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Daily Record
26-05-2025
- Business
- Daily Record
Universal Credit payment boost for over one million people this month
Households will benefit from an extra £420 this year following a DWP rule change. Reasons your Universal Credit may be cut by DWP The Department for Work and Pensions (DWP) recently confirmed that over one million households struggling with debt will get to keep an average £420 more of their benefits each year, under a change to Universal Credit which came into force at the end of last month. The Fair Repayment Rate places a limit on how much people in debt can have taken off their benefits to pay what they owe. The maximum amount that can be taken from someone's Universal Credit standard allowance payment to repay debt was 25 per cent, but was reduced to 15 per cent on April 30. The change affects all assessment periods that started on or after that date and means claimants due their monthly payments from May 30 will benefit from the reduction. It means an average of £420 extra a year for 1.2 million of the poorest households, including 700,000 households with children, while helping people to pay down their debts in a sustainable way. It forms part of the UK Government's Plan for Change to put more money into people's pockets and boost living standards and marks the Government's first step in a wider review of Universal Credit to ensure it is still doing its job. The Fair Repayment Rate was introduced by Chancellor Rachel Reeves at the Autumn Budget, as part of broader efforts to raise living standards, combat poverty, and tackle the cost of living crisis. The Chancellor said: 'As announced at the Budget, 1.2 million households will keep more of their Universal Credit and will be on average £420 better off a year. This is our plan for change delivering, easing the cost of living and putting more money into the pockets of working people.' With as many as 2.8 million households seeing deductions made to their Universal Credit award to pay off debt each month, the new rate is designed to ensure money is repaid where it is owed, and people can still cover their day-to-day needs. Work and Pensions Secretary Liz Kendall said: 'As part of our Plan for Change, we are taking decisive action to ensure working people keep more of the benefits they're entitled to - which will boost financial security and improve living standards up and down the country. 'We're delivering meaningful change to ensure everyone has a fair chance, the support they need, and real hope for the future.' The Fair Repayment Rate is one of a number of bold measures the UK Government is taking as part of its Plan for Change to kickstart growth and spread prosperity across the country. Viewing work as a key route out of poverty, the Labour Government set out the Get Britain Working White Paper - aiming to achieve its target 80 per cent employment rate by overhauling Jobcentres, introducing a new jobs and careers service, and launching a youth guarantee so every young person is earning or learning. This comes on top of increasing the National Minimum and National Living Wage to ensure being in work pays.


Daily Record
15-05-2025
- Health
- Daily Record
New DWP plans to help people with long Covid find and stay in a job
The Labour Government aims to help more people with long-term health conditions into work to achieve its 80% employment target. Reasons your Universal Credit may be cut by DWP Minister for Employment Alison McGovern has shared details on new plans to help long-term health conditions including long Covid back into work. The UK Government's 'Get Britain Working White Paper', published in November last year, sets out the biggest reforms by the Department for Work and Pensions (DWP) to employment support for a generation and achieve an 80 per cent employment rate. In a written response to Labour MP Jonathan Davies, the Employment Minister explained how DWP's 'ambitions are to reverse the trend of inactivity, and to raise both productivity and living standards whilst improving the quality of work'. She added that the UK Government is 'committed to supporting disabled people and people with health conditions, including people with long covid' and have a 'range of support available so individuals can stay in work and get back into work' The DWP Minister's comments came after the mid-Derbyshire MP asked what steps are being taken to help people with long covid into work. Ms McGovern said: 'Appropriate work is generally good for health and wellbeing, so we want everyone to get work and get on in work, whoever they are and wherever they live. 'Disabled people and people with health conditions are a diverse group so access to the right work and health support, in the right place, at the right time, is key. 'The Government is committed to supporting disabled people and people with health conditions, including people with long covid, and have a range of support available so individuals can stay in work and get back into work, including those that join up employment and health systems.' Measures include joining up health and employment support around the individual through Employment Advisors in NHS Talking Therapies, Individual Placement and Support in Primary Care and WorkWell, as well as support from Work Coaches and Disability Employment Advisers in Jobcentres and Access to Work grants. The DWP Minister added: 'The Government also announced in the recent Pathways to Work Green Paper that we would establish a new guarantee of support for all disabled people and people with health conditions claiming out of work benefits who want help to get into or return to work, backed up by £1billion of new funding.' However, she added that employers play an important role in addressing health and disability. She explained: 'The Disability Confident Scheme encourages employers to create disability inclusive workplaces and to support disabled people to get work and get on in work. 'To build on this, the Joint DWP and DHSC Work & Health Directorate is facilitating 'Keep Britain Working', an independent review of the role of UK employers in reducing health-related inactivity and to promote healthy and inclusive workplaces. The lead reviewer, Sir Charlie Mayfield, is expected to bring forward recommendations in Autumn 2025.' Online consultation The DWP has published the 'Pathways to Work: Reforming Benefits and Support to Get Britain Working' consultation online at The consultation is seeking views on the approaches the UK Government should consider around reform of the health and disability benefits system and employment support. The consultation on states: 'This Green Paper is an important staging post on a journey of reform, building on the vision and approach set out in the Get Britain Working White Paper in November 2024. It sets out our vision, strategy and proposals for change.' It continues: 'We want to improve and refine our plans by consulting on certain measures as described within this paper. We are committed to putting the views and voices of disabled people and people with health conditions at the heart of everything we do.' Who can complete the consultation? The DWP is encouraging a 'wide group' of people to share their views 'in particular disabled people and people with health conditions and disability organisations'. This consultation applies to England, Wales and Scotland. All the proposals apply in England, but it's important to be aware that the proposals will only apply to the UK Government's areas of responsibility in England, Wales and Scotland. DWP will also be running a number of 'accessible virtual and face to face events' on the consultation. More information on the details of these events and on how to register can be found on here. To complete the consultation, scroll to the bottom of the page here where it says 'Ways to respond'. The consultation will close on June 30, 2025. Summary of proposed benefits changes Universal Credit The latest statistics show there were 7.57 million people on Universal Credit, a means-tested incapacity benefit, in Great Britain as of February. It is aimed at helping people on a low income or those who are out of work. The UKGovernment said it will introduce an above-inflation rise to the standard Universal Credit allowance by 2029/30 - adding £775 in cash terms annually. But the health element allowance will be almost halved for new claimants from April next year while those already claiming will have their amount frozen until 2029/2030. The Work Capability Assessment (WCA) is to be scrapped in 2028, having been described by Liz Kendall as 'complex, time consuming and often stressful for claimants'. The UK Government said it will legislate for a so-called 'right to try', which will allow people to try work without the fear their benefits will automatically be put at risk. The Government said it will consult on delaying access to the Universal Credit health element until someone is aged 22. The latest figures showed there were 109,436 people aged 16 to 21 on Universal Credit health in December 2024. PIP Nearly 3.7 million claimants in England and Wales were entitled to PIP as of the end of January, the latest figures showed - up 71 per cent on the equivalent figure five years earlier when it stood at 2.14 million. The payment is aimed at helping with some of the extra costs caused by long-term disability and ill health and is not dependent on whether someone is working or not. Some people will lose their PIP entitlement, the UK Government said, as the process to qualify is tightened in an effort to focus the disability benefit on 'those with higher needs'. The UK Government said it will bring in a new eligibility requirement for a minimum score of at least four points regarding how much help the person needs with everyday tasks on the daily living element of the benefit. No change is being proposed for the mobility element, which looks at how much help someone needs in getting around. The UK Government confirmed the change 'means that people who only score the lowest points on each of the PIP daily living activities will lose their entitlement in future'. The UK Government also committed to not putting Universal Credit claimants who have the most severe disabilities and health conditions that will never improve through the ordeal of being reassessed for benefits 'to give them the confidence and dignity they deserve'. However the UK Government said it plans to increase the number of face-to-face assessments in PIP and under the current Work Capability Assessment in a bid to 'give confidence to claimants and taxpayers that they're being done properly'. The UK Government said it will also consult on raising the age at which people can claim PIP from 16 to 18.


Daily Record
08-05-2025
- Business
- Daily Record
New DWP plans to help long-term unemployed people back into work
DWP aims to shift from being a 'department for employment support and welfare to being one for work'. Reasons your Universal Credit may be cut by DWP Minister for Employment Alison McGovern has shared details on new plans to help long-term unemployed people back into work. The UK Government's 'Get Britain Working White Paper', published in November last year, sets out the biggest reforms by the Department for Work and Pensions (DWP) to employment support for a generation and achieve an 80 per cent employment rate. In a written response to Labour MP Neil Duncan-Jordan, Ms McGovern said the DWP will 'shift from being a department for employment support and welfare to being a department for work'. She explained: 'This means a new, locally led system of work and health support being available for those who are unemployed, bringing together existing locally delivered employment support as a single coherent offer that is part of areas' local growth plans.' The DWP Minister continued: 'In the Autumn 2024 Budget, £240 million funding for the White Paper measures was announced. This funding is helping us deliver and build on labour market reforms to Get Britain Working.' The funding included: £55m funding for both the digital development of the new public employment and careers service and the tests and trials for its development £170m for 16 trailblazers, 8 testing delivery of the Youth Guarantee in areas across England and 8 to tackle economic inactivity through increased engagement and tailored approaches in England and Wales An additional £15m to support trailblazers and development of local Get Britain Working plans Ms McGovern added: 'These measures complement contracted employment support for the long-term unemployed.' Online consultation The DWP has published the 'Pathways to Work: Reforming Benefits and Support to Get Britain Working' consultation online at The consultation is seeking views on the approaches the UK Government should consider around reform of the health and disability benefits system and employment support. The consultation on states: 'This Green Paper is an important staging post on a journey of reform, building on the vision and approach set out in the Get Britain Working White Paper in November 2024. It sets out our vision, strategy and proposals for change.' It continues: 'We want to improve and refine our plans by consulting on certain measures as described within this paper. We are committed to putting the views and voices of disabled people and people with health conditions at the heart of everything we do.' Who can complete the consultation? The DWP is encouraging a 'wide group' of people to share their views 'in particular disabled people and people with health conditions and disability organisations'. This consultation applies to England, Wales and Scotland. All the proposals apply in England, but it's important to be aware that the proposals will only apply to the UK Government's areas of responsibility in England, Wales and Scotland. DWP is also be running a number of 'accessible virtual and face to face events' on the consultation. More information on the details of these events and on how to register can be found on here. To complete the consultation, scroll to the bottom of the page here where it says 'Ways to respond'. The consultation will close on June 30, 2025. Summary of proposed benefits changes Universal Credit The latest statistics show there were 7.57 million people on Universal Credit, a means-tested incapacity benefit, in Great Britain as of February. It is aimed at helping people on a low income or those who are out of work. The UKGovernment said it will introduce an above-inflation rise to the standard Universal Credit allowance by 2029/30 - adding £775 in cash terms annually. But the health element allowance will be almost halved for new claimants from April next year while those already claiming will have their amount frozen until 2029/2030. The Work Capability Assessment (WCA) is to be scrapped in 2028, having been described by Liz Kendall as 'complex, time consuming and often stressful for claimants'. The UK Government said it will legislate for a so-called 'right to try', which will allow people to try work without the fear their benefits will automatically be put at risk. The Government said it will consult on delaying access to the Universal Credit health element until someone is aged 22. The latest figures showed there were 109,436 people aged 16 to 21 on Universal Credit health in December 2024. PIP Nearly 3.7 million claimants in England and Wales were entitled to PIP as of the end of January, the latest figures showed - up 71 per cent on the equivalent figure five years earlier when it stood at 2.14 million. The payment is aimed at helping with some of the extra costs caused by long-term disability and ill health and is not dependent on whether someone is working or not. Some people will lose their PIP entitlement, the UK Government said, as the process to qualify is tightened in an effort to focus the disability benefit on 'those with higher needs'. The UK Government said it will bring in a new eligibility requirement for a minimum score of at least four points regarding how much help the person needs with everyday tasks on the daily living element of the benefit. No change is being proposed for the mobility element, which looks at how much help someone needs in getting around. The UK Government confirmed the change 'means that people who only score the lowest points on each of the PIP daily living activities will lose their entitlement in future'. The UK Government also committed to not putting Universal Credit claimants who have the most severe disabilities and health conditions that will never improve through the ordeal of being reassessed for benefits 'to give them the confidence and dignity they deserve'. However the UK Government said it plans to increase the number of face-to-face assessments in PIP and under the current Work Capability Assessment in a bid to 'give confidence to claimants and taxpayers that they're being done properly'. The UK Government said it will also consult on raising the age at which people can claim PIP from 16 to 18.


BBC News
02-05-2025
- Business
- BBC News
Easington worst hit by Pip cuts, study claims
A former mining town will be the worst affected by planned cuts to disability benefits, researchers have to restrict eligibility for Personal Independence Payments (Pip) were announced in Equity North used government figures to estimate the reduction in Pip and divided it by the amount of working age people in each of England's parliamentary constituencies. They found Easington in County Durham is likely to be the worst hit to the tune of £409 per working age person per Department for Work and Pensions (DWP) said it was creating a "sustainable welfare system" which would help support sick and disabled people "break down barriers [and] unlock work". Using the same methodology, Health Equity North reported northern constituencies faced the greatest loss to their local economies, with areas in Merseyside making up six of the top addition to Easington, Blackpool South and the North East constituencies of Houghton and Sunderland South and Hartlepool complete the the other end of the scale, Bristol Central shows the lowest loss of £62.30 per working age constituent. 'Already struggling' Prof Clare Bambra at Newcastle University, who was involved in the research, said the team calculated figures per "working person" to show the "economic effect on a whole area".She said: "Every Pip claimant in Easington who loses money then doesn't have money to spend in local shops."It's not just Pip claimants who lose out."Prof Bambra said Parliament should not "rush through" the reforms, adding: "Those areas that will lose most from this proposal were already decimated by austerity, Covid and the cost of living crisis."They have worse health than other regions and their local services and economies are already struggling."Losses of this magnitude risk worsening the situation for everyone living in these deprived constituencies." 'Drive up employment' A DWP spokesperson said: "As part of our Plan For Change, we're creating a sustainable welfare system that delivers proper support to help sick and disabled people break down barriers, unlock work, boost living standards and grow the economy."This is on top of our Get Britain Working White Paper which set out the biggest employment reforms in a generation - backed by £240m - working across government and with our mayors, local leaders, the NHS and employers to drive up employment and opportunity."There are 3.7 million people receiving Pip in England and Wales, with the benefit only available to people between 16 and the state pension level of support is based on how high claimants score based on their level of difficulty performing day-to-day DWP has said it expects about 370,000 current Pip recipients to no longer qualify for the support as a result of the changes to eligibility 430,000 future recipients are expected to receive less than they would have work and pensions secretary has said eligibility would be tightened from November 2026. Follow BBC North East on X, Facebook, Nextdoor and Instagram.


Daily Record
22-04-2025
- Health
- Daily Record
DWP announces nine welfare reform events across Great Britain for people to share their views
Events will be held in Glasgow, London, Cardiff, Manchester, Leeds, Birmingham, Nottingham and Plymouth. The Department for Work and Pensions (DWP) has announced a series of public consultation events across Great Britain, including Glasgow, as part of its 'commitment to hear from members of the public directly, including disabled people and their representatives' on plans to reform health and disability benefits including Personal Independence Payment (PIP) and Universal Credit. Tickets are free and events will be held in accessible venues - which have still to be announced - between April 30 and June 24, 2025. Locations include Glasgow, London, Cardiff, Manchester, Leeds, Birmingham, Nottingham and Plymouth. Places at the events are limited, but you can sign up for free through the Eventbrite booking system. DWP said it will provide venue addresses closer to the date, via the email address you have submitted on the form and reimburse 'reasonable travel costs for those attending a face-to-face event in a personal capacity'. Public consultation event locations April 30 - Central London May 7 - Manchester May 13 - Plymouth May 21 - Leeds May 29 - Central London June 3 - Cardiff June 10 - Glasgow June 18 - Birmingham June 24 - Nottingham Consultation The consultation sets out plans and proposals to reform health and disability benefits and employment support. The DWP said: 'This Green Paper is an important staging post on a journey of reform, building on the vision and approach set out in the Get Britain Working White Paper in November 2024. It sets out our vision, strategy and proposals for change. 'We want to improve and refine our plans by consulting on certain measures as described within this paper. We are committed to putting the views and voices of disabled people and people with health conditions at the heart of everything we do.' Who the consultation is aimed at DWP explained: 'We are keen to hear views from a wide group of people, in particular disabled people and people with health conditions and disability organisations'. The consultation applies to England, Wales and Scotland. All the proposals apply in England, however, the proposals in the consultation will only apply to the UK Government's areas of responsibility in England, Wales and Scotland. You can share your views in the online consultation on here (scroll to the bottom of the page). Summary of proposed benefits changes Universal Credit The latest statistics show there were 7.57 million people on Universal Credit, a means-tested incapacity benefit, in Great Britain as of February. It is aimed at helping people on a low income or those who are out of work. The UKGovernment said it will introduce an above-inflation rise to the standard Universal Credit allowance by 2029/30 - adding £775 in cash terms annually. But the health element allowance will be almost halved for new claimants from April next year while those already claiming will have their amount frozen until 2029/2030. The Work Capability Assessment (WCA) is to be scrapped in 2028, having been described by Liz Kendall as 'complex, time consuming and often stressful for claimants'. The UK Government said it will legislate for a so-called 'right to try', which will allow people to try work without the fear their benefits will automatically be put at risk. The Government said it will consult on delaying access to the Universal Credit health element until someone is aged 22. The latest figures showed there were 109,436 people aged 16 to 21 on Universal Credit health in December 2024. PIP Nearly 3.7 million claimants in England and Wales were entitled to PIP as of the end of January, the latest figures showed - up 71 per cent on the equivalent figure five years earlier when it stood at 2.14 million. The payment is aimed at helping with some of the extra costs caused by long-term disability and ill health and is not dependent on whether someone is working or not. Some people will lose their PIP entitlement, the UK Government said, as the process to qualify is tightened in an effort to focus the disability benefit on 'those with higher needs'. The UK Government said it will bring in a new eligibility requirement for a minimum score of at least four points regarding how much help the person needs with everyday tasks on the daily living element of the benefit. No change is being proposed for the mobility element, which looks at how much help someone needs in getting around. The UK Government confirmed the change 'means that people who only score the lowest points on each of the PIP daily living activities will lose their entitlement in future'. The UK Government also committed to not putting Universal Credit claimants who have the most severe disabilities and health conditions that will never improve through the ordeal of being reassessed for benefits 'to give them the confidence and dignity they deserve'. However the UK Government said it plans to increase the number of face-to-face assessments in PIP and under the current Work Capability Assessment in a bid to 'give confidence to claimants and taxpayers that they're being done properly'. The UK Government said it will also consult on raising the age at which people can claim PIP from 16 to 18.