Government announces welfare bill changes

The Department for Work and Pensions (DWP) has announced new welfare legislation which aims to ensure there are robust protections in place to support the most vulnerable and severely disabled.

The Government says. that nearly 4 million households are set to benefit from the uprating of the Universal Credit standard rate, the largest, permanent real-terms increase to basic out-of-work support since 1980, according to the IFS. More than 200,000 people with the most severe, lifelong conditions are to be protected from future reassessment for Universal Credit entitlement.

The Universal Credit and Personal Independence Payment Bill will provide 13 weeks of additional financial security to existing claimants affected by changes to the PIP daily living component, including those who their lose eligibility to Carers Allowance and the carer’s element of Universal Credit.

The 13-week additional protection will give people who will be affected by the changes time to adapt, access new, tailored employment support, and plan for their future once they are reassessed and their entitlement ends.

This transitional cover is one of the most generous ever and more than three times the length of protection provided for the transition from DLA to PIP.

Work and Pensions Secretary Liz Kendall said “Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it.

“This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity.

“This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.”

“As part of our commitment to protect the most vulnerable and severely disabled, peace of mind will also be given to 200,000 individuals in the Severe Conditions Criteria group – individuals with the most severe and permanently disabling conditions who will never be able to work – as they will not be called for reassessed for Universal Credit (UC) under new legislation.

“Those protected from reassessment will also be paid the higher rate of UC health top up of £97 per week, so they can live with dignity and security, knowing the reforms to the welfare system mean it will always be there to support them.”