In the Summer Budget 2015, the Chancellor
announced that, from April 2017, new ESA claimants who are placed in the
work-related activity group (WRAG) will receive the same rate of benefit as
those claiming Jobseeker’s Allowance (JSA). This change only affects new claims
made after that date and there will be no cash losers among those who are
already in receipt of ESA.
The record employment levels and strong jobs
growth in recent years have benefited many, but these benefits have yet to
reach those on ESA. While 1 in 5 JSA claimants move off benefit every
month, this is true of just 1 in 100 of ESA WRAG claimants. Those with health
conditions and disabilities deserve better than this.
It is important to tackle this as, in addition
to providing financial security for individuals, there are economic, social and
moral arguments that, for those who are able to, work is the most effective way
to improve the well-being of individuals, their families and their communities.
Those in the WRAG currently receive additional
cash payments but little employment support. As the Prime Minister has recently
stated, this fixation on welfare treats the symptoms, not the causes of
poverty; and, over time, it traps people in dependency as, in the current
system, the additional cash payment acts as a disincentive to moving into
employment. That is why the Government are proposing to recycle some of the
money currently spent on cash payments, which are not actually achieving the
desired effect of helping people move closer to the labour market, into
practical support that will make a genuine difference to individual’s life
chances.
This new funding will be worth £60 million in
2017/18 rising to £100 million in 2020/21. It will support those with limited
capability for work to take steps to move closer to the labour market, and when
they are able, back to work. This additional practical support is part of a
real terms increase that was announced at the Autumn Statement. How the support
will be spent is going to be influenced by a Taskforce of representatives from
disability charities, disabled people’s user-led organisations, employers,
think tanks, provider representatives and local authorities.
It is important to improve what is on offer for
these individuals because we know that most people with disabilities and health
conditions want to work, including 61 per cent of the WRAG, and there is a
large body of evidence showing that work is generally good for physical and
mental wellbeing.
In order to do more, the Chancellor announced
in the Autumn Statement that the Government will publish a White Paper that
will set out reforms to improve the system of support for people with health
conditions and disabilities. In addition to these reforms there is an emerging
package of support which will strengthen the offer to claimants with a health
condition or disability:
·
Universal
Credit (UC) is already beginning to transform people’s lives by introducing
earlier support and putting claimants in the best possible position to move
into and stay in work. Under UC, claimants with health conditions and
disabilities will gain more support earlier in their claim to take steps
towards work with their dedicated Work Coach working alongside health
professionals to ensure they receive personalised integrated support;
·
The DWP
and Department of Health have created the Work and Health Unit to help support
people with health conditions and disabled people back into employment. This
Joint Unit has at least £115 million of funding, including at least £40m for a
work and health innovation fund, to pilot new ways to join up across the health
and employment systems;
In
the Autumn Statement the DWP announced that they will introduce a new Work and
Health Programme to focus on providing the best possible support for claimants
with health conditions or disabilities, as well as those who are long-term
unemployed;
· We know
that returning to suitable work can improve mental health, and that is why the
Government is committed to ensuring that people with mental health conditions
receive effective support to return to, and remain in, work. £43 million is
being invested over the next three years in trialling ways to provide
specialist support for people with mental health conditions;
The
Government also recognises the importance of promoting positive attitudes
towards employing disabled people, and seeks to do this by challenging the
attitudes of employers towards recruiting and retaining disabled people through
the Disability Confident campaign.
These reforms are aimed at improving the
quality of life of those in greatest need. It is worth noting that we spend
around £50 billion every year on benefits to support people with disabilities
or health conditions, this is over 6 per cent of all government spending. The
Government can be proud of that and is determined to ensure that those in need
get the support they require.
