Here is the full email response from Kim Leadbeater, who looks to be for the welfare reform.
Thank you for your email regarding welfare reforms.
I know recent announcements and coverage in the media have caused concern for some people and I am very sorry about that. I hope the information below is helpful and provides some reassurance.
In short I think it is important to note a few key points which I will go over in more detail in the main body of this Email. Firstly PIP is not being scrapped. Secondly Universal Credit is going to be uprated above inflation for the first time ever; this will mean a £775 cash increase per year by 29/30 and the Government have proposed adding a new premium top up to UC for those who will never be able to work as well as no longer reassessing those people. Thirdly no changes will come into effect until November 2026 and then only when a new assessment process is done.
When Labour came to power, they inherited a broken social security system which was denying far too many people the dignity of work and rising in cost at an unsustainable rate. We need a fairer system which provides vital support for those who need it most, ensuring the most vulnerable in our society live with dignity and independence, while making sure that everyone who is able to work is supported to do so.
The pledge this Government has made is to put social security spending on a more stable footing, making the system fit for purpose - today and for future generations. It is investing an additional £1 billion a year for work, health and skills support through the “Pathways to Work” offer.
I understand your concerns around the proposed changes to Personal Independence Payments and Universal Credit. However, the extraordinary increase in the number of welfare claimants since the Covid pandemic means the government has no choice but to take action. It is also worth noting the OBR estimates that only 8% of people who were predicted to have been receiving PIP by 2029-30 will no longer receive it at all.
Since the pandemic, the number of working-age people receiving PIP has more than doubled from 15,300 to 35,100 a month. The number of young people (16-24) receiving PIP has also skyrocketed from 2,967 to 7,857 a month. Over the next five years, if no action is taken, the number of working age people claiming PIP is expected to increase from 2 million in 2021 to 4.3 million, costing £34.1 billion annually.
These figures are clearly unsustainable. Something has gone seriously wrong over recent years and I am particularly concerned about the figures showing that one in eight young people are currently not in work, education or training. That’s not good for them, for the economy or for the taxpayer.
So there is an urgent need to reform a system that simply is not working.
Those with the most severe and lifelong conditions, who will never be able to work, will be eligible for a new Universal Credit premium and will no longer face future reassessments. The Government is also increasing Universal Credit above inflation for the first time ever which will mean a £775 cash increase per year by 29/30 for existing and new claimants.
I also welcome the “Right to Try” work guarantee that will mean starting work will have no short-term impact on a person’s benefits. And the scrapping of the Work Capability Assessment which ignored the reality that health conditions fluctuate and labelled people as simply ‘can’ or ‘can’t’ being able to work is a very positive step.
We should be encouraging people who are not working to find it if they are able to, and the extra £1 billion investment into the “Pathways to Work” programme will help to do this. This is one of the largest ever investments in support to increase opportunities to work. To obtain greater detail on the Government’s plans in this regard I will be writing to the Secretary of State for Work and Pensions Liz Kendall.
The system should be supporting people who want to find work while ensuring that people who are most in need will retain their PIP.
I want to see a social security system that gets decisions right the first time and focuses on what people can do, not just what they cannot.
It is important to note that no changes to PIP will take place until November 2026.
There is also a 12 week consultation which you can participate in:
Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper - GOV.UK
In my ‘Healthy Britain’ report, published in March 2023, I called for healthier, more inclusive workplaces, something I’m pleased to say the government is now driving forwards. People with disabilities and other challenges deserve the same opportunities as anybody else and workplaces that meet their needs. The Government will support employers to recruit and retain disabled people and people with long term health conditions through the ‘Keep Britain Working’ Review. Alongside long term reform of ‘Access to Work’, which provides personalised support for disabled people, and those with long term health conditions, to enter and progress in work.
Only by making sure welfare payments are sustainable in the long term and ensuring that those most in need get the help they need, can we do what is right for those who rely on the benefits system, for taxpayers and for the good of the economy on which we all depend.
Thank you again for getting in touch.
With very best wishes,
Kim
Kim Leadbeater MP