Tag: Department for Work and Pensions

The press release issued by the Department for Work and Pensions on 18 June 2025.

Additional protections for millions of vulnerable people on benefits are set to be written into law, under new measures being introduced to Parliament today.

The Universal Credit and Personal Independence Payment Bill will provide 13-weeks of additional financial security to existing claimants affected by changes to the PIP daily living component, including those who their lose eligibility to Carers Allowance and the carer’s element of Universal Credit.

The 13-week additional protection will give people who will be affected by the changes time to adapt, access new, tailored employment support, and plan for their future once they are reassessed and their entitlement ends.

This transitional cover is one of the most generous ever and more than three times the length of protection provided for the transition from DLA to PIP.

This government inherited a broken social security system, with costs spiralling at an unsustainable rate and millions of people trapped out of work. The case for change is stark:

• Since the pandemic, the number of PIP awards has more than doubled – up from 13,000 a month to 34,000 a month. That is around 1,000 people signing on to PIP every day – that is roughly the size of Leicester signing up every year.
• The surge has been largely by driven by a substantial increase in the number of people who report anxiety and depression as their main condition. Before the pandemic (in 2019), 2,500 people a month were awarded PIP for these conditions, this has more than tripled to 8,200 a month in 2023.
• Almost 1 million young people – 1 in 8 – are not in education, employment or training.
• 1-in-10 people of working age are now claiming a sickness or disability benefit.
• Without reform, the number of working age people on disability benefits is set to more than double this decade to 4.3 million.
• Spending on working age disability and incapacity benefits is up £20 billion since the pandemic and is set to increase by almost that much again by the end of this Parliament, to a staggering £70 billion a year.

That’s why, through the introduction of this Bill; the government is fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.

Work and Pensions Secretary Liz Kendall said:

Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it.

This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity.

This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.

As part of our commitment to protect the most vulnerable and severely disabled, peace of mind will also be given to 200,000 individuals in the Severe Conditions Criteria group – individuals with the most severe and permanently disabling conditions who will never be able to work – as they will not be called for reassessed for Universal Credit (UC) under new legislation.

Those protected from reassessment will also be paid the higher rate of UC health top up of £97 per week, so they can live with dignity and security, knowing the reforms to the welfare system mean it will always be there to support them.

In the coming weeks, legislation will also be drafted for a Right to Try Guarantee. This will ensure that trying work will not, in and of itself, lead to a reassessment or award review, breaking down barriers to employment.

Reforms being delivered by the legislation introduced today go hand in hand with a £1 billion employment support package to support more people with health conditions back into work, unlocking opportunity and growing the economy as part of the Plan for Change.

Funding will offer personalised employment and health support for individuals on out of work benefits, with 500,000 people having already been supported into employment. This is a quadrupling the level of annual spend on supporting sick and disabled people into work, from the £275m in 2024/25 we inherited, to over £1bn in 2029/30.

Nearly 4 million households will also receive an income boost with the main rate of Universal Credit set to increase above inflation every year for the next four years – estimated to be worth £725 by 2029/30 for a single household 25 or over. This is around £250 higher than an inflation only increases.

The Bill will also rebalance Universal Credit rates by reducing the health element for new UC claims to £50 from April 2026, fixing a system which encourages sickness by paying health element recipients more than double the standard amount.

To open up opportunities to work, everyone affected by changes to the UC health element from April 2026 will be offered support from a dedicated Pathways to Work adviser, with 1,000 advisers in place across Britain.

All of those affected by reforms will be actively contacted and given the offer of a conversation about their support needs, goals and aspirations; offered one-to-one follow-on support, and given help to access additional work, health and skills support that can meet their needs.

The reforms build on the Get Britain Working White Paper that will overhaul Jobcentres, empower Mayors and local leaders to tackle inactivity, and deliver a Youth Guarantee so every young person is either earning or learning, as part of the Government’s ambition to deliver an 80% employment rate.

Additional information

• The Bill will introduce a new additional eligibility requirement for the daily living component of PIP so that a minimum of 4 points must be scored on at least one daily living activity to be eligible for the daily living component. It will also rebalance Universal Credit.
• The Work and Pensions Secretary gave a speech at the IPPR on setting out the case for reforming the welfare system: Welfare reform: Speech to the IPPR by Work and Pensions Secretary – GOV.UK
• Based on current forecasts, the rebalancing mean single households 25 or over, will see their standard allowance rise to around £106pw by the end of this parliament.
• Current UC health top up is more than double the UC standard allowance for a single claimant.

There are 4 criteria for the healthcare professional to consider, all of which must apply for the claimant to meet the SCC, namely whether:

• The individual’s level of function will always meet LCWRA
• The individual’s condition will last for the rest of their life
• There is no realistic prospect of recovery of function, and
• The condition has been diagnosed by an appropriately qualified healthcare professional in the course of the provision of NHS services.

The press release issued by the Department for Work and Pensions on 5 June 2025.

Millions of people across the UK will find it easier to manage and get more from their pensions thanks to the Government’s new Pension Schemes Bill.

• The Pension Schemes Bill will tackle schemes delivering poor returns for savers, combine smaller pension pots, and create bigger and better pension funds.
• These measures will drive costs down and returns up on workers’ retirement savings – putting more money in people’s pockets as part of the Plan for Change.

Millions of people planning their retirement will find it easier to manage and get more from their pension pots thanks to the new Pension Schemes Bill introduced today [Thursday 5 June].

The Bill is designed to support working people plan for their retirement by making pensions simpler to understand, easier to manage, and drive better value over the long term – delivering on the Plan for Change to put more money into people’s pockets.

One of its biggest benefits is the merging of small pension pots. Many people build up several small pensions as they move between jobs, and these can be hard to keep track of. The new rules will bring these pots together, helping savers see their full pension picture in one place.

The Bill also introduces a new system to show how well pension schemes are performing, this will help savers understand whether their scheme is giving them good value and protect them from getting stuck in underperforming schemes for years on end, to help working people feel more secure about their retirement savings.

For those approaching retirement, the Bill will require schemes to offer clear default options for turning savings into a retirement income. This means people will have clearer, more secure routes to decide how they use their pension money over time.

Work and Pensions Secretary Liz Kendall said:

Hardworking people across the UK deserve their pensions to work as hard for them as they have worked to save, and our reforms will deliver a huge boost to future generations of pensioners.

The Bill is about securing better value for savers’ pensions and driving long-term investment in British businesses to boost economic growth in our country.

As part of our Plan for Change we’re helping people find work, stay in work, and ensuring that work pays them back to give them the secure income in retirement they deserve.

Chancellor of the Exchequer Rachel Reeves said:

The Bill is a game changer, delivering bigger pension pots for savers and driving £50 billion of investment directly into the UK economy– putting more money into people’s pockets through the Plan for Change.

The Bill will transform the £2 trillion pensions landscape to ensure savers get good returns for each pound they save, and drive investment into the economy, through a suite of measures, including:

• Requiring DC schemes to prove they are value for money, to protect savers from getting stuck in underperforming schemes.
• Simplifying retirement choices, with all pension schemes offering default routes to an income in retirement.
• Bringing together small pension pots worth £1,000 or less into one pension scheme that is certified as delivering good value to savers, making pension saving less hassle and more rewarding.
• New rules creating multi-employer DC scheme “megafunds” of at least £25 billion, so that bigger and better pension schemes can drive down costs and invest in a wider range of assets.
• Consolidating and professionalising the Local Government Pension Scheme (LGPS), with assets held in six pools that can invest in local areas infrastructure, housing and clean energy.
• Increased flexibility for Defined Benefit (DB) pension schemes to safely release surplus worth collectively £160 billion, to support employers’ investment plans and to benefit scheme members.

Minister for Pensions Torsten Bell said:

We are ramping up the pace of pensions reform. Workers deserve to get better bang for each buck saved, and these sweeping reforms will make sure they do.

Pension saving is a long game, but getting this right is urgent so that millions can look forward to a higher income in retirement.

The Pension Schemes Bill is part of this Government’s significant pension reform agenda. It follows the major consolidation of the UK pension system set out in the Pension Investment Review.

Today’s legislation will create a more efficient, resilient pension landscape, and lay the foundation for the upcoming Pensions Review to examine outcomes for pensioners and set out how to develop a fair and sustainable pensions system, ultimately benefiting both individual savers and the broader UK economy.

Andy Briggs, CEO, Phoenix Group said:

The Bill sets a clear direction for the future of pensions with the emphasis on building scale and ensuring savers receive value for money. People across the country will feel the impact of these changes with plans to consolidate small pots, ensure the dashboard delivers and provide default retirement income options at the point of retirement. Individually these initiatives would be significant but in combination they have the potential make a significant difference to people’s retirement across the UK and we look forward to working through the detail with government and other stakeholders.

Patrick Heath-Lay, Chief Executive, People’s Partnership said:

This is a pivotal moment in pension reform. The Bill contains many measures that will require providers to deliver better outcomes for savers and improve the workplace pension system.

Ian Cornelius, CEO, NEST said:

At Nest, everything we do is with our members’ best interests at heart. We believe that large, well-governed schemes can drive great outcomes for their members by using their scale and expertise to diversify where money is invested, and gain access to attractive investment opportunities not available to smaller investors at low cost. I am proud of how Nest has used its scale to invest on behalf of our members, developing sophisticated investment opportunities which generate great risk adjusted returns, and play a role in supporting communities in the UK. We welcome this new Pension Schemes Bill, and the invitation it sends to keep innovating in the best interests of UK savers.

Nausicaa Delfas, Chief Executive, The Pensions Regulator (TPR) said:

The Pension Schemes Bill is a once in a generation opportunity to address unfinished business in the UK pension system. Making sure all schemes are focused on delivering value for money, helping to stop small, and often forgotten pension pots forming, and guiding savers towards the right retirement products for them, will mean savers benefit from a system fit for the future. We have long advocated for fewer, larger well-run schemes with the size and skill to deliver better outcomes for savers. As such we are also pleased to see the proposed legislative framework for DB superfunds, providing options and choice in defined benefit consolidation.

Michelle Ostermann, Chief Executive, Pension Protection Fund (PPF) said:

We welcome the introduction of this important Bill, especially the measures which would give the Pension Protection Fund (PPF) greater flexibility to reduce the levy, enable PPF and Financial Assistance Scheme (FAS) member data to be made available for pension dashboards, and better support members with a terminal illness. We will support the government and policy makers as the Bill progresses so we can achieve the best outcomes for all our stakeholders.

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

Pensions have become far too complex and fragmented, so it’s good to see the government taking steps to simplify them and ensure schemes provide value for money. Which? has campaigned for years for the consolidation of small pots, so we are delighted that this Bill is seeking to do just that – a move that will provide greater value for savers and support them to keep track of their pensions. “Which? looks forward to working with the government to ensure the pensions system is fit for the future.”

Jamie Jenkins, Policy Director, Royal London said:

The Pension Schemes Bill brings together several initiatives aimed at improving the pensions landscape for savers. While there are still many details to work through, this hopefully marks the start of a long-term strategic plan for pensions.

Patrick Luthi, CEO, NOW:Pensions said:

NOW:Pensions have been campaigning on small pots for a number of years, and we are pleased to see measures to deliver on the ‘multiple default consolidator’ solution included.  We look forward to seeing the details which will be crucial to supporting members in an efficient way

Further Information

• To build scale in the pensions industry and stimulate UK investment, the Pension Schemes Bill will:
• Require multi-employer Defined Contribution schemes, unless exempt, to have at least £25 billion of assets in their main default arrangement by 2030 or be on route to achieving that scale by 2035 through having £10 billion in their main default.
• Allow trustees of well-funded Defined Benefit pension schemes to release money back to employers and their scheme members, when safe to do so, unlocking some of the £160 billion surplus funds to be reinvested across the UK economy and boost business productivity and deliver for members.
• Legislate for Defined Benefit pension scheme superfunds to encourage growth of the superfund market and underpin the security of members’ benefits
• Remove the restrictions that prevent the Board of the Pension Protection Fund (PPF) from reducing the annual pension protection levy it collects, when it is not required – allowing the PPF to collect less from businesses up and down the country
• Extend the definition of ‘terminal illness’ in the Pension Protection Fund and Financial Assistance Scheme legislation, so that eligible members who are diagnosed as terminally ill can receive payments at an earlier stage of their illness.
• To ensure better outcomes for savers, the Pension Schemes Bill will:
• Introduce a Value for Money framework to enable a shift in focus from cost towards value and protect savers from becoming stuck in underperforming arrangements for extended periods.
• Implement Default Pension Benefit Solutions which will mean savers will still have the options available to them through pension freedoms, but they will get an extra offer of support – through being enrolled into default solution(s) – which could include CDC provision, and they can take this or make their own choices.
• Authorise providers to act as a consolidator scheme which will see members pots automatically transferred to their largest pot. This will also aid the building of scale with pots worth £1,000 or less consolidated into a small number of large, good value schemes.
• Support the introduction of pensions dashboards to improve engagement by providing users with their whole pensions picture, including workplace and state pensions, securely and all in one place online. By providing this comprehensive overview of retirement savings, pensions dashboards will address key barriers to engagement, such as information fragmentation and lack of visibility.
• Facilitate PPF and FAS information to be displayed on the Government-backed pensions dashboard service provided by the Money and Pensions Service.
• The Competent Court measure in the Bill will also re-establish the legal standing of The Pensions Ombudsman (TPO) to make enforceable determinations in pensions overpayment recoupment cases without requiring a county court judge’s order, leading to quicker customer journeys and shorter waiting times.

The press release issued by the Department for Work and Pensions on 5 June 2025.

Launch of a new, locally-led approach to jobseeker support begins in Wakefield, West Yorkshire.

Jobseekers across the country are set to benefit from a groundbreaking new approach to the service Jobcentres provide. This will include a new Coaching Academy; careers events focused on local growth sectors and more personalised Jobcentre appointments.

The jobs and careers service in Wakefield, West Yorkshire, yesterday (Wednesday 4 June 2025) became the first to trial the new scheme – marking the start of the biggest reform of Jobcentres in decades.

The Jobcentre will test bold ideas to better work with employers, deliver services and get people into work. The reforms are aimed at involving local areas in the design of services and bring to an end a Whitehall-led, one-size-fits-all approach.

Following the launch of the jobs and careers service Pathfinder in Wakefield, further Pathfinders will be rolled out across the country this year as the Government drives forward with its plan to Get Britain Working.

This is a key part of the growth mission, as we help more people across the country into good, secure jobs so they can get on in life and fulfil their ambitions.

Minister for Employment Alison McGovern said:

Our one-size-fits-all, tick box approach to jobs support is outdated and does not serve those looking to better their lives through work.

We are building a proper public employment service in partnership with local leaders that truly meets community challenges and unlocks opportunity.

The launch of the Pathfinder in Wakefield is the first step in this transformation as we continue to Get Britain Working, boost living standards and put more money in people’s pockets, under our Plan for Change.

The Pathfinder will look at new ways to support customers and how everyone, not just Jobcentre customers, can receive employment support. It is being co-designed with local leaders from West Yorkshire Combined Authority and Wakefield Local Authority.

As part of this and in a direct response to insight that only 9% of employers currently recruit through Jobcentres, a series of careers events focused on local growth sectors will be delivered in Wakefield to match local talent with local opportunities.

The first of these events took place during yesterday’s launch and focused on West Yorkshire’s thriving creative sector. It was attended by skills providers and local employers including Production Park – home to sets of Netflix series’ including Bank of Dave. Events to serve the local manufacturing and technology sectors will take place in the coming months and are open to all, not just Jobcentre customers.

In addition to this tests of a new Get Britain Working ‘Coaching Academy’ to train up DWP staff will help ensure jobseekers receive improved support. Changes to appointments will also mean DWP services in Wakefield will provide more personalised support for claimants to help them move into stable, long-term work.

Mayor of West Yorkshire, Tracy Brabin said:

People stand a better chance of landing a good job when they are treated with dignity and respect at a trusted local Jobcentre.

These reforms will empower us to build on our West Yorkshire model of joining up employment support with health and employer-led services, to provide personalised support that gets people into work and puts more money in people’s pockets.

Working with the government, we’re investing almost £40 million to help guarantee a healthy working life to everyone in our region, and as the test-bed for the new national Jobs and Careers Service, Wakefield will lead the way on transforming our welfare system to get Britain working.

Wakefield will be the first city to test new ideas for the new jobs and careers service, ensuring that the service and its policies can be scaled up before being rolled out across the nation. Further Pathfinders, including ones that are focused on support for young people and those with health conditions will be launched later this year.

The Jobs and Careers Service Pathfinder builds on wider investment in West Yorkshire, including £18 million for an inactivity trailblazer and an NHS Accelerator. The inactivity trailblazer launched in April, to boost employment in areas with the highest levels of economic inactivity, as the government gets Britain back to health and back to work. The NHS Accelerator will help to prevent people from falling out of work completely due to ill health.

The Pathfinder comes as the government continues to drive to Get Britain Working through boosting the National Living Wage, creating more secure jobs through the Employment Rights Bill and delivering a Youth Guarantee so every young person is either learning or earning.

Further Information

• Key findings from the Department for Work and Pensions (DWP) 2024 Employer Survey: DWP Employer Survey 2024 – GOV.UK
• The local Get Britain Working Plan guidance has been published: Guidance for Developing local Get Britain Working plans (England) – GOV.UK
• The guidance will ensure all areas are working towards the government’s 80% employment ambition.
• Employment support measures are fully transferred to Northern Ireland. Jobcentre Plus services is reserved in both Scotland and Wales, but the Scottish Government and the Welsh Government also deliver other forms of employment support. The funding announced in the Pathways to Work Green Paper is UK wide, the share of funding for devolved Governments will be calculated in the usual way.
• The UK Government also plans to establish new governance arrangements with the Scottish and Welsh Governments to help frame discussions around the reform of Jobcentres and agree how best to work in partnership on shared employment ambition across devolved and reserved provision.

The press release issued by the Department for Work and Pensions on 23 May 2025.

Thousands of young people across England will receive targeted support into work, under a new £45 million scheme launched by the Work and Pensions Secretary.

Thousands of young people across England will receive targeted support into work, under a new £45 million scheme launched by the Work and Pensions Secretary.

The Youth Guarantee trailblazers will match young people to job or training opportunities and will provide all-important foundations for the national roll-out of the programme, ensuring all 18 to 21 year olds in England can access help to find work – breaking down barriers to opportunity as part of the Plan for Change.

The trailblazers will play a key role in helping the government understand which local structures are most effective and in identifying the organisations best placed to deliver targeted support.

They will also develop innovative ways to identify, engage and sustain contact with young people most at risk of falling out of education, employment or training.

It comes as new ONS figures published today (Friday 23 May 2025) will reveal the number of young people not in education, employment or training, with the current figure standing at 987,000.

Liverpool City Region is one of eight areas across England set to receive a £5 million investment into work with 18 to 21 year olds most at risk of falling out of education or employment.

In its first year, the City Region aims to support tens of thousands of young people. Within this, the trailblazer will focus on vulnerable young people often facing the most complex barriers, including care leavers, nearly 40% of whom are not in employment, education or training.

They will receive a range of support including work and training opportunities, free travel passes, mental health support and money advice.

Work and Pensions Secretary Liz Kendall said:

Young people are our future – and yet for too long they have been denied access to the opportunities and support they need.

At Liverpool FC, the home of champions, we are championing young people to get the skills, education and jobs they require to achieve their ambitions.

We are investing £45 million – including almost £5m here in Liverpool – to deliver our Youth Guarantee, so every young person across England gets the chance to earn or learn, as we boost living standards and get Britain working under the Plan for Change.

Further to this, Liverpool will work with over 600 employers to develop tailored roles and placements, and through the region’s BeMore portal which brings career and skills advice straight into your pocket. A panel made up of young people to ensure they are at the heart of decision making will also be set up.

The city has already had success in tailoring support to meet the needs of young people, including:

• Ethan who has cerebral palsy and had just finished university with no work experience. With the help of Liverpool, including support with housing, mental health and navigating familial challenges, Ethan gained part-time experience as a youth support worker and has since been offered a job with the Civil Service.
• Luke who felt he was in a black hole searching for jobs but not being successful. He has since received an apprenticeship levy from Liverpool which meant he was able to do his Level 4 Marketing apprenticeship and now works in Product & Operations Market at Liverpool Football Club.
• Ellie who decided to explore new career paths following mental health challenges. Through engaging with Liverpool, she was provided with a laptop in order to join the Movement to Work programme and has since been offered a job at the DWP.

Mayor of the Liverpool City Region Steve Rotheram said:

When I travel across our region, I feel fortunate to meet some of the best and brightest young people in the country. But for too long, too many of them have been held back from getting on in life, not because of a lack of talent, but by a lack of opportunity – and I have made it my mission to put that right.

It’s because of the investments we’ve made, through initiatives like my Young Person’s Guarantee and BeMore, that we’ve been able to connect tens of thousands of people in our area with jobs and training opportunities. Now, backed by the government’s Plan for Change, we can go even further, giving even more young people the best possible start in life.

Education Secretary Bridget Phillipson said:

Through our Plan for Change we are breaking down barriers to opportunity so every young person can get on in life, regardless of their background.

The Youth Guarantee is a genuine game changer for young people in England. I’m delighted Liverpool is leading the way as one of our trailblazers – ensuring every young person has support to develop essential skills for work and life at the critical early stage of their careers.

Every young person deserves the best life chances — and we won’t stop until everyone has a level playing field to succeed.

Liz Kendall and Mayor Steve Rotheram unveiled the landmark programme at a careers fair in partnership with key Youth Guarantee partner, the Premier League.

Hosted at the iconic Anfield Stadium, three days before the champions lift the Premier League Trophy, around one thousand 18 to 21 year olds attended with opportunities on offer from around 40 employers – including Liverpool FC Foundation, Everton in the Community, John Lewis, and Google.

Clare Sumner, Chief Policy and Social Impact Officer at the Premier League, said:

The Premier League and our clubs continue to support young people across the country with a range of positive opportunities that help them build self-confidence and fulfil their potential.

The jobs fair at Anfield is the latest initiative supporting those who need it most in clubs’ local communities, and we will continue to work with Government to deliver similar events as part of the Youth Guarantee.

The programme comes alongside an unprecedented £1 billion investment to support disabled people and those with long-term health conditions back into work, as well as major reforms to Jobcentres to better align their services with the needs of employers.

Two youth trailblazers have already launched in London with more beginning to start work in the West of England, Tees Valley, Cambridgeshire and Peterborough, West Midlands, and East Midlands

As well as this, nine inactivity trailblazers backed by £125 million have been rolled out across England and Wales. These programmes will help areas with the highest levels of economic inactivity by connecting work, health and skills offers.

Richard Rigby, Head of UK Government Affairs at The King’s Trust said:

With almost one million young people across the UK waking up today with no job, no training, and no education to go to, the prominence being given to developing a Youth Guarantee is not only very welcome, but absolutely vital.

Young people’s futures are worth fighting for. By getting behind them, we can all help to make the UK a healthier, wealthier, more positive, more cohesive place. The King’s Trust looks forward to working with local areas, including Liverpool City Region, to understand how we can help to deliver the Guarantee.

Laura-Jane Rawlings MBE, Founder and CEO of Youth Employment UK, said:

It is great to see the Youth Guarantee launch in Liverpool. The focus on providing young people with the tools that they need to transition into education, employment or training is critical.

Young people, particularly those who are care experienced or care leavers face multiple barriers to accessing employment so I am pleased to see those barriers be recognised and tailored support put in place.

Young people when in good quality employment not only add huge value to an employer but they are also much more like to feel fulfilled and happier.

Susannah Hardyman MBE, CEO of Impetus, said:

The Youth Guarantee Trailblazers are a vital step toward ensuring every young person – regardless of background – has the opportunity to thrive in employment. Targeted interventions are critical to reaching the young people furthest from the labour market.

Our research shows that factors like socioeconomic disadvantage, lower educational qualifications, and geographic location can combine to make a young person nearly three times more likely to be not in education, employment, or training than average – but this is not inevitable.

By connecting these young people with the right support and resources, we can spur economic growth, deliver on the Government’s opportunity mission, and transform lives.

Sarah Yong, Director of Policy and External Affairs at the Youth Futures Foundation said:

The launch of the eight trailblazers represents a positive first step in Government’s plans for its Youth Guarantee; we will await the learnings from these place-based approaches from this pilot year with interest.

The voices and experiences of young people alongside high-quality evidence of what works will be crucial for the Government in further developing the Guarantee for national rollout.

This comes as the government has, for the first time, linked immigration policy to our plan to deliver a higher skilled economy that backs British workers.

Alongside boosting the National Living Wage, we are also creating more secure jobs through the Employment Rights Bill and overhauling Jobcentres as we Get Britain Working as part of the Plan for Change.

Additional information:

• The latest ONS young people not in education, employment or training statistics will be published on Friday 23 May at 9.30 here: Young people not in education, employment or training (NEET), UK: May 2025 – Office for National Statistics
• The eight youth trailblazers will be in: Liverpool, West Midlands, Tees Valley, East Midlands, West of England, and Cambridgeshire & Peterborough and two in London
• Employment support measures are fully transferred to Northern Ireland. Jobcentre Plus services is reserved in both Scotland and Wales, but the Scottish Government and the Welsh Government also deliver other forms of employment support. The funding announced in the Pathways to Work Green Paper is UK wide, the share of funding for devolved Governments will be calculated in the usual way.
• The Youth Guarantee is an England only initiative, and trailblazer locations will reflect this since Skills, Education and Employment support are devolved in Scotland, Wales and Northern Ireland.
• We will work closely with the devolved governments to share experiences and lessons learned.
• Additionally, Wales have developed their own Young Persons Guarantee and Scotland also had one until recently (now a comprehensive offer for all age-groups)
• The UK Government also plans to establish new governance arrangements with the Scottish and Welsh Governments to help frame discussions around the reform of Jobcentres and agree how best to work in partnership on shared employment ambition across devolved and reserved provision.
• Movement to Work is a voluntary collaboration of leading employers in the UK, including the Department for Work and Pensions to help support young people into employment by providing vocational employment and work placement opportunities.

The press release issued by the Department for Work and Pensions on 22 May 2025.

More than £1 billion in incorrect Universal Credit (UC) payments have been blocked by the Department for Work and Pensions (DWP) in a drive to stop people falling into financial difficulties.

The milestone was reached after a programme to review payments was ramped up last summer, with more than one million cases now looked at.

Overpayments can ultimately lead to financial difficulties for claimants by causing them to fall into debt.

The ‘Targeted Case Review’ was introduced in 2022 to detect incorrect payments, with around 25,000 claims reviewed in the first year.

Since July 2024, DWP has nearly doubled the number of people working in its UC Targeted Case Review team.

This significant increase in staff has boosted the number of existing claims reviewed to over one million, saving £1 billion in incorrect payments by detecting historic errors and preventing future overpayments that can result in debts accruing.

The number of claim reviews will continue to ramp up now the department has reached its staff target, with nearly 6,000 staff to review claims with forecasted savings of £13.6 billion by 2030.

Minister for Transformation, Andrew Western, said:

This target could not have been reached without this significant boost to staffing numbers – meaning we now have forecasted savings of £13.6 billion by 2030.

This is a vital programme not only ensuring overpayments are corrected but also makes certain people who are being underpaid receive the money they are entitled to.

We will not tolerate fraud, error or waste and are committed to safeguard taxpayers’ money so it can be invested in the public services we all deserve.

The ‘Targeted Case Review’ team reviews payments  to prevent customers falling into or accumulating further debt, identify unreported changes in circumstances, correct claims retrospectively, and refer suspected cases of fraud for investigation.

Reviews verify claimants’ eligibility for the benefits they receive by sending a notification to their online account to request proof of identity and other documentation.

In the Autumn Budget, the government committed to the continuation of Targeted Case Review activity for a further two years, with learnings used to prevent error from entering the welfare system in the first place. This will help provide a fair, high-quality service that ensures customers receive their full entitlement and avoid unnecessary debt.

These major milestones come as the government outlines further plans to strengthen our ability to reduce fraud and error through the Public Authorities (Fraud, Error and Recovery) Bill. This is alongside its work to support people into work and become less reliant on the benefit system to drive productivity and unlock growth as part of its Plan for Change.

Additional Information

• A breakdown of Targeted Case Review programme performance can be found on GOV.UK: Targeted Case Review Management Information – GOV.UK
• Targeted Case Review (TCR) was an initiative announced in May 2022 in the former Government’s publication, Fighting Fraud in the Welfare System and is delivered by the Universal Credit Claim Review (UCR) team.
• Universal Credit (UC) Claim Reviews are not fraud investigations and are not designed to detect attempts to deceive. As part of a claim review, evidence is requested to enable any unreported changes in circumstances to be detected and correct claims where needed. This can include finding over and under payments. Like any other benefit review undertaken by the department, it can lead to a referral to the Counter Fraud Team should fraud be suspected.
• A diligent approach has been maintained to ensure the customer is supported throughout the review process with the expectation that the service be adapted to address any early signs of failings. The programme has been encouraged by the number of examples of agents able to assist customers more broadly than checking claim correctness. For example, signposting to wider support to provide vital help when needed and identifying customers not receiving the right level of Universal Credit.
• Since July 2024, the DWP has significantly increased the number of people working in the UC Targeted Case Review team – recruiting a further 2,500 staff by February 2025 to reach the target of 5,930.

The press release issued by the Department for Work and Pensions on 21 May 2025.

The reforms will support the Government’s Plan for Change by boosting economic growth and securing the financial future of millions of UK savers.

• Funding levels in the Defined Benefit (DB) pension sector have hit a record high, with three in four now in surplus and deficit payments down by over £10 billion a year
• Increased resilience follows years of businesses creating security for members through building a larger surplus.
• New freedoms to safely release surplus funding will unlock investments and benefit savers as part of the Government’s Plan for Change.

Working people, pension scheme members and businesses are set to benefit from record highs in pension scheme funding.

The majority of DB schemes are now running at a surplus which means the value of their assets exceed that of the promised pension benefits due to members.

Thanks to the forthcoming Pension Schemes Bill – trustees and employers will soon be able to safely release part of this surplus to boost investment and benefit scheme members.

Funding levels for DB pension schemes, sometimes known as “Final Salary” pensions, are current in their strongest ever financial position with the number of DB schemes sufficiently financed tripling since 2010.

Minister for Pensions, Torsten Bell, said:

The record funding levels for Defined Benefit pension schemes is excellent news for Britain’s employers and workers.

Fast falling deficit payments offer employers a cashflow boost of over £10 billion a year, that can support higher wages and investment.

And growing scheme surpluses can also be used productively. Currently some trustees are held back from sharing the benefits of a surplus, but our plans will allow all schemes to safely do so, delivering greater investment across firms and benefits for savers.

In 2019, just 600 Defined Benefit schemes were financed sufficiently, meaning businesses could meet the costs associated with their schemes without dipping into operational budgets – by 2024 that figure had tripled to over 1,800.

Because of this robust financial position, the additional payments businesses have had to pay to plug pension deficits has fallen from £16 billion in 2010 to under £5 billion in 2024. This is delivering an immediate cashflow benefit to firms and should support higher levels of investment and wages.

The funding position of schemes in deficit has improved significantly, from a collective deficit of £500bn in 2019 to a deficit of just £140bn in 2024. Schemes running at a surplus have seen their collective surplus now rise to more than £160bn. Currently, many schemes cannot access their surplus – but the forthcoming Pension Schemes Bill will allow Pension trustees and the sponsoring employers to safely release some surplus to invest back into their businesses and unlock more money for pension scheme members. The upcoming changes will focus on member protection, and trustees will continue to be required to fulfil their duties towards scheme beneficiaries.

These changes form part of a package of reforms in the upcoming Pension Schemes Bill that will secure the financial future of millions of UK savers and drive long-term economic prosperity.

Additional Information

• The Department for Work and Pensions previously ran a public consultation on how pension scheme surpluses should be treated. The Government will publish a full response to the consultation in the coming weeks.
• Government previously announced plans to lift restrictions on how well-funded, occupational defined benefit pension funds that are performing well will be able to invest their surplus funds: Pension reforms to go further to unlock billions to drive growth and boost working peoples’ pension pots – GOV.UK
• The Pensions Investment Review will see the creation of megafunds  to drive more investment, boost pension pots and grow the economy through the Plan for Change: Pension megafunds could unlock £80 billion of investment as Chancellor takes radical action to drive economic growth – GOV.UK
• On a buy-out funding basis, the deficit of schemes in a deficit is currently estimated at £140bn (Purple Book). When looking at the Low Dependency measure of funding, there is a surplus (for schemes in surplus) of over £160bn (TPR).
• Latest funding positions can be found on The Pension Regulator’s website:
  Estimated DB scheme universe funding splits and assets under management | The Pensions Regulator
• Trends in the funding position can be found in the PPF’s Purple Book Pension Protection Fund
• Trends in Deficit Reduction Contributions can be found on ONS, with latest figure adjusted to reflect full-year estimate.

The press release issued by the Department for Work and Pensions on 9 May 2025.

People from Cardiff to Carmarthen will see a boost to their local communities and job opportunities, thanks to the Wales Pension Partnership (WPP) launching a new investment company that pools £25 billion of assets.

The WPP is being transformed so that the Local Government Pension Scheme (LGPS) pool, which will consolidate the assets of 22 Local Authorities’ schemes representing 412,000 members, will be the biggest pension fund in Welsh history, capable of delivering huge investments felt first-hand by businesses and communities in Wales.

By setting up this investment company in Wales, the investment decisions the fund makes can reflect the unique cultural and economic climate of Wales, collaborating with local businesses to invest in communities and delivering growth – making sure the LGPS is delivering for those whose hard-earned money it guards, and their communities.

To see an example of this, Minister for Pensions Torsten Bell today visited Uskmouth Power Station which has benefited from £6.5 million of investment from the WPP for its redevelopment from a coal fired power station into a sustainable energy site –supporting 300 new full-time jobs during construction driving economic growth and prosperity for the community.

UK Minister for Pensions Torsten Bell MP said:

Pensions are a massive part of the economy – and we’re seeing this brought to life here in Wales, where a successful Local Government Pension Scheme is investing in the right places to drive opportunity and growth for the local community.

I’m delighted to visit Uskmouth Power Station in Newport, which has had a £6 million boost from the Wales Pension Partnership, creating 300 jobs which mean opportunity and prosperity at a local level.

Making sure everyone can benefit from the potential of larger pension pools ties into the ambitions of our Plan for Change to boost investment in communities across the country, bringing long-term economic benefits.

The Wales Pension Partnership said:

The Wales Pension Partnership investment in Uskmouth Battery Energy Storage Systems demonstrates our ambitions to attract investment into crucial Welsh infrastructure and secure national energy supplies.

This investment shows our commitment to working with Quinbrook and our strategic partner GCM Grosvenor to: deliver strong investment returns for our pensioners, ensure long-term energy security, reduce carbon emissions, provide jobs and regeneration opportunities across Wales. This is one of many projects that we have in our investment pipeline and will be unveiling over the next 12 months.

Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans MS said:

We have long recognised the benefits of a strong single Welsh Local Government Pension Scheme pool.  We want to see the Wales Pensions Partnership continue to go from strength to strength delivering returns for members and able to invest in economic growth for Wales and the UK.

UK Minister of State for Local Government and English Devolution, Jim McMahon OBE MP said:

We are determined to get the best value out of taxpayers’ money, which is why we are reforming the Local Government Pensions Scheme pools in Wales and England to be more efficient, fit-for-purpose and deliver for public servants and their communities.

The scheme plays a vital role in boosting investment and growth across Wales and ultimately putting more money in working people’s pockets as part of our Plan for Change.

The site, once a coal fired power station, is being repurposed to provide up to 460 megawatt hours of electricity storage capacity for the National Grid and bring a retired rail line back into service to deliver materials, saving nearly 8,400 heavy good vehicles from the local road network.

The investment embraces the spirit of change the government has asked to see from LGPS pools with the wider pooling process for the UK’s world-class LGPS set to conclude in March 2026. Reforms will see the LGPS punching its weight globally, while bringing benefits to local communities through dedicated investment strategies and improving transparency for its members.

These reforms will ensure the Local Government Pension Scheme is fit for the future, and boost investment to drive the economic growth and prosperity promised by the Plan for Change.

The press release issued by the Department for Work and Pensions on 30 April 2025.

Plans to recover stolen cash and impose driving bans on those who repeatedly fail to pay back taxpayer money moved a step closer today, as Ministers vowed “to address the unacceptable levels of fraud and error we’ve inherited”

New souped-up powers from the Department of Work and Pensions (DWP), which will allow DWP to recover money directly from the bank accounts of fraudsters who can repay but are wilfully gaming the system in order not to, passed an important stage in the House of Commons as it had its Third Reading.

The Public Authorities (Fraud, Error, and Recovery) Bill, which could put these measures into law, will help DWP to catch fraudsters, prevent overpayments and protect taxpayer’s money.

The Bill will save the taxpayer £1.5 billion over the next five years and is part of wider plans set out in the Autumn budget and Spring Statement to save £9.6 billion by 2030. This means taxpayer’s money can be invested in public services as part of the government’s Plan for Change.

Minister for Transformation, Andrew Western said:

Enhancing our powers is essential to fulfilling our commitment to the public, as they will enable us to address the unacceptable levels of fraud and error we’ve inherited and better protect public funds.

By strengthening our ability to catch criminals and prevent overpayments, we can keep up with the evolving nature of welfare fraud while reducing the risk of people falling further into debt, ensuring that more resources are directed towards improving the lives of people across the country.

The new legislation comes as the government is dealing with the broken welfare system it inherited, with out-of-control levels of fraud and error costing the taxpayer around £10 billion a year – with a total of £35 billion of taxpayers’ money incorrectly paid to those not entitled to the money since the pandemic.

The Bill will also give powers to the DWP to get data from banks and other financial institutions to help verify the eligibility of those who receive certain benefits to make sure they are getting the correct payments – this will help to stop people falling further into debt because of incorrect payments and help the DWP spot fraudulent claims.

No personal information will be shared by DWP to support financial institutions in the identification of these accounts, and DWP will not have access to people’s bank accounts in verifying eligibility and will not be able to see where people are spending their money.

Protections are central to the Bill, making sure there is proportionate and effective use of the powers, and that DWP is protecting vulnerable customers. For example, people will only be disqualified from driving as a last resort when they don’t rely on their car for work or for caring responsibilities and where they continually avoid repayment. Staff will be trained to the highest standards on the appropriate use of new powers, and we will introduce new oversight and reporting mechanisms.

On top of the Bill measures, the Chancellor announced in the Spring Statement a further commitment to recruit over 500 additional DWP fraud and error staff who will make better use of government data to correct errors in benefit claims, as well as increasing checks on potential Universal Credit claimants by introducing more ways to verify the amount of savings they hold, as well as their earnings and expenses.

The Cabinet Office’s Public Sector Fraud Authority will also be given more powers under the legislation, allowing the department’s investigators to detect and recover fraud in other departments and bodies across the public sector.

Minister in the Cabinet Office, Georgia Gould said:

This Bill will save taxpayers’ money. People are currently getting away with stealing vast sums of cash because our investigators don’t have the powers they need to detect and recover fraud across the public sector.

We’re giving our investigators new powers to tackle fraud wherever they find it – as well as doubling the time available to bring pandemic fraudsters to justice.

An additional new measure will see the time limit for civil claims against Covid fraud doubled from six to twelve years. This step change in the ability to fight fraud committed during the pandemic will give the Covid Corruption Commissioner and the Public Sector Fraud Authority more time to investigate complex cases and apply their new powers retrospectively – including the ability to raid properties and retrieve money from Covid fraudsters’ bank accounts.

The Bill measures will now progress to the House of Lords to be debated further.

Additional Information

• The Fraud, Error and Recovery Bill forms part of wider government plans to save a total of £8.6bn over 5 years in the biggest welfare fraud and error budget package in recent history.
• Since the pandemic, a total of £35 billion of taxpayers’ money has been incorrectly paid to those not entitled to DWP benefits.

The press release issued by the Department for Work and Pensions on 30 April 2025.

More than one million households struggling with debt will get to keep an average £420 more of their benefits each year, under a change to Universal Credit coming into force today.

More than one million households struggling with debt will get to keep an average £420 more of their benefits each year, under a change to Universal Credit coming into force today [Wednesday 30 April 2025].

The Fair Repayment Rate places a limit on how much people in debt can have taken off their benefits to pay what they owe. The maximum amount that can be taken from someone’s Universal Credit standard allowance payment to repay debt has been 25% – but from today this is reduced to 15%.

This will mean an average £420 extra a year for 1.2 million of the poorest households, including 700,000 households with children, while helping people to pay down their debts in a sustainable way.

It forms part of the Government’s Plan for Change to put more money into people’s pockets and boost living standards and marks the Government’s first step in a wider review of Universal Credit to ensure it is still doing its job.

The Fair Repayment Rate was introduced by the Chancellor at the Autumn Budget, as part of broader efforts to raise living standards, combat poverty, and tackle the cost-of-living crisis.

Chancellor of the Exchequer Rachel Reeves said:

As announced at the budget, from today, 1.2 million households will keep more of their Universal Credit and will be on average £420 better off a year. This is our plan for change delivering, easing the cost of living and putting more money into the pockets of working people.

With as many as 2.8 million households seeing deductions made to their Universal Credit award to pay off debt each month, the new rate is designed to ensure money is repaid where it is owed, and people can still cover their day-to-day needs.

Work and Pensions Secretary Liz Kendall said:

As part of our Plan for Change, we are taking decisive action to ensure working people keep more of the benefits they’re entitled to – which will boost financial security and improve living standards up and down the country.

We’re delivering meaningful change to ensure everyone has a fair chance, the support they need, and real hope for the future.

The Fair Repayment Rate is one of a number of bold measures the Government is taking as part of its Plan for Change to kickstart growth and spread prosperity across the country.

Viewing work as a key route out of poverty, the Government set out the Get Britain Working White Paper – aiming to achieve its target 80% employment rate by overhauling Jobcentres, introducing a new jobs and careers service, and launching a youth guarantee so every young person is earning or learning. This comes on top of increasing the National Minimum and National Living Wage to ensure being in work pays.

To support those in greatest need, the Household Support Fund has been extended another year – backed by £742 million, so local councils can continue to support low-income households with energy bills, food and essential items, while also funding long-term solutions, like home insulation, to help people at risk of falling into poverty.

The Government is also working to tackle child poverty, rolling out free breakfast clubs in all primary schools in England as the dedicated ministerial taskforce builds its ambitious strategy to ensure every child has the best start in life.

Additional information:

• The change will be applied to all assessment periods that start on or after 30 April.
• The 15% deductions cap continues to support customers to repay their debts at a sustainable rate.

The press release issued by the Department for Work and Pensions on 29 April 2025.

Pensioners of the future will benefit from innovative ‘collective’ pension schemes to boost their income in retirement and productive investment across the economy, under plans announced today.

More people than ever are saving into a workplace pension – £28 billion more in 2020 than in 2012 – with most of these pension pots being Defined Contribution (DC) schemes, where the employee is automatically enrolled to save a proportion of their salary tax-free and the employer contributes at least 3% of their salary to the pot too.

But a lack of innovation and reform of the DC savings landscape risks some future pensioners bearing large risks, in terms of the value of their investments and whether their savings will provide an income throughout their retirement.

Collective Defined Contribution (CDCs) are a new type of pension scheme that sees both the employer and employee contribute to a collective fund. Due to the scale of these funds and the pooling of risk for members, they can aim to provide a target pension income for life – similar to Defined Benefit (DB) schemes, sometimes called an average or final salary pension, but without the risk of significant unexpected bills for employers.

In the UK, Royal Mail have already launched a CDC scheme for their employees which has over 100,000 members who are offered a combination of a cash lump sum and an income for life in retirement.

Speaking at the LCP Conference in London today, the Minister for Pensions confirmed new regulations, set to be laid in the Autumn, will allow for multiple employer CDC schemes to be established, so that a range of unconnected employers can pool their employees’ pension pots into a collective fund, boosting returns for savers.

These pooled pension investments will mean higher incomes in retirement, and help individuals manage the uncertainty about how long that retirement will be. These measures will provide more options for savers and employers to choose between and are part of wider reforms to the pensions landscape, as part of our Plan for Change to put more money into people’s pockets.

Minister for Pensions, Torsten Bell said:

Success in the world of pensions isn’t just about getting people saving, it’s ensuring their savings work as hard as possible for them.

Making sure more employers and savers have the option of an innovative Collective Defined Contribution Pension scheme is an important part of making that happen.

Too often at present we are leaving individuals to face significant risks, about how their individual investments perform and how long their retirements last. Pooling some of those risks will drive higher incomes for pensioners and greater investments in productive assets across the economy.

The Minister also confirmed his desire to deliver decumulation only CDC schemes. These schemes would allow certain savers with DC schemes to access CDCs, offering retirees the chance to buy longer term, pooled retirement products that deliver stability for pensioners.

Modelling from the PPI suggests that single employer CDCs could deliver a significantly greater average replacement rate (47%) than currently delivered through annuities (40%) with even higher benefits seen for multi-employer CDCs as longevity risks are pooled. (69%).

And due to their size, CDCs can also be a more efficient vehicle for economic growth, with similar collective funds in Canada and Australia having proved an efficient way of supporting economic growth, investing in a wider range of sectors and assets.

CDC schemes can invest in illiquid and more productive investments over the long term, including in UK businesses and infrastructure projects, supporting the Government’s growth mission while providing employers with greater freedoms as well as reducing the risks of over or under spending in retirement by paying pensioners based on life expectancy.

These measures aim to drive economic growth and improve retirement outcomes for working people as part of the Plan for Change.

Today’s announcement will provide clarity to the industry ahead of the upcoming Pensions Investment Review and Pension Schemes Bill, and in time give working people and employers a new option when considering what pension scheme works best for them