- Government to consult on proposed reforms to disability benefits system to ensure benefits targeted at those who need it most
- Comes as number of people claiming disability benefits for mental health conditions has doubled since the pandemic
- Welfare package includes further measures to crack down on fraud and removing benefits entirely from long term unemployed who don't accept a job
The Prime Minister has outlined a package of sweeping reforms to put work at the heart of welfare and deliver on his "moral mission" to give everyone who is able to work, the best possible chance of staying in, or returning to work.
In a speech today (Friday 19 April), the Prime Minister announced that the disability benefits system is set to be reformed to ensure it's more accurately targeted at those who need it most and delivers the right kind of support for people with disabilities and health conditions.
A consultation on Personal Independence Payment (PIP) will be published in the coming days which will explore changes to the eligibility criteria, assessment process and types of support that can be offered so the system is better targeted towards individual needs and more closely linked to a person's condition rather than the current "one size fits all" approach.
It comes as many more working age people are being awarded PIP for mental health conditions than when it was first introduced over a decade ago, as well as concerns that the assessment process is significantly easier to game by individuals who seek to exploit the system.
In 2019, there were an average of around 2,200 new PIP awards a month in England and Wales where the main condition was anxiety and depression - this has more than doubled to 5,300 a month last year. This is driving up the cost of the disability benefits bill at an unsustainable rate and PIP spending alone is expected to grow by 52% from 2023/24 to £32.8bn by 2027/28.
Total spending on benefits for people of working age with a disability or health condition increased by almost two-thirds to £69 billion since the pandemic, and we now spend more on these benefits than our core schools' budget or on policing. Given the significant change in caseload and unsustainable increase in costs, it's clear our current disability benefit system for adults of working age is not fit for purpose.
The Prime Minister has set out his ambition to redesign the disability benefits system to ensure it is fair and compassionate, but also sustainable and fit for the future. The consultation will consider whether alternative interventions to cash payments - such as treatment or access to services - could drive better long-term outcomes particularly for individuals who have less severe or well managed health conditions.
Work and Pensions Secretary Mel Stride said:
I believe our welfare system is about far more than benefit payments; it is about changing lives for the better.
That is why we're bringing forward the next generation of welfare reforms. We've already overhauled the outdated benefit system by introducing Universal Credit, and now we are building a new welfare settlement for Britain - one where no one gets left behind.
The welfare reforms announced by the Prime Minister today will modernise the support available for those who need it the most, improve the value of the welfare system for taxpayers, and ensure that people are signed up to support back to work, not signed off.
Health and Social Care Secretary, Victoria Atkins MP, said:
These ambitious reforms will give people the help they need in their return to and stay in work.
We know that people in work often lead happier, healthier lives which is why it's fundamental to shift attitudes away from sick
