Reports suggest that officials in both No 10 and the Treasury are frustrated by the Work and Pensions Secretary, Liz Kendall, who promised radical changes to the welfare system in October but has yet to deliver a detailed plan.
However, the plans will need to be put out for consultation, which means the reforms will still take many more months to implement, and those affected could have to wait until the summer or beyond to learn the outcome.
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Read MoreOne insider told the paper: “We must cut welfare — we should be going faster.”
“We have been clear that the current benefits system needs reform so it is fairer on the taxpayer and people get the support they need to move into work,” they said.
The benefits reforms are expected to include a review of the eligibility criteria for PIP to reduce the pool of people entitled to the benefit, as well as potentially moving to a tiered payment model depending on the severity of a person’s condition.
The push for reform is driven by the need to reduce the rising cost of health-related benefits, which currently amounts to £65bn annually — more than is spent on defence.
The committee noted that nearly 3.7 million working-age individuals now receive health-related benefits, an increase of 1.2 million since 2020.
The inquiry concluded that people without work have incentives to claim health-related benefits but are not supported to find a well-paying job to get them back into the workforce.
“Urgent action is needed to reform both the unemployment and health-related benefits system, and how they interact. There should be more support to help those who are able to find and accept work – and to ensure that those who cannot work for a period are not abandoned to a life on benefits,” he said.
In a letter to Kendall, the committee pointed out that the Treasury could bring in an additional £10bn through higher tax revenue and lower benefit spending if the 400,000 people who are out of work due to ill health were able to find work.
In a speech last week, the Prime Minister insisted that the Spending Review, set to take place in June, would be “ruthless”, but did not specify where the cuts would fall. Downing Street has also insisted that “nothing is off the table” regarding cutting the UK’s welfare bill, but campaigners have warned that excessive cuts could have “disastrous consequences” for people with disabilities.
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