Latest news with #DepartmentForWorkAndPensions
The Independent
2 days ago
- Business
- The Independent
I went to a DwP benefit cut consultation: here's what I found
'We should make the effort,' my wife said when the Department for Work & Pensions (DWO) announced public consultation events on its plans for arguably the biggest shake up to disability 'benefits' - I struggle with the word because I fail to see the benefit of being disabled - Britain has yet seen. The firm tone told me that I had best agree. But she was also right. Democracy withers on the vine if people aren't willing to participate in it while the government's current policy, and especially its rhetoric, could have a severe impact on our family and many like us. Given the chance, we should push back against that. So we signed up, even though the DWP seemed somewhat concerned about letting the public into its events. No location was provided and when it was finally revealed, it was accompanied by a stern instruction: 'Do not share these details with non-attendees, as they will not be allowed to enter the premises for this event.' Perhaps this was with an eye on the demonstration in Manchester that resulted in a stand off between protestors and the DWP staff doing the consulting. Police were ultimately called. The London event we attended - an extra date added to the DWP's disability world tour after the first was sold out - featured no such drama. We arrived a little late, thanks in part to the difficulty we faced in finding a blue badge space near the local tube stop. Note to Work & Pensions Secretary Liz Kendall: if you're concerned about getting disabled people into work, the ability to access the workplace is the first hurdle you have to overcome. Parking is a part of that. But at least my visions of besuited Sir Humphreys serving up fake smiles while wishing they were at their London clubs downing bottles of claret to help them get over dealing with the unwashed were proved false. Several tables were set out, each moderated by a casually dressed civil servant. The atmosphere was relaxed and informal, even if none of us attending felt at all relaxed about policies which could have a devastating impact on those at the sharp end. 'People will starve because of this," one disability benefits campaigner told the Manchester Evening News. This was a point we tried to make, albeit in a more nuanced way. The government has actually eschewed any consultations on changes to the Personal Independence Payment (PIP), which will make it much harder for those in need of support with daily living to claim. However, whoever organised these sessions was smart enough to realise that this was going to come up and that trying to shut down conversation on it would go down like a wheelchair with slashed tyres. We were thus allowed to make the point that if you cut support from people who can barely look after themselves at home, you're going to struggle to get them into work. The stated aim, even if the real motivation is to cut costs. Another reform will see employment linked disability benefits - PIP does not depend on one's job status and is not means tested - reduced and made harder to claim. We were asked how long the new contribution linked jobless benefit should last and we made the point that it takes disabled people a lot longer than non disabled people to find work. What about mandatory interviews with job coaches and suchlike? I told our moderator that Scope, the charity, says there are a million disabled people who desperately want to work but can't find it. Rather than forcing people who are probably too sick and/or disabled down to job centres - people whom employers don't want - shouldn't the DWP be focussing its resources on helping these people? Those who are desperate for opportunities, keen as mustard but who may send out hundreds of applications without so much as a single interview? I was throughly impressed with the people we were sat with. A range of disabilities were represented, but common to all was that they were knowledgeable and engaged. I couldn't help thinking that the government might get better results if these people were hired to work in policy. But, of course, the DWP has trouble with employing disabled people. According to an analysis by the Big Issue earlier this year, it lost more employment tribunals for disability discrimination over the last five years than any other employer. As well as criticising, we tried to offer up ideas. Our civil servant dutifully nodded along. They seemed keen to make us feel listened to, even if, by the end, they probably felt punch drunk. Time and again we were told how important our views were. Yet I was still left wondering whether what we said will end up getting dropped into an AI to be distilled before being left at the bottom of a junior minister's red box. And were we just patsies, there so the government could claim it has listened when decisions have already been made? That is my fear. chancellor Rachel Reeves in her flailing quest to balance the nation's books. It speaks volumes that we were given the number of the Samaritans on a handout. 'We understand that this can be distressing,' it said of the proposals. Well, yes. Perhaps think about why that might be?
The Guardian
6 days ago
- Business
- The Guardian
US firm that tests eligibility for UK disability benefits pays out £10m in dividends
A US contractor that profits from testing whether some people in the UK should receive disability benefits has paid out £10m in dividends to its investors. Maximus, a Virginia-based business, reported a 23% rise in pre-tax profit for its UK arm, from £23.6m to £29.1m, in its financial year to the end of September. Its revenue rose 2%, from £294m to £300m. The company is the biggest provider of functional assessment services, or FAS, for the Department for Work and Pensions. These tests determine a person's level of function and ability to perform everyday tasks. The UK arm of the business paid out £10m in dividends to investors, equivalent to £10,000 per ordinary share, according to accounts filed at Companies House. The company also paid out £10m in dividends to its investors in the 2023 financial year. Maximus secured a five-year contract from the government in 2023 to provide functional assessment services, at an estimated value of £800m over the period, with the option to extend for a further two years. In a green paper published in March, the Department for Work and Pensions said experiences of assessments for the personal independence payment (Pip) were 'not always positive'. The national disability charity Sense said 'nobody should be rewarded for treating disabled people with disrespect'. Tom Marsland, of the charity, said: 'Sense's research found that half of disabled people with complex needs who've been through a benefits assessment found it humiliating, and almost half didn't get the right communication support to properly demonstrate why they need support. 'These statistics are shocking and show a deep-rooted problem with the current assessment process. 'We would like to see the government introduce clear standards to ensure benefits assessments are fair and accessible for disabled people, with no one left feeling like a criminal simply for trying to access the support they need,' he said. 'There should also be financial penalties for assessment providers who fail to provide the right communication support and accessibility measures.' The government is planning to reduce eligibility for Pip and the health component of universal credit. As a result, official figures suggest that 3.2 million people could lose an average of £1,720 a year and 250,000 people could be pushed into relative poverty. Maximus UK is part of a bigger US organisation that is listed in New York with a market value of $4.2bn (£3.1bn). Shares in the business, which also provides administration and services for US programmes such as Medicaid and Medicare, have dropped 12% in the past year. Bruce Caswell, the chief executive of Maximus, was paid a base salary of $886,904 in 2024, with stock awards, incentive plans and other compensation taking his total package to $10.2m. Maximus declined to comment. The government was approached for comment.
Telegraph
18-05-2025
- Business
- Telegraph
Labour could ease two-child benefit cap to fight off rebels
Labour is considering introducing a three-child benefit cap in a bid to fight off its welfare rebels. The Department for Work and Pensions is looking at lifting the two-child limit on benefits, a deeply unpopular policy among MPs, to three children to calm anger from backbenchers. A Whitehall source stressed that no decision had been taken, but the option appears to be on the table as work continues on the Government's child poverty strategy. Sir Keir Starmer is facing the biggest rebellion of his premiership over planned cuts to benefits in his welfare Bill, with more than 100 of his own MPs set to defy the Government. Under the proposals only the most disabled adults in society would be allowed to claim Personal Independence Payments and the under-22s would become ineligible for Universal Credit. It is the latest in a string of changes announced by the Government, billed as necessary measures to get a grip on the public finances. Along with the welfare changes and failing to scrap the two-child benefit cap, Rachel Reeves attracted widespread condemnation by stopping the winter fuel payment for pensioners. The two-child limit prevents parents from claiming tax credit or Universal Credit for their third and any subsequent children. It was introduced by Lord Cameron, but did not come into effect until 2017 under Theresa May. While the cap is separate to the welfare measures set out by Liz Kendall, the Work and Pensions Secretary, in March, many MPs who are part of the large rebellion also expressed frustration over the two-child limit. The Government would have to spend £2.5 billion a year to reverse the two-child limit but mitigating measures such as increasing the eligibility would be seen as a statement of intent. One Labour MP told The Telegraph that they would support the three-child cap, as they said 'any measure that reduces child poverty can only be a good thing'. But Rachael Maskell, Labour MP for York Central, said she would not back the change. She told The Telegraph: 'I do not support any caps on child benefits, as removing them is the single greatest policy which would take children out of poverty'. The Resolution Foundation predicted in February that a third of all children will be living in poverty by the end of this Parliament. It said the rise was due in part to the £3 billion in scheduled welfare cuts, the two-child limit 'and real-term cuts each year in the value of local housing allowances and the benefit cap'. The Government had pledged to publish its 'ambitious' strategy in the spring, in a bid to pacify backbenchers angry about the failure to scrap the two-child limit. The Telegraph revealed earlier this month that officials were failing to recommit to the timeline, with no fixed date for the strategy's release. The plan is headed up by Ms Kendall and Bridget Phillipson, the Education Secretary, as key members of the child poverty taskforce.
Yahoo
17-05-2025
- Business
- Yahoo
State pensioners must obey DWP holiday rule or face 'being taken to court'
State pensioners are being warned to obey a little-known Department for Work and Pensions ( DWP ) rule if they're heading out on holiday this year. Pension Credit claimants may not realise they need to inform the DWP if they plan to holiday outside mainland UK for any duration this year. A question in the DWP FAQ online asks: "Can I leave Great Britain and keep getting Pension Credit?" The DWP states: "We may pay Pension Credit for up to 4 weeks while you're temporarily away from Great Britain and we may pay for up to 8 weeks if the absence is in connection with a death." READ MORE: Two-week warning to 418,0000 British Gas, Octopus, EDF, EON and OVO customers READ MORE: HMRC set to 'raid homes at dawn' with millions of UK households warned READ MORE UK faces 550-mile wall of rain but nine counties in England will be spared The DWP adds: "If the absence is solely in connection with medical treatment or medically approved convalescence, we may pay Pension Credit for up to 26 weeks. "But you should tell us before you go if you're going to leave Great Britain for any reason at all, even if you'll only be away for a short time. This includes if you go to Northern Ireland, the Isle of Man or the Channel Islands." You also need to report if your income or expenses change. This can include changes to housing costs, for example ground rent or service charges. It can also include changes to benefits that anyone living in your home gets - including getting a new benefit or a benefit being stopped, changes to occupational or personal pensions - including if you start to get a new pension or take a lump sum out of your pension pot, and changes to other income, for example foreign pensions or Working Tax Credits. It can also include changes to savings, investments or property. The DWP adds: "Call the Pension Credit helpline if you're not sure if you need to report a change. "You could be taken to court or have to pay a penalty if you give wrong information or do not report a change in your circumstances."
The Independent
15-05-2025
- Business
- The Independent
‘Staggering' number of DWP overpayments slammed by minister
Over £9 billion in benefits are estimated to have been overpaid over the past year due to fraud and error, a figure one government minister has called "staggering." Official statistics reveal the total overpaid benefit expenditure reached £9.5 billion in the year ending March, with fraud accounting for the majority. Meanwhile, an estimated £1.2 billion was underpaid during the same period, according to Department for Work and Pensions (DWP) figures. Fraudulent claims contributed £6.5 billion to the total overpayments, a decrease from £7.3 billion the previous year. However, overpayments due to claimant error rose to £1.9 billion, up from £1.6 billion, while official errors also increased, reaching £1 billion from £0.8 billion. Overpayments specifically related to Universal Credit saw a slight decrease, falling to £6.35 billion from £6.41 billion. DWP said people under-declaring their earnings remained the main cause of fraud overpayments, followed by benefits claimants failing to declare living with a partner, and thirdly people under-declaring their financial assets or capital. The department said it was able to recover some £1.1 billion of overpayments in the past year – £0.4 billion in housing benefit and the same amount in universal credit. While the overall figure fell from £9.7 billion in the previous year, it was still described as 'staggering' by minister Andrew Western. In a written statement published alongside the figures on Thursday, he said: 'This Government made a manifesto commitment that it will safeguard taxpayers' money and not tolerate fraud or waste anywhere in public services. 'With welfare benefits paid to around 24 million people, the welfare system is a deliberate target for both organised crime groups and opportunistic individuals and it is vital that the Government continues to robustly tackle fraud to ensure support goes to those who need it most. 'We are taking further steps to minimise error, ensuring the right people are paid the right amount at the right time.' The figures came as the Public Authorities (Fraud, Error and Recovery) Bill moved to the House of Lords for its second reading on Thursday. Its proposed reforms have been billed as delivering the 'biggest ever crackdown on fraud against the public purse'. The Bill seeks to curb multibillion-pound benefit fraud and includes allowing the DWP to recover money directly from fraudsters' bank accounts. It would also allow the DWP to have the power to obtain bank statements from people they believe have enough cash to pay back welfare debts but are refusing to do so. Courts could also suspend fraudsters' driving licences after an application by the DWP, if they owe welfare debts of more than £1,000 and have ignored repeated requests to pay them back. In the Commons, a group of Labour MPs rebelled to support an amendment designed to curb Government powers to verify a person's benefit eligibility and the Liberal Democrats warned the Bill could result in 'Orwellian levels of mass surveillance of those who have means-tested benefits'. The DWP figures also show that fraudulent claims for Personal Independence Payments (PIP) 'remained at 1 in 100 claims' in 2025, which was the same as in 2024. The health-related benefit is at the heart of Labour's recently announced welfare reforms, making up £4.1 billion of the £6.4 billion savings. Disability advocate and founder of Purpl, Georgina Colman, said the statistics 'show how misdirected the cuts are.' 'It's clear that the majority of people claiming benefits like PIP are in need, so it's frustrating to see the harshness of the welfare cuts. PIP and other benefits are for the most vulnerable in society and taking away these lifelines could be counterproductive and leave people worse off.'
