Tag: Department for Work and Pensions

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

New group comprised of government and pension industry representatives to look at helping savers track their pensions.

Members will discuss the design and implementation of the proposed new consolidation system as part of new Small Pots Delivery Group.

This represents a vital step in delivering greater value for money which could benefit the average saver by £700 at retirement.

A new group designed to help savers track their pensions was launched yesterday (7 February) by Pensions Minister Paul Maynard.

The new system is designed to put savers first and ensure a better functioning pension market. It involves a small number of authorised schemes working to consolidate small pension pots on behalf of savers.

Pensions Minister Paul Maynard said:

Deferred small pots are costly, inefficient, and hard to keep track of.

This group will help in crafting a cost-effective and efficient system, ensuring better financial security and greater value for money for millions of savers.

Deferred small pots are small pension pots left inactive, often from a previous job, and typically contain small amounts of money.

Currently, these are a drag on the pension system making it harder for people to make informed decisions about – and keep track of – their pension, reducing the amount they may have in retirement. Some savers even lose track of their pots altogether due to having multiple pots from different jobs.

The successful introduction of Automatic Enrolment in 2012 brought millions of workers into workplace pension saving, often for the first time. In 2022 for example, employees across the UK saved £116 billion into their pensions – a real-terms increase of £29 billion compared to 2012.

However, with this has come rapid growth in the number of deferred small pots – without intervention this could result in annual administrative costs by 2030 of up to £225 million.

Helping to deliver on the chancellor’s Mansion House reform package, the new Small Pots Delivery Group will provide recommendations on how best to implement the proposed multiple default consolidator approach – which was set out in the government’s consultation response in November 2023.

Further Information:

• This work comes on top of wider initiatives, including multiemployer Collective Defined Contribution (CDC) schemes, the Value for Money Framework, and the development of decumulation products. Combined, these could improve the opportunity for investment and deliver better outcomes for members.
• The Delivery Group will be chaired by the DWP and has 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 for Work and Pensions on 26 January 2024.

Families struggling with energy bills are being urged to speak to their council for Household Support Fund help.

• Over £360m has already been spent on helping people with energy and water bills.
• Councils have provided boilers, loft insulation and can help with the cost of essentials such as food and bills.

People struggling with the cost of energy bills this winter are being encouraged to speak to their council about the financial help available from the Department for Work and Pensions’ Household Support Fund.

The Government has invested over £2 billion into the Fund since it launched, with new statistics now showing more than £360 million has been paid to households for support with energy and water costs between October 2021 and March 2023.

With colder temperatures in recent weeks, the Fund can be used to make homes more energy efficient, as well as help households with bills.

Kingston upon Hull Council have used the Fund to pay for hundreds of boilers and radiators for residents, while others have benefitted from loft insulation, new thermostats, and radiator valves.

Pensioners in Swindon Borough Council have been allocated tens of thousands of pounds ahead of winter for tailored heating support, including fuel and energy grants as well as repairs and maintenance to heating systems.

The Fund is part of the government’s work to deliver a brighter future for Britain, building long-term economic security and stability, as well as a Britain where hard work is rewarded, and families are supported. That is why the government has worked to bring inflation down by more than half while cutting taxes which will help make the income of hardworking people go further.

Minister for Employment, Jo Churchill MP, said:

The Household Support Fund is there for anyone who needs a helping hand. This Fund allows councils to help in all kinds of ways – from providing heating support, like boilers and insulation, to other needs, such as kitchen essentials, free school meals and warm clothing.

Now inflation has more than halved, and the economy has turned a corner, anyone who feels they need help this winter should get in touch with their local council to find out how this Fund can help them.

As well as heating support, the Fund can help with other needs, such as kitchen essentials, free school meals and clothing to help people during the colder months.

The Fund sits alongside wider government support worth an average £3,700 per household – including up to £900 in direct Cost of Living payments for those on means-tested benefits. As well as this, three million households are expected to benefit from the £150 Warm Home Discount and over 11 million pensioner households received up to £600 in Winter Fuel Payments in December last year.

Working age and disability benefits are also set to rise by 6.7% from April, following last year’s inflation-matching 10.1% rise, and millions of private renters will benefit from boosts to the Local Housing Allowance for 2024-25.

As well as the Household Support Fund, there’s a range of support available to struggling households. Through the Help for Households campaign, people have access to information and support on a range of issues – from Cost of Living Payments to help with childcare costs, mental health advice and more.

To find out what support you may be eligible for go to Help for Households – Get government cost of living support.

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

The Social Security Advisory Committee welcomes 6 new members.

The Department for Work and Pensions (DWP) has appointed the following new members to the Social Security Advisory Committee (SSAC):

Les Allamby
Rachel Chiu
Daphne Hall
Stephen Hardy
Jacob Meagher
Suzy Walton

In addition, existing member Bruce Calderwood has been re-appointed to the Committee for a further term of three years.

Confirming the appointments, Parliamentary-Under-Secretary for DWP, Viscount Younger of Leckie, said:

I am delighted to welcome Les, Rachel, Daphne, Stephen, Jacob, and Suzy to the Social Security Advisory Committee, and also to welcome back Bruce for a further term. Collectively, the new appointments bring a formidable wealth of knowledge, experience and diverse perspectives which will further enrich the advice that the Committee provides to the DWP Ministerial team.

Dr Stephen Brien, SSAC Chair, said:

These appointments are a very welcome addition to the current Committee membership. The diversity of the new appointments will bring with it an impressive mix of knowledge, skills, and insight to our work on a broad range of issues that affect many people in our society who find themselves in vulnerable situations. I look forward to working with our new colleagues.

About the Committee

Established in 1980, the Social Security Advisory Committee is an independent statutory body. It provides advice to the Secretary of State for Work and Pensions on proposals for the amendment of secondary legislation and on general social security matters.

The Commissioner for Public Appointments regulates all appointments made to SSAC by the Secretary of State. All such appointments are made in accordance with the Governance Code for Public Appointments.

SSAC members receive a daily fee of £256.80, for a time commitment of 2 to 3 days a month.

About the appointees

Les Allamby

Les holds several public appointments including Discretionary Support Commissioner for Northern Ireland. Les is a former member and vice-Chair of SSAC (2005 to 2014).

Les has been appointed from 1 February 2024 to 31 January 2029.

Bruce Calderwood

Bruce is a trustee of Avenues, a group of charitable companies providing support for people with complex needs. He is a former senior civil servant who served both in the Department of Health and DWP.

Bruce has been reappointed from 1 January 2024 to 31 December 2026.

Rachel Chiu

Rachel is a co-founder and director of Spring Housing Association and is a trustee of IKON.

Rachel has been appointed from 1 January 2024 to 31 December 2028.

Daphne Hall

Daphne is an editor at Rightsnet and is the Vice Chair of the National Association of Welfare Rights Advisers.

Daphne has been appointed from 1 January 2024 to 31 December 2026.

Stephen Hardy

Stephen is a Professor of Law at the University of Hull and a Judicial Office Holder.

Stephen has been appointed from 1 January 2024 to 31 December 2026.

Jacob Meagher

Jacob is a practising barrister (England and Wales), a Research Associate at the University of Cambridge Centre for Business Research and a Board Member and Trustee of the Snowdon Trust.

Jacob has been appointed from 1 January 2024 to 31 December 2028.

Suzy Walton

Suzy is a strategic adviser and former board member at the Institute of Directors. A former senior civil servant at the Cabinet Office, Suzy has a number of roles on various public bodies, is a Chartered Director and a mother of 7. She has a PhD from her work in the Ministry of Defence on suicide.

Suzy has been appointed from 1 January 2024 to 31 December 2026.

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

Around 82,500 renters in Wales are set to receive a boost to their housing support in April, as the Government lays legislation to increase Local Housing Allowance (LHA).

Around 1.6 million private renters across Great Britain are set to receive a substantial boost to their housing support in April, as the Government lays legislation to increase Local Housing Allowance (LHA). In Wales, around 82,500 households are set to benefit from the boost.

The boost will benefit some of the poorest families on either Universal Credit or Housing Benefit who will gain around £800 a year.

The support worth over £7 billion over the next five years comes as the government publishes the proposed LHA rates for 2024/25, with people living in the most expensive areas set to see the biggest boost.

Subject to the benefits cap, eligible renters of:

• Four bed in the Cardiff Broad Rental Market Area could get up to £1,300 a month.
• Three bed in the Monmouthshire Broad Rental Market Area could get up to £795 a month.
• Two bed in the Merthyr & Cynon Broad Rental Market Area could get up to £500 a month.

The increase to the LHA has been welcomed by many housing and homelessness organisations and is part of the Government’s £104 billion cost of living support package – worth an average £3,700 per household. This also includes raising benefits by 6.7%, the state pension by 8.5%, and £300 cost of living payments, with over 7 million households receiving the latest payment and another payment coming in Spring.

This additional support comes as 27 million people are set to get a significant tax cut as the main rate of employee National Insurance will be cut from 12% to 10%. This reduces National Insurance by more than 15% in total, saving £450 this year for the average salaried worker on £35,400.

Work and Pensions Secretary Mel Stride said:

Housing costs are the number one expense for families. This £7 billion boost to Local Housing Allowance over the next five years, along with our landmark Back to Work reforms, reflects our fair approach to welfare – helping people into employment while protecting the most vulnerable with unprecedented cost of living support.”

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

Keeping inflation down and supporting people to stay and progress in work is the best way we can bolster families’ finances and help them progress, but we know some are still struggling which is why we are providing this important extra help.

This key boost to our housing support will see average renters around £800 better off. It is just one crucial part of our £104 billion package to help the most vulnerable which also includes an increase to benefits in line with inflation and our latest series of cost of living payments.”

Secretary of State for Wales, David TC Davies said:

I’m pleased this extra support will benefit tens of thousands of households across Wales, which comes on top of the already substantial support that the UK Government has already provided over recent months to support people with the cost of living.

At a time when many people are concerned about paying the bills, the UK Government continues to focus on helping the most vulnerable in all parts of Wales”.

Crisis Chief Executive Matt Downie said:

It cannot be understated just how vital this investment in housing benefit will be in helping to both prevent and end homelessness.

In recent years, people receiving housing benefit have found it increasingly difficult to afford the soaring cost of rents. Giving housing benefit this crucial boost will make a real difference to people across Great Britain and will relieve some of the pressure facing people on the lowest incomes.

We hope this investment will be maintained for the long term, so we can continue with our collective mission to end homelessness for good.”

The investment comes on top of the £30 billion support the government is providing over 2023/24 on housing support.

Minister for Levelling Up Jacob Young said:

This funding boost is just one part of how we’re supporting people in the private rented sector with the cost of living.

We have already invested £30 billion in housing support, along with Discretionary Housing Payments which provide an added safety net for anyone struggling to meet their rent.

We are taking the long term decisions needed for a better private rented sector, through our Renters Reform Bill, giving tenants security and supporting good landlords.”

The Local Housing Allowance determines the maximum housing support for private renters. It ensures that claimants in the same area with similar situations are entitled to the same maximum support regardless of the rent they pay. The level of support is based on the area where the person lives and the size of their household.

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

Around 1.6 million private renters are set to receive a substantial boost to their housing support in April, as the Government lays legislation to increase Local Housing Allowance (LHA).

• New Local Housing Allowance rates to come into force in April as legislation being laid in parliament.
• £7 billion investment over the next five years means 1.6 million private renters on Universal Credit or Housing Benefit will be around £800 better off a year.
• Comes as national insurance cut comes into effect – meaning households with two average earners will save nearly £1,000 per year.

The boost will benefit some of the poorest families on either Universal Credit or Housing Benefit who will gain around £800 a year on average.

The support worth over £7 billion over the next five years comes as the government publishes the proposed LHA rates for 2024/25, with people living in the most expensive areas set to see the biggest boost.

The increase to the LHA has been welcomed by many housing and homelessness organisations and is part of the Government’s £104 billion cost of living support package – worth an average £3,700 per household. This also includes raising benefits by 6.7%, the state pension by 8.5%, and £300 cost of living payments, with over 7 million households receiving the latest payment and another payment coming in Spring. Whilst more than 26 million payments totalling over £2 billion to help families with essentials have been made since October 2021 through the Household Support Fund.

This additional support comes as 27 million people are set to get a significant tax cut as the main rate of employee National Insurance will be cut from 12% to 10%. This reduces National Insurance by more than 15% in total, saving £450 this year for the average salaried worker on £35,400.

Subject to the benefits cap, eligible renters of:

• A four-bedroom property in Bristol could get up to £1,850 per month.
• A two-bedroom property in Greater Glasgow could get up to £850 per month.
• A one-bedroom property in Leeds could get up to £675 per month.

Work and Pensions Secretary Mel Stride said:

Housing costs are the number one expense for families. This £1.2 billion boost to Local Housing Allowance, along with our landmark Back to Work reforms, reflects our fair approach to welfare – helping people into employment while protecting the most vulnerable with unprecedented cost of living support.

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

Keeping inflation down and supporting people to stay and progress in work is the best way we can bolster families’ finances and help them progress, but we know some are still struggling which is why we are providing this important extra help.

This key boost to our housing support will see average renters around £800 better off. It is just one crucial part of our £104 billion package to help the most vulnerable which also includes an increase to benefits in line with inflation and our latest series of cost of living payments.

Crisis Chief Executive, Matt Downie said:

It cannot be understated just how vital this investment in housing benefit will be in helping to both prevent and end homelessness.

In recent years, people receiving housing benefit have found it increasingly difficult to afford the soaring cost of rents. Giving housing benefit this crucial boost will make a real difference to people across Great Britain and will relieve some of the pressure facing people on the lowest incomes.

We hope this investment will be maintained for the long term, so we can continue with our collective mission to end homelessness for good.

The investment comes on top of the £30 billion the government is providing over 2023/24 on housing support.

Minister for Levelling Up Jacob Young said:

This funding boost is just one part of how we’re supporting people in the private rented sector with the cost of living.

We have already invested £30 billion in housing support, along with Discretionary Housing Payments which provide an added safety net for anyone struggling to meet their rent.

We are taking the long term decisions needed for a better private rented sector, through our Renters Reform Bill, giving tenants security and supporting good landlords.

The government is also tackling homelessness with the £654 million Homeless Prevention Grant, giving councils in England vital money and support to prevent and tackle homelessness, as well as developing the Homelessness Covenant with Crisis.

The Local Housing Allowance determines the maximum housing support for private renters. It ensures that claimants in the same area with similar situations are entitled to the same maximum support regardless of the rent they pay. The level of support is based on the area where the person lives and the size of their household.

The press release issued by the Department for Work and Pensions on 5 January 2024.

The Department for Work and Pensions has today appointed Anthony Arter CBE as the Interim Chair of The Pensions Ombudsman (TPO).

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

11.9 million Winter Fuel Payments and Pensioner Cost of Living Payments – worth over £4.8 billion – have been made to pensioners across the UK over the past month.

• Around 11.9 million Winter Fuel Payments and Pensioner Cost of Living Payments have been made to pensioners across the UK over the past month.
• This means more than 99% of eligible pensioners have now received up to £600 per household to help with their energy bill this Christmas for the second year running.
• The support ­­– worth over £4.8bn – comes on top of the biggest State Pension increase on record, and a commitment to a further increase next April.

Each pensioner household has received up to £600 in tax-free cash automatically to help with energy bills and household budgets this winter.

It follows this year’s 10.1% State Pension increase – the largest in the history of the State Pension – with next year’s 8.5% increase set to break records again as the full rate of the New State Pension rises to over £11,500 a year. This means it will rise to £221.20 a week.

It also comes as the government has delivered on its commitment to halve inflation which is the best way to put more money in the pockets of hard-working people.

Our economy has turned a corner, with inflation halved and debt on track to fall, we are able to move away from the big government, high spending, high borrowing, and high tax approach that was necessary before, and focusing on the long-term decisions required to strengthen our economy and give people the opportunity to build a wealthier, more secure life for themselves and their family.

Work and Pensions Secretary Mel Stride said:

Today shows we have honoured our commitment to protect pensioners throughout the cold winter months by paying out £4.8bn of direct support in a matter of days.

As well as getting this vital money to millions of pensioners, we have fulfilled our pledge to halve inflation and boosted the State Pension through the Triple Lock to ensure pensioners are supported after a lifetime of work.

While 11.9 million payments have already been issued, those who have not yet received theirs should not worry, as payments are continuing into January.

The money will appear in bank accounts with the payment reference starting with the customer’s National Insurance number followed by ‘DWP WFP.’ Pensioners are being asked to double check their bank statements for this reference number before contacting the DWP.

Minister for Pensions Paul Maynard said:

As the cold weather bites, we want every pensioner to receive all the help they can. I’m glad to be able to confirm that 99% of those eligible for this generous support have received it.

We also encourage low-income pensioners not already getting Pension Credit to check their eligibility as they could be on average £3,900 a year better off.

Pension Credit is available for those with the lowest household incomes. This is worth, on average, £3,900 a year, and also acts as a gateway for further help with rent, council tax, heating, and TV licences.

Our Pension Credit Day of Action last year saw claims more than double to 275% compared to the same week the previous year.

Pensioners in receipt of Pension Credit also qualify for our wider extensive support package for vulnerable people of all ages across the country. This includes the final Cost of Living instalment worth £299.

This follows the Government’s Autumn Statement, which set out £104 billion to ease cost of living pressures for those on low incomes.

Additional Information:

The Cost of Living Payments, spread across 2023/24, are worth up to £900 for those on means-tested benefits. This is made up of:

• £301 – Paid between April – May 2023
• £300 – Paid between October – November 2023
• £299 – To be paid in February 2024

Winter Fuel Payments/Pensioner Cost of Living Payment were made to eligible pensioner households from 21 November – 7 December. The vast majority of payments should be made by 26 January.

Those who do not receive a payment by 26 January 2024 should contact the Winter Fuel Payment Centre.

The overwhelming majority of pensioners will receive their payment automatically, but some people need to claim:

If you have not got a Winter Fuel Payment before, you only need to claim if any of the following apply:

• you do not get benefits or the State Pension
• the only benefit you get is Adult Disability Payment from the Scottish Government, Housing Benefit, Council Tax Reduction, Child Benefit or Universal Credit
• you live in Switzerland or an eligible EEA country

If you have got a Winter Fuel Payment before, you only need to claim if since your last payment you have either:

• deferred your State Pension
• moved to Switzerland or an eligible EEA country

Winter Fuel Payments can be claimed by phone or by post.

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

The Department for Work and Pensions has announced the appointment of Dame Judith Hackitt as the new interim Chair of the Office for Nuclear Regulation (ONR), effective from 1 January 2024.

In her capacity as interim Chair, Dame Judith assumes the responsibility for ensuring that the ONR continues to regulate the nuclear industry efficiently and effectively on behalf of the public.

Minister for Pensions Paul Maynard said:

I am delighted to welcome Dame Judith Hackitt to the role of interim ONR chair.

I would also like to pay tribute to the ONR’s current Chair, Mark McAllister, for his contribution to nuclear safety and security for more than four years.

Dame Judith Hackitt said:

I am very pleased to take on the role of interim Chair of the ONR at this important time for both the regulator itself and for the UK’s energy strategy.

Nuclear is part of the Government’s strategy for meeting our country’s energy needs and to deliver at pace we need a strong and efficient regulatory regime in place to enable industry and provide public assurance.

With a wealth of experience and expertise from her various roles including Chair of HSE, directorship at Ingeniators, and advisory positions for Building Standards in the UK and Victorian Government in Australia, Dame Judith brings valuable insight to this important role.

Dame Judith will succeed Mark McAllister, who has served as Chair of the ONR since April 2019 before his recent appointment as Chair of Ofgem. Her appointment is for an interim period during which a recruitment campaign will be conducted to select the next permanent Chair for the ONR.

In her capacity as interim Chair, Dame Judith is entitled to an annual remuneration of £52,800, reflecting a time commitment of approximately 96 days per year.

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

Payments of up to £600 are landing directly in the bank accounts of around 11.5 million UK pensioners for the second year running.

• Comes as part of extensive Government package helping people of all ages, including recent £300 Cost of Living payments to more than seven million eligible households.
• After meeting our pledge to halve inflation, the Government this week also confirmed an 8.5 percent increase to the State Pension next year.

Pensioners across the country have started to receive up to £600 to help with energy bills this winter.

Winter Fuel Payments – boosted again this year by an additional £300 per household Pensioner Cost of Living payment – will land in bank accounts over the next two months, the vast majority automatically.

Work and Pensions Secretary Mel Stride said:

We have delivered on our promise to halve inflation and will continue to support people right across the country, including pensioners who may be facing particular challenges over the colder months.

As well as up to £600 to help our pensioners stay warm this winter, we’re boosting pensions through the Triple Lock – increasing the full rate of the New State Pension by over £900 next year.

The money will appear in bank statements with the payment reference starting with the customer’s National Insurance number followed by ‘DWP WFP’ for people in Great Britain, or ‘DFC WFP’ for people in Northern Ireland.

The overwhelming majority of Winter Fuel Payments are paid automatically but some people need to make a claim, such as those who qualify but do not receive benefits or the State Pension and have never previously received a Winter Fuel Payment. The payments deliver additional support to pensioners, the majority of whom are on fixed incomes and also are unable to raise their incomes through fixed employment.

The start of the Winter Fuel Payments season comes hot on the heels of the recent £300 Cost of Living payments made by the DWP to more than seven million eligible households across the UK.

This latest payment is the second of up to three Cost of Living Payments being made this financial year. These payments – which are all tax-free and will not have any impact on existing benefit awards – demonstrate the Government’s commitment to supporting low-income families with financial pressures.

Pensioners getting Pension Credit also qualify for this extra support. The average Pension Credit award is now worth £3,900 per year and there is still time for those who are eligible to apply and receive the £300 Cost of Living payment.

This is because an eligible claim for Pension Credit can be backdated by three months provided the entitlement conditions are met throughout that time.

Including measures announced in the Autumn Statement this week, our total commitment to ease cost of living pressures has risen to £104 billion. That includes paying around half the cost of the average energy bill since last October and amounts to an average of £3,700 per household.

The press release issued by the Department of Work and Pensions on 22 November 2023.

A new ‘Chance to Work Guarantee’ will transform the prospects of millions of people currently out of work, supporting them to realise their aspirations and potential.

• Changes announced at Autumn Statement will tear down barriers to work for over 2.4 million claimants, who will be able to try work without fear of reassessment or losing health benefit top-ups
• New measures will help to grow the economy by providing long-term sick and disabled claimants a Chance to Work Guarantee – brought forward from the White Paper reforms announced earlier this year – and by making the Work Capability Assessment fit for the modern world of work
• These changes to support the most vulnerable represent the next step in Government’s welfare reforms, alongside the new £2.5 billion Back to Work Plan and following the landmark Health and Disability White Paper published earlier this year

The changes announced today as part of the Government’s next generation of welfare reforms will free up claimants to try work with no fear of losing their benefits, including health top-ups, with the prospect of re-assessments removed entirely for most claimants.

Alongside the Chance to Work Guarantee, Universal Credit claimants will benefit from boosted Work Allowances meaning that long-term sick and disabled claimants can keep £404 of earnings every month without this affecting their welfare payments, effectively ‘de-risking’ the journey into work.

As part of the offer, the Department for Work and Pensions (DWP) will also provide targeted help as part of its £2.5 billion Back to Work Plan, including through an expanded Universal Support scheme which places people into jobs and provides wraparound care to give the best chance of success in a role.

Alongside this, the Work Capability Assessment is being overhauled for those newly moving onto health benefits so work preparation requirements better reflect the opportunities available in the modern world of work, whilst protecting those unable to work.

The proportion of people on the highest level of award and assessed as having no work-related requirements has risen from 21% in 2011 to 65% in 2022 – meaning people are over three times more likely to be written off work today than they were over a decade ago.

One in five people currently on the highest tier of health benefits, with no work preparation requirements, would like to work in the future with the right support. But more than half of those who felt they could work within the next two years saw a fear of not being able to return to benefits as a barrier to work.

We know people remain on these benefits for a long time – only 1% of people leave certain health and employment benefits each month. The Government’s Chance to Work Guarantee is designed to address these concerns, empowering more health benefit claimants who want to try work, while ensuring fairness for the taxpayer as claimants’ benefits taper off over time as they increase their hours in work.

Meanwhile, new flexibilities in the labour market mean that more people can undertake some form of tailored and personalised work-related activity, with the right support. For example, 40% of people reported working from home at some point in the previous week in Winter 2023, compared with just 12% throughout 2019. And of around 8 million jobs advertised online between April and October 2023, over 20% were either remote or flexible, compared to less than 4% over the same time period in 2016.

That’s why we are reforming the Work Capability Assessment to make it fit for the modern world of work. In the first major review of the Work Capability Assessment activities and descriptors since 2011, we will:

1. Remove the ‘Mobilising’ part of the assessment that currently places people into a group where no work preparation is required – this will reflect that many of the claimants with these issues in the modern world of work will be able to undertake some work or work preparation with the right support
2. Amend the regulations that determine whether mental health issues are assessed as putting claimants at ‘Substantial Risk’ if they are required to undertake any level of work preparation – these amendments will realign the regulations with the original intention of applying only in exceptional circumstances, whilst still protecting and safeguarding the most vulnerable
3. Reduce the points awarded for some of the Limited Capability for Work (LCW) ‘getting about’ descriptors, reflecting the rise of flexible and home working opportunities in modern workplaces.

This will mean around 370,000 people by 2028/29 who under current assessment rules would receive no support from DWP as they would have been placed in the Limited Capability for work-related activity (LCWRA) group will now be offered personalised support to help them move closer towards work.

These changes will not affect existing claimants whose circumstances remain the same, reflecting the need to ensure a continuity of service for them, and will mean that these claimants will not lose money as a result of the changes.

Protections on the Work Capability Assessment will remain for those with the most significant health conditions or where any work preparation activity would lead to a deterioration in a claimant’s physical health.

In the absence of these changes the OBR combined forecast for those on the highest tier of health benefits was due to grow from 2.4m in 23/24 to 2.9m in 2028/29; these changes will have more than halved the net inflows to this group. To ensure measures are brought forward safely and correctly, changes will not be implemented nationally until at least 2025.

This all comes alongside the Back to Work Plan, a package of reforms and new support to one million people with help to find or stay in work. These changes include £2.5 billion of investment over the next five years, with expansion of Universal Support, Talking Therapies and Individual Placement and Support designed to provide treatment and support to help disabled people and people with long-term health conditions towards work.

The Government is taking the long-term decisions of welfare reform, ensuring fairness for both claimants and taxpayers, and stepping up the support on offer to the most vulnerable claimants and tearing down barriers to work.

Further Information

• The Work Capability Assessment activities and descriptors were last substantially changed in 2011.
• Changes will be implemented no earlier than 2025, which gives DWP time to ensure they are brought in safely and correctly for prospective benefit claimants.
• No one in the LCWRA group will face benefit sanctions and all support offered will be voluntary.
• Under these changes, most existing claimants on health benefits will not need to be re-assessed with a new Work Capability Assessment. Re-assessments will only take place under limited circumstances, which are:
  • When a claimant reports a change of circumstances in their health condition;
  • If a claimant has been awarded LCWRA for pregnancy risk, or cancer treatment where the prognosis for recovery is expected to be short-term;
  • In cases of suspected fraud.
• After the new substantial risk provisions come into force in 2025, new claimants who are given LCWRA status because of those provisions may also be required to be re-assessed.
• Announced at Autumn Statement, the Universal Credit Work Allowance for disabled claimants with housing costs will rise to £404 per month from April 2024 and £673 per month for those without housing costs.
• ONS data shows that there has been a large increase in homeworking: 40% of people reported working from home at some point in the previous week in the period between 25 January and the 5 of February 2023, compared with just 12% working from home throughout 2019. Similarly, according to Adzuna, of around 8 million jobs advertised online over the past 6 months (Apr-Oct 2023), just over 20% were either remote or flexible, compared to less than 4% over the same time period in 2016.
• Just one per cent of people in the Employment and Support Allowance ‘Support Group’ leave the benefit every month.
• On Tuesday 5th September we announced our consultation on plans to change the Work Capability Assessment.
• We received over 1300 responses from individuals and organisations to our consultation.
  • You can read the Department’s full response here: www.gov.uk/government/consultations/work-capability-assessment-activities-and-descriptors
• The Stat-Xplore caseload is 2.46m at May 2023, forecast combined caseload is lower than this due to the presence of dual claims.