Latest news with #WorkandPensions
Daily Record
21-07-2025
- Business
- Daily Record
State pension age to be reviewed by UK Government amid fears that 45% of workers are not saving
Liz Kendall, the Work and Pensions Secretary, warned "unless we act, tomorrow's pensioners will be poorer than today". The state pension age is to be reviewed by the UK Government amid fears half of workers are not saving anything at all for their retirement. Westminster is required by law to review the state pension age - currently 66 - every six years but has launched a fresh inquiry earlier than planned, as the previous one concluded in 2023. The review will examine whether the current age is still appropriate and consider factors such as rising life expectancy. It comes as experts warn that people looking to retire in 2050 are on course to receive £800 per year less than current pensioners,. The DWP said 45 per cent of working age adults are currently saving nothing for their pensions, amid fears the cost of living crisis has led to some households left with nothing to put aside. Kendall said Labour is reviving the pensions commission because the 'job is not yet done'. She added: "Put simply, unless we act, tomorrow's pensioners will be poorer than today's, because people who are saving aren't saving enough for their retirement. 'And crucially, because almost half of the working age population isn't saving anything for their retirement at all,' the Work and Pensions Secretary said during a speech to launch the move. The commission is expected to provide recommendations for how to boost retirement income in 2027. She also announced the next statutory government review into the pension age. She said she was 'under no illusions' about how difficult it would be to map out plans for pensions for the coming decades amid cost-of-living pressures. She conceded that 'many workers are more concerned about putting food on the table and keeping a roof over their heads than saving for a retirement that seems a long, long way away, and many businesses face huge challenges in keeping profitable and flexible in an increasingly uncertain world'. The shortfall is also worse among women and some ethnic groups, with only one-in-four people of Pakistani or Bangladeshi background saving in a private pension. People drawing their pension 25 years from now are set to be £800 or 8% worse off per year than their counterparts today, the department said, with four in 10 people currently not saving enough for their retirement. Rather than launching a new commission from scratch, the government said it was reviving the "landmark" Turner Pension Commission which reported in 2006, under the last Labour government, and led to the roll-out of automatic enrolment into pension saving. As a result 88% of eligible employees are now saving, up from 55% in 2012, the DWP said.
Daily Record
17-07-2025
- Business
- Daily Record
DWP boss defends welfare reform changes after PIP plans put on hold
Work and Pensions Secretary Liz Kendall acknowledged it had been a 'bumpy ride when she appeared before the Work and Pensions Committee on Wednesday. Reasons your Universal Credit may be cut by DWP Liz Kendall insisted the UK Government's welfare reforms were in 'the right place' now after she was forced to scrap most of the planned changes in the face of a Labour revolt. The Universal Credit Bill cleared the Commons after elements to restrict eligibility to PIP were scrapped, with any changes postponed until after a review led by disability minister Sir Stephen Timms in conjunction with disabled people. The Work and Pensions Secretary appeared before the Work and Pensions Committee on Wednesday and acknowledged it had been a 'bumpy ride' but the review into the Personal Independence Payment (PIP) would now be able to take a proper look at the system in conjunction with disabled people. Ms Kendall insisted the reforms had not been motivated by the Treasury's desire to cut spending but were driven by a desire to end a situation where people became dependent on benefits rather than working. Ms Kendall told the cross-party group of MPS: 'I know, always, how anxious people are when they hear about proposed changes in the benefits system. 'I think we've ended up in the right place now and I think we have a really positive story going forward about how we will work with disabled people, the organisations that represent them and other experts to make sure we get a system that's fit for the future.' She denied the proposals were motivated by the almost £5 billion they were due to save. Ms Kendall said: 'I've never started with pound signs or spreadsheets. I've always started with what I believe can help people with long-term health conditions and disabled people build a better life for themselves and our reforms are based on helping those who can work to do so, instead of writing them off and then denying them any support.' She added that her department 'ends up picking up the pieces of the problems that are deep-rooted from many other government areas'. The DWP boss continued: 'Poor health, poor opportunities, low skills, not enough jobs - those are the problems we have to tackle together.' Her department was 'at the sharp end of it' and after 'admittedly, a bumpy ride over the welfare legislation' the UK Government has to 'start shifting resources into the things that really help create better lives for people'. 'We are spending, I believe, too much on the costs of failure and not enough on the better health, better jobs, better skills that we need,' she said. 'That is extremely difficult to shift, because people rely on those benefits, and they've built their lives around them.' But, she added: 'Benefits alone is not the solution to a better life.'
Daily Mirror
16-07-2025
- Business
- Daily Mirror
DWP boss Liz Kendall in clash over benefit cuts - 'why did you ignore disabled people'
Work and Pensions Secretary Liz Kendall said welfare reforms were in 'the right place' after a 'bumpy ride' - which saw the Government gut its legislation to avoid a Commons defeat Work and Pensions Secretary Liz Kendall has been accused of failing to consult disabled people on planned benefit cuts during a fiery clash. Liberal Democrat MP Steve Darling confronted the Cabinet minister over the disastrous plans to slash £5billion from the welfare bill, which were gutted to see off a Labour revolt. Proposals to cut Personal Independence Payments (PIP), the main disability benefit, have now been shelved until a review is conducted by DWP Minister Sir Stephen Timms next year. At a hearing of the Work and Pensions Committee, Ms Kendall said the scaled back plans were in "the right place" now but admitted it had been a "bumpy ride". Mr Darling, who is registered blind, said Ms Kendall had promised last year that reforms would not be led by cuts. But the green paper published in March amounted to the deepest cuts in a decade, he said, adding: "What went wrong?" Ms Kendall replied: "Forgive me for not agreeing with the characterisation that you put forward. I have never started with pound signs or spreadsheets. I've always started with what I believe can help people with long term health conditions and disabled people build a better life for themselves." But Mr Darling said disabled people were not consulted on the changes to PIP ahead of time. Ms Kendall said her department was consulting with Parliament and there were a number of committees looking at it in collaboration. Mr Darling asked twice: "Why did you ignore disabled people?" The minister replied: 'We are not ignoring disabled people. They will be at the heart of the Timms review." More broadly, the Work and Pensions Secretary argued that the Government was spending too much on the "costs of failure" and her department was at the sharp end of people who were suffering from poor health, lack of jobs and lack of skills. "This department ends up picking up the pieces of the problems that are deep rooted from many other government areas and we've got to change that," she said. "Poor health, poor opportunities, low skills, not enough jobs. Those are the problems we have to tackle together. We are at the sharp end of it." Ms Kendall admitted the welfare legislation had been a "bumpy ride", adding: "We have to start shifting resources into the things that really help create better lives for people. We are spending I believe too much on the costs of failure, and not enough on the better health, better jobs, better skills that we need. "That is extremely difficult to shift because people rely on those benefits and they've built their lives around them. But unless we grapple with this, benefits alone is not the solution to a better life." Ms Kendall was also challenged over the Government's delayed child poverty strategy, which is now expected in the autumn. However she denied there had been "slippage" in the Government's efforts to help the 4.5million children living in poverty. She pointed to action such as the recent expansion of free school meals to kids in Universal Credit households and free breakfast clubs as a "down payment" on tackling the issue. In another clash, Mr Darling said: "Childhood is a really short period of time, we're letting our children in poverty down, why is the Government doing that by not publishing as it promised previously?" Ms Kendall replied: "I think action speaks louder than words, we have taken action to tackle child poverty." He asked again: "Can you explain why you haven't published the child poverty strategy so far?" She replied: "Would you like me to answer the question?" The MP retorted: "You are very well avoiding it. Why haven't you published the child poverty strategy?" Ms Kendall replied: "We want to get this right, we understand there will be funding implications and we think its really important that we spell out a comprehensive strategy. But we have not had slippage on tackling child poverty, we're putting that into action." She added: "I am very proud of the start we have made, we have got a hell of a long way to go. But I think we've had some down payments on our chid poverty strategy and myself and Bridget Phillipson will forging forward to do even more in the autumn."
Daily Record
10-07-2025
- Health
- Daily Record
New DWP plans to help people with arthritis into work as part of welfare reforms
The Labour Government has outlined new measures to help more people with health issues into work. Reasons your Universal Credit may be cut by DWP The Department for Work and Pensions (DWP) has set out plans to help disabled people and those with health conditions such as arthritis claiming Universal Credit find and stay in work. Proposed changes to Personal Independence Payment (PIP) have been put on hold until the outcome of a review of the assessment process, which will be co-produced by Minister for Social Security and Disability Sir Stephen Timms and disability groups. This is due to be completed by next Autumn, however, changes to Universal Credit are already underway. Minister for Employment, Alison McGovern, set out the plans in a written response to Liberal Democrat MP Angus MacDonald (Inverness, Skye and West Ross-shire), who asked 'what support is being provided to people with arthritis to remain in and return to work'. Ms McGovern said: 'Good 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.' The DWP Minister continued: 'Disabled people and people with health conditions, including arthritis, are a diverse group so access to the right work and health support, in the right place, at the right time, is key. We therefore have a range of specialist initiatives to support individuals to stay in work and get back into work, including those that join up employment and health systems.' Measures include: Support from Work Coaches and Disability Employment Advisers in Jobcentres Access to Work grants Joining up health and employment support around the individual through Employment Advisors in NHS Talking Therapies Individual Placement and Support in Primary Care Ms McGovern continued: "We are delivering the biggest investment in support for disabled people and people with health conditions in at least a generation. Our support guarantee announced as part of the Green Paper is backed up by £2.2 billion over four years, including £200 million in 2026/27 when our benefit changes begin to take effect and, as announced in the statement on Welfare Reform (June 30) by the Secretary of State for Work and Pensions, an additional £300m over the next three years. "This brings our total investment in employment support for disabled people and those with health conditions to £3.8bn over this Parliament." Ms McGovern also said: "Backed by £240m investment, the Get Britain Working White Paper launched in November 2024, will drive forward approaches to tackling economic inactivity and work toward the long-term ambition of an 80 per cent employment rate. "In recognition of the key role employers play a key role in increasing employment opportunities and supporting disabled people and people with health conditions, the Secretaries of State for Work and Pensions and Business and Trade asked Sir Charlie Mayfield to lead an independent review, considering how best to support and enable employers to recruit and retain more people with health conditions and disabilities, promote healthy workplaces, and support more people to stay in or return to work from periods of sickness absence." Sir Charlie will deliver his final report in the Autumn. Ms McGovern added: 'Employers are crucial in enhancing employment opportunities and supporting disabled people and those with health conditions to thrive in the workforce. 'Our support to employers includes increasing access to Occupational Health, a digital information service for employers and the Disability Confident scheme.'
Daily Record
04-07-2025
- Health
- Daily Record
New DWP plans to help people with a disability or health condition find and stay in work
The Labour Government has outlined new measures to help more people with health issues into work. The Department for Work and Pensions (DWP) has set out plans to help disabled people and those with health conditions on Universal Credit find and stay in work. Proposed changes to Personal Independence Payment (PIP) have been put on hold until the outcome of a review of the assessment process, which will be co-produced by Minister for Social Security and Disability Sir Stephen Timms and disability groups. This is due to be completed by next Autumn, however, changes to Universal Credit are already underway. Minister for Employment, Alison McGovern, set out the plans in a written response to Independent MP Andrew Gwynne, who asked 'what steps are being taken to support disabled people to find work'. Ms McGovern said: 'Good 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.' The DWP Minister continued: '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. We therefore have a range of specialist initiatives to support individuals to stay in work and get back into work, including those that join up employment and health systems.' Measures include: Support from Work Coaches and Disability Employment Advisers in Jobcentres Access to Work grants Joining up health and employment support around the individual through Employment Advisors in NHS Talking Therapies Individual Placement and Support in Primary Care Ms McGovern said: 'We are delivering the biggest investment in support for disabled people and people with health conditions in at least a generation. 'We 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. 'This is backed up by £2.2 billion over four years, including £200m in 2026/27 when our benefit changes begin to take effect and as announced in the statement on Welfare Reform (June 30) by the Secretary of State for Work and Pensions, an additional £300 million over the next three years. 'This brings our total investment in employment support for disabled people and those with health conditions to £3.8 billion over this Parliament.' She added: 'Backed by £240m investment, the Get Britain Working White Paper launched in November 2024, will drive forward approaches to tackling economic inactivity and work toward the long-term ambition of an 80 per cent employment rate.' To increase employment opportunities and support for disabled people and those with health conditions, the Secretaries of State for Work and Pensions and Business and Trade asked Sir Charlie Mayfield to lead an independent review to look at how best to support and enable employers to recruit and retain more people with health conditions and disabilities, promote healthy workplaces, and support more people to stay in or return to work from periods of sickness absence. Sir Charlie will deliver his final report in the Autumn. Ms McGovern said: 'Employers are crucial in enhancing employment opportunities and supporting disabled people and those with health conditions to thrive in the workforce. 'Our support to employers includes increasing access to Occupational Health, a digital information service for employers and the Disability Confident scheme.'
