DWP could cut Universal Credit payments for 320,000 Brits under shakeup plans
Hundreds of thousands of people with disabilities and mental health conditions may be refused financial support under Government plans for Universal Credit.
The figures - released by the Office for Budget Responsibility (OBR) through a Freedom of Information (FOI) request from anti-poverty charity X2K - revealed that by 2029 around 230,000 people with serious mobility problems who make a new claim for Universal Credit will not receive limited capability for work and work-related activity (LCWRA) payments.
A further 141,000 future new claimants are estimated to miss out despite having serious mental health conditions that could put them or people around them at “substantial risk of harm” if they are forced to meet conditions set by the Jobcentre - both groups also risk facing sanctions from the Department for Work and Pensions (DWP) if they do not engage with the Jobcentre.
Currently, claimants who have health conditions or disabilities have to undergo a work capability assessment (WCA) to decide whether they're capable of working and if they're eligible for cash top-ups when they claim Universal Credit. These top-up payments are worth around £390 a month.
The Government announced in its Autumn Statement that it was going to make changes to the Work Capability Assessment which are set to be introduced next year. Under the proposed changes, the LCWRA payment will be scrapped and replaced with a new health element - however, this will only be available to claimants who are also claiming the disability benefit Personal Independence Payment (PIP).
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Alongside this, the "mobilising activity" element - currently awarded to Universal Credit claimants who struggle to work because of severe mobility issues - will also be removed. The Government said this was because “new flexibilities” in the labour market - such as remote working - meant that many people with mobilising limitations could "undertake some form of tailored and personalised work-related activity with the right support."
However, campaigners have disagreed with this stance arguing that employers were still not flexible enough regarding accommodations for disabilities.
The charity shared the story of Justyna, whose name has been changed, who has significant physical and mental health problems including arthritis, and lumbar herniation. She received no points on her work capability assessment and was supported through an appeal by Z2K and was later awarded the mobilising activity element of LCWRA. When the new rules are brought in, the charity warns that someone with a similar situation to Justyna would not be awarded the extra payment with their benefits if they made a new application.
According to the OBR, an estimated 50,000 people will be affected in the first year the changes are in place, in 2025-2026, rising to 230,000 by 2029.
Anela Anwar, chief executive of Z2K, said: "The DWP plans to deny support to hundreds of thousands of people who fall ill or become disabled after next year. This would be devastating for people looking for support because their health or disability has stopped them being able to work. And these figures show that more than 140 thousand people would be at substantial risk of harm.
“Seriously ill and disabled people need security and support, not sanctions, cuts, and high-stakes assessments. Government should focus on the reasons increasing numbers of people are ill and can’t return to work – not removing vital protections that any of us could need in the future.”
A DWP spokesperson said: "We support millions of people every year and our priority is to provide a supportive service and help claimants get the benefits they are entitled to. We must balance welfare support with fairness to the taxpayer, and all requirements are agreed with the claimant to ensure that they are reasonable.
“Our upcoming Work Capability Assessment reforms will shift the focus to what people can do rather than what they can’t whilst maintaining protections for those with the most significant health conditions.”
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