Tag: Department for Work and Pensions

  • PRESS RELEASE : Tens of thousands more pensioners now in receipt of Pension Credit [November 2024]

    PRESS RELEASE : Tens of thousands more pensioners now in receipt of Pension Credit [November 2024]

    The press release issued by the Department for Work and Pensions on 28 November 2024.

    The Department for Work and Pensions (DWP) has released new statistics today [Thursday 28 November] on the amount of Pension Credit applications, as well as applications processed and those claims that were successful.

    Tens of thousands more pensioners now in receipt of Pension Credit

    • Since July, an extra 42,500 pensioners are now in receipt of Pension Credit and will receive the Winter Fuel Payment
    • Average number of Pension Credit claims a week have more than doubled since July
    • Comes as government continues to urge pensioners to check their eligibility and apply for pension credit

    New figures released today show an extra 42,500 households are now in receipt of Pension Credit, and therefore the Winter Fuel Payment, since the government launched its pension credit awareness campaign.

    The average weekly number of Pension Credit applications have more than doubled since the Chancellor’s announcement, with 150,000 more Pension Credit applications since July.

    It comes as the Department continues to urge pensioners to check their eligibility and apply for pension credit, with DWP deploying 500 extra staff to process applications as quickly as possible.

    It only takes 16 minutes on average to apply, and anyone who makes a successful claim for Pension Credit before 21 December will receive both backdated Pension Credit and a Winter Fuel Payment.

    Minister for Pensions Emma Reynolds MP said:

    We’re pleased to see more pensioners are now receiving Pension Credit and our staff are processing claims as quickly as possible.

    With the 21 December approaching, my message is clear: check if you are eligible for Pension Credit and if you are then apply, as it unlocks a range of benefits including the Winter Fuel Payment.

    Pension Credit acts as gateway benefit, so not only is it worth £3,900 per year on average, it means that people who are eligible may also qualify for help with housing costs such as rent and council tax as well as energy bills.

    The government will continue to stand behind vulnerable households this winter, including through the £150 Warm Home Discount for low-income households from October and by extending the Household Support Fund with £1 billion to ensure local authorities can support vulnerable people and families.

    Millions of pensioners are also set to benefit from an increase of up to £470 to the state pension in April and up to £1,900 more over the next five years.

  • PRESS RELEASE : Biggest employment reforms in a generation unveiled to Get Britain Working again [November 2024]

    PRESS RELEASE : Biggest employment reforms in a generation unveiled to Get Britain Working again [November 2024]

    The press release issued by the Department for Work and Pensions on 26 November 2024.

    Unveiling the biggest reforms to employment support for a generation, Work and Pensions Secretary, Liz Kendall has today (26 November) published the Get Britain Working White Paper, marking the Government’s first major intervention to achieve an ambitious 80 per cent employment rate.

    • White Paper on biggest reforms to employment support for a generation published today, backed by £240 million investment
    • Jobcentres transformed across Great Britain and every young person to have access to an apprenticeship, quality training and education opportunities
    • Mental health support to be expanded and extra capacity deployed to reduce waiting lists in areas with highest levels of inactivity
    • Measures announced in White Paper will fuel growth as Government rebuilds Britain in a decade of national renewal

    It comes as stark figures show almost one and a half million people are unemployed, over nine million people are inactive, a record 2.8 million people are out of work due to long-term sickness. Young people have also been left behind with one in eight young people not in education, employment or training, and nine million adults lack the essential skills they need to get on in work.

    The UK is also the only major economy that has seen its employment rate fall over the last five years, which has been largely driven by a significant rise in the number of people out of work due to long-term ill health with an outdated employment support system which is ill equipped to respond to this growing challenge.

    This White Paper sets out a fundamentally different approach to the employment support system – backed by £240 million of investment – to target and tackle the root causes of unemployment and inactivity, and better join up health skills and employment support based on the unique needs of local communities.

    That includes tackling ill health as the biggest driver of inactivity by fixing the NHS. This includes deploying extra staff to cut waiting lists in areas of high inactivity, expanding access to mental health support, as well as a greater focus on prevention to stop people becoming ill in the first place.

    The outdated Jobcentre system will also be transformed into a new national jobs and careers service, focused on people’s skills and careers instead of just monitoring and managing benefit claims. Mayors and councils will be empowered to join up local work, health and skills support in ways that meet the specific needs of their local areas.

    The government is also delivering a new Youth Guarantee so every young person has access to education or training to help them find a job and transforming the Apprenticeship Levy in England into a more flexible Growth and Skills Levy backed by £40 million to expand opportunities for young people to develop skills and get into work.

    An independent review will also be launched into how employers can be better supported to employ people with disabilities health conditions, and to keep them in the workplace, ensuring that more people can benefit from a sense of dignity, purpose and financial independence.

    Building on these reforms, the government will bring forward measures to overhaul the health and disability benefits system so it better supports people to enter and remain in work and to tackle the spiralling benefits bill. A consultation will be published in Spring as part of a commitment to put the views and voices of disabled people at the heart of any policy changes that directly affect them.

    The driving purpose behind this new approach is to enable everyone to have the opportunity of secure, rewarding and fulfilling work. Today’s White Paper delivers the fundamental reforms needed to fix the foundations, break down barriers to opportunity particularly for young people and improve living standards.

    Prime Minister Keir Starmer said:

    From the broken NHS, flatlining economy, and the millions of people left unemployed and trapped in an inactivity spiral – this government inherited a country that simply isn’t working. But today we’ve set out a plan to fix this. A plan that tackles the biggest drivers of unemployment and inactivity and gives young people their future back through real, meaningful change instead of empty rhetoric and sticking plaster politics.

    We’re overhauling jobcentres to make them fit for the modern age. We’re giving young people the skills and opportunities they need to prepare them for the jobs of the future. We’re fixing the NHS so people get the treatment and mental health support they desperately need to be able to get back to work. We’re working with businesses and employers to better support people with disabilities and health conditions to stay and progress in work, and it doesn’t stop there.

    Our reforms put an end to the culture of blaming and shaming people who for too long haven’t been getting the support they need to get back to work. Helping people into decent, well-paid jobs and giving our children and young people the best start in life – that’s our plan to put more money in people’s pockets, unlock growth and make people better off.

    The Secretary of State, Liz Kendall MP said:

    To get Britain growing, we need to get Britain working again. Our reforms will break down barriers to opportunity, help people to get into work and on at work, allow local leaders to boost jobs and growth, and give our children and young people the best opportunities to get on in life.

    The Get Britain Working White Paper shows that this Government stands unashamedly for work. We will make sure everyone, regardless of their background, age, ethnicity, health, disability or postcode can benefit from the dignity and purpose work can bring.

    We can build a healthier, wealthier nation – driving up employment and opportunity, skills and productivity – while driving down the benefit bill.

    The employment reforms will be underlined by the principle that people who can work, will be expected to work with clear consequences if they don’t properly engage with the government’s employment support offer. The fundamental principles of reform set out in the white paper include:

    Fixing the NHS and Tackling economic inactivity caused by ill health

    A quarter of all people aged 16-64 have a long-term health condition that limits their day-to-day activities with disabled people nearly three times more likely (than non-disabled people) to be economically inactive. Given the strong evidence on the health benefits of good work, extra capacity will be deployed to reduce waiting lists in 20 NHS Trusts across England with the highest levels of economic inactivity.

    The government is providing an additional £22.6 billion of resource spending in 2025-26 for the Department of Health and Social Care. This will support the NHS in England to deliver an additional 40,000 elective appointments a week and make progress towards the commitment that patients should expect to wait no longer than 18 weeks from referral to consultant-led treatment.

    The Government will deliver an additional 8,500 new mental health staff and also expand access to Individual Placement and Support (IPS) for severe mental illness, reaching 140,000 more people by 2028/29. On top of this, the Government will take a prevention first approach through an expansion of Talking Therapies, a landmark Tobacco and Vapes Bill and a range of steps to tackle obesity.

    The White Paper sets out how the Government will invest £125 million in eight areas across England and Wales, to mobilise local work, health and skills support – so everyone who wants to work can get the joined-up support they need. This includes funding in three of the trailblazer areas for NHS accelerators to stop people falling out of work completely due to ill health. The three areas will be the North East, South Yorkshire and West Yorkshire.

    These eight trailblazers will be at the forefront of designing how locally joined-up support will work in practice across England and Wales.

    Creating a new National Jobs and Careers Service to help people into work

    Jobcentres across Great Britain will be overhauled and in England will be brought together with the National Careers Service. This will be kickstarted by £55million of investment, to help people get into work, stay in work, build skills and progress in their career.

    A radically improved digital offer will be trialled to bring Jobcentres into the 21st century, with the DWP using the latest technologies and AI to provide up-to date information on jobs, skills and other support and to free up Work Coach time.

    Staff at Jobcentres will have more flexibility to offer a more personalised service to jobseekers – moving away from the ‘tick box’ culture. New coaching academies will also be set up to upskill jobcentre staff to better support people into work.

    Backed by £55 million, testing and digital design will be carried out into next year to understand how best to bring DWP services online and make them easier to access to deliver tailored support, including CV advice and job adverts. This builds on work already underway to give work coaches AI tools so they can find the right information for their customers faster.

    Delivering a Youth Guarantee to support young people into work

    Every 18-to-21-year old in England will have access to an apprenticeship, quality training and education opportunities or help to find a job under a new ‘Youth Guarantee’.

    The White Paper unveils new partnerships with some of Britain’s most iconic cultural and sporting organisations, including the Premier League, Channel 4 and the Royal Shakespeare Company, who will offer work or learning opportunities to inspire and upskill the next generation.

    Eight youth “trailblazer” areas will be set up across the country, including in Liverpool City Region , Tees Valley and the East Midlands with £45 million funding to identify those most at risk of falling out of education or employment and match them to opportunities for education, training or work.

    To further expand opportunities for young people through the Youth Guarantee, the Government will transform the Apprenticeship Levy in England into a more flexible Growth and Skills Levy by investing £40 million. This will help to deliver new foundation and shorter apprenticeships in key sectors.

    These new opportunities will be the responsibility of young people to take them up. In return for these new opportunities, young people will be expected to engage with training or work that’s on offer so no young person is left behind.

    An advisory panel will also be set up to put young people at the heart of decision making. There will also be a disability panel set up to ensure the voices of disabled people are at the core of reforms.

    This change will deliver greater flexibility for employers and learners, aligned to the Governments Industrial Strategy, while rebalancing the offer so that more apprenticeships are focused on young people.

    Empowering local mayors to shape an effective work, health and skills offer for local people

    Up to £15 million will be made available to areas across England not getting a trailblazer so they can develop their own Get Britain Working Plan focused on reducing economic inactivity. Plans will be developed by mayoral authorities where they exist – aligned with their Local Growth Plans – and elsewhere by Local Authorities.

    By giving local areas the power and money to design their own Get Britain Working plans, we will deliver real employment opportunities for people who know their communities best. Up to £15 million will be made available to support local areas across England to develop their own plans and to support the trailblazers.

    The government will also provide £115 million in funding next year to enable local areas across England and Wales to deliver a new supported employment programme called Connect to Work scheme.

    Connect to Work provides voluntary employment offers to people with disabilities, health conditions or complex barriers to work and will support up to 100,000 people a year at full roll out as the first tranche of money from a new Get Britain Working Fund.

    Launching an independent review into the role of UK employers in promoting health and inclusive workplaces

    Poor workforce health imposes large costs on employers, especially from sickness absence and turnover, while also making it harder for them to find the talent they need to grow and thrive.  There is also compelling evidence about the value of helping people with a health condition or disability to stay in work, including to prevent them becoming economically inactive.

    In response, the review will consider what more can be done to enable employers to increase the recruitment and retention of disabled people and those with a health condition and undertake early intervention for sickness absence and increase returns to work.

    The review will run until next summer and involve wide-ranging engagement with employers, employees, trade unions, health experts, and disabled people and those with health conditions.

    It will complement the Government’s Employment Right’s Bill, which will tackle job insecurity and expand flexible working.

    Adele Ablett, who has worked at the DWP for 38 years and now manages five Jobcentres and 71 Work Coaches across Cheshire said:

    It’s a real privilege to support people at vulnerable times in their lives and help them find the right pathway for them – whether that be through training or work. With more customers coming through our doors with complex health needs and mental health challenges, the demand on our service has never been greater.

    The changes in the Get Britain Working White Paper will help us to amplify this support to reach more people and change more lives. It will give us more flexibility to build strong relationships with employers and organisations, so everyone sees us the way I do – as the go-to place for businesses to recruit and as a public service passionate about people and possibilities.

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

    Building on our long-term investment into communities, the Premier League will contribute to the Youth Guarantee by using the power of football to engage young people who need the greatest support.

    Our programmes delivered by football clubs across the country play a vital role in providing inspiring opportunities and pathways to success to help the next generation fulfil their potential. We will be working with the Government to continue this important work and help extend the reach of the Youth Guarantee initiative into communities and to those who need it most.

    Secretary of State Lisa Nandy said:

    We’re committed to a bold new approach to shaping policy that values the aspirations and experiences of young people to give them every chance of success in life.

    The introduction of a Youth Guarantee, along with the co-production of a new National Youth Strategy, will help put young people back in charge of their own destiny and unlock opportunities for all young people, regardless of their postcode.

    Darren Burns, Director of Diversity & Inclusion of Timpson Group said:

    At Timpson we support the plan to get more people back into work, by helping them to find exciting and rewarding careers.

    Many of our existing colleagues have come to us through the Jobcentre and this is still the case today. We regularly work in close partnership with local job centres to find amazing colleagues for our business and the support we receive is invaluable.

    Mayor of Greater Manchester Andy Burnham said:

    It’s great to see the Government get serious about transforming the old tick-box approach to job support into one that tackles the root causes of unemployment and poor health and sets people up to succeed.

    The best way to do that is to join up services in the places where people live, and offer them the kind of positive, personalised support that grows confidence and looks at complex issues in the round.

    The Secretary of State has seen for herself the difference that our Live Well approach is already making in Greater Manchester, where our brilliant community partners are building trust and helping break down barriers to work and wellbeing.

    Through our new trailblazer, and with Government backing, we can build on these strong foundations and help more people find the sense of purpose that comes with good work. That is how we will help everyone to achieve their potential, ease pressure on our public services, and deliver growth in our city-region and across the country.

    Mayor of South Yorkshire Oliver Coppard said:

    In South Yorkshire, work, health and skills barriers have prevented people here making the most of their talents for far too long.  That’s why we’re determined to address those barriers through our pioneering Pathways to Work Commission.  The Commission’s report set out recommendations that could unlock the full potential of our communities and I’m really pleased that the Government has backed our pioneering approach.

    In South Yorkshire we have led the way in highlighting the importance of bringing work, health and skills together as we support people back into employment.  We now have a Government that understands the importance of devolution and joined-up working, and together we are undertaking the biggest reforms to how we support people into work for a generation.

    Our trailblazer will help us to create a bigger and better economy in South Yorkshire that helps people to stay near and go far.

    Mayor of the Liverpool City Region Steve Rotheram said:

    Devolution is already making a huge difference to people’s lives in the Liverpool City Region. We’ve helped thousands of people into work, created opportunities for young people through apprenticeships, and supported adults to gain the skills they need to thrive. This shows what can be achieved when decisions are made closer to the people they affect.

    That’s why I welcome the government’s plans to give Mayors more of the tools and resources we need to break down the barriers keeping people out of work. Whether it’s tackling skills shortages, improving childcare, or supporting people with health conditions, this is a chance to make a real difference.

    I look forward to working with the government to make these bold ambitions a reality for the people in our communities.

    Stephen Evans, Chief Executive of Learning and Work Institute said:

    The Government’s ambition for an 80% employment rate is the right one and our research shows it will benefit people, employers and the economy. More than three million people who are out of work want a job, but too often don’t get the right support.

    This White Paper starts us on the path to change that. I’m particularly pleased to see the Youth Guarantee, which we have long called for. There can be few bigger priorities than ensuring young people get the education and careers they need.

    To tackle the shockingly wide disability employment rate gap and opportunity gaps across the country, we need high-quality, joined-up, locally delivered work, skills and health support. It will take time, but the prize is great.

    The White Paper is part of wider Government action to spread opportunity and fix the foundations of our economy. This includes launching Skills England to create a shared national plan to boost the nation’s skills, creating more good jobs through our modern Industrial Strategy, and strengthening employment rights through our Plan to Make Work Pay.

    Secretary of State for Scotland Ian Murray said:

    Breaking down barriers to opportunity is the key to our plan to Get Britain Working. Our radical overhaul of Jobcentres will bring improvements to every part of the UK, creating a service more fit for modern life, helping people into decent, well-paid jobs.

    A joined-up approach to tackling inactivity is crucial, and we want to work with the Scottish Government to ensure all services are considered – including better healthcare, improved childcare, and access to meaningful skills training.

    Our Employment Rights Bill has brought some of the biggest improvements for workers in a generation with an end to zero-hours contracts and increased job security. And our Tobacco and Vapes Bill, also introduced today, will curb many of the health issues affecting work connected with smoking. Together we can Get Britain Working and on the path to prosperity and growth.

  • PRESS RELEASE : £15 million funding boost to Help to Claim as Government ramps up move to Universal Credit [November 2024]

    PRESS RELEASE : £15 million funding boost to Help to Claim as Government ramps up move to Universal Credit [November 2024]

    The press release issued by the Department for Work and Pensions on 12 November 2024.

    A £15 million funding boost to the Help to Claim scheme will support thousands of people moving from Employment and Support Allowance (ESA) to Universal Credit, the Department for Work and Pensions has announced.

    • £15 million funding boost to support Government’s acceleration of Move to Universal Credit programme, before it ends in March 2026.
    • 943,343 households contacted between July 2022 and September 2024, with more than 60,000 migration notices expected to be issued each month from February 2025 to the end of the year.
    • Minister for Social Security and Disability urges people receiving migration notices to “act without delay.”

    The cash injection will support the free and independent advice delivered by Citizens Advice, in partnership with Citizens Advice Scotland, which has supported over one million people making a claim to Universal Credit since the programme launched in 2019.

    The additional funding follows an announcement at Budget bringing forward benefit reform with more than 800,000 people on the old ESA benefit moving to Universal Credit by March 2026 instead of 2028.

    The acceleration will bring more people into a modern benefit regime, continuing to ensure they are supported to look for and move into work, and comes ahead of the Get Britain Working White Paper – set to be unveiled later this Autumn.

    Minister for Social Security and Disability, Sir Stephen Timms MP, said:

    This funding boost will support many people as they make the move from old benefits to Universal Credit – ensuring customers feel confident and informed throughout the application process.

    I want to encourage anyone receiving a migration notice over the coming months to act without delay to secure quick access to benefit entitlement.

    The biggest reforms to employment support for a generation will also ensure more people get the help they need to get into work and on at work, by overhauling jobcentres, tackling inactivity with local work, health and skills plans, and delivering a Youth Guarantee.

    Help to Claim’s trained advisers provide help and support to anyone making a new Universal Credit claim, including people moving from a legacy benefit, and offer support up to their first correct payment. The advisers offer guidance on how Universal Credit works, how much you will get, collecting relevant evidence, and helping people complete the application.

    Dame Clare Moriarty, Chief Executive of Citizens Advice, said:

    Over the last five years our specially trained advisers have supported thousands of people across Britain to navigate the move from old benefits to Universal Credit.

    We make our service as accessible as possible, offering phone, chat and British Sign Language options, so we’re there for people as they move over.

    This funding boost is credit to the vital support our advisers provide and means we’ll be able to help even more people make their first application.

    The £240 million for Get Britain Working White Paper includes funding for the rollout of “trailblazers” in local areas. These trailblazers will focus on reaching people who are not normally in touch with the system, while ensuring work and skills support is better integrated with the health service, so people get the joined-up health and employment support they need to get back into work and stay in work.

    The White Paper will develop:

    • A new jobs and careers service to help get more people into work, and get on in their work, by linking jobseekers with employers, with an increased focus on skills and careers;
    • Joined-up work, health and skills plans to tackle economic inactivity and boost employment, led by Mayors and local areas;
    • A new Youth Guarantee so that every young person is given the opportunity to earn or learn.

    The timeline for migration to Universal Credit can be found below:

    Your current benefit: When you may get your letter
    Tax credits, only if you are below State Pension age From March 2023
    Tax credits with Housing Benefit From April 2024
    Income Support, Income Support only, Income Support with tax credits, Income Support with Housing Benefit, Income Support with Housing Benefit and tax credits From April 2024
    Housing Benefits only From June 2024
    Income-related Employment Support Allowance (ESA), with Child Tax Credits From July 2024
    Tax credits (if you are of State Pension age and are asked to move to Pension Credit) From July 2024
    Tax credits (if you are of State Pension age and are asked to move to Universal Credit) From September 2024
    Income-based Jobseekers Allowance (JSA) From September 2024
    Employment and Support Allowance (ESA) only From September 2024
    Employment and Support Allowance (ESA) with Housing Benefit From September 2024
  • PRESS RELEASE : Millions of workers to benefit from modernised new pensions system [October 2024]

    PRESS RELEASE : Millions of workers to benefit from modernised new pensions system [October 2024]

    The press release issued by the Department for Work and Pensions on 8 October 2024.

    Millions of workers stand to benefit from greater financial security in later life following a consultation launched today.

    • Government unveils plans to modernise pensions and give workers greater security in retirement
    • Consultation launched to extend Collective Defined Contribution (CDC) pension provision, helping support the Government’s growth mission
    • Regulations form part of wider plans for future of workplace pensions to help increase returns for more people and ensuring greater value for money

    Following the Chancellor’s recent visit to Canada to see how retirement schemes successfully pool contributions from employees into larger funds that are managed by investors, the UK government is fast-tracking plans to modernise its own pensions system by broadening access to Collective Defined Contribution schemes.

    Collective Defined Contribution (CDC) pension schemes, first introduced to the UK in 2022, have the potential to deliver reliable returns for savers, while ensuring more predictable costs for employers.

    Today, industry experts, savers and pension providers can have their say on new proposals to extend the current offering of CDC pension schemes to more employers, delivering better value for money for future pensioners and unlocking huge investment potential.

    In Canada, the funds from pooled pension contributions are invested into a wider range of assets like infrastructure, startups and private equity – which can benefit the wider economy and boost returns.

    Extending CDCs could similarly allow for greater return on investment for those saving into the schemes and allow for larger investment in the UK – supporting the Government’s growth mission to boost the economy.

    Minister for Pensions, Emma Reynolds, said:

    We are seizing this exciting opportunity to modernise our pensions market to deliver better outcomes for millions of workers.

    People work hard to put money aside for their pension with every pay cheque. This significant innovation will offer a more predictable income and greater finance security for future pensioners.

    Currently only single or connected employers can set up CDC schemes, with the first scheme launched by the Royal Mail yesterday.

    Building on the significant appetite from industry for extending CDC provision, the Government is now seeking to broaden access further by allowing unconnected multiple employer schemes – making this pension model more accessible to a wider range of businesses and employees.

    This work builds on plans to review our pensions landscape as well as our new Pension Schemes Bill which could boost pension pots – with further consolidation and broader investment strategies to possibly deliver higher returns for pensioners.

    The consultation seeks views from employers, industry experts, pension providers and the public on draft regulations and their potential impact.

    The consultation will run for six weeks – opening today and running until 19 November 2024.

    Supportive statements:

    John Ball, Chief Executive of the Church of England Pensions Board said:

    We welcome the publication today of draft regulations that support the creation of multi-employer CDC pension schemes. We look forward to scrutinising the detail, and to seeing how in due course, such an arrangement might transform retirement plans for those who work for the Church.

    Andy O’Regan, Client & Strategic Partnerships Director at TPT Retirement Solutions, said:

    The introduction of multi-employer whole-of-life CDC scheme regulations will be a landmark moment for UK pensions. Previously, CDC schemes had only been viable for the largest employers. These new rules will make it possible for all employers to provide their staff with a CDC pension scheme. We’ve already been speaking to around 200 employers who have expressed interest in how a CDC scheme could be delivered for their employees.

    Multi-employer CDC schemes have the potential to bring a host of advantages to pension savers when compared to traditional DC schemes. CDC schemes pool longevity and investment risk. This means that, compared to DC, they are expected to achieve higher benefits as well as provide members with an income for life. An added benefit is the removal of some of the complex financial decisions pension savers are required to make under DCCDC schemes may also be more likely to invest in productive assets which could encourage economic growth and generate higher long-term returns for scheme members.

    This consultation will open the door to CDC for all employers regardless of size, with the first multi-employer CDC scheme potentially launching within a couple of years. We believe many employers, pension savers, and the wider economy could benefit from the introduction of these schemes. We look forward to responding to this consultation in due course.

  • PRESS RELEASE : Six months to move to Universal Credit for Tax Credit customers [October 2024]

    PRESS RELEASE : Six months to move to Universal Credit for Tax Credit customers [October 2024]

    The press release issued by the Department for Work and Pensions on 7 October 2024.

    DWP is urging Tax Credit customers to respond to their Universal Credit migration notices so they continue to receive benefits.

    • Tax credits are closing in April 2025 and customers must respond to their migration notices to continue receiving benefits.
    • Those affected have three months from the date on their migration notice to apply for Universal Credit.
    • Customers do not need to take action until they receive their migration notice letter from the Department from Work and Pensions.

    DWP is urging Tax Credit customers to respond to their Universal Credit migration notices so they continue to receive benefits.

    Anyone affected will be sent a ‘migration notice’ by DWP to apply for Universal Credit as the department continues to transition over a million claimants on legacy benefits to Universal Credit.

    Legacy benefits – such as Tax Credits, Housing Benefit, Income Support, Jobseeker’s Allowance and Income-Related Employment and Support Allowance – are being phased out to bring government financial support into one place and, importantly, the majority of people will not be worse off under Universal Credit.

    Anyone who needs support is encouraged to contact DWP for a smooth transition before their deadline. More information can be found at: Move to Universal Credit if you get a Migration Notice letter – GOV.UK (www.gov.uk)

    Sir Stephen Timms, Minister for Social Security and Disability, said:

    Having three months to make a move may feel like a long time but life can often distract you elsewhere. For the best chance to secure your benefit entitlement don’t delay with responding to your migration notice.

    We are committed to ensuring a smooth transition and customers will have the full support of DWP staff to help manage this change.

    The timeline for migration can be found below:

    Your current benefit: When you may get your letter:
    Tax credits, only if you are below State Pension age From March 2023
    Tax credits with Housing Benefit From April 2024
    Income Support (Income Support only, Income Support with tax credits, Income Support with Housing Benefit, Income Support with Housing Benefit and tax credits) From April 2024
    Housing Benefits only From June 2024
    Income-related Employment Support Allowance (ESA), with Child Tax Credits From July 2024
    Tax credits (if you are of State Pension age and are asked to move to Pension Credit) From July 2024
    Tax credits (if you are of State Pension age and are asked to move to Universal Credit) From September 2024
    Income-based Jobseekers Allowance (JSA) From September 2024
    Employment and Support Allowance (ESA) only From September 2024
    Employment and Support Allowance (ESA) with Housing Benefit From September 2024
  • PRESS RELEASE : New laws to be introduced to crack down on fraud [September 2024]

    PRESS RELEASE : New laws to be introduced to crack down on fraud [September 2024]

    The press release issued by the Department for Work and Pensions on 24 September 2024.

    The government will bring forward a new Fraud, Error and Debt Bill in this parliamentary session to crack down on fraud in the social security system.

    • Fraud, Error and Debt Bill brought forward to tackle fraud in social security system
    • New laws to give DWP more powers to catch fraudsters faster and prevent customers from getting into debt sooner
    • Bill to include measures to protect vulnerable customers and ensure support goes to those who need it most

    The Bill is expected to save £1.6 billion over the next five years and will extend and modernise DWP’s powers to stop fraud in its tracks, recover money lost to fraud and protect vulnerable customers from racking up debt.

    Fraud and error in the social security system currently costs the taxpayer almost £10 billion a year and since the pandemic a total of £35 billion of taxpayers’ money has been taken away from those who need it most.

    The nature of fraud has also become more sophisticated, meaning without new legal powers, DWP cannot properly keep pace with the changing nature of fraud to tackle it robustly enough.

    This legislation will give DWP powers to:

    • Better investigate suspected fraud and new powers of search and seizure so DWP can take greater control investigations into criminal gangs defrauding the taxpayer.
    • Allow DWP to recover debts from individuals who can pay money back but have avoided doing so, bringing greater fairness to debt recoveries.
    • Require banks and financial institutions to share data that may show indications of potential benefit overpayments

    The Bill will also include safeguarding measures to protect vulnerable customers. Staff will be trained to the highest standards on the appropriate use of any new powers, and we will introduce new oversight and reporting mechanisms, to monitor these new powers. DWP will not have access to people’s bank accounts and will not share their personal information with third parties.

    We will also bring forward a Code of Practice which will be consulted on during the passage of the Bill to provide further assurance on the safe use of the powers.

    This legislation delivers on the government’s manifesto commitment to safeguard taxpayers’ money and demonstrates the government’s commitment to not tolerate fraud, error or waste anywhere in public services, including the social security system.

    Further details on the scope of the legislation will be set out when the Bill is introduced.

  • PRESS RELEASE : Ministers hear from local leaders on impact of Child Poverty across the country [September 2024]

    PRESS RELEASE : Ministers hear from local leaders on impact of Child Poverty across the country [September 2024]

    The press release issued by the Department for Work and Pensions on 19 September 2024.

    Local leaders laid bare the stark challenges that must be overcome to tackle child poverty in their communities when they met with the new Child Poverty Taskforce today.

    • Regional leaders from across the country join cross-government effort to tackle child poverty
    • Ministers hear from North East Mayor’s bold and wide-ranging plans to ensure every child has the best start in life
    • Meeting kicks off series of UK-wide engagement events for people to share their experiences with the Taskforce

    Co-chairs Liz Kendall, Work & Pensions Secretary, and Bridget Phillipson, the Education Secretary, heard powerful testimony from representatives from some of the worst affected areas in the country, including the North East Mayor Kim McGuinness, to ensure regional experiences are at the heart of the Taskforce’s work.

    With almost one in three children living in poverty in the North East, the Taskforce learnt of wide-ranging and bold measures being rolled out in the region – including grants to help parents with childcare and welfare advisors in schools that have so far saved £2.3 million for 730 vulnerable families.

    Mayor McGuinness shared valuable insight from her North East Child Poverty Reduction Unit – the first of its kind in the country – as ministers consider every available lever across government to give children the best start in life.

    The meeting was also made up of the Chair of the Local Government Association Louise Gittins, President of the Association of Directors of Children’s Services Andy Smith and Fred Rattley from the Church of England and Thrive Together Birmingham.

    They spoke of how the group can best work with Mayors, local authorities and other bodies to develop innovative solutions to tackle child poverty, as the government breaks down barriers to opportunity for every child.

    Work and Pensions Secretary Liz Kendall MP said:

    This government will not rest until we have driven down child poverty in every part of our country, using all the levers at our disposal. Local leaders are at the front line in tackling this issue, with bold ideas and new approaches.

    We are determined to learn from their experience about what works in delivering the changes our country needs. Together, we will confront the scar of child poverty and give every child the best start in life.

    Education Secretary Bridget Phillipson MP said:

    Poverty constrains every part of a child’s life and blights our communities. Tackling it is crucial if we are to break down the barriers to opportunity and improve the life chances of every child.

    This task cannot be achieved alone and I’m grateful to local leaders on the frontline for their invaluable insight on the challenges families are facing, and the innovative approaches they’re using to tackle them.

    North East Mayor, Kim McGuinness, commented:

    We want to create real opportunity and prosperity for families across the North East and the country – tackling child poverty is the most important thing we can do to deliver that ambition. In the North East, we’ve established the country’s first regional Child Poverty Unit, so we can work with the government’s Taskforce to address the root causes of poverty.

    Mayors know their communities and the challenges we face on the ground, and we all believe child poverty is unacceptable and has no place in our society. That’s why it’s so important and welcome that we are working with the Government’s Taskforce to ensure we have the powers at our disposal to eliminate poverty from our society, and break down the barriers which hold families back.

    This meeting marked the first of a series of engagement sessions with key organisations, charities and experts that will help to shape the Taskforce’s ambitious Strategy, to be set out in the Spring.

    The vital work of the Taskforce comes alongside our commitments to roll out free breakfast clubs at all primary schools, create 3,000 additional nurseries, as well as deliver our plan to make work pay to turn the minimum wage into a real living wage.

    Councillor Louise Gittins, Chair of the Local Government Association, said:

    No child should ever grow up in poverty. Councils play an essential role in supporting the most vulnerable in their communities and are central to tackling the underlying causes and consequences of poverty.

    We are pleased the taskforce is taking an integrated, holistic approach to the role of key services including housing, employment, health and social care, which needs to be considered alongside the vital, community-based services that provide targeted advice and support.

    We look forward to working with the new taskforce and ensuring every child has the best start in life.

    Further Information

    • The North East Combined Authority has drawn upon the expertise of businesses, charities and local authorities to support families through its Child Poverty Prevention Programme.
    • While providing funding for after school clubs and working with employers to better support their employees, the scheme has also delivered ‘baby boxes’, consisting of essential items, to over 350 families to give children the best start in life from day one.
  • PRESS RELEASE : Lockdown generation consigned to the ‘scrapheap’ will get life-changing support into work, vows Minister [September 2024]

    PRESS RELEASE : Lockdown generation consigned to the ‘scrapheap’ will get life-changing support into work, vows Minister [September 2024]

    The press release issued by the Department for Work and Pensions on 18 September 2024.

    The ‘lockdown generation’ who’ve been consigned to the ‘scrapheap’ will get life-changing support through major reforms to get Britain working again, the Minister for Employment has vowed in her first speech since taking office.

    • Record number of young people out of work due to long-term sickness – up 29% since the pandemic – and nearly 900,000 not in education, work, or training.
    • We must move away from the obsession with welfare and boost employment with fundamental change, says Minister for Employment.
    • Get Britain Working White Paper will transform workplaces and help drive government’s national mission for growth.

    These changes will form a key part of the government’s mission to kickstart growth and spread prosperity and opportunity across the country, with the Prime Minister stating he wants the UK to have the highest sustained growth in the G7.

    Speaking at the launch of a report by the Institute for Employment Studies, Alison McGovern MP pledged to ‘turn the page’ on years of failure, saying there has been too much focus on welfare and social security and not enough on helping people into work – leaving a generation of young people abandoned in a broken labour market.

    She said the employment challenges the country faces now are similar to the mass unemployment of the past – with 2.8 million people out of work sick and over nine million people economically inactive – neither in work nor looking for work.

    Nearly 900,000 young people are not in education, employment, or training – up 74,000 on the year – while latest figures from the ONS show around 600,000 16-24-year-olds are unemployed, 63,000 more than pre pandemic.

    The sickness crisis amongst 16-24-year-olds has also worsened with a 29% increase in the number who are inactive and long-term sick – up from 184,000 before the pandemic to 237,000 in the most recent data, a record high.

    Minister for Employment, Alison McGovern said:

    The lockdown generation has been failed – consigned to the scrapheap because they have been denied the support and opportunities to find work, get into work, and get on at work.

    It’s truly shocking that we have businesses crying out for staff at the same time there are queues round the block for foodbanks – a dire situation that we’re determined to put right.

    The obsession with benefits management must end if we’re to bring about the change the country is crying out for, and that’s why we have a plan to get Britain working again.

    We’re going to set-up a Youth Guarantee to transform the lives of young people by providing work, apprenticeships and skills training to everyone who needs it.

    That is how we will deliver on our mission for growth across the country and ensure future generations are never abandoned by their government again.

    The IES report describes the UK’s employment service as ‘the least well-used in Europe’, arguing it often acts more as an extension of the benefit system. The organisation has called for a ‘clearer separation between employment support and social security delivery’.

    This comes as Minister McGovern set out plans to make a fundamental shift to active labour market policies that break down barriers to opportunity, tackle the root causes of inactivity and help deliver the Government’s ambition to reach an 80% employment rate.

    The government has taken immediate action to transform Britain’s workforce through Skills England, while plans to cut NHS waiting times will get Britain back to health and back to work.

    A Get Britain Working Again White Paper, to be set out in the Autumn, will outline plans to overhaul jobcentres, deliver a youth guarantee, and devolve powers to Mayors and local areas to deliver work, health, and skills plans.

    Additional Information

  • PRESS RELEASE : Government action to tackle the ‘greatest employment challenge for a generation’ [September 2024]

    PRESS RELEASE : Government action to tackle the ‘greatest employment challenge for a generation’ [September 2024]

    The press release issued by the Department for Work and Pensions on 10 September 2024.

    Spiralling economic inactivity to be addressed as new Labour Market Advisory Board launched to advise government on getting Britain working again.

    • Hundreds of thousands more people out of work due to long-term sickness since the pandemic.
    • Experts on new board will help to shape government work ahead of groundbreaking White Paper this autumn.

    Experts advising government on how to tackle the ‘greatest employment challenge for a generation’ met with the Work and Pensions Secretary for the first time on Monday [9 September].

    The new Labour Market Advisory Board – appointed by Work and Pensions Secretary Liz Kendall MP – is made up of labour market experts from across business, industrial relations and academia.

    At its first meeting, members offered new approaches to shape government work on economic inactivity, tackling the root causes for people remaining out of work such as poor physical and mental health, and how the group can help the government reach its ambition of an 80 per cent employment rate.

    The Board will develop new ideas and initiatives for the Work and Pensions Secretary to consider as she sets about bringing down the levels of economic inactivity, with the UK being the only G7 country whose employment and inactivity rates haven’t returned to pre-pandemic levels, part of the dire inheritance left by the previous government.

    Work and Pensions Secretary, Liz Kendall MP, said:

    Spiralling inactivity is the greatest employment challenge for a generation, with a near record 2.8 million people out of work due to long-term sickness.

    Addressing these challenges will take time, but we’re going to fix the foundations of the economy and tackle economic inactivity.

    The board’s knowledge, expertise and insight will help us to rebuild Britain as we deliver our growth mission, drive up opportunity and make every part of the country better off.

    As the Health Secretary Wes Streeting has previously set out, cutting NHS waiting lists will get Britain back to health and back to work. and the Board’s first meeting will examine the impact of ill-health on inactivity and how the Government can support more people into good work.

    Paul Gregg, Chair of the Labour Market Advisory Board said:

    Having studied the UK’s labour market across several decades, it is clear that the current labour market faces a deep-seated set of challenges.

    We have seen a sharp increase in economic inactivity and long-term sickness, most notably in our young people post-pandemic. Further, real wage growth has been heavily supressed for 15 years hitting living standards and government tax revenues. Reversing these trends will be key to ensuring the long-term prosperity of the UK’s labour market.

    I look forward to working with members of the board and the Secretary of State to support her vision for growth and examining positive solutions to address inactivity and harness the true potential of the UK’s labour market.

    The Secretary of State is also expected to outline her plans to devolve power to local areas so they can tackle inactivity with bespoke work, health, and skills plans, which are expected in a White Paper in the autumn.

    It will also include plans for a new youth guarantee for 18-21-year-olds, and the overhauling of jobcentres by merging them with the National Careers service.

    Board Members

    Member Organisation/ Institution
    Paul Gregg (Chair) Former Director of the Centre for Analysis of Social Policy at the University of Bath
    Steven Machin Professor of Economics and Director of the Centre for Economic Performance, LSE
    Lindsey Macmillian Professor of Economics, Centre for Education Policy and Equalising Opportunities
    Gavin Kelly Executive Chair, Resolution Foundation
    Anita Charlesworth Director of Research and Economics, Health Foundation
    Stuart McIntyre Professor of Economics, University of Strathclyde
    Ruby McGregor Smith House of Lords
    Nicola Smith Head of Rights, International, Social and Economics Department TUC

    Additional Information

    Inactivity levels and rates across the UK & regions as of 13/08/2024:

    Area Level (000s) Rate
    United Kingdom 9,410 22.0%
    Great Britain 9,090 22.0%
    England 7,756 21.6%
    North East 454 27.4%
    North West 1,112 23.6%
    Yorkshire and The Humber 862 25.0%
    East Midlands 616 20.1%
    West Midlands 875 23.5%
    East 851 21.7%
    London 1,263 20.7%
    South East 1,080 18.7%
    Wales 541 28.3%
    Scotland 793 23.1%
    Northern Ireland 319 27.1%
  • PRESS RELEASE : Government support extended to help struggling households with bills and essential costs over winter [September 2024]

    PRESS RELEASE : Government support extended to help struggling households with bills and essential costs over winter [September 2024]

    The press release issued by the Department for Work and Pensions on 2 September 2024.

    Millions of vulnerable people to receive help this winter as the Work and Pensions Secretary extends the Household Support Fund.

    • £421 million boost for local authorities in England to help people most in need with the cost of their energy, food and water, with £79 million for devolved administrations
    • Immediate support comes alongside the government’s growth mission to rebuild Britain and make every part of the country better off

    Vulnerable households will receive support for the cost of essentials this winter, as the Work and Pensions Secretary Liz Kendall announces an extension to the Household Support Fund for the next six months.

    The £421m extension gives certainty to Local Authorities across England over the winter months – up until April 2025 – as they work to help those struggling with the cost of energy, food, and water.

    Pensioners and others struggling to heat their homes or afford other essential items over the colder months should contact their local council to see what support may be available to them. Details on the latest scheme for local authorities and councils will be communicated in the coming weeks.

    Many councils also use the Fund beyond emergency support, including working with local charities and community groups to provide residents with key appliances, school uniforms, cookery classes, and items to improve energy efficiency in the home.

    An estimated £79 million will also be given to Devolved Administrations via the Barnett formula as the government leaves no stone unturned in ensuring every person – in every part of the country – has the foundations they need to be financially secure. Administrations in Scotland, Wales and Northern Ireland can choose how to allocate this additional funding, as the UK government continues to work closely with them to help support vulnerable people.

    Given the dire economic inheritance, we had to take difficult decisions to put our public finances on a sustainable footing as we tackle the £22 billion black hole.

    1.3 million more people have fallen into poverty since 2010/11, with living standards falling by the largest year-on-year drop since records began in 2022/23. For over a decade people have also been denied the security and dignity that good work affords with more than a near record 2.8 million people out of work due to sickness.

    As we continue our work to deliver growth, make work pay and develop our child poverty strategy in the long term, the extension of the Fund prevents councils and vulnerable households experiencing an immediate cliff edge of support with a tough winter ahead.

    Chancellor of the Exchequer, Rachel Reeves MP, said:

    The £22 billion blackhole inherited from the previous governments means we have to take tough decisions to fix the foundations of our economy.

    But extending the Household Support Fund is the right thing to do – provide targeted support for those who need it most as we head into the winter months.

    Secretary of State for Work and Pensions, Liz Kendall MP, said:

    We are extending the Household Support Fund for the next six months because it is a lifeline for people who are struggling with the cost of living.

    The dire inheritance we face means more people are living in poverty now than 14 years ago – and this Government is taking immediate action to prevent a cliff edge of support for the most vulnerable in our society.

    At the same time, we are taking action to fix the foundations of our country through our plans to grow the economy, make work pay, and Get Britain Working again.

    The government is exploring options around how best to provide sustainable support to vulnerable households in the longer term while the ministerial Child Poverty Taskforce develops an ambitious strategy to tackle the root causes of poverty, and the Get Britain Working White Paper, to be set out in the Autumn, will develop measures to reduce inactivity and help people to find better paid and more secure jobs.

    By growing the economy and unlocking investment through the National Wealth Fund; launching Great British Energy to drive home-grown clean energy and lower bills; making work pay and developing a new Child Poverty Strategy to give children the best start in life – the Government is looking at all levers available to unlock the potential of millions across the country and give them the platform they need to thrive.

    Additional Information

    • The Household Support Fund is administered by the Department for Work and Pensions and delivered by Local Authorities in England. It can be used to help vulnerable residents with energy and water bills, food and other essential items.
    • People can find their council here.
    • Barnett consequentials for Devolved Governments will be finalised in due course.
    • In 2022/23, there were 1.3 million more people in relative poverty after housing costs than in 2010/11.
    • In 2022/23, living standards, as measured by RHDI per capita, fell by 2.1 per cent, the largest year-on-year drop since records began in the 1950s.