On 19 April 2024, the Prime Minister gave a public statement declaring his ‘moral mission’ of reforming ‘welfare’ due to the ‘growing number of people who have become economically inactive since the pandemic.’ He announced a series of measures that will reduce citizens access to state support, including:
- A consultation on removing responsibility for issuing sick notes from GPs (deadline 8/7/24).
- A consultation on changes to Personal Independence Payment (PIP) – the non-means tested benefit that is paid to disabled people. Proposals include changing the eligibility criteria, removing the assessment process for specific health conditions or disabilities, and exploring alternative approaches to ongoing cash support such as one-off grants or vouchers. See Modernising support for independent living: the health and disability green paper - GOV.UK. The consultation closes on 23/07/24.
- Acceleration of the move to those on ill health benefit (income related Employment and Support Allowance) to Universal Credit (from Autumn 2024).
- Increasing the amount that part time workers on Universal Credit need to earn in order to not be treated as a jobseeker and so subject to onerous work seeking related requirements (takes effect 13 May): £892 for individual claimants and £1,437 for couples per month.
- Legislating to a) remove benefits from those who’ve been claiming for more than 12 months if they don’t comply with conditions set by their work coach and b) extend the Department of Work and Pensions (DWP) powers in relation to fraud investigation.
These changes have been criticised as scapegoating in the run up to the local and general elections. They have also been described as a ‘full on assault of disabled people.’
The reality – what Equity members need to know
The weaker the UK social security safety net, the less incentive there is for employers/engagers to offer all workers better terms and conditions. Therefore a secure state safety net is important for all, and Equity members need to know the following:
What economic inactivity means
- Economic inactivity is defined as ‘people not in employment who have not been seeking work within the last 4 weeks and/or are unable to start work within the next 2 weeks.’ It is not the same as unemployment and includes those who are studying, retired, who have full time caring responsibilities or do not have to work, as well as those who cannot work due to ill health.
- Economic inactivity is not currently at an unprecedented rate when compared with the last 30 years.
- Since the pandemic, the overall size of the UK working age population has increased, however economic activity has risen at a higher rate. Rising economic inactivity occurred across all G7 countries after lockdown restrictions were introduced. However, this has largely reversed in all countries except the UK, where it has continued to rise.
- There are a multitude of reasons why economic inactivity has risen including: ill health and increasing NHS waiting lists, rising levels of poverty and the cost of living crisis, as well as the impact of Brexit and Covid on the labour market.
- Research by the Health Foundation has found that there are as many people in work with ill health as there are those out of work.
Accessing social security
- Following the Prime Minister’s statement, it was announced that the government had axed a key scheme that helps disabled people get into work.
- The waiting list for Access to Work – a scheme that helps disabled people get or stay in work – currently stands at nearly 30,000.
- Currently, £22.7 billion of social security and social tariffs is going unclaimed due to lack of awareness, complexity and stigma.
- This translates to 8.4 million people who could be missing out on an average of £2,700 per year, with Universal Credit remaining the biggest unclaimed benefit.
Social security ‘fraud’
- The DWP definition of statistical fraud is much wider than the legal definition of fraud, which requires evidence that the claimant knowingly or dishonestly claimed social security in order to be found guilty.
- Recent reports show how DWP have brought fraud cases and used the Proceeds of Crime Act 2002 against carers for minor infringements.
- Around 600 people were convicted for benefit fraud offences between 2021 and 2022.
- You are 23 times more likely to be prosecuted for benefit fraud than tax fraud in the UK, yet tax crimes cost the economy nine times more.
DWP staff
- DWP staff shortages are running at 30,000 below required staffing levels as of December 2023: ‘Devastating’ dossier shows DWP is in ‘state of crisis’ – Disability News Service.
- DWP staff are currently balloting to strike.
And finally:
Equity shares evidence with the United Nations on Disability Rights
- The United Nations Committee on the Rights of Persons with Disabilities (UNCRPD) is currently investigating the UK Government.
- In 2016, the committee found that “grave or systematic violations” of disabled persons’ rights had taken place because of welfare reforms in the UK since 2010. In particular, it found that welfare reform had “disproportionally and adversely” affected the rights of people with disabilities.
- In March 2024, Equity members and staff shared evidence with the committee, alongside many other UK wide Deaf and Disabled People’s Organisations and Trade Unions.
- The UN committee questioned the UK government at a public session on 18/03/24. A recording can be found here.
In relation to welfare reform, UK Rapporteur Professor Rosemary Kayes stated:
"We find evidence of regression in the standards and principles of the CRPD. We see a reform agenda that is framed in a political narrative that demonizes disabled people, including proposals to cut disability benefits to reward working people by cutting taxes. Which tells disabled people they are underserving citizens. And this is coupled with an onerous and complex social benefit system that is the basis for trauma and preventable mental distress."
The UN report has now been published - read more about it on our website.
Need advice on social security rights?
If you need advice on your social security rights, contact Equity’s Social Security and Tax Advice service. Check out our online advice resources. You can call the Social Security and Tax Advice helpline on 0207 670 0223 (Monday and Thursday 10am-1pm and 2-5pm) or email helpline@equity.org.uk.
Social security, tax and financial support
Advice on Social Security (otherwise known as ‘welfare benefits’), tax, National Insurance and other sources of financial support.