Latest news with #SevereConditionsCriteria
Daily Mirror
15-07-2025
- Business
- Daily Mirror
DWP outlines major £725 Universal Credit changes from next year
Millions of households would benefit from the payment increase, DWP officials say Nearly four million households could receive an annual income boost from the Department of Work and Pensions (DWP) of £725. This increase could come following the progression of a bill aimed at reforming the welfare system set to go through Parliament on Wednesday, officials say. As reported by the Daily Record, the Universal Credit Bill proposes changes intended to adjust the primary payment and health supplement in Universal Credit. Officials say the bill would result in the Universal Credit standard allowance permanently rising above inflation, equating to £725 by 2029/30 in cash terms for a single individual aged 25 or over. According to the Institute for Fiscal Studies (IFS), this represents the most significant permanent real-terms rise to the main rate of out-of-work support since 1980. The Universal Credit Bill The DWP said it is rebalancing Universal Credit health and standard elements. It wants to address what it sees as the fundamental imbalance in the system - which it says creates perverse incentives that drive people into dependency through: Increasing the Universal Credit standard allowance above inflation for the next four years - worth an estimated £725 by 2029/30 for a single adult aged 25 or over Reducing the health top-up for new claims to £50 per week from April 2026 Ensuring that all existing recipients of the Universal Credit health element - and any new claimant meeting the Severe Conditions Criteria and/or that has their claims considered under the Special Rules for End of Life (SREL) - will receive the higher Universal Credit health payment after April 2026 Exemptions from reassessment for those with the most severe, lifelong conditions The DWP said the reforms will address the 'fundamental imbalance in the system which creates perverse incentives that drive people into dependency'. The Bill has passed through the House of Commons, with MPs voting 336 to 242. It will now proceed to the House of Lords for further scrutiny before receiving Royal Assent. In addition to these changes, the DWP has introduced significant new measures, granting individuals receiving health and disability benefits the right to attempt work without fear of reassessment, officials say. They say this new 'Right to Try Guarantee' includes individuals with a disability or health condition - such as those recovering from illness - who wish to return to work now their health has improved. Work and Pensions Secretary Liz Kendall said: "Our reforms are built on the principle of fairness, fixing a system that for too long has left people trapped in a cycle of dependence. "We are giving extra support to millions of households across the country, while offering disabled people the chance to work without fear of the repercussions if things don't work out. "These reforms will change the lives of people across the country, so they have a real chance for a better future." 'Safeguards' in Universal Credit changes The legislation also introduces what is says are safeguards for the most vulnerable and severely disabled individuals. This is said to include 200,000 members of the Severe Conditions Criteria group – those with the gravest, lifelong conditions who are unlikely to see an improvement in their health – who will be exempt from Universal Credit reassessment. All current recipients of the Universal Credit health component and new claimants with no more than 12 months to live or who satisfy the Severe Conditions Criteria will witness their standard allowance merge with their Universal Credit health element, with a guarantee of an increase at least in line with inflation annually from 2026/27 to 2029/30 - says the DWP. The DWP stated: "This means they can live with dignity and security, knowing the reforms to the welfare system mean it will always be there to support them." DWP statement on changes The Department for Work and Pensions (DWP) says it is placing disabled individuals at the forefront of a ministerial examination of the Personal Independence Payment (PIP) assessments, steered by Disability Minister Sir Stephen Timms. The review is being co-produced with disabled people, their representative organisations, experts, MPs, and other stakeholders to ensure it is equitable and suitable for the future, says the DWP. The DWP said: "We will be engaging widely over the summer to design the process for the review and consider how it can best be co-produced to ensure that expertise from a range of different perspectives is drawn upon. "These reforms are underpinned by a major investment in employment support for sick and disabled people - worth £3.8 billion over the Parliament. Funding will be brought forward for tailored employment, health and skills support to help disabled people and those with health conditions get into work as part of our Pathways to Work guarantee." Additionally, the DWP noted: "This investment will accelerate the pace of new investments in employment support programmes, building on and learning from successes such as the Connect to Work programme, which are already rolling out to provide disabled people and people with health conditions with one-to-one support at the point when they feel ready to work." Nevertheless, charities have voiced apprehensions regarding the broader consequences of the new Bill. Thomas Lawson, CEO of Turn2us, said: "MPs voted to reduce support for people unable to work by over £200 a month. Halving the health element of Universal Credit for anyone who becomes sick from April 2026 will increase hardship and mean even more people are going without essentials. "To build a system we can all trust, the government now needs to review the whole system and really listen to disabled people and organisations like ours. In a country as wealthy as ours, sickness should never mean hunger or eviction." James Watson-O'Neill, chief executive of national disability charity Sense, voiced his disapproval, saying: "The government's decision to press ahead with its welfare reform Bill and make cruel cuts to Universal Credit payments is causing deep fear and distress among young disabled people with the most complex needs and their families. "Significant concessions on previous proposals to slash PIP benefits made headlines only last week. But MPs have still voted to cut support for disabled people who are assessed as having the greatest barriers to work and apply for benefits after 2026, making them £47 a week poorer. "Almost half of disabled people with complex needs are already in debt because their benefit payments don't cover the essentials. This proposal will create an unfair, two-tier system, where still more disabled people are pushed into poverty simply because they started claiming benefits later. "We are calling on the government to reconsider these proposals and rule out plans to cut support even further for disabled people aged under 22. Disabled people should be included fully and from the start in any efforts to reform the welfare system." Criticism of 'appalling' Universal Credit changes Juliet Tizzard, director of external relations at Parkinson's UK, said: "The government's decision to cut Universal Credit costs is appalling. We believe that, despite the government's claims, savings are being made by effectively making people with Parkinson's ineligible for the higher rate health element. "The Bill clearly states that someone must be constantly unable to do certain tasks to qualify. This will penalise people with Parkinson's, whose symptoms come and go. Until we can be certain that people with fluctuating conditions will not be penalised, we'll continue campaigning for a fair system. "We're thankful to the MPs who tried to stop the changes to Universal Credit, and for every campaigner who raised their voice. We stopped the cuts to PIP, and while we're disappointed by the result today, this setback won't stop us. We'll keep fighting for better support, care and treatment for the Parkinson's community."
Daily Record
10-07-2025
- Business
- Daily Record
DWP confirms four major changes to Universal Credit starting from next April
Nearly 4 million households will see an annual income boost estimated to be worth £725 under new reforms. The Department for Work and Pensions (DWP) has said nearly 4 million households will see an annual income boost estimated to be worth £725 after a Bill to overhaul the welfare system completed the next stage of its passage through Parliament on Wednesday. Reforms set out in the Universal Credit Bill will look to rebalance the core payment and health top-up in Universal Credit. The Bill will see the Universal Credit standard allowance permanently rise above inflation, amounting to £725 by 2029/30 in cash terms for a single person aged 25 or over. According to the Institute for Fiscal Studies (IFS), this is the highest permanent real terms increase to the main rate of out-of-work support since 1980. The Universal Credit Bill The DWP said rebalancing of Universal Credit health and standard elements to address the fundamental imbalance in the system which creates perverse incentives that drive people into dependency through: Increasing the Universal Credit standard allowance above inflation for the next four years - worth an estimated £725 by 2029/30 for a single adult aged 25 or over. Reducing the health top-up for new claims to £50 per week from April 2026. Ensuring that all existing recipients of the Universal Credit health element - and any new claimant meeting the Severe Conditions Criteria and/or that has their claims considered under the Special Rules for End of Life (SREL) - will receive the higher Universal Credit health payment after April 2026. Exemptions from reassessment for those with the most severe, lifelong conditions. The DWP said the reforms will address the 'fundamental imbalance in the system which creates perverse incentives that drive people into dependency'. The Bill successfully cleared the House of Commons, with MPs voting 336 to 242. It will now be introduced into the House of Lords to continue its passage through Parliament towards Royal Assent. Alongside these changes, the DWP has published significant new measures, giving people receiving health and disability benefits the right to try work without fear of reassessment. The new 'Right to Try Guarantee' includes people with a disability or health condition - such as those recovering from illness - who want to return to work now their health has improved. Work and Pensions Secretary Liz Kendall said: 'Our reforms are built on the principle of fairness, fixing a system that for too long has left people trapped in a cycle of dependence. 'We are giving extra support to millions of households across the country, while offering disabled people the chance to work without fear of the repercussions if things don't work out. 'These reforms will change the lives of people across the country, so they have a real chance for a better future.' The Bill also sets out measures to protect the most vulnerable and severely disabled, including 200,000 in the Severe Conditions Criteria group - individuals with the most severe, lifelong conditions who are unlikely to recover - will not be called for a Universal Credit reassessment. All existing recipients of the Universal Credit health element and new customers with 12 months or less to live or who meet the Severe Conditions Criteria will also see their standard allowance combined with their Universal Credit health element rise at least in line with inflation every year from 2026/27 to 2029/30. DWP said: 'This means they can live with dignity and security, knowing the reforms to the welfare system mean it will always be there to support them.' DWP is also putting disabled people at the heart of a ministerial review of the Personal Independence Payment (PIP) assessment led by Disability Minister Sir Stephen Timms and co-produced with disabled people, along with the organisations that represent them, experts, MPs and other stakeholders - making sure it is fair and fit for the future. DWP said: 'We will be engaging widely over the summer to design the process for the review and consider how it can best be co-produced to ensure that expertise from a range of different perspectives is drawn upon. 'These reforms are underpinned by a major investment in employment support for sick and disabled people - worth £3.8 billion over the Parliament. Funding will be brought forward for tailored employment, health and skills support to help disabled people and those with health conditions get into work as part of our Pathways to Work guarantee.' DWP added: 'This investment will accelerate the pace of new investments in employment support programmes, building on and learning from successes such as the Connect to Work programme, which are already rolling out to provide disabled people and people with health conditions with one-to-one support at the point when they feel ready to work.' However, charities have raised concerns over the wider implications of the new Bill. Thomas Lawson, CEO, Turn2us said: 'MPs voted to reduce support for people unable to work by over £200 a month. Halving the health element of Universal Credit for anyone who becomes sick from April 2026 will increase hardship and mean even more people are going without essentials. 'To build a system we can all trust, the government now needs to review the whole system and really listen to disabled people and organisations like ours. In a country as wealthy as ours, sickness should never mean hunger or eviction.' James Watson-O'Neill, Chief Executive of the national disability charity Sense, said: 'The government's decision to press ahead with its welfare reform Bill and make cruel cuts to Universal Credit payments is causing deep fear and distress among young disabled people with the most complex needs and their families. 'Significant concessions on previous proposals to slash PIP benefits made headlines only last week. But MPs have still voted to cut support for disabled people who are assessed as having the greatest barriers to work and apply for benefits after 2026, making them £47 a week poorer. 'Almost half of disabled people with complex needs are already in debt because their benefit payments don't cover the essentials. This proposal will create an unfair, two-tier system, where still more disabled people are pushed into poverty simply because they started claiming benefits later. 'We are calling on the government to reconsider these proposals and rule out plans to cut support even further for disabled people aged under 22. Disabled people should be included fully and from the start in any efforts to reform the welfare system." Juliet Tizzard, Director of External Relations at Parkinson's UK, said: "The government's decision to cut Universal Credit costs is appalling. We believe that, despite the government's claims, savings are being made by effectively making people with Parkinson's ineligible for the higher rate health element. "The Bill clearly states that someone must be constantly unable to do certain tasks to qualify. This will penalise people with Parkinson's, whose symptoms come and go. Until we can be certain that people with fluctuating conditions will not be penalised, we'll continue campaigning for a fair system. "We're thankful to the MPs who tried to stop the changes to Universal Credit, and for every campaigner who raised their voice. We stopped the cuts to PIP, and while we're disappointed by the result today, this setback won't stop us. We'll keep fighting for better support, care and treatment for the Parkinson's community."
Daily Mirror
30-06-2025
- Business
- Daily Mirror
200,000 people won't face universal credit reassessment under proposed DWP bill
After Sir Keir Starmer's U-turn on welfare reforms last week, the government has confirmed a series of changes to the bill which will get its second reading this Tuesday The government has confirmed that under its new welfare bill, set to be voted on this week, 200,000 people would not face a universal credit reassessment. The prime minister U-turned last week after he faced backlash from Labour MPs over his proposed welfare reforms. More than 120 backbenches threatened to vote him down, leading Sir Keir Starmer to offer concessions including limiting cuts to the personal independence payment (PIP). On Monday, the government set out details of the changes it intended to make to the welfare bill. It said that it had 'listened to the MPs who support the principle of reform but are worried about the pace of change for those already supported by the social security system'. Starmer initially proposed restricting eligibility for PIP, but has now suggested that all existing PIP recipients should stay on the current system, while eligibility will be restricted for new claimants from November 2026. The government also confirmed that 200,000 people in the Severe Conditions Criteria group - those with the most severe lifelong conditions - will not be called for a Universal Credit reassessment. All Universal Credit health element recipients and new customers with 12 months or less to live, or who meet the Severe Conditions Criteria, will see their standard allowance combined with their Limited Capability for Work Related Activity rise at least in line with inflation from 2026/27 to 2029/30. Work and pensions secretary Liz Kendall said: 'We must build a welfare system that provides security for those who cannot work and the right support for those who can. Too often, disabled people feel trapped - worried that if they try to work, they could lose the support they depend on. 'That is why we are taking action to remove those barriers, support disabled people to live with dignity and independence, and open routes into employment for those who want to pursue it.' She added that the reforms were about delivering 'a fairer, more compassionate system' as part of the Plan for Change which aims to support people to thrive, 'whatever their circumstances'. The Second Reading of the Universal Credit and PIP Bill will take place on Tuesday. The DWP stated that 'for too long, meaningful reform to our welfare system has been ducked and delayed'. It added: 'The government is taking decisive action and the difficult decisions needed to restore trust and faith in the system, providing opportunities for those who can work, and security for those who cannot.' Over the weekend, while speaking at Welsh Labour's annual conference in Llandudno, Starmer said: 'Everyone agrees that our welfare system is broken, failing people every day. Fixing it is a moral imperative, but we need to do it in a Labour way, conference, and we will." The day before, he told broadcasters: 'The most important thing is that we can make the reform we need. We talked to colleagues, who've made powerful representations, as a result of which we've got a package which I think will work, we can get it right.' The prime minister added: 'For me, getting that package adjusted in that way is the right thing to do, it means it's the right balance, it's common sense that we can now get on with it.'
Daily Mirror
28-06-2025
- Business
- Daily Mirror
PIP reform slammed 'creating two-tier system for disabled people'
The new concessions could mean people who are disabled may be treated completely differently depending on when their disability began Sir Keir Starmer revealed on Friday that Labour's principal welfare reform will see some adjustments to safeguard disabled people currently receiving certain benefits and those who satisfy the Severe Conditions Criteria. Although further details are pending, specialists have started to offer their insights on the revisions. Scope, a disability equality charity, has highlighted that, according to the Government's own assessment, 430,000 disabled people will still be adversely affected by the reforms. This figure includes those disabled people who would have met the criteria and applied for disability benefits by the year 2029/2030. James Taylor, Scope's director of strategy, commented: "It is encouraging that the government is starting to listen to disabled people and MPs who have been campaigning for change for months. But these plans will still rip billions from the welfare system. "The proposed concessions will create a two-tier benefits system and an unequal future for disabled people. Life costs more if you are disabled. And these cuts will have a devastating effect on disabled people's health, ability to live independently or work. "We urge the government to properly engage with disabled people and MPs on how best to reform welfare and create an equal future." The Institute for Fiscal Studies (IFS), also chiming in on the recent concessions, illustrated the financial implications by noting a substantial £3 billion cost due to the changes, warning of potential tax hikes come Autumn. The IFS report explained: "Take two people who develop the exact same health problems, but one develops them just early enough (before November 2026) to qualify as an 'existing claimant' and one just too late. "The first is assessed for PIP and UC health element under the current rules and receives £8,930 in total, £3,850 from PIP and £5,080 from UC health element. The second is assessed under the new rules, because of the tighter criteria they do not qualify for PIP, and they receive the new lower UC health element, which after the freeze will be worth £2,370 (in today's prices). "If the government goes ahead with their proposed plans to scrap the work capability assessment, the second claimant would receive no specific support for health conditions at all. These differences would persist indefinitely, in some cases for many years." Initially, the welfare overhaul would have adjusted eligibility for PIP, mandating that both new and current beneficiaries revising their claims must score four points in any single section of the daily living evaluation—a test awarding points based on the aid or tools needed for routine activities including communication and meal preparation. However, the new four-point criteria will only be applicable to those who apply for the daily living element of the benefit after November 2026. The mobility component of PIP will remain unaffected. Originally, it was anticipated that 370,000 current PIP recipients would lose their benefit due to these changes. However, owing to concessions, it is now estimated that only 430,000 future PIP claimants will be affected by 2029/2030. At present rates, losing PIP would have cost claimants £4,150 annually. Additionally, it could indirectly result in thousands of carers losing their carer's allowance benefit, costing approximately 50,000 people £4,340 per year, as reported by the IFS.
