Lords Support ‘Urgent’ Disability Benefit Reform – Starmer Warns of Severe Cuts Ahead

Published On:
Lords Support ‘Urgent’ Disability Benefit Reform - Starmer Warns of Severe Cuts Ahead

Reforming the Work Capability Assessment (WCA) is at the center of Labour’s strategy to overhaul the UK’s disability benefits system. With increasing financial pressure on government resources and a rising number of health-related benefits claimants, the push for change has gained urgency. Recommendations from the House of Lords’ Economic Affairs Committee have added to this momentum, highlighting the need for immediate action.

Change

The UK spends approximately £65 billion annually on health-related benefits, surpassing the £54 billion spent on defence. This sharp contrast has led policymakers to scrutinize the welfare system. Lord Bridges of Headley, chair of the Economic Affairs Committee, stressed that the current system provides too many incentives to claim benefits while offering insufficient motivation for people to re-enter the workforce.

The number of claimants has surged post-pandemic, with 3.7 million working-age people now relying on health-related benefits—a staggering 1.2 million more than February 2020. Mental health challenges and long NHS waiting lists are believed to be driving factors. However, the committee expressed skepticism about whether addressing NHS delays alone would reduce these numbers.

Labour’s Approach

Labour’s plans for reform include revisiting the controversial WCA process, introduced in 2008. This health assessment determines eligibility for benefits but has faced criticism for its high rate of incorrect decisions, leading to mistrust among claimants.

In its manifesto, Labour pledged to cut £1.3 billion annually from WCA reforms. However, details on how these reforms will differ from previous policies remain unclear. The party plans to re-consult on changes after a High Court judge deemed the Conservative-led consultation on WCA reforms unlawful.

Government Goals

The government aims to increase employment rates and reduce reliance on health-related benefits by addressing inefficiencies in the welfare system. A government spokesperson highlighted plans to deliver an 80% employment rate by integrating local work, health, and skills initiatives.

The House of Lords committee estimates that if 400,000 individuals currently out of work due to ill health could return to employment, it would generate a net saving of £10 billion for the government.

Concerns

Disability advocacy groups have voiced concerns over the potential consequences of cutting benefits. James Taylor, executive director of strategy at Scope, emphasized that the stress of meeting benefit conditions often makes it harder for disabled people to secure work. He cautioned that reducing spending without investing in effective support systems risks pushing disabled individuals further into poverty.

Taylor also highlighted that the higher cost of living for disabled people must be accounted for in any reforms. Advocacy groups argue that focusing solely on cost-cutting measures without addressing structural barriers to employment is short-sighted.

The Path Forward

While Labour is poised to push forward with WCA reforms, the Green Paper expected in the spring will clarify how these changes will be implemented. Balancing the need for cost savings with effective support systems will be critical to ensuring that reforms are both fair and sustainable.

As the debate unfolds, the government faces mounting pressure to deliver meaningful change. For now, the focus remains on creating a system that supports those who need it while encouraging those who can work to re-enter the workforce.

SOURCE – LINK

FAQs

What is the Work Capability Assessment?

The WCA determines eligibility for health-related benefits.

How much does the UK spend on health-related benefits?

£65 billion annually, surpassing defence spending.

Why is the WCA being reformed?

To reduce costs and address inefficiencies in the system.

What is Labour’s cost-saving target?

£1.3 billion annually through WCA reforms.

How many people claim health-related benefits?

3.7 million working-age people, up 1.2 million since 2020.

Elena Cordelia

With over 15 years of experience in corporate taxation, Elena brings a wealth of knowledge to his writing. Her practical tips and analysis help businesses stay compliant and optimize their tax strategies.

5 thoughts on “Lords Support ‘Urgent’ Disability Benefit Reform – Starmer Warns of Severe Cuts Ahead”

  1. This is certainly one way to help our country regain the billions instead of taking from the disabled who can not work and really need the help and support they get from disability payments.
    This was taken off the government website.

    It’s also not fair on the British taxpayer. The current broken asylum system currently costs the UK some £3 billion a year and rising, including nearly £6 million a day on hotel accommodation.
    We cannot continue, year on year, with this inexorable rise in the number of illegal arrivals adding unacceptable pressures on our health, housing, educational and welfare services

    Reply
    • If the government would do something not in restricted but take proper action about these illegal immigrates coming over and basically milking our country for which they are doing then the government would not have this so called fabricated black hole of £22 Billion which as far as I’m concerned is labours made up in reality this government are nothing but a bunch of liars misconstrudibg the truth cheap tricks there was never ever £22.Billion Black hole however there was more than that given to Ukrain but the government makes up lies innuendos of fantasy’s the Quicjer there out of power the better it will be before this Country Micheal

      Reply
  2. Why do this government as to pick on disabled people this is just going pus the disabled and vulnerable people in to povety and if the government guts benefits then this will certainly lead to more suicides deaths disabled people and vulnerable people struggle as it is this government needs kicking out and get someone that will help the disabled and vulnerable people. Why does the government not go and pick on the people that defraud the system..

    Reply
  3. I feel its wrong to pick on the disabled, to help put things right, they should stop the immigrants from coming over + using our services, being disabled is not easy life to live but they don’t have a choice.

    Reply

Leave a Comment