Tag: Department for Work and Pensions

  • PRESS RELEASE : Clampdown on non-paying parents Child Maintenance consultation [May 2024]

    PRESS RELEASE : Clampdown on non-paying parents Child Maintenance consultation [May 2024]

    The press release issued by the Department of Work and Pensions on 8 May 2024.

    A clampdown on parents who refuse to take financial responsibility for their children has been set out by the government today.

    • Changes will make system fairer by speeding up enforcement action and getting money to children
    • New action to detect non-paying parents proposed as part of shakeup of Child Maintenance Service.
    • Work and Pension Secretary Mel Stride: We are clamping down on those who try to shirk their financial responsibilities

    In a shakeup of the Child Maintenance Service (CMS), the Department for Work and Pensions aims to improve the system so more children get the financial support they are due.

    This includes ending the option of direct payments between parents through the CMS, meaning if parents do not pay it will be detected and enforcement action can be taken sooner.

    It also asks what further support the CMS can provide to help separated parents make family-based arrangements, which are agreed by parents, without state intervention, and how the CMS can better support victims and survivors of domestic abuse.

    The proposals come on the back of new laws which will fast track enforcement powers on wilfully non-paying parents including seizing cash and assets, forcing the sale of property and in the most serious cases, imprisonment – ensuring every child of separated parents is financially supported.

    Work and Pensions Secretary Mel Stride said:

    Most parents strive to give their children the best start in life, but sadly this isn’t always the case.

    This is why we are clamping down on those who try to shirk their financial responsibilities. This and tough new laws will help ensure every child gets the financial support they deserve.

    DWP Minister Viscount Younger of Leckie said:

    The majority of parents want to do the right thing and support their children.

    However, in the case of the minority of parents who fail to meet their responsibilities, avoiding paying what they owe, these plans along with new enforcement powers will enable us to act faster.

    DWP’s proposals include:

    • Stop the Direct Pay service and deal with all cases via Collect and Pay with CMS collecting and transferring all payments. This would allow the CMS to tackle non-compliance faster and, when necessary, take enforcement action more quickly.
    • Exploring the best way to support family-based arrangements with an enhanced calculation tool, along with signposting to conflict resolution support.
    • Asking how the CMS can better support victims of domestic or economic abuse, building on recommendations from Dr Samantha Callan’s 2023 Independent Review of the Child Maintenance Service.

    This follows recent reforms to the liability order process, which will give the CMS more powers to recover money faster to crack down on parents who repeatedly fail to take financial responsibility for their children.

    The Government has also removed the £20 application fee to use the CMS, making all applications to the CMS free, to ensure no child misses out on vital support.

    Further information

    • Our service is arranging more money than ever to support children of separated parents. In the 12 months to December 2023, the CMS arranged over £1.3 billion in child maintenance payments and in the quarter ending December 2023, managed 700,000 arrangements for 960,000 children.
    • The consultation period begins on 08 May and runs until 31 July.  [LINK]
    • Child maintenance payments from both CMS and family-based arrangements help to keep 160,000 children out of poverty each year
    • 100,000 through non-statutory arrangements and 60,000 through the Child Maintenance Service.
    • A minority of the maintenance arranged through the Child Maintenance Service is not paid.
  • PRESS RELEASE : New £64 million plan to help people stay in work [May 2024]

    PRESS RELEASE : New £64 million plan to help people stay in work [May 2024]

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

    ‘WorkWell’ pilots to provide tailored support for people in their local area so people can stay and progress in work.

    • 15 areas including Greater Manchester, South Yorkshire, and Cornwall to become part of new £64 million pilot to deliver joined-up work and health support
    • Builds on welfare reform package to tackle inactivity as fit note process to be integrated with WorkWell

    A new work and health support service will be rolled out across 15 areas of England as part of the Government’s plan to help people with health conditions back to work, the Work and Pensions Secretary has confirmed today (Tuesday 7 May).

    The WorkWell pilots – launched by the Department for Work and Pensions (DWP) and the Department for Health and Social Care (DHSC) – will connect 59,000 people from October to local support services including physiotherapy and counselling so they can get the tailored help they need to stay in or return to work.

    It comes after the Prime Minister announced a sweeping package of welfare reforms to modernise the benefit system and help thousands more people into work, including a review of fit notes to consider how to relieve pressure on GPs and deliver personalised work and health plans that prevent people from falling out of work and onto long-term sickness benefits.

    The WorkWell service provides a single, joined-up assessment and gateway into both employment support and health services locally to help people manage their conditions and to identify workplace adjustments or support that would enable them to stay in work or return sooner.

    Participants do not need to be claiming any Government benefits and will receive personalised support from a Work and Health Coach to understand their current health and social barriers to work and draw up a plan to help them overcome them. Evidence shows that work is an effective way to improve wellbeing – reducing the risk of depression, improving physical health, and building self-confidence and financial independence.

    Work and Pensions Secretary, Mel Stride MP, said:

    We are rolling out the next generation of welfare reforms so that thousands more people can gain all the benefits work brings.

    Too many today are falling out of work in a spiral of sickness that harms their finances, their prospects and ultimately their health, where with the right workplace adjustments and help, this needn’t be the case.

    And so we have designed WorkWell, a groundbreaking new service, that will for the first time integrate health and work advice at the local level, as part of our plan to stem the flow into economic inactivity, grow the economy, and change lives for the better.

    Health and Social Care Secretary, Victoria Atkins MP, said:

    Too often, people with disabilities or poor health fall out of work with no support.

    We have a plan to change that and improve lives so everyone has the opportunity to find fulfilling work. This service will help tens of thousands of people, who will receive joined-up work and health support, tailored to their individual needs.

    This service, alongside a faster, simpler and fairer health service, will build a healthier workforce, and a stronger economy.

    WorkWell is for anyone with a health condition or disability, including mental health conditions, who wants to work. It is a voluntary service, so people will be able to self-refer, or may be referred to WorkWell through their GP, employer or the community sector.

    These professionals will also provide advice on workplace adjustments, such as flexible working or adaptive technology, facilitate conversations with employers on health needs, and provide access to local services such as physiotherapy, employment advice and counselling.

    Matthew Taylor, chief executive of the NHS Confederation, said:

    It is fantastic that 15 ICSs can now start to get their WorkWell plans off the ground to provide more intensive, early-intervention support to their populations.

    ICS leaders know that with the right support, people living with poor health and long-term conditions can find that good quality work helps prevent them from becoming more unwell. This helps people to live a fuller life, which in turn reduces pressure on health services.

    It comes as latest figures show there are currently 2.8 million people who are ‘economically inactive’ due to long-term sickness, a near-record high. The fit note process is often the first step to someone falling out of work and into inactivity and data recently published by the NHS shows almost 11 million fit notes were issued last year, with an overwhelming 94% of those signed “not fit for work”.

    A large proportion of these are repeat fit notes which are issued without any advice, resulting in a missed opportunity to help people get the appropriate support they may need to remain in work.

    To address this, the Prime Minister announced a review of the fit note system to stop people being written off as “not fit for work” by default and instead design a new system where each fit note conversation focuses on what people can do with the right support in place, rather than what they can’t do.

    As part of the call for evidence, we are also testing reforms of the fit note process to integrate it more closely with WorkWell, enabling the people who need it to have a work and health conversation, with a single, joined-up assessment and gateway into local employment support services.

    Some WorkWell pilots are in areas of the country with some of the highest number of fit notes issued, like Greater Manchester and the Black Country where a combined total of over one million fit notes were issued last year.

    We are also rolling out “fit note trailblazers” in some of the WorkWell pilot areas to ensure people who request a fit note have a work and health conversation and are signposted to local employment support services so they can remain in work. The trailblazers will trial better ways of triaging, signposting, and supporting people looking to receive a fit note and will be used to test a transformed process to help prevent people with long term health conditions falling out of work, including referral to support through their local WorkWell service.

    This builds on the record £16 billion worth of mental health support we offered last year, as well an extra 384,000 people accessing NHS Talking Therapies as part of the Government’s £2.5 billion Back to Work Plan. We are delivering the largest expansion in mental health services in a generation with almost £5 billion of extra funding over the past 5 years, and a near doubling of mental health training places to help cut waiting lists.

    Covering a third of Integrated Care Boards across England, the success of the pilot will inform the possible future rollout of a national WorkWell service dedicated to stemming the flow of people falling out of work due to ill health where the right adjustments and support could prevent this.

    This is a key part of the Government’s £2.5 billion Back to Work Plan, to help up to 1.1 million people with long-term health conditions, disabilities and long-term unemployment to look for and stay in work. In addition to reforming the fit note process and expanding NHS Talking Therapies, the Back to Work Plan includes the launch of Universal Support to match 100,000 people to job vacancies, and expanding the Restart scheme to give people the skills they need to progress.

    The Government’s wide-ranging welfare reforms also include changes to the Work Capability Assessment which are expected to reduce the number of people put onto the highest tier of incapacity benefits by 424,000 by 2028/29 – people who will now receive personalised support to prepare for work, while our Chance to Work Guarantee will mean people can try work without fear of losing their benefits.

    There is a near record level of people on company payrolls, up by over 200,000 since last year, wages have risen for nine months in a row, and economic inactivity is still lower than in the US, France and Italy.

    The rollout of Universal Credit will also be accelerated to move all those left on outdated legacy systems onto a simpler, more dynamic benefit system which eliminates a binary choice between work and welfare. And we will change the rules so that over 180,000 Universal Credit claimants will be given more frequent access to the expertise and guidance of work coaches, as a result of laying regulations to increase the Administrative Earnings Threshold.

    Further Information

    WorkWell pilots will take place within the following areas:

    1. Birmingham and Solihull
    2. Black Country
    3. Bristol, North Somerset and South Gloucestershire
    4. Cambridgeshire and Peterborough
    5. Cornwall and the Isles of Scilly
    6.  Coventry and Warwickshire
    7. Frimley
    8. Herefordshire and Worcestershire
    9. Greater Manchester
    10. Lancashire and South Cumbria
    11. Leicester, Leicestershire and Rutland
    12. North Central London
    13. North West London
    14. South Yorkshire
    15. Surrey Heartlands

    Each of the 15 WorkWell pilots will decide the exact support to be made available that’s best suited to the needs of their local area.

    The total number of Fit Notes issued in each area last year:

    Integrated Care Board Total FN issued
    (Jan – Dec 2023)
    Birmingham and Solihull 334,072
    Black Country 310,812
    Bristol, North Somerset and South Gloucestershire 191,192
    Cambridgeshire and Peterborough 137,566
    Cornwall and the Isles of Scilly 95,934
    Coventry and Warwickshire 243,508
    Frimley 112,259
    Herefordshire and Worcestershire 150,606
    Greater Manchester 744,442
    Lancashire and South Cumbria 455,436
    Leicester, Leicestershire and Rutland 192,650
    North Central London 262,733
    North West London 348,112
    South Yorkshire 322,958
    Surrey Heartlands 130,341

    An example WorkWell user journey:

    • The user is employed but their chronic back pain and depression means that they have been signed off work and are considering stopping altogether, leaving them financially vulnerable.
    • They are referred to WorkWell by their GP, employer, or local service.
    • They meet with a Work and Health Coach for a work and health assessment to understand their health and social barriers to work and develop a plan to overcome them.
    • They are signposted to in-house WorkWell services – four sessions with a physiotherapist, a meeting with a counsellor, and a meeting with a Human Resource Advisor for employment advice.
    • Their plan also includes referrals to other relevant local services that will enable them to overcome their barriers to work. This includes training opportunities to help them explore new career opportunities; social prescription to a support group tackling loneliness; and speaking to Citizens Advice Bureau for financial advice.
    • Thanks to their plan, they can remain in work and continue to meet with their WorkWell Work and Health Coach, who checks in on their progress and offers further work and health advice as needed.
  • PRESS RELEASE : £1.5 Million investment to improve in-work health services as part of government drive to tackle inactivity [April 2024]

    PRESS RELEASE : £1.5 Million investment to improve in-work health services as part of government drive to tackle inactivity [April 2024]

    The press release issued by the Department for Work and Pensions on 14 April 2024.

    Reforms to occupational health services will be shaped through a £1.5m innovation fund, through Innovate UK’s Small Business Research Initiative (SBRI), as the government continues its drive to tackle in work sickness and boost economic activity using new technology and artificial intelligence.

    • Five projects to share £1.5 million funding to boost occupational health services for small and medium-sized businesses.
    • Artificial intelligence and new technology at heart of revolution including expansion of remote services, digital health hubs, and Long Covid support.
    • New support comes as inactivity due to long term sickness increases by 735,000 since the pandemic
    • Occupational health reforms part of Government’s plan reduce economic inactivity by helping thousands more stay and succeed in work

    Five projects will receive a share of this funding to develop new and innovative ways to improve occupational health services which will eventually be scaled-up and made available to small businesses to help them support their employees to stay in work.

    One successful company, Kinseed Limited, is developing a revolutionary cloud-based occupational health platform aimed at offering employers’ powerful new tools to help maintain and improve employee health and wellbeing.

    Their new service “MediWork” is breaking ground with AI and uses data to monitor individual health trends and identifies early warning signs of ill health. It will tailor suggestions to improve workplace wellbeing, and help clinicians do their job more effectively and quickly than before.

    The new technology developed through the Fund will help unlock opportunities to improve people’s work and wellbeing as the government boosts health and employment support to drive down inactivity.

    Minister for Employment, Jo Churchill MP, said:

    Time off work due to sickness costs British business £100 billion every year. The innovative solutions developed through this funding will benefit businesses as we harness AI and technology to support a healthier and more productive workforce.

    Delivering through our Back to Work Plan and Occupational Health Taskforce, we are driving down inactivity and helping people reach their potential both in work and their daily lives.

    Pal Bhusate, Chief Executive Officer at Kinseed Limited, added:

    We’re very excited to be working with cutting edge technology in AI and Cloud systems to keep people healthy and safe at work – and this fund has been absolutely critical in helping us do precisely that.

    Supporting small and medium businesses in these areas is the only way that industries like ours can rapidly adapt to and get value from these incredible developments – and it’s brilliant to see such positive and active support from government to encourage that agility and innovation.

    Before the pandemic, inactivity in the UK had fallen by over 850,000 and while it currently remains lower than G7, EU and OECD averages, many people including those from younger generations are out of work due to long term sickness, in large part been driven by mental health conditions like depression and anxiety.

    With long-term sickness now the main reason people of working-age give for being economically inactive, occupational health services can help employers provide in work support to manage their employees’ health conditions and reduce the number of those becoming inactive.

    However, only 45% of workers in Britain have access to some form of occupational health, with an estimated 1.8 million workers reporting work-related ill health in 2022/23. That’s why the government is working with companies to develop new technology to better understand employee health, provide tailored support and tackle long-term sickness to help people stay and succeed in work.

    We’ve introduced reforms to address this through the government’s new WorkWell service and £2.3 billion in extra mental health funding a year in England to ensure people can reach their potential and get the support they need to reap the financial, mental and physical benefits being in work has to offer.

    The Occupational Health Innovation Fund and new Occupational Health Taskforce builds on this, and the government’s £2.5bn Back to Work Plan will support over a million people including those with mental health conditions to break down barriers to finding and staying work through the use of NHS Talking Therapies, Individual Placement and Support, Restart and Universal Support programmes.

    Minister for Health and Social Care, Helen Whately MP, commented:

    Every year many thousands of people take time off work – or leave work altogether – because of ill health. But at the same time, there are millions of people who are working with health conditions, often supported by occupational health services.

    We want more people to be able to benefit from occupational health support, particularly people working in smaller businesses or those who are self-employed. That’s why we’re investing in these innovative approaches to occupational health. This sits alongside our plans for WorkWell which will help people access support to stay in work, and our fit note reforms.

    A healthy economy depends on a healthy workforce. Making sure people can be healthy and stay in work is crucial for individuals, businesses and our country as a whole.

    Another organisation, Armour Labs Limited, is building a digital health hub for SME’s and the self-employed to reduce the cost of access to occupational health services.

    They will partner with digital healthcare providers and merge these services into health plans for UK employees which they can access through an online portal and future mobile app to help make Occupational Health support more accessible and efficient than ever.

    Aleezay Malik, Chief Executive Officer of Armour Labs Ltd, added:

    Armour Labs is building the digital marketplace for employers to procure and deploy Occupational Health services that cater to their workforce’s diverse and individual needs.

    Through the support of this Fund, we are now in the process of testing and rolling out our solution in the market which we expect will make Occupational Health not only more accessible and affordable for businesses, but also reduce ill health related absenteeism by 30%.

    In February, the government launched a new Occupational Health Taskforce, led by Dame Carol Black, to improve employer awareness of the benefits of Occupational Health in the workplace.

    The Taskforce is developing an occupational health framework to help businesses prevent sickness-related job loss and support employees returning to work after illness. The voluntary framework is expected to be published this summer.

  • PRESS RELEASE : Working parents on Universal Credit set receive up to £20,872 a year in childcare support [April 2024]

    PRESS RELEASE : Working parents on Universal Credit set receive up to £20,872 a year in childcare support [April 2024]

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

    Parents on Universal Credit can now receive up to £1,311 more a year in childcare support following a 6.7% boost coming into effect, as the government’s expansion of free childcare for working parents delivers 150,000 places in a week.

    • Parents receiving Universal Credit to receive significant boost to childcare support.
    • Increased support means parents who are keen to get back to work can now claim up to £109 more a month to help cover childcare costs.
    • Comes as government hits its target of ensuring 150,000 children gain childcare places from the new rollout.

    As of Monday 8 April, parents on Universal Credit with one child under 17 will be able to claim up to £1,015 a month, with parents of two children or more eligible for up to £1,739 to help pay for childcare costs – up from £950 and £1,630 respectively.

    The increase in support will help even more parents into work at a time when vacancies remain high, wages are rising faster than inflation, and taxes are being cut for 29 million hardworking people.

    The announcement comes as part of a huge package of support for working parents, including the expansion of 15 hours of free childcare a week for eligible working parents of two-year-olds for the first time.

    Over 150,000 two-year-olds are confirmed to have places for 15 hours a week of free childcare as of Friday, surpassing the take-up expectation set for early April. Thousands more places will continue to be secured over the coming weeks.

    Up to 85% of childcare costs of parents on Universal Credit are covered thanks to support from the Department for Work and Pensions, which has increased since last summer by £368 for parents of one child, and £631 for parents with two or more.

    The announcement is part of the government’s long-term plan to give working families a brighter future, by ensuring the cost of childcare is no longer a barrier for parents who want to work.

    Helping parents into work is one of the best ways to drive down the number of children living in poverty, as children living in workless households are over six times more likely to be in absolute poverty than children in a house where all the adults work.

    Work and Pensions Secretary Mel Stride said:

    This big boost to childcare support will help even more parents step into the world of work and secure long-term financial security.

    We are delivering on our plan to get people into jobs, as we cut taxes, drive down inflation, and put money back into the pockets of hardworking families.

    When fully rolled out, eligible working parents, including those on Universal Credit, will receive 30 hours of free childcare from the end of maternity leave to when their child starts school. Parents taking up the full 30 hours will save an average of £6,900 per year on childcare costs.

    We are taking significant steps to ensure the childcare sector is prepared to deliver this rollout, including a £100 million capital investment for more places, much higher average government funding rates than the average market rates paid by parents for the new entitlements, and a significant national recruitment campaign and £1000 cash incentive for new joiners to the sector.

    In 2024-25 alone, we expect to provide over £1.7 billion to support local authorities and providers deliver the expansion to the early years entitlements.

    On top of this, almost half a million families are set to benefit from our changes to the High-Income Child Benefit Charge, taking 170,000 families out of paying the High-Income Child Benefit Charge altogether with families gaining an average of £1,260 from these changes.

    This includes raising the threshold for the High-Income Child Benefit Charge from £50,000 to £60,000 as well as halving the rate so that it is not paid in full until an individual earns over £80,000. We will also end the unfairness for single earner families by moving towards a household system.

    As well  this boost for parents, the £2.5bn Back to Work plan will help over a million long term unemployed, sick and disabled people break down barriers to work, with the Chance to work Guarantee freeing up claimants to try work with no fear of losing their benefits.

    This comes alongside the huge amount of support offered by Jobcentres to people of all backgrounds. From upskilling, interview support and finding apprenticeships, whether you’re looking for a new career or just starting in the world of work, Jobcentres across the country can give you the tools you need to start, stay and succeed in work.

  • PRESS RELEASE : Fraudsters behind £53.9 million benefits scam brought to justice in country’s largest benefit fraud case [April 2024]

    PRESS RELEASE : Fraudsters behind £53.9 million benefits scam brought to justice in country’s largest benefit fraud case [April 2024]

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

    A group who stole over £50 million of taxpayers’ money has been brought to justice in the largest ever benefit fraud case in England and Wales.

    • Five people who stole £53.9 million through fabricated benefit claims have been brought to justice in England and Wales’ largest benefit fraud case
    • Department for Work and Pensions (DWP) investigators, working with the Crown Prosecution Service (CPS), caught the fraudsters after extensive investigation
    • Convictions come as the DWP saved at least £18 billion in 2022/23

    Five people have pleaded guilty to numerous charges involving creating false Universal Credit claims worth £53,901,959.82.

    DWP investigators worked to track and catch the fraudsters, gathering extensive evidence of false tenancy agreements and shell companies created to show false employment claims, including counterfeit payslips and GP notes. The group also created many false identity documents.

    The courts will now proceed with sentencing the defendants as the DWP and CPS work to recover the money stolen.

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

    I am immensely proud of DWP investigators’ work, in collaboration with the Crown Prosecution Service, to take down this organised crime group.

    Building on our success in preventing £18 billion going into the wrong hands in 2022/23, these convictions underline our commitment to protecting taxpayers’ money. It is only right and fair that we bring those stealing from the public purse to justice.

    Minister responsible for tackling benefit fraud, Paul Maynard MP, added:

    Our investigators are working tirelessly to catch benefit cheats and this case builds upon our plan to save £1.3 billion on fraud and error.

    At the same time, our Fraud Plan will help us implement a long-term strategy to minimise fraud and error and ensure value and fairness for the taxpayer.

    Ben Reid, Specialist Prosecutor for the CPS, said:

    This case is the largest benefit fraud prosecution ever brought to the courts in England and Wales.

    This was a complex and challenging case which required close and effective working between CPS prosecutors, the Department for Work and Pensions and our international partners in both Bulgaria and through the UK desk at Eurojust, to dismantle and successfully prosecute the organised crime group. The guilty pleas entered by all five defendants, reflects the strength of the evidence against them.

    The CPS Proceeds of Crime Division will now pursue confiscation proceedings against the defendants, to remove from them any available criminal benefit from this enterprise.

    The defendants who have pleaded guilty at Wood Green Crown Court were: Galina Nikolova, 38; Stoyan Stoyanov, 27; Tsvetka Todorova, 52, Gyunesh Ali, 33, and Patritsia Paneva, 26. All defendants are of Bulgarian nationality.

    The defendants laundered money from the false benefit claims and sent incriminating WhatsApp messages that shared forged documents.

    Investigators also found “claim packs” at the houses of defendants, which were created for others to make false benefit claims and included false documents such as bank statements, fake photographic identification, and forged information on dependants.

    Additional items seized included bundles of cash stuffed into shopping bags and suitcases, designer goods such as watches, jackets and glasses, and a luxury car.

    This latest case comes as the government continues to turn the tide on benefit cheats. DWP’s Fighting Fraud in the Welfare System plan, backed by £900 million over three years, bolsters the counter-fraud frontline with measures including trained specialists to review millions of Universal Credit claims.

    This counter fraud clampdown, together with wider benefit checks and controls, saved at least £18 billion in 2022/23 and saw fraud and error fall by 10 percent.

    DWP is now pushing to go further with a target to save the taxpayer £1.3 billion through counter fraud and error in 2023/24.

    Additional Information:

    • In 2022, the DWP launched a plan to further tackle fraud and error in the benefits system. The Fighting Fraud in the Welfare System plan, backed by £900 million over three years, bolsters the counter-fraud frontline with measures including trained specialists to review millions of Universal Credit claims.
    • The Government is legislating for new fraud powers. These will allow the DWP to request data from third parties, such as banks, that could show signals of potential benefit fraud and error.
    • The Third-Party Data amendment DWP have included in the Department for Science, Innovation and Technology’s Data Protection and Digital Information Bill will modernise and strengthen DWP’s powers to tackle the evolving threat of fraud in the digital age.
    • The new powers that the Government is legislating for will not allow DWP to access bank accounts, or see how benefit claimants spend their money, as third parties will only provide the minimum amount of information required.
    • DWP will only receive information on cases where potential fraud or error has been flagged and will save the taxpayer up to £600million over the next five years.
  • PRESS RELEASE : Half a million more benefit claimants set to benefit from back to work support as Universal Credit expands [April 2024]

    PRESS RELEASE : Half a million more benefit claimants set to benefit from back to work support as Universal Credit expands [April 2024]

    The press release issued by the Department for Work and Pensions on 9 April 2024.

    Half a million people claiming old benefits will be invited to claim Universal Credit, unlocking all the work support it offers.

    • Expansion of move to Universal Credit will help 500,000 more people unlock the employment support on offer.
    • Letters will be sent to people on certain benefits notifying them of the action they need to take.
    • People on Universal Credit are more likely to have a job within six months of making a claim.

    More than 130,000 people have already successfully switched from tax credits to the modern digital Universal Credit system which allows claimants to access their benefits more easily and amend their claim should their circumstances change.

    The expansion this year will continue for people claiming:

    • Income Support and Tax Credits with Housing Benefit from April
    • Housing Benefit only from June
    • ESA (Income Based) with Child Tax Credit from July
    • Tax Credits (Pension Aged including mixed aged couples) from August
    • JSA (Income Based) from September

    Universal Credit helps people move closer to work and greater financial security through a range of support – including training placements and upskilling – as well as tailored support from a dedicated Work Coach.

    Recent findings have shown Universal Credit claimants are more likely to be in work within six months of making a claim.

    The move comes as the DWP’s £2.5 billion Back to Work Plan is set to help over a million people, including those with disabilities and long-term health conditions to break down barriers to work.

    Minister for Employment, Jo Churchill MP said:

    Universal Credit is a proven benefits system fit for the modern age.

    With even more people moving to Universal Credit, we can continue to provide the best level of support for people to secure financial independence through work.

    I would encourage all those who receive their Migration Notices to take action to ensure they continue to receive the benefits they are entitled to.

    By moving to Universal Credit, benefit claimants, including those with limited work requirements, will be able to access to a range of employment support.

    We know one in five people currently on the highest tier of incapacity benefits with no work preparation requirement, would like to work in the future with the right support. We’re helping them do this not just though Universal Credit, but with specialist employment support, record levels of mental health provision and the Chance to Work Guarantee, meaning millions can try work free from the fear that they could lose their benefits.

    Recent data shows working age adults living in workless households are around seven times more likely to be in absolute poverty than those in households where all adults work, while children living in workless households are six times more likely than those where all adults work.

    Benefit claimants will not lose out financially when moving to Universal Credit. Where an individual’s entitlement to Universal Credit is lower than their legacy benefit entitlement, they will be entitled to a top-up payment known as Transitional Protection. This ensures that their Universal Credit is the same as their legacy benefit entitlement.

    People will soon start to receive letters – known as Migration Notices – asking them to move to Universal Credit. Recipients who don’t act within three months risk losing their current benefit entitlements.

    Additional support is available through a dedicated helpline for claimants who receive a Migration Notices, via face-to-face support in local Jobcentres and independent support through Help to Claim, delivered by Citizens Advice while extensions can be arranged for those who need more time to make a claim.

    Paul from Ashington is one of thousands of claimants who has already successfully made the move and benefited from the support provided to help make the move.

    Paul said:

    I was so worried about having to move to Universal Credit, because I thought I would be pushed into a job search I didn’t feel comfortable or ready for. The move has been made easy because of the support and help I received from my Work Coach, Pauline.

    Moving to Universal Credit has been so much easier than I expected. I’ve been able to keep on top of my payments and I’m now closer than ever to finding work!

    The expansion of Universal Credit comes as part of the Government’s plan to make sure work always pays, with a huge boost to the National Living Wage and tax cuts worth an average of £900 for 29 million hardworking people.

    Additional Information

    • Migration Notices will be issued to all legacy benefit types, apart from ESA claimants, over the next six months.
    • Evidence to date shows that most Tax Credit claimants have been able to claim Universal Credit without the need for additional support.
    • Since the resumption of Managed Migration some claimants have naturally moved to Universal Credit following a change in their circumstances and claimants have always been able to make a claim for Universal Credit if they wish to do so.
    • The DWP has recently launched a Move to UC advertising campaign to notify legacy benefit claimants of the need to make a claim to Universal Credit which includes print, radio, and online advertising.
    • Claimants can claim Universal Credit directly online or via the dedicated Universal Credit Migration Notice helpline for free on 0800 169 0328 or by visiting your local jobcentre. Claimants that require more time to claim can also call DWP for free on 0800 169 0328.
    • For claimants requiring additional support to complete their application support is available including through Citizens Advice Help to Claim for those living in England or Wales and Citizens Advice Scotland Help to Claim for those living in Scotland, which delivers step by step support to complete a UC claim.
  • PRESS RELEASE : Government reaffirms commitment to backing pensioners with £900 rise to state pension [April 2024]

    PRESS RELEASE : Government reaffirms commitment to backing pensioners with £900 rise to state pension [April 2024]

    The press release issued by the Department for Work and Pensions on 9 April 2024.

    The State Pension is increasing by 8.5 percent today as part of the Government’s commitment to support pensioners in retirement.

    • Millions of pensioners set to benefit from 8.5 percent increase to the State Pension today
    • In one of the largest ever cash increase will mean pensioners will receive an extra £900 a year on the full rate of the new State Pension
    • Universal Credit and other working-age benefits to see a 6.7 percent rise, while Government slashes National Insurance to help make work pay
    • Comes as the Government has provided support worth an average £3,800 support households between 2022-25

    The State Pension is increasing by 8.5 percent today as part of the Government’s commitment to support pensioners in retirement.

    It comes on the heels of the highest ever cash increase to State Pension in history of 10.1 percent last year, plus a package of support for pensioners this winter worth nearly £5 billion.

    Underlining the Government’s commitment to backing Britain’s pensioners, this means pensioners receiving the full new State Pension will get an extra £900 a year from today. The full yearly basic State Pension will also be £3,700 more than in 2010, while the full rate of the new State Pension will be over £11,500 a year.

    This commitment centres around offering dignity and security to those who have worked hard all their lives and deserve support at a stage when they may be unable to grow their income through work. The Triple Locked State Pension remains a cornerstone of this commitment, as it is only right and fair that pensioners incomes are protected.

    Pension Credit, a passport benefit to provide additional support for low-income pensioners, will also see a significant rise, with the average award worth over £3,900. The DWP is also increasing Local Housing Allowance rates, putting £800 back in the pockets of over 1.5 million recipients of Universal Credit or Housing Benefit.

    This unprecedented support has all been made possible because we are sticking to the plan and our economy has turned a corner– enabling people the opportunity to build a financially secure life for themselves and their family.

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

    Thanks to the Triple Lock and our efforts to drive down inflation, we are putting money back in the pockets of pensioners. This is only possible because we have stuck to our plan and our economy has turned a corner.

    This will make a meaningful difference to all those who rely on the State Pension and ensure we continue to provide a safety net for those who need it most while making work pay wherever possible.

    Minister for Pensions, Paul Maynard MP said:

    It’s only right that after a lifetime of work that we protect our pensioners’ incomes.

    Our sustained commitment to the Triple Lock demonstrates our determination to continue to combat pensioner poverty, and to ensure that the State Pension will continue to provide the foundation of income in retirement so many need.

    Minister for Employment, Jo Churchill MP, said:

    We are continuing to protect those in need through boosting benefits by 6.7% and providing the largest cost of living support package in Europe.

    The welfare system will always be there for people who need it, but work is the best way to secure long-term financial security and our £2.5 billion Back to Work Plan will help even more people secure employment.

    At the same time we are making work pay through generous tax cuts and the rise in the National Living Wage.

    To ensure the most vulnerable are also supported, from today those on Universal Credit will see a 6.7 percent increase to ensure a genuine safety net whilst the Government supports their move towards financial independence through work. This 6.7 percent rise extends to other DWP benefits, such as Personal Independence Payment, Disability Living Allowance and Employment and Support Allowance, among others.

    In cash terms this means an additional £470 for the 5.5 million households on Universal Credit with over 19 million families across Britain benefiting from uprating, including working parents who can now receive up to £20,800 a year in childcare support.

    The Government’s drive to support the most vulnerable has helped reduce absolute poverty by 1.1 million individuals compared to 2010 with over 200,000 pensioners being lifted out of poverty since 2010 after housing costs are taken into account. With inflation more than halved and forecast to reduce further, it is right that we help people back into work and grow the economy, while continuing to provide support to those who need it most.

    That is why the Government has provided support worth an average £3,800 for vulnerable households between 2022-25 and is injecting £2.5 billion as part of the Back to Work Plan to help people with disabilities, health conditions, or who are long-term unemployed find and stay in work.

    Alongside this, the Government is making work pay for workers and the economy: rewarding work by slashing National Insurance contributions for employed and the self-employed by a third since the autumn and putting £900 back in the pockets of the average hard-working employee. Taken together, this means the equivalent of 200,000 more people in work – filling one in five vacancies and adding 0.4% to GDP and 0.4% to GDP per head, according to the OBR.

  • PRESS RELEASE : Employment boost of 200,000 as cost of living support extended [March 2024]

    PRESS RELEASE : Employment boost of 200,000 as cost of living support extended [March 2024]

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

    Plans to boost economic activity while supporting vulnerable people with the cost of living will be driven through by Work and Pensions Secretary Mel Stride, as the Government unveiled its Budget for Long Term Growth.

    • Household Support Fund extended with £500 million of support for the most vulnerable households
    • Equivalent of 200,000 more in employment following welfare reforms and tax cuts to make work pay
    • “Additional Jobcentre Support” to be rolled out to 150 sites alongside unprecedented £104 billion cost of living package

    Following the next generation of welfare reforms announced last Autumn – including the flagship £2.5 billion Back to Work Plan – more people will be rewarded for hard work with cuts to National Insurance worth £900 for the average employee this year.

    We have already delivered on our plan to halve inflation, which is down to 4% from its peak of 11% thanks to the steps taken by this Government. As inflation continues to fall, millions of families will also benefit from extra support with the cost of living – helping deliver the long-term change our country needs to deliver a brighter future for Britain and improve economic security and opportunity for everyone.

    The Household Support Fund – first introduced in October 2021 – will be extended for a fourth time. The extension, backed by £500 million, will support the most vulnerable households.

    Alongside the continued cost of living support, jobseekers will be encouraged to secure long-term financial security through work following the extension of the Additional Jobcentre Support pilot.

    The pilot will be expanded to a further 30 sites – reaching 150 in total – and will deliver intensive support so more people can secure the physical, mental, and financial benefits work brings.

    Work and Pensions Secretary Mel Stride said:

    Work is the best way to secure long-term financial security, which is why in this Budget the Government is rewarding hard work with more tax cuts, boosting growth and helping families with the challenges they’re facing.

    The long-term decisions announced by the Chancellor will put £900 back in the pockets of 27 million employees this year and support the equivalent of 200,000 people into work, when taken together with the next generation of welfare reforms we’re already rolling out.

    This was also a Budget that recognised some people are still struggling and the extension of the Household Support Fund will give vulnerable households the help they need.

    Our plan is building a brighter future for millions of people.

    To support households from falling into debt the Government is taking decisive action to ensure claimants retain more of the money they receive from Universal Credit.

    Almost one million households on Universal Credit take out budgeting advance loans. These provide families with a vital source of funds to purchase one-off items like fridges and other expensive items.

    To help make these repayments more affordable we will be increasing the repayment period for new loans from 12 months to 24 months.

    The measures announced in the Spring Budget build on the next generation of welfare reforms the Secretary of State ushered in last autumn. The plans offer unprecedented employment and health support to help over a million people, while protecting those in most need from cost of living pressures – including raising pensions and benefits and more help with housing costs.

    While unemployment has been almost halved since 2010, our £2.5 billion Back to Work plan will help thousands of people with disabilities, long-term health conditions and the long-term unemployed, to move into jobs. This comes alongside the Government’s Chance to Work Guarantee, so that claimants on incapacity benefits can try work without fear of losing their benefits.

    The extension of the Household Support Fund comes on top of the £104 billion cost of living support package:

    • Boosting the state pension by 8.5% from April for over 12 million pensioners, an extra £900 next year for a pensioner on the new State Pension
    • Increasing benefits by 6.7% from April
    • Increasing the Local Housing Allowance from April, worth an average gain of £800 a year

    The Government has also announced several significant pension fund reforms as part of the Value for Money framework. These will benefit both savers and British business, led by new requirements for Defined Contribution pension funds to publicly disclose their level of investment in the UK.

    The Government will also undertake further analysis and research on the viability of a lifetime provider model, which could move individuals to having just one workplace pension pot across their career.

    Additional Information

    1. £500m of additional funding enables the extension of the Household Support Fund, including funding for the Devolved Administrations through the Barnett formula to be spent at their discretion. This means that Local Authorities in England will receive an additional £421m to support those in need locally through the Household Support Fund.
  • PRESS RELEASE : Landmark review calls on employers to boost support for autistic people [February 2024]

    PRESS RELEASE : Landmark review calls on employers to boost support for autistic people [February 2024]

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

    A bold new government-backed review has set out a vision for workplace culture changes to support autistic people to start and stay in work.

    • Review sets out 19 recommendations to support more autistic people to start, stay and succeed in work.
    • Despite most autistic people wanting to work, just 3 in 10 are currently in employment due to stigma and lack of understanding of their needs.
    • More neuro-inclusivity in the workplace can help fill vacancies and grow the economy by unlocking the potential of thousands more people.

    A bold new government-backed review has set out a vision for workplace culture changes to support autistic people to start and stay in work.

    DWP figures show only around 30 percent of working age autistic people are in employment, compared with half of all disabled people and 8 in 10 non-disabled people, despite the majority saying they would like to be employed.

    Commissioned by Secretary of State for Work and Pensions Mel Stride and led by Sir Robert Buckland KC, the Review’s 19 recommendations for businesses and government include:

    • signing up for the Autistica Neurodiversity Employers Index to access guidance on designing inclusive processes and procedures
    • encouraging career progression by developing packages of training focused on autistic staff
    • improving recruitment by ensuring careers advisers can provide appropriate advice to autistic jobseekers
    • supporting autistic people who are already in the workplace by producing “autism design guides” to create appropriate premises, furnishings and equipment
    • working with software suppliers to develop IT systems that meet autistic people’s needs.

    The Buckland Review of Autism Employment was supported by charity Autistica and includes the views of hundreds of employers and autistic people.

    It sets out how businesses and government can work together over the next five years – whether that is showcasing the successes of autism employment, developing pilot programmes in national and multinational companies, or providing tailored support for autistic staff at work.

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

    I want autistic people to have every opportunity to benefit from work, and recognise that businesses and government must come together if we are to create the cultural change needed to move the dial.

    Backed by the extra employment support provided through our £2.5 billion Back to Work Plan, this report provides employers with practical and inexpensive steps to open up workplaces to autistic people, boost employment rates and, above all, change autistic people’s lives.

    Sir Robert Buckland KC MP said:

    It has been a tremendous privilege to compile this report, and to hear from hundreds of autistic people about their experiences. This is all about them, and we couldn’t have done it without their help.

    The review can make a truly radical difference to the lives of autistic people and their families. I call on employers and government to lead this change and make these recommendations a reality.

    It is all part of the Government’s long-term plan to build a stronger economy – which has seen unemployment compared to 2010 decline, with four million additional people in work.

    The Government has already succeeded in getting one million more disabled people into employment by 2027, five years ahead of schedule, with tailored support helping claimants realise their potential.

    Access to Work grants worth up to £66,000 made working easier for nearly 50,000 people last year. The Government’s flagship Universal Support programme is set to provide up to 25,000 people with highly personalised employment support, working closely with employers to navigate any workplace adjustments required to accommodate individual needs.

    Minister for Disabled People, Health and Work, Mims Davies MP, said:

    There are so many benefits and positives autistic people can bring to the workplace, and this is matched by what employment can bring to them. We must make sure they get the work opportunities they want and deserve.

    This welcome and important review will help ensure autistic people can thrive and progress in the labour market. I am keen employers get behind these recommendations, and partner with us to truly make our workforce more inclusive and welcoming.

    Minister for Social Care, Helen Whately MP, said:

    We want autistic people to have equal opportunities to flourish in society and contribute to the economy.

    For too long there have been too many barriers for them in the workplace; this review is a major step to changing that.

    This builds on our five-year autism strategy and shows our continued commitment to ensuring autistic people are able to lead happier, healthier and more fulfilling lives.

    The review is the latest milestone in the Government’s mission to make the UK the most accessible place in the world, following the publication of the Disability Action Plan earlier this month, the launch of the Lilac Review, which will investigate the barriers disabled entrepreneurs face, and the longer-term National Disability Strategy, which will transform disabled people’s everyday lives for the better.

    It also builds on the Government’s employment and welfare reforms – including the new £2.5 billion Back to Work Plan which will help thousands more disabled people and people with health conditions to start and thrive in work.

    Additional information

    • The Buckland Review of Autism Employment is available online.
    • The latest figures for employment of autistic people are available on GOV.UK.
    • The review is intended to complement, rather than duplicate, the Government’s national strategy for autistic children, young people and adults. Details of this strategy, which also recognises employment as a priority, are available on GOV.UK.
    • Autism charity Autistica, which supported the review, has now launched the Neurodiversity Employers Index, NDEI®, an evidence-based framework to help organisations recruit and support neurodivergent employees and become leading neurodiversity-friendly employers. More information can be found on the Autistica website.
    • A dedicated taskforce will be set up to further the work of the review.
  • PRESS RELEASE : DWP unveils plans for £1.4 trillion in pension assets to deliver for savers and economy [February 2024]

    PRESS RELEASE : DWP unveils plans for £1.4 trillion in pension assets to deliver for savers and economy [February 2024]

    The press release issued by the Department for Work and Pensions on 23 February 2024.

    Department for Work and Pensions (DWP) outlines plans to make £1.4 trillion in pension schemes work better for savers and the wider economy.

    • Options include making surplus extraction easier and designing a public sector consolidator

    The DWP today set out plans to ensure the £1.4 trillion held by pension schemes delivers for savers and the economy.

    Plans include making surplus extraction easier for well-funded Defined Benefit (DB) schemes, alongside a public sector consolidator operated by the Pension Protection Fund.

    The consultation – which runs from today (Friday 23 February) until Friday 19 April – seeks views on how the money held in DB schemes can be best unlocked in the interest of savers and for sustainable investment in the wider economy.

    Minister for Pensions, Paul Maynard said:

    We are in a welcome position with DB pension schemes enjoying high levels of funding, and we want to make this money work harder for savers and the wider economy. I welcome industry views on our plans to reform the pensions market.

    Over the last decade most DB schemes have become better funded, with the average scheme having a funding level of 113% in 2022, compared to 104% in 2010. This has led to an aggregate surplus of £200 billion.

    By supporting these schemes to invest surplus in UK productive finance assets, it is believed the schemes can help boost the UK’s leading position as a leading financial centre, creating wealth to help fund public services.

    Additionally, with around 5,000 schemes operating in the UK, consolidation of the market could also further the productive finance agenda – providing greater opportunity to strengthen the economy through increased investment.

    Consolidation could also continue to strengthen security for savers through economies of scale and improved governance – ensuring better outcomes for savers remain at the heart of the proposals.

    Further Information