What’s happening with welfare reform right now?

Our policy and public affairs advisor Evan explains the latest changes to disability benefits, what they mean for disabled people, and why many of them are deeply concerning.

Last March, the Government proposed major welfare reforms in its Pathways to Work Green Paper. Sense spoke out against these proposals, saying they would only harm disabled people. And thanks to the efforts of our supporters, the Government was forced into a rethink. This was a huge win.

But we didn’t stop all the Government’s proposals. Some of their changes will soon be introduced, while it’s not clear whether others are going to happen.

So, one year on, what’s happening with welfare reform?

Reforming Personal Independence

The Government’s proposals to reform Personal Independence Payment (PIP) were dropped after they were met with widespread opposition. Instead, the Government committed to working with disabled people to review PIP.

The Timms Review – named after the Minister co-chairing it, Sir Stephen Timms – is looking at the whole process of claiming PIP. Sense thinks the Review could lead to some positive changes for disabled people who claim the benefit.

The Department for Work and Pensions have just launched a call for evidence asking people to share their experiences of the benefit. They want to hear from disabled people who have applied for PIP, even if their claim was rejected. They also want to hear from people who care for disabled people.

Sense sees this Review as an opportunity to improve support for disabled people with complex needs claiming PIP. That’s why we’re calling on as many disabled people with complex needs as possible to share their experiences with the Government.

You can find out more about how you can respond here.

Cut to the Health Element of Universal Credit

From April, some new claimants will see a drop in the amount of Universal Credit they are eligible for. This is because the Government has cut the Limited Capability for Work and Work-Related Activity (LCWRA) element of Universal Credit – also known as the Health Element – for new claimants. This is extra financial support for people who cannot work because they are disabled or have a health condition.

This means that new claimants who are classed as having LCWRA will receive an extra £50 a week – half of what existing claimants get. The Government says this will encourage disabled people to enter work. But we are convinced it will only make it harder for disabled people with complex needs to get by.

If you already receive the LCWRA – don’t worry, you won’t see your support cut. In fact, the Government has also increased the Standard Allowance that everyone on Universal Credit gets – meaning you may see your income rise by £5 a week.

Removing the Health Element for young people

In the Green Paper, the Government proposed removing the Health Element completely for people under the age of 22.

That would mean young disabled people who apply for benefits in the future would be eligible for £50 a week less in support. The impact of that would be huge.

• The Government say that it would encourage disabled people to enter employment, education or training. But employment isn’t realistic for every disabled person with complex needs. And even those who can work face significant barriers. The inequalities disabled people face in the jobs market won’t disappear if benefits are cut.
• Instead, it will just make people poorer. Sense polling has found that over half of parents of disabled children (51%) with complex needs are worried this cut would mean that they would struggle financially once their child reaches adulthood.

The Government hasn’t decided whether it will introduce the proposal yet. But it is something that the Government’s Milburn Review of young unemployment is looking at. We may hear more about it when the Milburn Review reports back in the summer.

What you can do

Sense is deeply concerned about the changes to welfare the Government might introduce. But if we work together, then we can help make sure reforms make disabled people’s lives better.

If you agree with Sense, you can show your support by signing our petition.