Government Announces Welfare Reforms | Pathways to Work

On the 18 March, the Work and Pensions Secretary made a statement in the House setting out the government’s plans for welfare reform with the publication of the Pathway’s to Work: Reforming Benefits and Support to Get Britain Working Green Paper. 

While there is much to unpick, from an initial read there are points to welcome but there is an urgent need for all changes to be undertaken in consultation with disabled people and for the communication and messaging around this to be person-centred, rather than the cost driven narrative that has dominated recent announcements. 

The plans announced aim to:

• Merge Jobseeker’s Allowance and Employment Allowance into a new time-limited unemployment insurance paid at a higher rate, without the need to prove you cannot work.
• Abolish the Work Capability Assessment by 2028.
• Review the PIP assessment in consultation with disabled people.
• Make available through PIP additional support based on health conditions and disabilities, not being based on people’s ability to work. 
• Legislate for a “right to try”, allowing people to try working, without risking losing their benefits. 
• Freeze the health top-up for Universal Credit for current claimants and reduced for new claimants.  
• Introduce an additional premium will be introduced for severe life-long conditions. 
• Commit to a permanent, above-inflation rise will be introduced for Universal Credit, a £775 annual increase by 2029/30. 
• Increase reassessments, with them being face-to-face where possible, adding that they will be recorded. Those with life-long conditions will never be reassessed.  
• Improve training at the Department for Work and Pensions.
• Invest an additional £1bn into employment support.
• Legislate so that from November 2026, PIP claimants must score a minimum of four points in at least one activity to qualify for the daily living element.  PIP will not be means-tested and will not be frozen.
• Bring in an expectation to engage for those on the Universal Credit health top-up. The Government will consult on delaying access to the health top-up until someone is aged 22, with the savings reinvested into employment support.

We have always called for plans to be co-produced, designed and delivered with disabled people, to help mitigate as much as possible any negative impact on people's lives. We know from members that some reform of current systems would be very welcome - for example the simplification of process, reducing duplication and scaling up effective support into employment. However the narrative surrounding these reforms has been dominated by cost savings and we urge the Government and media to shift away from this approach.

We supported a letter co-ordinated by Scope calling on the Chancellor to rethink cuts to disability benefits. 

Unfortunately the Government has not yet published the equality impact assessment for its plans, but is due to as part of the Spring Statement. It has also failed to publish accessible versions of the Green Paper or related information. Alongside United Response and others, we have written to Liz Kendall sharing our concerns that inclusion and accessibility has been an afterthought rather than the priority it should be. 

VODG will be working with our members and networks to respond to the Green Paper and amplify the good practice that exists. 

For background, our response to the previous government reforms can be found here.