UK ministers have developed plans for the radical reform of well-being for patients and disabled people-including a reduction of 5 billion pounds to spend on health-related advantages, a new duty to demanding interaction with job support programs, and an investment of one billion pounds in the return to work programs.
The Minister of Labor and Pensions Liz Kendall said Changes It would ensure that sick and disabled people “have the same rights, options and opportunities like anyone else”, while maintaining support in place for those who can never work due to the severity of their circumstances.
But analysts say that if the government presses forward, in the face of fierce resistance from the workers ’parliament members, about 1 million people will reduce their income – however, only a small percentage will enter the work as a result.
How will the current system change?
The government wants to ensure that the benefits claims have a financial incentive to work, and receive much better support to help them find work and not risk losing biomed income if they tried a job and did not work.
This will mean “evaluation of work capacity” on the deficit benefits that have been tested and direct all those demanding by assessing “personal independence payments”, which is the main disability subsidy, from 2028-29.
The idea is to separate financial support from people’s work, but change will mean that some people lose eligibility.
There will be a new work “right to try”, while ensuring that this will not “itself” lead to a healthy reassessment or the loss of benefits.
There will be a new duty for people who receive urgent benefits to join regular “conversations” to learn about supporting the job available to them, with possible penalties if they do not participate.
The government also wants to enhance the basic rate of unemployed benefits and reduce normal benefits to address what it calls “harmful incentives”.
But it will add only 7 pounds a week to the record rate of unemployment benefits in the global credit system, taking it from 91 to 98 pounds in 2026-27. Meanwhile, the health element at the University of California will be reduced by 47 to 50 pounds per week for the new demands, and they are frozen for the current recipient – with the exclusion of young people under the age of 22 completely, according to consultation.
The biggest change is a great tightening of the eligibility for the benefits of disability. The changes in the evaluation of personal independence payments will mean that people are only qualified for the “daily life” – at a value of up to 108.55 pounds a week – if they face large barriers in front of daily tasks such as cooking, washing, reading or going to the toilet.
Who will lose?
In general, there will be less financial support for people who have a wide range of health conditions, with a more strict qualification for new demands and some beneficiaries of the current advantages when reassessing their claims.
There will be a modest batch-a value of 7 pounds per week in 2026-27-for people who demand the advantages of the unemployed without health support, and a greater and limited time increased for people with a working date with short unemployment attacks.
But Luiz Murphy, senior economists at the thinking center of the decision, said that these “small gains” will be completely overcome by the size of the income that those who will receive or without support.
She said that between 800,000 and 1.2 million people are likely to lose PIP – in particular, those who suffer from musculoskeletal conditions, who often struggle with a set of tasks but have no severe difficulties in one area.
Stephen Evans, CEO of the Institute of Learning and Labor, a research organization, said that over time, calls for new benefits can obtain up to 1 million pounds at 2000 pounds annually from what they were today, because only those who have passed the PIP evaluation will get the health -related element at the University of California.
Murphy indicated that young people may be subjected to a particularly difficult beating if they are excluded even from the rate of health -related support through the University of California.
How many taxpayers will provide?
Kendall said that the reform pack will provide taxpayers “more than 5 billion pounds by 2029-30-which makes them the largest luxury discounts since 2015, when conservative counselor George Osborne imposed austerity.
She said without changes, the government will spend more than 70 billion pounds in deficit and deficit subsidies within five years.
Officials say that the cuts to PIP will count the largest part of the savings, but the green paper does not give any collapse.
Instead, the budget responsibility office will give its evaluation to the government’s deficiency when it publishes new financial forecasts in the spring statement next week.
Analysts say OBR will be more convinced that savings will check the cuts to PIP and the inability that do not depend on consultation. The International Financial Supervisory Agency will be skeptical of more speculative savings from bringing people to the workforce.
But Tom Waters, assistant director at the Institute of Financial Studies, warned that the financial effects of the package-as is the case with previous social welfare reforms-will be very unconfirmed because people will change their behavior in response to new incentives.
He pointed out that there is a much stronger incentive to demand PIP as the only way for any health related benefits, as he indicated, and the tightening of PIP may simply change the way people are close to evaluation.
Will the reforms help people work?
Policy analysts say that measures to improve employment support and make them less dangerous in trying to return to work strongly, but their effect can be canceled through the discounts associated with spending.
David Vinci, assistant director of the Health Think, said that due to the need to “rebuild confidence”, “cut benefits’ benefits.
Aaron Ferraban, director of temporary research at the Disability Policy Center, said that social welfare savings will be met by increasing pressure on NHS as people sought alternative support and legal costs of appeal.
The previous experience indicates that only a small percentage of people who were unemployed for more than two years due to the return of health problems, even with the presence of the support in force.
Watermers warned: “The risk is that individuals who receive health benefits specifically and that respond to the least response to the financial incentives for work-most of them need additional financial support.”
https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2F61059efa-5698-427d-a2ed-f9c4f3133052.jpg?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1
Source link