The Government has denied that reforms to sickness and disability benefits will be fast-tracked, despite growing frustration over their slow progress.
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.
A Green Paper expected to outline an overhaul of Personal Independence Payments (PIP) and other disability benefits is being worked on in Whitehall and is due to be published in the spring.
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.
No 10 is reportedly exasperated with the slow progress, with sources telling The Sun on Sunday that Downing Street officials are “pulling their hair out” over Kendall’s perceived foot-dragging.
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Read MoreOne insider told the paper: “We must cut welfare — we should be going faster.”
But a spokesperson for the Department for Work and Pensions (DWP) insisted that the Government would not speed up the reforms.
“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.
“Building on our Get Britain Working White Paper, we will bring forward proposals for reforming the health and disability benefits system in the Spring. This will be part of a proper plan to help disabled people who can work secure employment while ensuring support is provided for those who need it.”
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.
These are in addition to plans set out in the Government’s White Paper in November to overhaul job centres and place a greater focus on career advice. These include a “youth guarantee” of help finding work or training for all those aged 18 to 21.
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.
Recent data from the House of Lords’ Economic Affairs Committee highlights the system’s financial burden.
The committee noted that nearly 3.7 million working-age individuals now receive health-related benefits, an increase of 1.2 million since 2020.
It also pointed out that many claimants face little incentive to return to work, calling for reforms to the Work Capability Assessment and the overall structure of health-related benefits.
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.
Lord Bridges of Headley, chair of the committee, warned in a letter that the current system was “financially unsustainable” and urged the Government to make reform a “top priority”.
“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.
“Without a clear plan of action, growing welfare spending will remain a significant challenge for the forthcoming Spending Review.”
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.
The Government is already under mounting pressure to reduce the welfare bill, as rising borrowing costs reduce the Chancellor’s spending power.
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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