Today [18th March] Liz Kendall outlined the Labour governments plan to overhaul the current welfare system, saving over £5 billion in the next five years.
Facing criticism from both her own party and the shadow cabinet, Kendall’s speech set out cuts to health benefits, affecting some of the poorest people in the country.
The changes to the current benefit system mostly affect claimants of Personal Independence Payments, of which cases more than doubled from 2019 to 2023. These payments are designed to help with living costs for those who have both a “long term physical or mental health condition or disability” and “difficulty doing certain everyday tasks or getting around because of your condition.”
Kendall noted that claims for PIP are up to four times higher in areas of the Midlands, Wales and the North – areas she pinned as “decimated in the 80s and 90s”.
In this shakeup, she laid out plans to scrap the work capability assessment by 2028, meaning those eligible will be assessed on “capability and need” via the existing model of the PIP assessment. The controversial WCA has saw applicants blanket labelled as able or unable to work.
Any financial support for health conditions will be assessed under this single model, based on the impact of their condition on daily living. They also aim to increase the amount of face-to-face assessments, advocating for meeting “recording as standard” to uphold standards.
The labour government will be legislating for a “right to try”, for those receiving unemployment support. Under the current system, claimants are reassessed when their employment circumstances change.
Kendall stressed labour’s policy to “never reassess” those with the most severe disabilities and health problems, whilst overhauling the DWP’s safeguarding approach.
Changes were announced to the qualifications for the daily living element of PIP, meaning that applicants must score a minimum of four in one activity to be eligible. This is assessed on your ability to do things like make food or cook, socialise, handling money and speaking. At present, to qualify for the lower end of the payment an applicant must score between eight to eleven points. The higher amount is awarded to those scoring twelve or higher.
This reform will not affect the mobility element of the assessment, which includes the ability to move around and plan and follow a journey. Currently, the daily living component of PIP ranges from £72.65 to £108.55 per week. The mobility payments are a maximum of £75.75 weekly.
She confirmed that the PIP scheme will not be means tested, nor will the payments be frozen. Meaning that all applicants will be able to claim for the same amount as before, without their income impacting the amount they can receive. The previous governments’ proposals for vouchers will also not be brought forward, “because disabled people should have choice and control over their lives”.
It’s within Universal Credit that Kendall outlined the biggest changes: a “permanent, above inflation rise [in Universal Credit] for the first time.” This is set to be a £775 increase in cash terms by 2029. It comes amidst a promise to rebalance UC payments by next April.
Contributions based job seekers allowance and employment support allowance will now be consolidated into a “new, time limited unemployment insurance”. It is planned to be paid at a higher rate than existing support, with no proof required to access the funding.
Kendall stated: “If you have paid into the system, you will get help without question while we help you get back on track.”
Keen to emphasise the initiatives to “Get Britain Working”, she confirmed investments of 1 billion for employment support. Tailored support will be provided to disabled people and those with long-term conditions. There will also be new support conversations for those facing barriers to work to provide earlier opportunities to discuss employment goals and help available.
In a controversial move, Kendall announced that the government will delay access to Universal Credit Health Top Up until the age of 22. The money saved will be reinvested into work support and training for young people as part of the “Youth Guarantee”.
For those currently receiving incapacity benefits, mandatory reassessments will be reinstated, having been predominantly halted since 2021. Exceptions for those who will never work will be considered, along with those in receipt of end of life care.
Speaking on the points outlined in the green paper, Kendall said that: “This will mean fairness for disabled people and those with long term health conditions, but also for the taxpayers who fund it as these measures bring down the benefits bill. “
Former Labour ministers, including ex-leader Jeremy Corbyn, have spoken out against Kendall in the House of Commons. Dawn Butler called the policies “rather crass”, stating that employment services shouldn’t “be linked to saving money”.
The SNP’s leader at Westminster, Stephen Flynn likened the policies to Conservative austerity, and called the cuts “a total betrayal of the promises they made to people at the election.”
Kendall’s green paper seems to have caused a deepening anger outside of parliament, advocates for the disabled community have yet to speak positively on the decisions briefed.
Multiple charities have already issued statements against the changes in welfare systems. Sarah Hughes, the CEO at Mind, a UK based charity supporting those living with mental health issues, said that “reforms will only serve to deepen the nations mental health crisis.” Whilst the executive director of strategy for Scope, James Taylor, stressed that independence payments were “never designed to help people find work”.
[…] Labour government unveiled their sweeping plans to save £5 billion a year by slashing the welfare bill in a speech in the commons on Tuesday. Liz Kendall, Labour’s Work and Pensions secretary wants to […]