cost of Living Payment to around eight million
• Receiving a previous Cost of Living Payment does not mean you will be entitled to a future one. Customers will need to meet the separate eligibility criteria for each payment
• The number of payments made by HMRC has reduced over time, when compared with the 2022 to 2023 HMRC payments, as people move from tax credits to Universal Credit and may therefore receive their latest payment from DWP if they are eligible
• Beware of scams targeting Cost of Living Payments. If someone contacts you about this payment saying they are from DWP or HMRC, it might be a scam. Check advice on spotting scams by visiting GOV.UK and searching ‘phishing and scams’

The press release issued by the Department for Work and Pensions on 19 September 2023.

A Private Members’ Bill to help millions save more into their pension and start saving sooner has cleared Parliament and been granted Royal Assent.

• A Private Members’ Bill to help millions save more into their pension and start saving sooner has cleared Parliament and been granted Royal Assent.
• The Bill introduces powers to reduce the age for being automatically enrolled and enable pension saving from the first pound earned.
• Since its introduction in 2012, Automatic Enrolment has transformed UK pension saving, with nearly 11 million people enrolled.

Millions of people, including low earners and younger workers, will be helped to save more into their pension and look after their financial futures as a Private Members’ Bill completed its passage through Parliament and received Royal Assent.

The Bill, introduced in the House of Commons by Jonathan Gullis MP and taken through the House of Lords by Baroness Altmann, creates powers to scrap the lower earnings limit and reduce the age for Automatic Enrolment, the landmark pensions policy which sees eligible employees made members of their workplace pension scheme without needing to ask.

The changes to Automatic Enrolment, combined with the Mansion House Reforms announced by the Chancellor in July, could see the average earner’s pension increase by nearly 50% if saving across their entire career, while a minimum wage earner could see their pension pot increase by over 85%.

Benefitting savers and society – the reforms will unlock investment into pioneering UK businesses, grow the economy, and help the record number of people saving into a pension to achieve the retirement they want.

Secretary of State for Work and Pensions Mel Stride said:

Thanks to Automatic Enrolment, we are empowering a record number of British workers to invest in their financial futures – with an additional £33 billion saved in 2021 compared to 2012.

This Bill will mean millions across the country can save more and save earlier – boosting security in older age and helping people achieve the retirements they’ve worked so hard for.

Jonathan Gullis MP said:

I am delighted that the Pensions (Extension of Automatic Enrolment) Bill has received Royal Assent. Auto-enrolment is a significant step forward and will dramatically improve financial resilience in retirement for young people, women and lower earners.

Nearly 25% of people in Stoke-on-Trent North, Kidsgrove and Talke are not yet auto-enrolled on a pension plan, and this piece of legislation will ensure part-time, women, apprentices and young people have financial stability in the long-term.

Before the introduction of Automatic Enrolment in 2012, just 55% of eligible employees saved into a workplace pension. By 2021 this had risen to 88%, with an additional £33 billion saved in real terms in 2021 compared to 2012.

Automatic Enrolment has particularly benefitted women, young people and lower earners – once poorly served or excluded from workplace pensions. The proportion of eligible women in a workplace pension has increased from 59% in 2012 to 89% in 2021, while the proportion of eligible 22 to 29-year-olds has more than doubled – from 35% in 2012 to 86% in 2021.

Minister for Pensions Laura Trott said:

Automatic enrolment has been a phenomenal success, and we are determined to go further. It’s great news that the Private Members’ Bill has successfully passed through Parliament and received Royal Assent.

This will mean younger workers and those in lower paid employment will be able to fully participate in Automatic Enrolment. For the first time, every eligible worker will benefit from an employer contribution from the first pound earned – which will make a huge difference to their eventual pension.

James Goodman, Tesco UK People Director said:

We know it’s important that colleagues save for their retirement and Tesco Stores already offers the option of a retirement savings plan for all our colleagues from the age of 16, regardless of how much they earn. We match their contributions up to 7.5% of their salary and the vast majority of colleagues stay in our scheme once they have joined.

We welcome the government’s intention to reduce the age that colleagues will be automatically enrolled into pension schemes and believe that this will help younger people to get into the savings habit.

Pensions saving rates have increased in all corners of the country. The largest increase in private sector participation rates has been in the West Midlands, rising from 39% in 2012 to 87% in 2021.

Lowering the age at which eligible workers must be automatically enrolled into a pension scheme by their employers from 22 to 18 will make saving the norm for young adults and enable them to begin to save from the start of their working lives.

The Department for Work and Pensions (DWP) will launch a consultation on implementing the new measures.

Further Information

• The introduction of Automatic Enrolment in 2012 turned the tide on the number of people saving for their retirement, with over 10.9 million people being automatically enrolled since 2012.
• The reforms being brought forward by the Government – including changes to Automatic Enrolment – could see the average earner’s pension increase by nearly 50% if saving across their entire career and a minimum wage earner could see their pension pot increase by over 85% if saving across their entire career: Chancellor’s Mansion House Reforms to boost typical pension by over £1,000 a year – GOV.UK (www.gov.uk)
• The Bill includes a statutory requirement to consult on the implementation approach and timing, along with reporting on the outcomes to Parliament. This will help ensure the strong consensus that underpins the success of Automatic Enrolment is maintained.

The press release issued by the Department for Work and Pensions on 11 September 2023.

Jobseekers are now able to access a new Government-backed employment programme designed to fill vacancies in the hospitality sector.

• New employment scheme launched in Liverpool to upskill and match jobseekers with hospitality roles
• Jobseekers offered fast-tracked training and work experience to earn an industry recognised ‘Hospitality Skills Passport’
• Pilot scheme set to be rolled out across other cities in the UK to address labour shortages with over 120,000 vacancies currently in the sector.

The pilot scheme, set to launch in Liverpool before being rolled out to other major cities over the coming months, will see benefit claimants gain an industry recognised accreditation, endorsed by industry leaders including Greene King, Marriot Hotels and ACC Liverpool.

The Hospitality Sector-based Work Academy Programme (SWAP) combines a unique programme of learning launched by the Department for Work and Pensions (DWP) in collaboration with UKHospitality.

The scheme is designed to provide tailored training for jobseekers from industry experts, allowing them to move into a career in hospitality, while boosting workforce participation in the sector and helping to grow the economy.

Benefit claimants will complete qualifications and accredited training in areas such as health and safety, food safety, licensing, and conflict resolution to add to their Hospitality Skills Passport – a digital pass which can be added to CVs to show employers jobseekers have the skillset required by the sector. They will also receive training in confidence and assertiveness to build personal skills and strength.

The programme will culminate with a guaranteed job interview for all participants, helping jobseekers with a valuable progression opportunity to apply their new skills and a pathway to apprenticeships.

Minister for Employment, Guy Opperman MP said:

This innovative collaboration between DWP and UKHospitality is a national first and underscores our commitment to work with industry to address challenges, fill vacancies and grow the economy.

The standardised and industry backed Hospitality Skills Passport will help bridge the gap for those looking for work in the hospitality sector, helping jobseekers to boost their skills and kickstart their careers.

Through practical, hands-on learning, jobseekers will reinforce their newfound skills with an opportunity to contribute to the industry from day one by completing work experience placements with some of the industry’s largest employers.

Following the pilot launch in Liverpool plans are in place to expand to other cities across England and Wales including London, Manchester and Birmingham from October.

Kate Nicholls, Chief Executive, UKHospitality said:

Hospitality is a fantastic sector that offers a diverse variety of career opportunities, which is why it’s so well suited to helping people back into work. We’re delighted to be partnering with the Government to help run this exciting programme, which we hope can be a real positive for both jobseekers and businesses.

Chris Gamm, CEO of Springboard, said:

We’re delighted to be involved with the trial, giving unemployed people the skills to launch their hospitality careers, helping them find exciting jobs with engaged local businesses and showcasing what fantastic development opportunities our industry offers through training and apprenticeships.

For more information and details of how to enrol on the Hospitality SWAP, Universal Credit claimants should speak with their Work Coach.

The press release issued by the Department for Work and Pensions on 5 September 2023.

Disabled people and those with health conditions, who are currently being held back from improving their lives through work, will be better supported to realise their potential under Government plans unveiled today.

• As part of Government’s mission to support more people into work, the Department for Work and Pensions (DWP) has today launched a consultation on changes to the Work Capability Assessment, following the landmark Health and Disability White Paper published earlier this year
• Changes represent the next step in welfare reform, reflecting the rise of flexible and home working and better employer support for disabled people and people with health conditions
• Changes also reflect that one in five of those with no work preparation requirements would like to work at some point in the future, with the right support

A consultation, launched today (Tuesday 5 September), will consider changes to the Work Capability Assessment, with proposals to ensure it is delivering the right outcomes for supporting those most in need.

The consultation will look at updating the Work Capability Assessment’s categories so they better reflect the modern world of work and the opportunities more readily available to disabled people.

Earlier this year, Government confirmed investment worth £2 billion to support disabled people and those with long-term health conditions into work, while delivering on the Prime Minister’s priority to grow the economy. Today’s consultation will go further to facilitate appropriate work opportunities for people, by reviewing a range of categories in the assessment – representing its first significant update since 2011.

These categories are designed to determine what activity people can do and how that affects their ability to work. This then informs assessors’ decisions on what additional financial support people can receive through their benefits, and if claimants need to do anything to prepare themselves for work.

The consultation’s proposals include updating the categories associated with mobility and social interaction, reflecting improved employer support in recent years for flexible and home working – and minimising the risk of these issues causing problems for workers.

Those who were found capable of work preparation activity in light of the proposed changes would receive tailored support, safely helping them to move closer to work and ensuring a significant proportion of people are not automatically excluded from the support available.

Prime Minister Rishi Sunak MP said:

Work transforms lives – providing not just greater financial security, but also providing purpose that has the power to benefit individuals, their families, and their communities.

That’s why we’re doing everything we can to help more people thrive in work – by reflecting the complexity of people’s health needs, helping them take advantage of modern working environments, and connecting them to the best support available.

The steps we’re taking today will ensure no one is held back from reaching their full potential through work, which is key to ensuring our economy is growing and fit for the future.

Secretary of State for Work and Pensions Mel Stride MP said:

Health assessments haven’t been reviewed in more than a decade and don’t reflect the realities of the world of work today. That’s why we’re consulting on reforms which will mean that many of those currently excluded from the labour market can realise their ambition of working.

Anyone helped towards work through these proposals would receive appropriate support tailored to their individual circumstances, allowing them to safely access the life-changing impacts that work can provide.

Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce, said:

Across the country, businesses are crying out for workers to fill job vacancies.  Being employed has many positive benefits for people, so it makes sense to help everyone who wants to work to find a good job that meets their needs and personal circumstances.

Employers understand this and want to be as flexible as possible to assist. To be effective, it’s crucial that, both sides, have the right support in place for as long as needed to help people find work, stay in work and have fulfilling careers.

The Government is spending £25.9 billion on incapacity benefits this year, a 62% real-terms rise on 2013/14 (£15.9 billion), with current projections predicting a further 13% real-terms rise to £29.3 billion – with an extra 500,000 people coming onto these benefits – by 2027/28 if nothing changes.

This is fuelled in large part by the proportion of new claimants for incapacity benefits assessed as the highest possible award (no work-related requirements) rising from 21% in 2011 to 65% in 2022.

The Work Capability Assessment is being reviewed to ensure it reflects the latest opportunities for employment support, so that growing numbers of people are not missing out on the help available, particularly given the known health benefits from working. This is especially important when research shows that one in five of them would like to work at some point in the future.

Representing the latest step to support people with health conditions into work, this follows last year’s milestone of getting over one million more disabled people into employment compared to five years ago.

Minister for Disabled People, Health and Work Tom Pursglove MP added:

I am incredibly passionate about supporting disabled people to have the most fulfilling life possible, including through work, and these proposals would enable us to provide help to people who could benefit greatly from it.

We will continue to look at ways to safely support more disabled people into work, unlocking all the positive wellbeing benefits that brings, whilst meeting the Prime Minister’s pledge to grow the economy.

These proposed changes, due to come into force in 2025, come as part of the Government’s wider multi-billion pound plan to tackle inactivity and boost economic growth.

One of the measures the Government is also consulting on is the substantial risk category, where claimants who would otherwise be capable of work-related activity are excluded from work preparation requirements, on the basis that this could put them at risk to themselves or others.

The consultation will consider whether the application of this category is being applied too broadly, in turn excluding a significant number of vulnerable people from support that would prepare them to move closer to work, financial independence and a more fulfilling life.

This cohort could also benefit from the Government’s £2 billion investment to help those with long-term illnesses and disabilities get into work, and also from funding for work coaches to help people who need further support.

This includes the new Universal Support programme, which will help disabled people and people with health conditions by matching them with vacancies and providing support and training to help them start and stay in that role.

The Individual Placement and Support in Primary Care programme is part of this scheme, with £58 million being invested to help more than 25,000 people in this group start and stay in work.

The DWP is also currently running a consultation on occupational health, which is looking at ways to encourage employers to expand their occupational health offer.

And the Spring 2023 Budget provided around £250 million of funding to modernise and digitise mental health services in England, providing wellness and clinical apps, piloting cutting-edge digital therapies and digitising the NHS Talking Therapies programme.

The press release issued by the Department for Work and Pensions on 24 July 2023.

From today (24 July 2023), parents of children aged 1 and 2 on Universal Credit will start to benefit from meeting more frequently with work coaches to help them prepare for work.

• From today, parents of children aged one and two will start to have more face-to-face employment support
• Extra support builds on efforts to reduce inactivity with a more generous childcare offer through Universal Credit
• Statistics show that full-time work substantially reduces the chances of poverty and since 2010, the Government has helped 400,000 children out of absolute poverty

The appointments include exploring steps to improve their skills, identifying support needs, learning about childcare provision, and boosting their confidence.

The meetings increase the opportunity to engage and encourage claimants to think about a job in the future, consider the steps they can take and secure jobs when their child is older.

Parents with a one-year-old will start to have a work-focused meeting with their work coach every three months instead of the current every six months. Parents with a two-year-old meanwhile will start meeting with their work coach every month instead of the current every three months.

Claimants will be told of the change at their next scheduled appointment with their work coach.

Minister for Employment, Guy Opperman MP, said:

From today, thousands of parents of young children will start to meet their dedicated work coaches on a more regular basis.

This extra support will help those on low incomes to think about and prepare for work while their child is young.

We’ve already taken steps to support families by increasing the amount of help through Universal Credit and providing upfront childcare costs.

Today’s change is the latest example of how this Government is putting families first.

Helping parents return to work is part of the Government’s continued efforts to drive down economic inactivity and get Britain working as we grow our economy.

Today’s announcement builds on support announced in June to boost childcare payments through Universal Credit by 47% and ensures working parents can get upfront childcare costs paid for.

Parents can now receive up to 85% of childcare costs back before their next month’s bills are due – meaning they should have money to pay one month in advance going forward.

This is part of the largest expansion in free childcare in history by the Government, worth £6,500 a year for an average working family using 30 hours a week.

One person to already benefit from the boosted childcare offer is mum of three, Victoria from the South West. Thanks to the increased childcare support via Universal Credit, she was recently able to accept her dream job as a teaching assistant in a special needs school.

Victoria – who previously worked part-time – was worried that she wouldn’t be able to claim more hours of free childcare, but after contacting her local Jobcentre, she learnt of Universal Credit’s updated assistance.

She said: “I love my new job and being able to claim 85 per cent of the childcare costs back will make such a difference to my family.”

In the Autumn, the Department for Work and Pensions will also increase the maximum work-related activity and work availability expected of parents of children aged three to twelve to up to 30 hours. This will be tailored to a parent’s individual circumstances, including the availability of local childcare.

Today’s change and the change planned for the Autumn are expected to support over 700,000 parents who have the main responsibility of looking after their children.

Further information

• In March the Chancellor announced that we are expanding work search requirements for parents of young children and the changes are expected to encourage over 700,000 lead carers of children on Universal Credit to look for work or increase their hours and will receive additional work coach support to do so. The first of the two measures will come into force from today.
• The change in frequency of appointments for those who look after children aged one and two impacts Universal Credit claimants who have the main caring responsibilities for these children. This could be a parent, grandparent, kinship carer, adoptive parent, or other guardian dependent on their individual family circumstances. As such, DWP refers to them as lead carers to reflect the full range of childcare arrangements. Where there is a lone parent, they will always be listed as the lead carer. For couples on Universal Credit, individuals can identify who is the lead carer.
• The second measure which comes into force in later in the year will see an increase in the work-related activity hours expected of parents of children aged three to twelve. This means any lead carer who is suitable for having their work-related activity hours increased can be expected to increase their work search and preparation activity and be required to be available for work up to 30 hours. The requirements will be tailored to claimants’ circumstances.
• Helping parents return to work is part of the Government’s continued efforts to drive down economic inactivity and get Britain working with £3.5 billion already invested to-date.
• In addition to the DWP’s childcare support via Universal Credit, the hourly rates paid to providers to deliver the Government’s free childcare offer for two-year olds will increase by 30% in September, up to an average rate of £8.
• And from April 2024, there will be 15 free hours childcare available for working main carers of two-year-olds, followed by 15 free hours from nine months in September 2024, and finally 30 free hours from nine months to the start of school from September 2025.

The press release issued by the Department for Work and Pensions on 20 July 2023.

Parents who fail to pay child maintenance will face tougher sanctions faster after new laws were passed today (20/07/23) to speed up stronger enforcement action.

Thanks to a Private Members’ Bill sponsored by Siobhan Baillie MP and Baroness Redfern becoming law, the Department for Work and Pensions (DWP) will be able to impose tougher sanctions on non-paying parents – such as forcing the sale of property and taking away passports and driving licences – through a quick and simple administrative process.

The Child Support (Enforcement) Act will see families paid faster as it gives DWP the power to use a liability order to reclaim unpaid child maintenance instead of applying to court and waiting up to 20 weeks.

This time and money-saving change will allow the Child Maintenance Service (CMS) to act swiftly, paying families faster and preventing further arrears.

DWP Minister Viscount Younger of Leckie said:

This is another step in our work to strengthen our powers and improve how the Child Maintenance Service supports children of separated parents.

We want parents to collaborate where at all possible, but if the financial responsibilities to children are not being met, the CMS will help those in need.

This new law will help speed up the enforcement process to get money flowing which ultimately will be for the benefit of children.

Before escalating to this tougher enforcement action, the CMS has other options including collecting earnings direct from parents’ employers or different bank accounts.

The CMS helps more than 900,000 children get the financial support they are entitled to and between March 2022-2023 collected or arranged a record £1.2 billion on their behalf. Child maintenance payments help to keep 160,000 children out of poverty each year.

The Private Members’ Bill received cross-party support, with both Houses recognising its importance in helping children have the best start in life.

The press release issued by the Department for Work and Pensions on 20 July 2023.

Plans to boost UK employment through widening access to high-quality health support in the workplace are being unveiled today by the Government.

• Ministers are urging employers to do more to keep workers healthy and reduce the numbers out of work due to long-term sickness
• Consultation launching on measures to increase employer uptake and widen reach of Occupational Health
• Plans include a new standard for businesses to adopt to boost health in the workplace
• Better workplace support expected to grow the economy and tackle inactivity by improving productivity and preventing health-related job losses

The Department for Work and Pensions (DWP) and Department of Health and Social Care (DHSC) are today [Thursday 20 July] publishing a consultation on ways to increase uptake of Occupational Health provision.

Employers will be encouraged to take up Occupational Health offers to help employees access vital mental and physical health support at work, particularly for those working in small and medium-sized enterprises.

These proposals include introducing a national “health at work” standard for all employers to provide a baseline for quality Occupational Health provision, which includes guidance, an option to pursue accreditation, and additional government support services – for example outreach workers to support SMEs to meet the standards.

It also seeks views on developing longer-term workforce capacity to help meet any increased demand for Occupational Health services in the future by:

• Encouraging NHS leavers or those who are considering a career change to pivot towards the Occupational Health specialism
• Developing a longer-term, multi-disciplinary workforce to provide Occupational Health services

The consultation will also ask employers to share their examples of good Occupational Health provision to help inform other businesses and encourage them to provide the same.

Secretary of State for Work and Pensions, Mel Stride MP, said:

This Government is investing billions in getting people back to work and growing the economy. We need employers to keep playing their part too.

Healthy businesses need healthy workers – employers will benefit from higher retention rates, more productive workers, and fewer work days lost due to sickness. Improving health in the workplace is a vital piece of the puzzle in our drive to increase employment.

Minister for Disabled People, Health and Work, Tom Pursglove MP, said:

Long-term sickness is a huge contributor to economic inactivity, and while of course some people are unable to work, better accommodation of health problems in the workplace will open up a wider workforce to employers and support employees with a range of needs.

Many small and medium-sized business owners already invest significantly in the health and wellbeing of their workforce, but this will be a gamechanger in identifying and removing obstacles to people with health conditions starting, staying and succeeding in work.

To also help keep people in work, the government will today also publish a separate consultation looking at options to increase investment in Occupational Health services by UK wide employers through the tax system. This follows its announcement at the Spring Budget where it committed to consult on incentivising greater provision of Occupational Health through the tax system.

The government wants to explore the case for providing additional tax relief to businesses on their Occupational Health costs. In particular, the consultation asks respondents for their experiences of providing Occupational Health, including what services they provide and any barriers they experience. It also asks for evidence on the effectiveness of existing tax incentives and asks respondents for their views on the merits of expanding the existing Benefit-in-Kind relief, and thoughts on any alternative tax incentives.

Tax reliefs on Benefits-in-Kind are already available for certain occupational health services. This consultation will test if expanding these reliefs or introducing new ones could be an effective lever to achieve greater Occupational Health provision, as well as thoughts on any alternative tax incentives. The consultation will determine if expanding tax incentives is an appropriate measure to boost Occupational Health provision.

This is all a key component of the measures in the 2023 Spring Budget to grow labour market participation, reduce economic inactivity and get more people into work. The Department is helping millions to return to work with inactivity falling by 360,000 since the peak of the pandemic.

Long-term sickness is currently the main reason people of working-age give for being economically inactive, but just under half of workers have access to Occupational Health services. Over 90% of large employers offer Occupational Health support, compared to under a fifth of small ones.

Occupational Health provision can help employers provide work-based support to manage their employees’ health conditions, leading to better retention and return-to-work prospects, and improving business productivity, which can be adversely impacted by sickness absence.

Secretary of State for Health and Social Care, Steve Barclay said:

High quality Occupational Health support in more workplaces would not only help to reduce economic inactivity, but it can lead to a healthier, happier workforce.

The individual health benefits are clear and by focusing on preventative measures, we can reduce the burden on the NHS and help to bring waiting lists down, which is one of the government’s top priorities.

Angela Rowntree, Occupational Health Physician for the John Lewis Partnership, said:

At John Lewis Partnership we are moving away from reactively managing sickness to proactively supporting our Partners’ health and wellbeing at work.

Our founder, Spedan Lewis understood this when he launched an in-house health service for all Partners in 1929 – nearly 20 years before the NHS was established – and we’re proud to be part of his legacy today, providing advice and support to help our Partners achieve their potential in the workplace.

We welcome this new focus on ensuring other businesses and their employees are able to access better workplace health.

The Occupational Health consultation will run until 23:59 on Thursday 12 October 2023.