logo
People on PIP most-likely to be affected by DWP reforms next year urged to complete consultation

People on PIP most-likely to be affected by DWP reforms next year urged to complete consultation

Daily Record27-05-2025

The online consultation is available in accessible formats and open until June 30, 2025.
Minister for Social Security and Disability Sir Stephen Timms recently said welfare reforms must be shaped by and for disabled people as the official consultation on the UK Government's proposals begins.
Sir Stephen is urging those likely to be affected by the changes to Personal Independence Payment (PIP) or Universal Credit - either individually or through disability charities and organisations - to have their say through the consultation, ensuring their views help shape the proposed changes.
It comes as the UK Government commits to the establishment of 'collaboration committees' to further develop the reforms, bringing together groups of people for specific work areas to provide discussion, challenge, and make recommendations.
Announced on March 18, the Department for Work and Pensions (DWP) said the proposed reforms will ensure that sick and disabled people have the same opportunities to work as anyone else, and will unlock work, boost living standards, and help grow the economy as part of the UK Government's Plan for Change.
They will also seek to overhaul the 'broken benefits system' so it supports those who need it, while helping those who can work into jobs and delivering fairness to the taxpayer.
Sir Stephen said: 'We inherited a broken welfare system, which incentivises ill-health, locks people out of work and isn't fit for a future in which so many of us will face long-term health conditions.
'We want a system that genuinely works for disabled people and those with health conditions, as well as the country and the economy, and we want to hear their views and voices at the heart of the new system.
'I encourage people to engage so they can have their say as we listen, learn and deliver support which will help millions into work, put welfare spending on a more sustainable path, and unlock growth as part of our Plan for Change.'
The consultation on reforms to health and disability support officially launched on April 7 on GOV.UK with publication of all accessible versions of the Pathways to Work Green Paper. The consultation is open until June 30, 2025.
The proposed reforms aim to support people into work, protect people who can never work and put the welfare system on a sustainable footing so that it can continue to support those in need now and into the future.
DWP said: 'One in three of us faces a long-term health condition, so we all need a system that can support us to stay in work or get back into work.'
The measures are the latest step in the UK Government's drive to build a modern welfare system that helps people get jobs rather than creating unnecessary barriers, with ministers' proposed plans set to:
Provide more tailored employment support for those who can work, breaking down barriers to opportunity
Simplify the system and reduce unnecessary assessments, cutting bureaucracy and making it easier to navigate
Improve the way financial support is assessed and delivered, ensuring it reaches those who need it most and that people using the system have a better experience and are treated with dignity and respect
Build a more flexible approach that recognises the diverse needs of disabled people and those with long-term health conditions
DWP said that without changes, it is forecast that the system could cost as much as £70 billion a year by the end of the decade and risk not being there for people when they need it in future.
Issues open for consultation include:

Supporting people to thrive with the new support offer
Supporting employers and making work more accessible
Reforming the structure of the health and disability benefits system
DWP said: "These are part of the wider reforms that also include reintroducing reassessments for people on incapacity benefits who have the capability to work to ensure they have the right support and aren't indefinitely written off, targeting Personal Independence Payments for those with higher needs, and rebalancing payment levels in Universal Credit."

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Government stalling in efforts to cut foreign aid spent on asylum seekers
Government stalling in efforts to cut foreign aid spent on asylum seekers

The Independent

time3 hours ago

  • The Independent

Government stalling in efforts to cut foreign aid spent on asylum seekers

The government is struggling to cut the amount of money from the foreign aid budget it spends on asylum seekers in the UK, new figures show. Home Office figures show the department expects to spend £2.2bn of overseas development assistance (ODA) this financial year, of which £2.1bn is expected to be spent on asylum support. The predictions for this year are only slightly less than the £2.4bn spent in 2024/25. Official development assistance (ODA) – which was slashed earlier this year to 0.3 per cent of GDP to pay for a boost to defence spending - is used to promote the economic development and welfare in developing countries around the world. A portion of this money is handed to the home office to support asylum seekers after they arrive in the UK, most of which goes towards their accommodation. But the government's failure to cut back on this spending has led aid organisations to accuse ministers of 'robbing Peter to pay Paul', claiming they are in danger of a 'reckless repeat of decisions taken by the previous Conservative government.' Figures published in March revealed that the number of asylum seekers housed in costly hotels has increased by more than 8,000 since the general election, with 38,079 migrants being housed in hotels at the end of December. It comes despite Sir Keir Starmer previously saying a Labour government wouldn't use the foreign aid budget to pay for asylum seekers' hotel costs – but admitted that the government would not be able to stop doing so immediately. 'I'm not going to pretend to you we can do that in the first 24 hours', he said in May 2024. Meanwhile, Labour's election manifesto vowed to 'end asylum hotels, saving the taxpayer billions of pounds'. Gideon Rabinowitz, director of policy at the Bond network of development organisations, warned that 'cutting the UK aid budget while using it to prop up Home Office costs is a reckless repeat of decisions taken by the previous Conservative government.' "Diverting £2.2bn of UK aid to cover asylum accommodation in the UK is unsustainable, poor value for money, and comes at the expense of vital development and humanitarian programmes tackling the root causes of poverty, conflict and displacement. "It is essential that we support refugees and asylum seekers in the UK, but the government should not be robbing Peter to pay Paul', he told the BBC. Meanwhile, Sarah Champion, chair of the International Development Committee, said: "Aid is meant to help the poorest and most vulnerable across the world: to alleviate poverty, improve life chances and reduce the risk of conflict. "Allowing the Home Office to spend it in the UK makes this task even harder." "The government must get a grip on spending aid in the UK. The Spending Review needs to finally draw a line under this perverse use of taxpayer money designed to keep everyone safe and prosperous in their own homes, not funding inappropriate, expensive accommodation here." The Home Office told the BBC it is committed to ending asylum hotels and is speeding up asylum decisions to save taxpayers' money. The department also said it had reduced overall asylum support costs by half a billion pounds in the last financial year, saving £200m in ODA which had been passed back to the Treasury. In April, The Independent revealed that the government had awarded a contract which allows for hotels and barges to house asylum seekers up until September 2027, despite Labour vowing to end the practice. The contract, advertised ahead of the election, was awarded by the Cabinet Office in October 2024 – just months after Labour won a historic landslide election victory - and runs up until September 2027. In June, the home secretary admitted she was "concerned about the level of money" being spent on asylum seekers' accommodation, adding: "We need to end asylum hotels altogether."

Pensions report cuts Reeves' planned growth funds from £160bn to £11bn
Pensions report cuts Reeves' planned growth funds from £160bn to £11bn

The Guardian

time4 hours ago

  • The Guardian

Pensions report cuts Reeves' planned growth funds from £160bn to £11bn

Plans to invest £160bn of surplus funds from final salary pension schemes to boost the UK economy over the next 10 years have been dealt a blow by a Whitehall assessment that found there was likely to be little more than £11bn available to spend. In a knock to Rachel Reeves's growth agenda, a report by civil servants at the Department for Work and Pensions (DWP) found that the expected surpluses in occupational schemes would be used by businesses to offload their pension liabilities to insurance companies. It could mean that as little as £8.4bn would be available for companies to invest in new equipment or technology, but the figure was likely to be nearer £11bn, the DWP said on Friday. 'It is estimated that an additional £11.2bn surplus will be extracted as a result of the preferred option to legislate over a 10-year period,' the report said. Pension surpluses were a significant pillar of the chancellor's plans to use private sector funds to grow the economy during a period when state funds are likely to be severely restricted. Reeves is expected to lay out her growth plans on Wednesday in the spending review, which will set out the government priorities for the next year. Earlier this year she said about 75% of final salary schemes, also known as defined benefit schemes, were in surplus, worth £160bn, but restrictions have meant businesses have struggled to invest them. In her Mansion House speech in November, Reeves also outlined proposals for pension megafunds to be created from individual defined contribution schemes and a merger of local authority pension schemes to make the pensions industry more cost-effective. A pensions bill going through parliament will allow pension fund trustees to unlock trapped surplus funds that Reeves said would increase investment in British businesses and lift economic growth. Hundreds of final salary schemes, which spent decades in deficit, meaning the value of their obligations to members outweighed their assets, have moved into surplus in recent years after an increase in interest rates. 'Although fewer than 700,000 people are actively saving into a private sector defined benefit scheme, the sector remains a significant market within the UK economic landscape,' the report said. 'Across around 5,000 schemes, around nine million members are being supported with assets of around £1.2tn.' An impact assessment by DWP officials said legislation was needed to overhaul the pension system and give trustees the power to access surplus funds. It said a failure to act would also mean 'an opportunity to benefit members, businesses and to drive economic growth would be missed. Therefore 'do nothing' is not considered a desirable option.' However, a combination of factors means the expected surplus for investment is reduced to no more than £12bn over 10 years, in part because the legislation does not force trustees of defined benefit funds to use surpluses for investment, and that most occupational final salary schemes have reached a level where a buyout is possible. In a note for the Pension Insurance Corporation, an independent expert, John Ralfe, said: 'Forget about £160bn of pension surpluses just waiting, as Rachel Reeves said, to be paid out to 'drive growth and boost working people's pension pots'. 'The DWP figures estimate just a fraction of this – under £12bn – will be paid out over the next 10 years, mainly because most companies want a full buyout with an insurance company. 'And the bill contains no details of how pensions will be protected if cash is withdrawn. Member security must be a priority with strict rules on repaying amounts if funding deteriorates,' he added. Many pension fund trustees are known to be concerned that allowing company boards access to surplus funds could leave their schemes vulnerable after a panic in financial markets. Without strong safeguards, giving businesses access to surplus pension funds could also make them more attractive targets for foreign takeovers. It is understood the new regime will allow trustees to block moves to access surplus funds if they believe it will undermine the safety of the fund. The pensions minister Torsten Bell said: 'I have read the impact assessment, and I am satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impact of the leading options.' The Treasury and the DWP were contacted for comment.

State Pension's future under review amid retirement shake-up
State Pension's future under review amid retirement shake-up

Daily Mirror

time5 hours ago

  • Daily Mirror

State Pension's future under review amid retirement shake-up

The State Pension is facing a dramatic overhaul under a Government shake-up of retirement rules. The changes could see millions of future retirees having to wait longer to claim and receiving different levels of payment. Ministers have launched a wide-ranging review of the entire pension framework – looking at when people should be entitled to receive the state pension, how much they should get, and whether the current system is financially sustainable for the long term. ‌ The Department for Work and Pensions (DWP) confirmed that the second phase of its Pensions Review will examine 'the balance of all three pillars of the UK system – state, occupational and personal wealth'. ‌ It is expected to ask fundamental questions about how these components should work together to ensure a financially secure retirement for everyone. Full details and the panel leading the review are yet to be published. The review comes at a time of growing concern that the triple-lock guarantee – which ensures the state pension rises every year in line with wages, inflation or 2.5%, whichever is highest – is pushing up pension payments at an unsustainable rate. Rachel Vahey, head of public policy at AJ Bell, said: 'Pensions minister Torsten Bell recently ruled out scrapping the triple-lock guarantee, but as the state pension grows ever closer to the frozen personal allowance threshold it could be that the Government is finally forced to address the question of how much the state pension should really offer, at what age, and how it can increase payments sustainably each year.' The announcement comes hot on the heels of a new Pension Schemes Bill, which lays the groundwork for major changes, including the creation of massive collective investment funds – dubbed 'megafunds' – to deliver better returns for savers. Ms Vahey said the review could be the most significant shake-up since the Turner Review 20 years ago, which brought in automatic workplace pension enrolment and transformed saving habits in the UK. ‌ 'It's now 20 years since the Turner Review was published,' she said. 'That comprehensive look at the UK's retirement system ushered in a new regime for pensions, resulting in the introduction of landmark automatic enrolment reforms which changed pension saving in the UK forever.' Those reforms have seen more than 11 million people newly enrolled in workplace pensions since 2012, bringing the total number of active savers to around 20 million. But experts warn that while the number of savers has surged, many still aren't putting enough aside for a comfortable retirement. Ms Vahey said: 'Not enough people are saving enough money for their later life, and although automatic enrolment has gone a long way to create millions of new pension savers, instead of resting on our laurels we now need to take a good look at whether they are saving a sufficient amount of money to realise their retirement ambitions.' The review is also expected to probe the interaction between the state pension and private savings – including personal assets – raising questions about whether those with higher wealth might ultimately be expected to rely less on the state. Ms Vahey added: 'While details of this new Pension Review are thin on the ground at this stage, it has the potential to be as significant and could have far-reaching implications for people saving for their retirement.' Campaigners are urging the Government to set out full terms of the review as soon as possible to give millions of savers clarity on what's coming. Ms Vahey said: 'The Government now needs to clearly set out the terms of this review as soon as possible to give savers and the industry certainty over its plans.'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store