More than half a million universal credit claimants could lose an average of £390 a month when new changes announced by the Government take effect
Jeremy Hunt has announced the reforms in an attempt to encourage disabled and long-term sick people to return to work in his Spring Statement earlier this year, in an attempt to encourage disabled and long-term sick people to return to the workplace.
The IFS report says 520,000 people who have a health condition and currently receive LCWRA payments would fail the PIP assessment and lose out on the additional money, despite potentially being unable to work. “On the whole, this strengthens financial incentives to work, but getting the reform right will rely on work coaches’ ability to set personalised work requirements that take into account what recipients can reasonably be expected to do – despite there being no formal test of capacity to work and work coaches typically having no medical training.”
“That is why we are looking at changes to the work capability assessment as part of the next generation of welfare reforms, which also include an extra £2bn to support those with health conditions and disabilities to stay in work.”It comes as Work and Pensions Secretary Mel Stride prepares to begin the annual statutory review of how much benefits should increase by next year.
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