Benefit cuts announcement

Murphybear

I’ve just read this on the BBC website 

• Work and Pensions Secretary Liz Kendall announces changes to the welfare system aimed at saving £5bn by the end of 2030- BBC Verify has taken a look at this number

• Personal Independence Payments (Pip): Eligibility for the main disability benefit will be narrowed

• Changes to Pip are likely to be the most politically controversial element of today's announcements, our political correspondent Henry Zeffman writes

• Universal credit: The measure used to determine if someone is able to work will be scrapped in 2028 and will instead be assessed through Pip

• Merging benefits: The government will consult on merging jobseeker's allowance and employment support allowance

• "Right to try": People will have the right to try returning to work "without the fear this will put their benefits at risk", Kendall says

Spoonie_Turtle

The BBC has linked to the Green Paper, this is the overall consultation page: https://www.gov.uk/government/consultations/pathways-to-work-reforming-benefits-and-support-to-get-britain-working-green-paper

Top link is what the BBC linked to, an HTML version (web page) of the document.  The document contains some details of their proposals.

And the press release which includes mention of changing PIP eligibility to require at least 4 of the points scored to come from one daily living activity (whereas currently one score 8 points for a standard award from 4 different ADLs):
https://www.gov.uk/government/news/biggest-shake-up-to-welfare-system-in-a-generation-to-get-britain-working

They may be distressing reads, just as a warning.  (I don't think I can say any more than that without breaking the main rule here.)

Rubyroobs

I can't quite get my head around the merging of contributions based JSA and ESA and it being time limited. I didn't see this coming at all ! So if the indefinite awarding of CB ESA for people in the support group/ LCWRA is now going to be time limited this is going to affect a huge number of people detrimentally, although I guess will depend on the time limit of which they don't seem to have announced details.

HillStreetBlues

Rubyroobs said:

I can't quite get my head around the merging of contributions based JSA and ESA and it being time limited. I didn't see this coming at all ! So if the indefinite awarding of CB ESA for people in the support group/ LCWRA is now going to be time limited this is going to affect a huge number of people detrimentally, although I guess will depend on the time limit of which they don't seem to have announced details.

I doubt many people foresaw given extra benefits to those who can work but aren't , and taking off those who can not work in a goal to increasing employment.

Muttleythefrog

Rubyroobs said:

I can't quite get my head around the merging of contributions based JSA and ESA and it being time limited. I didn't see this coming at all ! So if the indefinite awarding of CB ESA for people in the support group/ LCWRA is now going to be time limited this is going to affect a huge number of people detrimentally, although I guess will depend on the time limit of which they don't seem to have announced details.

Unclear if time limit will only affect new claims but I suspect likely so as that's what the green paper in one part seems to say in brackets... and yes they're consulting on the time limit. To be honest I did see it coming... for 2 reasons... I suspected they'd also propose to scrap the WCA like the last government and I suspected they'd effectively try to means test those out of work due to disablement... so really it'll force many to claim UC if eligible upon time limit running out... I suspect that time limit based on consultation will be 6 or 12 months... certainly unlikely to be a long time as they really are now looking to push that category into work as newly out of work (except existing claimants who could be out of work on ESA LCWRA for years). From April 2026 those looking to get the health element of UC will face getting potentially only £50 per week.. only just over half the current level...with a potential premium added for the most severely disabled which I presume would make it up to the existing at the time frozen health element (LCWRA as it is now). The theme is of giving very temporary easier support to newly unemployed but making any path to long term benefits far less attractive... that theme is also extended for UC and potentially PIP to those leaving education.. young people who it also sees as high value to prevent long term engagement with benefits.

Rubyroobs

Muttleythefrog said:

Rubyroobs said:

I can't quite get my head around the merging of contributions based JSA and ESA and it being time limited. I didn't see this coming at all ! So if the indefinite awarding of CB ESA for people in the support group/ LCWRA is now going to be time limited this is going to affect a huge number of people detrimentally, although I guess will depend on the time limit of which they don't seem to have announced details.

Unclear if time limit will only affect new claims... and yes they're consulting on the time limit. To be honest I did see it coming... for 2 reasons... I suspected they'd also propose to scrap the WCA like the last government and I suspected they'd effectively try to means test those out of work due to disablement... so really it'll force many to claim UC if eligible upon time limit running out.

I don't see how they could not bring in a time limit for existing claims at some point? I regularly see people claiming it for 10-15 years until they reach pension age. They couldn't just let it continue indefinitely for one person whilst limiting it to say 2 years or whatever time length they decide for another ?

Muttleythefrog

Rubyroobs said:

Muttleythefrog said:

Rubyroobs said:

I can't quite get my head around the merging of contributions based JSA and ESA and it being time limited. I didn't see this coming at all ! So if the indefinite awarding of CB ESA for people in the support group/ LCWRA is now going to be time limited this is going to affect a huge number of people detrimentally, although I guess will depend on the time limit of which they don't seem to have announced details.

Unclear if time limit will only affect new claims... and yes they're consulting on the time limit. To be honest I did see it coming... for 2 reasons... I suspected they'd also propose to scrap the WCA like the last government and I suspected they'd effectively try to means test those out of work due to disablement... so really it'll force many to claim UC if eligible upon time limit running out.

I don't see how they could not bring in a time limit for existing claims at some point? I regularly see people claiming it for 10-15 years until they reach pension age. They couldn't just let it continue indefinitely for one person whilst limiting it to say 2 years or whatever time length they decide for another ?

Well... for LCW payments we've had long term rules differential depending on when claimed... and they plan to do same with those pre and post April 2026 in terms of LCWRA (UC health element as it becomes). There's definitely potential to have existing claimants treated indefinitely differently.... often of course politicians like to target new claimants because there's less fallout... and existing claimants one way or another eventually disappear... die.. stop claiming.. fall foul of new rules which disqualify or get work... it's a group you can pigeon hole and say it will always be getting smaller and so cost less over time. I'm also looking at the possibility that people may voluntarily stop claiming if as seems potentially possible that conditions of claim for the merged JSA/ESA will be more onerous than UC (- some might simply stop the claim any rely on UC which will increase due to not having the merged benefit deducted in full as is standard now in current format). On MSE and elsewhere people are advised to retain a C-based/NS ESA claim (where they qualify and claim UC) because there's potential for their circumstances to change meaning for example they become unable to claim IR benefits but can retain C based... the government may tip the slope so it becomes advantageous in terms of responsibility to give up the C based... it'd depend how well linked or comparable the responsibilities for claiming UC versus the new merged JSA/ESA benefit are. But we'll see.... it's clear even from the physical presentation of the green paper that this has been cobbled together frantically so a lot of detail even before facing political tests is poorly defined.

Grumpy_chap

I think, for the time being, the best thing anyone that is concerned can do is let the dust settle and the full rules (and details) are a bit clearer.
I was reading the BBC site earlier and there was at least one clear inconsistency I noted between different comments in the site.  That was then corrected, but the update must still have been erroneous.  I have not checked whether it has been updated again.
In the modern day the demand for instant news can make this very difficult for journalists to correctly report from the get go.  The Sunday papers may be a more reliable source as the editorial team will have the time to properly review and check before going to print.

atlantis187

What do they mean by the standard allowance will increase by £775 by 2029 
So how much will this increase be from next month?

Muttleythefrog

atlantis187 said:

What do they mean by the standard allowance will increase by £775 by 2029 
So how much will this increase be from next month?

• we will increase the UC standard allowance for new and existing claims. This would mean the single person 25+ rate of UC standard allowance increasing by £7 per week (pw) (from £91pw in 2024/2025 to £98pw in 2026/2027)

• for people who already receive the UC health element the rate of the UC health element will be frozen at £97pw until 2029/2030 but this group will receive an increased UC entitlement in cash terms as a result of the increased standard allowance

• we will guarantee that no-one who has been found LCWRA prior to April 2026 and remains LCWRA following reassessment will see their UC health element entitlement changed

Just pulling the above from the green paper. 
My understanding is benefits will be uprated as planned next month... so standard UC rate single over 25 £400.14 a month or £92.34 a week.
For UC they will then set the standard allowance to about £98 a week April next year while freezing the health (LCWRA) component until 2029/30.
According to the minister Rates will continue to rise until 2029-30 and will equate to an extra £775 by 2029-30. - I am not quite sure how she gets to that figure (I'd be interested to know precisely) but possible with moderate inflationary increases on top of the rise next year which doesn't actually appear to be £7 a week given uprating will occur next month.

mj777

I am totally confused by everthing, my head is in a spin.
I am on UC and LCWRA does this mean I will be reassessed? if so when would any changes take affect. I am so worried.
Thanks in advance