Follow our updates on the Spring budget and Health and Disability White Paper here when they are published on Wednesday 15 March and share your own views and insights.
WCA abolition and new UC health element FAQs
We've published some UC health element FAQs here. The most important takeaway at the moment is that it's likely to be - at the very least - 6 years before existing UC/ESA claimants are affected.
When will changes happen?
They will be rolled out geographically for new claims first from 2026/27 to 2029. Only then would existing claimants begin to be affected. There will be some transitional protection for claimants who have LCWRA but do not get any element of PIP.
"The degree of change in our proposals will require primary legislation, which we would aim to take forward in a new Parliament when parliamentary time allows. These reforms would then be rolled out, to new claims only, on a staged, geographical basis from no earlier than 2026/27. We would expect the new claims roll-out to be completed within three years (so by 2029 at the earliest), when we would then begin to move the existing caseload on to the new system."
Full White Paper
The full white paper is here. It may take a while to digest
New UC Health Element
The UC LCWRA element will be replaced with a new UC health element for claimants getting UC standard allowance and any PIP element. Paid at same rate as LCWRA element.
"Landmark reforms to the benefits system will change the emphasis from what people can’t do, to what they can, by legislating to remove the Work Capability Assessment (WCA) so that in future there is only one health and disability assessment – the Personal Independent Payment (PIP) assessment.
"This will mean there will be no need to be found to have limited capability for work and limited capability to prepare for work to get additional income-related support for a disability or health condition – reducing the worry claimants currently experience that they will lose their benefits following a reassessment.
"We will replace the current Universal Credit Limited Capability for Work and Work Related Activity (LCWRA) financial top up with a new UC health element. This will be awarded to people who are receiving the UC standard allowance and any PIP element. The award rate of the new UC health element will be set equal to the current award to those people that have LCWRA, ensuring there is a safety net in place for the most vulnerable."
White paper published
The Health and Disability white paper is now online
Correction, it's not the whole white paper yet, just a factsheet giving the major changes.
Sanctions
"The next set of employment reforms affects those on universal credit without a health condition who are looking for work or on low earnings. There are more than 2 million jobseekers in this group, more than enough to fill every vacancy in the economy. Independence is always better than dependence, which is why a Conservative government believes those who can work should. So sanctions will be applied more rigorously to those who fail to meet strict work search requirements or choose not to take up a reasonable job offer. And for those working low hours, we will increase the administrative earnings threshold from the equivalent of 15 hours to 18 hours at national living wage for an individual claimant. Meaning that anyone working below this level will receive more work coach support alongside a more intensive conditionality regime."
Universal Support
"Today I’m going further than that by announcing that in England and Wales after listening to representations from the Centre for Social Justice and others we will fund a new programme called Universal Support. This is a new voluntary employment scheme for disabled people where the government will spend up to £4,000 per person to help them find appropriate jobs and put in place the support they need. It will fund 50,000 places every single year."
What the chancellor said
"I start with over 2 million people who are inactive due to a disability or long-term sickness . . . we could fill half the vacancies in the economy with people who say they would like to work despite being inactive due to sickness or disability.
With Zoom , Teams and new working models that make it easier to work from home, this is possible now more than ever. So for that reason the ever diligent work and pensions secretary today takes the next step in his groundbreaking work i9n tackling economic inactivity. I thank him for that and today we publish a white paper on disability benefits reform. It is the biggest change to our welfare system i9n a decade.
His plans will abolish the work capability assessment in Great Britain and separate benefit entitlement from an individual’s ability to work. As a result, disabled benefit claimants will always be able to seek work without fear of losing financial support."
WCA to be abolished
The chancellor has confirmed that the WCA will be abolished
Prepayment meters
Prepayment energy meter customers will have charges in line with direct debit customers in the future, rather than having to pay a premium.
Energy Price Guarantee
The Treasury has confirmed that the Energy Price Guarantee will be kept at £2,500 for an additional three months, from April to June. The government claims this will save the average household £160. It's a small improvement, but many are arguing it doesn't go nearly far enough in supporting people on low incomes with their energy bills.
What we're expecting
From the information that has been put out by the Treasury so far, the main issues that we will be looking out for are:
The abolition of the work capability assessment (WCA).
An increase in the severity of the sanctions regime.
Sanctions being issued automatically by DWP software.
The potential abolition of the WCA raises a huge number of questions about how it will be decided whether claimants with health conditions will be subject to the sanctions regime and whether and how they will be assessed for any additional payment because of their health condition or disability. We hope the white paper will have some of the answers.
