Tag: Department for Work and Pensions

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

The press release issued by the Department for Work and Pensions on 24 April 2025.

Millions of Brits will find it easier to track their pension savings with the creation of a small pensions pot consolidator, in reforms unveiled by the pensions minister today.

This new initiative will tackle the growing problem of small, forgotten pension pots that many people accumulate as they move between employers over their working lives. There are now 13 million of these small pots, holding £1,000 or less, with the number increasing by around one million a year.

This is a hassle for savers and can stop them getting a good return on their savings if they have to pay multiple flat rate charges. Overseeing all these small pots also costs the pensions industry around £225 million in unnecessary admin costs.

Under reforms introduced by this government as part of the Pension Schemes Bill, each individual’s small pots will be brought together into one pension scheme that is certified as delivering good value to savers. Individuals will retain the right to opt out.

This will cut costs for savers and make it easier to keep track of their pensions while boosting living standards and make working people better off. It will also cut red tape for businesses managing the schemes and unlock economic growth as part of the Plan for Change.

This announcement will reduce costs as well as hassle for savers, in time increasing the pension pot of an average earner by around £1,000 – boosting living standards and making working people better off. It will also cut red tape for businesses managing the schemes and unlock economic growth as part of the Plan for Change.

Minister for Pensions Torsten Bell said:

It’s great news that more people are saving for their retirement. But I want to make pension saving as simple and rewarding as possible.

There are now more small pension pots in the UK than pensioners – raising costs and hassle for workers trying to track their savings. It also costs the pensions industry hundreds of millions of pounds every year.

We will automatically bring together people’s small pots into one high performing pension, reducing costs as well as hassle for savers. In time this could boost the pension of an average earner by around £1,000 as part of our Plan for Change to put more money in people’s pockets.

The announcement follows the work of the Small Pots Delivery Group. Their findings, aimed at supporting the design and implementation of the new small pots consolidator scheme, include:

• A Small Pots Data Platform to identify and source the pension pots that could be consolidated.
• A framework setting out the rules a scheme would need to follow to become a consolidator scheme. These would include already being in an Automatic Enrolment qualifying scheme, having a specified level of scale to manage expansion, providing good value for money for their members and providing additional protection for members from flat fee charges.
• Safeguards for savers whose pension pots would be consolidated which include a member op-out option.

Transforming the pension landscape through the Pension Schemes Bill, set to be introduced in Parliament later this Spring, will deliver on the government’s manifesto commitment to boost investment and returns for savers and make working people better off.

The Bill will help over 15 million people, boost pension pots by £11,000 and spur on greater investment in productive assets.

Zoe Alexander, Director of Policy and Advocacy at the Pensions and Lifetime Savings Association, said:

The accumulation of small pots creates unnecessary cost and complexity for savers and schemes alike. The PLSA has worked extensively with industry and the DWP to propose solutions and supports the model being proposed by the Government.

We look forward to working on delivering the recommendations of the Small Pots Development Group and are pleased the Government is tackling this long-standing issue in the Pension Schemes Bill.

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

Which? called for the consolidation of small pots under £1,000 before the election, so we are delighted that the government is committing to doing this – 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 modern age.

Gail Izat, Workplace Managing Director at Standard Life, part of Phoenix Group said:

The number of small pots in the system is growing at a rate of knots and ultimately heightens the risk that people will lose track of their hard-earned savings.

The introduction of consolidators that can administer these pots effectively and invest them dynamically will be a step forward and when combined with pension dashboards will empower people to take control of their savings. We look forward to working with government on the creation of this new system.

Additional Information

• The Small Pots Delivery Group report can be found here: Small Pots Delivery Group Report – GOV.UK

The Delivery Group was chaired by the DWP and had representation from:

• The Financial Conduct Authority
• The Pensions Regulator
• Pension and Lifetime Savings Association
• Association of British Insurers
• Pensions Administration Standards Association
• Chartered Institute of Payroll Professionals
• Association of Pensions Lawyers
• Which?
• Federation of Small Businesses
• Confederation of British Industry
• Chair of the industry led Small Pots Coordination Group
• Pensions Policy Institute

The press release issued by the Department of Work and Pensions on 22 April 2025.

People in Wales are set to benefit from a £10 million investment aimed at improving local work, health, and skills support as part of the UK Government’s initiative to tackle inactivity and Get Britain Working.

The first trailblazer programme in Wales, launched in Denbighshire by UK Minister for Employment Alison McGovern and Welsh Government Minister Jack Sargeant, will for the first time provide targeted interventions tailored to local needs, rather than the current “one size fits all” approach.

This includes help with CV writing and job searching, one-to-one mentoring, counselling services, wellbeing provision, and access to condition management services for those with health conditions.

Trailblazer areas are specific places selected to trial out new and innovative approaches to employment support – these areas receive targeted funding and resources to roll out new strategies for reducing unemployment, tackling inactivity and improving job opportunities.

During their visit to Working Denbighshire yesterday, both Ministers witnessed the support available, including meeting Work Coaches who offer expert, tailored assistance.

Wales is one of nine places receiving support through the UK Government’s £125 million economic inactivity trailblazer programme, targeting areas with the highest levels of inactivity.

Local leaders in Denbighshire, Blaenau Gwent, and Neath Port Talbot will design employment support schemes tailored to their community’s unique challenges.

This localised, multi-agency approach aims to help people back into work, which is one of the most important ways to put extra money in people’s pockets and unlock growth as part of the UK Government’s Plan for Change.

UK Government Minister for Employment, Alison McGovern said:

Everyone deserves to thrive, including people suffering from long-term health conditions.

No one will be written off and left on the scrapheap. That’s why we’re allocating the Welsh Government a £10 million boost to shake-up and connect health and employment services, delivering on the Plan for Change.

Everyone deserves to benefit from the security and dignity that good work affords, and this trailblazer will help people to access this support.

Welsh Government Minister for Culture, Skills and Social Partnership, Jack Sargeant said:

This £10 million investment is an instrumental step in our collaborative approach to supporting people across our nation back into good employment. By working in partnership with the UK Government, Wales trailblazers will create a tailored approach that meets the unique needs of the three communities it is aiming to help in its first year.

Our focus is on delivering integrated services that truly connect health support with employment opportunities, recognising that good work is fundamental to wellbeing. The Welsh Government is committed to ensuring no one is left behind, and this trailblazer programme demonstrates how devolved employment support can be responsive to local needs while contributing to our wider economic ambitions for Wales.

Secretary of State for Wales, Jo Stevens added:

This £10 million programme to get people into work will deliver tailored support where it is most needed. Blaenau Gwent, Denbighshire and Neath Port Talbot have been selected as areas where we can make the most difference.

It’s an approach that we know works and builds on the success of the Welsh Government’s Young Person’s Guarantee which already provides support for young people to gain skills or get into work.

Work improves physical and mental health and raises people’s standard of living. The trailblazer scheme ensures that anyone who’s able to work is helped into employment.

The trailblazers are the latest milestone in the UK Government’s £240 million Get Britain Working reforms which includes transforming Jobcentres to focus on people’s skills and careers, guaranteeing young people the chance to earn or learn and providing mental health support to help people to start and stay in work.

Yesterday’s launch in Wales follows the launch of the first trailblazer in South Yorkshire earlier in April, which plans to deliver a new service working with employers to hire those with health conditions – with both programmes focused on boosting growth by getting communities back to health and back to work.

In the coming weeks, similar trailblazer schemes will launch in Greater Manchester, the North East, York and North Yorkshire, West Yorkshire and three in London.

In addition to inactivity trailblazers, the UK Government has boosted the National Living Wage, increased the National Minimum Wage and is creating more secure jobs through the Employment Rights Bill to support people into good work and get Britain growing again.

Funding provided to the Welsh Government for this programme also delivers on the Prime Minister’s promise to kickstart a new era of devolution, resetting relationships with devolved Governments so they have the support they need to play their part in delivering economic growth as part of the Plan for Change.

Additional Information

• The nine economic inactivity trailblazers, backed by £125 million of UK Government funding, is giving power to the Welsh Government and some Mayoral Authorities to design joined up work, health and skills offers.
• Funding for Scotland and Northern Ireland has been devolved in the usual way.
• 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 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.
• In April, UK Government increases to the National Minimum and National Living Wage came into effect, putting more money into people’s pockets. Full-time workers on the National Living Wage will get a £1,400 annual boost, while full-time workers on the Minimum Wage could see a £2,500 annual boost.
• Details of the first inactivity trailblazer, in South Yorkshire, is available here: https://www.gov.uk/government/news/south-yorkshire-kicks-off-125-million-plans-to-get-britain-back-to-health-and-work

The press release issued by the Department for Work and Pensions on 14 April 2025.

The Department of Work and Pensions has confirmed the reappointment of Sarah Newton as Chair of the Health and Safety Executive (HSE). Her reappointment will run from 1 August 2025 to 31 July 2027.

Sarah Newton has led HSE since 01 August 2020, overseeing its critical role in ensuring the health, safety, and welfare of workers across Great Britain. During her tenure, she has driven strategic improvements, strengthened regulatory frameworks, and championed HSE’s mission to protect people and places.

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

I am pleased to confirm Sarah Newton’s reappointment as Chair of the Health and Safety Executive. Her leadership and expertise have been invaluable in driving forward HSE’s important work. I look forward to seeing her continue to lead the organisation in ensuring high standards of health and safety across the country.

Sarah Newton said:

I am honoured to have been re-appointed Chair of HSE. It is a privilege to work with colleagues who are passionate about our mission and dedicated to protecting people and places.

This reappointment has been made in accordance with the Governance Code on Public Appointments and follows an open and transparent process.

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

West London will today become the first of 47 areas across England and Wales set to receive dedicated five-year funding aimed at helping disabled people and those with health conditions and additional support needs into work.

West London will today become the first of 47 areas across England and Wales set to receive dedicated five-year funding aimed at helping disabled people and those with health conditions and additional support needs into work.

As many as 100,000 people a year are set to receive tailored support nationally – including one-to-one employment advice and skills development – as rollout begins of Connect to Work, a new programme dedicated to help those facing some of the greatest barriers to work.

Over the next five years, a partnership of Local Authorities in West London will receive a total of £42.8 million to provide targeted help to up to 3,500 people per year by:

• matching people with job opportunities that suit their needs and circumstances,
• providing essential skills training to help people get into and on at work,
• working with employers to recruit and retain disabled workers.

West London will receive almost £9 million of the £115 million already committed to run the programme in its first year – a downpayment on their full five-year deal, allowing local leaders to hit the ground running on tackling inactivity in their area.

Work and Pensions Secretary Rt. Hon Liz Kendall MP, said:

As part of our Plan for Change we are fixing the broken welfare system – getting more people into work, putting more money in people’s pockets, and putting the benefits bill on a sustainable footing.

The welfare system we inherited has shut too many talented people out of the workplace – with no support, no prospects, and no opportunities.

We are changing this. That’s why I’m delighted to see our Connect to Work programme kick off, with over £40 million of funding so local leaders in West London can give people in their area the tools they need to get in and on at work in a way that’s right for them.

The Work and Pensions Secretary is set to visit a community hub in Shepherd’s Bush to meet people already helped into work by West London’s existing support offer, including:

• Arman who had to step away from his job as a bookmaker due to his mental health. With support from West London Alliance Programme, he attended mental health workshops, got help to boost his CV, and found volunteering opportunities, before ultimately landing a new job.
• Midula who has learning and speech difficulties. West London Alliance Programme is improving her prospect of getting into work through tailored interview prep and giving her the confidence boost she needs to succeed.
• Bill who has been able to keep working at Harrow Council for 40 years, despite his physical heath deteriorating, thanks to adjustments made so he could stay in his job.

David Francis, Director of West London Alliance, said:

The West London Alliance Boroughs are proud to be at the forefront of the ‘Connect to Work’ initiative, demonstrating the strength of our partnerships and our dedication to improving employment outcomes for West London residents.

This programme provides vital and tailored support to those facing challenges in the labour market, helping them to secure sustainable employment and build better lives.

The Connect to Work Programme is one of a number of initiatives being launched to help towards the government’s aim for an 80% employment rate.

Work has already begun on the plan to Get Britain Working, with South Yorkshire becoming the first of nine ‘inactivity trailblazers’ across the country to launch their community-led effort to help people into a job.

This comes as the government unveiled sweeping welfare reforms – backed by a record £1 billion to deliver tailored job support for sick and disabled people – opening doors to opportunity, giving people a chance at financial independence, and boosting living standards, as part of the government’s Plan for Change.

With 2.8 million people out of work due to ill-health – one of the highest rates in the G7 – the government is also combating health-related inactivity at its root by investing £26 billion in the NHS and delivering 2 million extra appointments to reduce medical waiting lists, giving people and the economy a chance to get back on track.

Additional Information:

• The West London Alliance Partnership covers Ealing, Barnet, Harrow, Hillingdon, Brent, Hammersmith and Fulham, and Hounslow Local Authorities. Their Connect to Work service will be delivered under contract by Shaw Trust.
• The West Midlands and Greater Manchester Combined Authorities received a year’s funding for employment support as part of their Integrated Settlements – giving Mayors the power to make funding decisions in their area.
• Guidance issued on 26 November 2024 invited areas covering all of England and Wales to develop their plans to deliver Connect to Work over the next 5 years. Last autumn’s Spending Review confirmed £115 million for year 1 (25/26), subsequent funding for the programme will be confirmed through Spending Review 2025.
• Biggest shake up to welfare system in a generation to get Britain working – GOV.UK
• Integrated Settlements for Mayoral Combined Authorities – GOV.UK

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

Over 1.4 million Cold Weather Payments – worth around £35 million in total – were paid this past winter to people in England and Wales, according to statistics released today [09 April].

Cold Weather Payments are issued to vulnerable households when the average temperature in their local area is recorded as, or forecast to be, 0°C or below over seven consecutive days.

Those eligible received £25 for each seven-day period of very cold weather between 1 November 2024 and 31 March 2025.

Of those who received a Cold Weather Payment, 385,000 were also in receipt of Pension Credit – equating to around £9 million.

It comes as the government’s drive to support low-income pensioners has led to around 50,000 extra Pension Credit awards since the summer – an increase of 64% compared to the same period last year.

Minister for Pensions Torsten Bell said:

We supported millions of households this winter through Pension Credit and Cold Weather Payments, alongside extending the Household Support Fund and the Warm Home Discount.

For pensioners, this will have come on top of the State Pension which is set to increase by up to £1,900 over this parliament for millions, thanks to our commitment to the Triple Lock.

Pensioners who receive Pension Credit automatically qualify for Cold Weather Payments. This is alongside extra support available such as the Household Support Fund, which was extended from 1 April 2025 until 31 March 2026, providing support with the cost of essentials such as food, heating and bills.

Working age people who receive qualifying benefits such as Universal Credit and Jobseeker’s Allowance can also receive a Cold Weather Payment if they meet further criteria relating to employment, health conditions and caring responsibilities for young children or a disabled child.

Additional Information

• A breakdown of Cold Weather Payments issued can be found on GOV.UK: Cold Weather Payment estimates: 2024 to 2025 – GOV.UK
• There have been an estimated 1,402,000 Cold Weather Payments in the year 2024/25.
• There have been an estimated 220,000 more Cold Weather Payments in 2024/25 compared to the 2023/24 season, including an additional 21,000 to those receiving Pension Credit.
• Eligibility criteria for Cold Weather Payments can be found on GOV.UK: Cold Weather Payment: Eligibility – GOV.UK

The press release issued by the Department for Work and Pensions on 6 April 2025.

Millions of pensioners will receive as much as £470 more a year added to their State Pension from today, thanks to the government’s’ ironclad commitment to the pensions Triple Lock throughout this Parliament.

This comes alongside the annual uprating of working-age benefits such as Universal Credit, with people receiving those set to receive an extra £150 on average over the course of this year – an increase set to benefit 5.7 million working-age households. Disability benefits such as Disability Living Allowance, Carers Allowance and child benefits are also set to increase by the same amount.

The Triple Lock – which guarantees that the State Pension increases annually by the highest of inflation, average earnings growth or 2.5% – means the basic and new State Pensions are increasing by 4.1%, well above the current level of inflation.

These changes come alongside increases to the National Minimum Wage and National Living Wage, benefiting three million eligible workers across the country. With the National Living Wage increasing to £12.21 for those aged 21 and over and the National Minimum Wage for those aged 18 to 20 seeing a record increase to £10 an hour, three million workers will benefit, with eligible full-time workers set to see an increase in their annual salary of £1,400.

This support is securing Britain’s future through the Plan for Change, which is delivering security and renewal by kick-starting economic growth to put more money in working people’s pockets and rebuilding the NHS.

Work and Pensions Secretary Liz Kendall said:

Our ironclad commitment to the Triple Lock gives pensioners across the country the certainty and security they need to live a full life in retirement.

We are putting more money in people’s pockets and driving up household income as part of our Plan for Change.

Minister for Pensions Torsten Bell said:

Raising the State Pension and rescuing the NHS – these are this government’s priorities to give all pensioners the dignity they deserve in their retirement. Those who have worked hard throughout their lives, paying into the system, are owed nothing less.

We’re improving the lives of millions of pensioners through our £7.84 billion additional funding for the State Pension this year. That means up to £470 extra in pensioners’ pockets from this week and comes alongside our work to boost Pension Credit uptake, and the £26 billion we’ve invested in the NHS that has seen waiting lists in England fall for 5 months in a row.

Chancellor of the Exchequer Rachel Reeves said:

With today’s increase in working-age benefits, and our ironclad commitment to pensioners through the Triple Lock, we are making the decisions that support those who need it in Britain, putting money into people’s pockets and delivering our Plan for Change.

The uprating of State Pensions and working-age benefits amounts to a cash boost of over £6.9 billion, demonstrating our commitment to ensuring pensioners enjoy the dignity and respect they deserve in retirement, while also supporting low-income families.

It also comes alongside proposals for the biggest welfare reforms for a generation. These measures are designed to ensure a welfare system that is fit for purpose and available for future generations – opening up employment opportunities, boosting economic growth and tackling the spiralling benefits bill while also ensuring those who cannot work get the support they need.

That support also includes help for pensioners. The government’s drive to support low-income pensioners has led to 50,000 extra Pension Credit awards since the summer – an increase of 64% compared to the same period last year.

Pension Credit is worth on average £4,300 a year and also unlocks support including help with Housing Costs, Council Tax and free television licenses.

Support also includes a £742 million extension of the Household Support Fund in England, from 1 April 2025 until 31 March 2026, providing support with the cost of essentials such as food, heating and bills.

Additional information:

• The majority of the new rates will apply from Monday 7 April 2025. Please see here for a full list of rising benefits: Benefit and pension rates 2025 to 2026 – GOV.UK
• Those in receipt of the State Pension and other uprated benefits will see an increase in their next payments following Monday 7 April.
• Details of when the State Pension is paid can be found on GOV.UK: The new State Pension – GOV.UK
• With uprating in effect, pensioners receiving the full basic State Pension will see their weekly payments rise from £169.50 to £176.45 per week, worth an additional £360 a year. In addition, the full rate of the new State Pension will increase from £221.20 to £230.25 per week, an increase of £470 a year.
• People in receipt of Universal Credit and other benefits including Personal Independence Payments will see their payments increase by 1.7% with 5.7 million households on Universal Credit to gain £150 on average.
• The minimum guarantee for Pension Credit – the minimum amount that someone on Pension Credit will receive – is also set to increase by 4.1% from 7 April. For single pensioners it will increase from £218.15 to £227.10. For couples it will increase from £332.95 to £346.60.

The press release issued by the Department for Work and Pensions on 4 April 2025.

Liz Kendall visits Barnsley to unveil first of nine ‘trailblazers’ which will get people back to health and back to work, supported by £18m of £125m investment.

Work and Pensions Secretary Liz Kendall has unveiled the first of nine trailblazer programmes in Barnsley to get Britain back to health and back to work, nine months on from her landmark speech on employment reforms in the same town.

South Yorkshire is one of nine £125 million backed ‘inactivity trailblazers’ across the country to launch, with the aim of helping areas with the highest levels of economic inactivity as part of the wider Plan for Change.

Backed by £18 million, South Yorkshire plans a dedicated new service working with employers to hire those with health conditions, and a new “triage” system to make it quicker and easier to connect people to employment, health, and skills support.

This work will include preventing people falling out of work completely due to ill health through an NHS programme, working with people with conditions ranging from cardiovascular disease to diabetes. This could include arranging voluntary work as a stepping stone to paid employment or helping people receive the right treatment early so they can remain in a job. Similar NHS programmes have also kicked off this week in the North East and West Yorkshire.

South Yorkshire has already had success in tailoring support to meet the needs of local people, including:

• Gerald who spent years working in the coal mining industry. With the help of South Yorkshire, he’s developing his digital skills and first aid abilities so he can continue to share his knowledge with others through volunteering.
• Ruby who has a learning and physical disability. She was told she would never walk or work, but South Yorkshire worked with local employer Barnsley Norse, who provide cleaning and caretaking services, to create a bespoke role with amended duties, including shorter shifts so she could build stamina and confidence.
• John, who has improved his prospects through engagement with South Yorkshire, working towards a qualification in English and Maths. He is volunteering with Barnsley Museums and now has paid employment with Age UK, and two relief positions with the Museums service.

Work and Pensions Secretary, Liz Kendall MP said:

For too long, whole areas of the UK have been written off and deprived of investment. We are turning the tide on this – as we believe in the potential of every single person across our country and that they deserve to benefit from the security and dignity that good work affords.

This is why we’re investing £125 million into nine local areas to get Britain back to health and back to work – with our new approach making it quicker and easier for people to access the support they need to stay in work if they have a health condition or return to work.

South Yorkshire is the first to kick off their innovative plans – backed by £18 million – and we will be launching more areas in the coming weeks as we put more money in people’s pockets, boost living standards and Get Britain Working under our Plan for Change.

South Yorkshire Mayor, Oliver Coppard said:

We know that South Yorkshire’s industrial past has left a legacy of poor health and low skills that holds people back right across our communities; holding people back from accessing good work, making the most of their potential or living their fullest lives.

That’s why we developed the pioneering Pathways to Work approach here in Barnsley, and why we’re now working with the Government to roll that programme out across the whole of South Yorkshire. From today people will receive tailored support, bringing together the health system, the skills and employment system, to truly help people back into decent work.

I’m really pleased that South Yorkshire is now leading with the first inactivity trailblazer and NHS growth accelerator to launch in the UK, because it means we can help people more quickly and more effectively, and in a more tailored way. That’s not just the right thing to do for those people locked out of finding good work, it’s the right thing for our economy too, helping us to create the bigger and better economy we need and deserve here in our region.

Minister for Public Health and Prevention, Ashley Dalton MP added:

Poor health is holding back too many people across the country, keeping them languishing on waiting lists when they could be getting back to their jobs and lives. Innovative services like these are critical to tackling economic inactivity.

This support will get people working again, which is vital because we know being in work leads to better overall heath and helps grow the economy.

Though the Plan for Change we will make people healthier, reduce pressure on the NHS, all while helping them into fulfilling and rewarding careers.

The trailblazer programmes, which have been designed largely by civil servants based in Sheffield working with Mayoral Combined Authorities, are part of the Government’s wider efforts to reach an 80 per cent employment rate, which includes a record £1 billion investment in helping disabled people and those with long-term health conditions who can work into work and an overhaul of Jobcentres to make sure they meet the needs of employers.

Through their new initiatives, South Yorkshire aims to reduce inactivity from 25.5% in 2023 to under 20% by the end of 2029 – equivalent to helping 40,000 people across the area. Their trailblazer has been shaped by Barnsley’s Pathways to Work Commission – a landmark report that heard directly from local residents who have experienced barriers to accessing work.

Once a crucible of the industrial revolution from steelmaking to coal mining, South Yorkshire has felt the full brunt of the industrial slump – and denied the investment and opportunity to thrive, with many people suffering from long-term health conditions.

This new funding will help unlock the potential of the hardworking people across the region and help them get back to health and back to work. This is central to the government’s drive to deliver growth across the region – and will work alongside the 10-year Sheffield Growth Plan.

South Yorkshire marks one of nine inactivity trailblazers going live across England and Wales. In the coming weeks, similar schemes will launch in: Greater Manchester, North East, York and North Yorkshire, West Yorkshire, Wales; and three in London (West London, South London and Local London).

In addition, eight youth trailblazer areas will also be set up across mayoral authorities in England with £45 million funding in the coming weeks, to ensure all 18–21-year-olds have access to education, training, and employment opportunities.

The government has published local Get Britain Working Plan guidance for Local Government and stakeholders across England to develop a coordinated approach to supporting people into and remaining in good work.

As part of a drive to show transparency and track delivery, the Government is also publishing Get Britain Working outcome metrics, based on analysis of the ONS’ Labour Force Survey data.

Further Information

• With 230,000 economically inactive people in South Yorkshire, £10 million of the investment will go towards helping people who have been inactive for less than two years, as well as those with long-term health conditions, in Barnsley, Doncaster, Sheffield and Rotherham.
• The remaining £8 million will fund the NHS Accelerator programme. This is the first time that the NHS in England will have responsibility for work as well as health outcomes, with similar schemes rolling out in West Yorkshire and the North East. They will also improve access to Talking Therapies, which provides treatment such as cognitive behavioural therapy to adults.
• Both programmes aim to work with a total of 7,800 people and help up to 3,000 of those into jobs or to stay in work in the first year.
• Sheffield’s Growth Plan is a 10-year plan to grow the economy, giving local people higher living standards and more opportunities. The South Yorkshire inactivity trailblazer represents that this government is focusing investment on places still experiencing the consequences of the past.
• The nine inactivity trailblazers, backed by £125 million of UK Government funding, is giving power to the Welsh Government and some Mayoral Authorities to design joined up work, health and skills offers.
• Funding for Scotland and Northern Ireland has been devolved in the usual way.
• The Get Britain Working metrics have been published: Get Britain Working outcomes – GOV.UK
• The measures have been built based on analysis of the ONS’ Labour Force Survey data and segment out health related inactivity, regional variations in employment rates and the disability employment rate gap.
• 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.
• 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 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 announcement of the first inactivity trailblazer comes as the Government and National Institute of Health Research (NIHR) invests £7.4 million in four research projects across the UK to help reduce health-related economic inactivity.

The press release issued by the Department for Work and Pensions on 6 March 2025.

Work will be unlocked for thousands of sick and disabled people through new measures that will bolster the support offered in Jobcentres and make the welfare system more sustainable, the Department for Work and Pensions has announced today [Thursday 06 March].

• New plans to improve employment support brought forward ahead of wider reform package to fix broken welfare system.
• 1,000 work coaches deployed to deliver intensive employment support to sick and disabled people as part of the government’s Plan for Change which will break down barriers to opportunity.
• It comes as a new survey reveals scale of the broken system with nearly half of disabled people and those with a health condition saying they don’t trust DWP to support them.

The plans will see 1,000 existing Work Coaches deployed in 2025/26 to deliver intensive voluntary support to around 65,000 sick and disabled people – helping them to break down barriers to opportunity, drive growth and unlock the benefits of work.

This intensive support for people on health-related benefits – including those furthest away from work – will see Work Coaches providing tailored and personalised employment support, and help claimants access other support such as writing CVs and interview techniques. They will also access a range of DWP employment programmes to help claimants unlock work based on conversations with their Work Coaches.

The additional help will be delivered by reprioritising work coach time so they can focus on tackling economic inactivity in order to make the welfare system more sustainable. The 1,000 redeployed Work Coaches are a “downpayment” on wide-ranging plans to overhaul employment support, which are set to be unveiled in just a few weeks’ time.

It is part of the Government’s Plan for Change – which will boost living standards and grow the economy by unlocking work for the 2.8 million people who are economically inactive due to long-term sickness – the highest in the G7 – and bring down spending on incapacity benefits which is expected to reach £70 billion by the end of this parliament.

It comes as new survey results show the current system isn’t just failing the taxpayer, it’s also failing the people it’s meant to help, with 44% of disabled people and people with a health condition believing DWP does not provide enough support to people who are out of work due to disability, ill health, or a long-term health condition.

Work and Pensions Secretary, Rt Hon Liz Kendall MP said:

We inherited a broken welfare system that is failing sick and disabled people, is bad for the taxpayer, and holding the economy back.

For too long, sick and disabled people have been told they can’t work, denied support, and locked out of jobs, with all the benefits that good work brings.

But many sick and disabled people want and can work, with the right support. And we know that good work is good for people – for their living standards, for their mental and physical health, and for their ability to live independently.

We’re determined to fix the broken benefits system as part of our Plan for Change by reforming the welfare system and delivering proper support to help people get into work and get on at work, so we can get Britain working and deliver our ambition of an 80% employment rate.

The data from the DWP Perceptions Survey – soon to be published in full – also shows:

• 35% of disabled people and people with a health condition believe DWP does not provide enough support to people of working age who are out of work, to help them get back into work.
• 44% of disabled people and people with a health condition don’t trust the DWP to help people reach their full career potential.
• Nearly 2 in 5 (39%) disabled people and people with a health condition do not trust DWP to take its customers’ needs into account in how it provides services.

These figures follow recently released data which shows that there are over three million people on Universal Credit with no obligation to engage in work-related activity, despite over a quarter (27%) of health and disability benefit claimants believing that work could be possible in the future if their health improves and 200,000 saying they would be ready to work now.

Data also shows the number of working-age people on Universal Credit with no work-related requirements has risen to 3.1 million, reflecting the alarming rate at which young and working aged people are increasingly falling out of work and claiming incapacity benefits.

Behind each of these statistics is a person with hopes and ambitions, who can provide businesses with much-needed skills and experience, helping to grow our economy.

To give people the support they deserve, and restore trust and fairness to our welfare system, reforms to the welfare system are expected to be announced in just a few weeks.

These reforms will recognise that some people will be unable to work at points in their life and ensure they are provided with support while transforming the broken benefits system that:

• Asks people to demonstrate their incapacity to work to access higher benefits, which also then means they fear taking steps to get into work.
• Is built around a fixed “can versus can’t work” divide that does not reflect the variety of jobs, the reality of fluctuating health conditions, or the potential for people to expand what they can do, with the right support.
• Directs disabled people or those with a work-limiting health condition to a queue for an assessment, followed by no contact, no expectations, and no support if the state labels them as “unable” to work.
• Fails to intervene early to prevent people falling out of work and misses opportunities to support a return to work.
• Pushes people towards economic inactivity due to the stark and binary divide between benefits rates and conditionality rules for jobseekers compared to those left behind on the health element of Universal Credit.
• Has become defined by poor experiences and low trust among many people who use it, particularly on the assessment process.

The government’s plans to fix the broken benefit system will build on the biggest employment reforms in a generation announced in the Get Britain Working White Paper, which will empower mayors to drive down economic inactivity, deliver a Youth Guarantee so every young person is either earning or learning, and overhaul jobcentres across the country.

Former John Lewis boss Sir Charlie Mayfield is leading an independent review investigating how government and employers can work together to help disabled people and those with ill health who may be at risk of falling out work stay on in employment, with the findings of the discovery phase expected in the spring.

The government is also investing an additional £26 billion to cut NHS waiting lists and get Britain back to health and back to work.

The government has already delivered on its pledge, providing two million extra appointments in five months and as a result, around 160,000 fewer patients on waiting lists today than in July.

Teams of clinicians will also introduce new ways of working at 20 hospital sites in areas with the highest levels of economic inactivity to help patients return to the workforce faster. This is alongside the recruitment of an additional 8,500 mental health workers to ensure mental health is given the same attention as physical health.

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

More than one million working people across the UK will see a rise in living standards thanks to improvements to Statutory Sick Pay, ministers have announced today.

• Landmark changes are all part of the government’s number one priority in the Plan for Change to grow the economy and put more money into working people’s pockets
• Announcement comes as the World Bank notes that ‘without improvements in productivity, there is no economic growth’
• The government has pledged to deliver on its promise to Make Work Pay with lower income workers no longer having to choose between their health or their jobs

This comes as the government delivers on the plan to boost workers’ rights and create a healthier, more productive workforce, which will be at the forefront of efforts to grow the economy – the priority of our Plan for Change.

The changes will mean up to 1.3 million people on low wages who find themselves ill will either receive 80% of their average weekly earnings or the rate of Statutory Sick Pay which will be £118.75 per week from April – whichever is lowest.

The move means some of the lowest earners will be up to £100 better off per week, compared to the current system. This safety net will enable people to have the time off they need to recover, so they can get better and remain in work rather than risk quitting altogether.

Under the government’s Plan for Change, this new fairer rate strikes the right balance between providing financial security for employees who fall ill, and the cost to businesses – all while retaining the incentives for people to return to work.

The UK has seen a slow-down in productivity in recent years that has been more severe than other nations, which is not acceptable. The World Bank has been clear that “without improvements in productivity, there is no economic growth”.

Today’s changes will boost productivity in the workforce to help drive growth and usher in a decade of national renewal.

The Deputy Prime Minister, Angela Rayner MP said:

What we put into our workforce, we get back and more.

That’s why we’re making Statutory Sick Pay a right for every worker for the first time so people can stay in work rather than risk dropping out.

This is a pro-worker, pro-business government in action – boosting productivity, while ensuring people don’t have to choose between health and wealth, helping deliver our Plan for Change.

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

For too long, sick workers have had to decide between staying at home and losing a day’s pay or soldiering on at their own risk just to make ends meet.

No one should ever have to choose between their health and earning a living, which is why we are making this landmark change.

The new rate is good for workers and fair on businesses as part our plan to boost rights and Make Work Pay, while delivering our Plan for Change.

The government’s response to its Statutory Sick Pay consultation has also been published today alongside other responses and amendments to the Employment Rights Bill, including on tackling fire and rehire and zero-hour contracts to tackle insecure work.

This latest move follows the commitment to ensure the right to sick pay from the first day of illness, and to make more people eligible by removing the need to earn Lower Earnings Limit.

Over 1,700 responses to a six-week consultation helped inform the decision on the new rate, taking in to account the views of businesses, charities, trade unions and workers.

TUC General Secretary, Paul Nowak, added:

Nobody should be plunged into hardship when they become ill.

These reforms will stop millions from facing a financial cliff edge if they get sick.

Making statutory sick pay available to all workers – and from day one – shows why the government’s Employment Rights Bill is so important.

With sick pay rights from the first day of sickness, you will know that your family is protected. And you can take the time you need to recover.

We hope this is the start of a programme of sick pay reform and will continue to make the case for higher future sick pay rates.