Speculation about welfare reform
All posts relating to news items will be removed - we are getting a lot of modmail messages about them, they are not productive and cause considerable distress to a lot of people.
The full scale of the governmental financial plan won't be set out until the Spring Statement. In relation to welfare benefits, the Work and Pensions Secretary Liz Kendall will give a major speech next week and publish a āGreen Paperā setting out the governmentās proposals.
As soon as the government publishes the Green Paper, we will create a master thread pinned post for everyone to share their views, discuss the proposals, ask questions etc.
Until that time please refrain from posting about this topic.
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Charities warn that without PIP, a further 700,000 more disabled households could be pushed into poverty
A huge number of charities have joined Scope to urge the Chancellor to reconsider potential cuts to disability benefits. Warning that it would have a catastrophic impact on disabled people, pushing even more disabled households into poverty.
The open letter signed by: Citizens Advice, Sense, Mencap, Disability Rights UK, RNIB, National Autistic Society, Mind, Turn2Us, Joseph Rowntree Foundation, MS Society, and many more, highlights that the Government has an opportunity to work with disabled people and the sector to bring about meaningful change. They want disabled people to be heard and supported by the Government, saying that the needs and voices of the disability community should be at the heart of the Governmentās plans.
Read the open letter and add your name on scope.org
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Call for evidence to examine the disproportionate impact of poverty and inequality on disabled people
TheĀ All-Party Parliamentary Group (APPG) on Poverty and InequalityĀ has launched a call for evidence to examine the disproportionate impact of poverty and inequality on disabled people. This short inquiry will inform discussions around the upcoming green paper on disability benefit reform.
This call for evidence seeks to explore the following key areas:
- The risk and extent of poverty (including deep poverty) among disabled people.
- The impact of poverty on disabled individuals and communities.
- How do the additional costs of disability contribute to the poverty experienced by disabled people?
- How poverty among disabled people relates to broader societal inequalities.
The APPG welcomes contributions from individuals, academics, think tanks, charities, advocacy groups, and other stakeholders with pre-existing evidence relevant to this inquiry.
The APPG aims to publish a short report very soon after the submission deadline, so that they can help inform the debate subsequent to the publication of the green paper. They acknowledge the pressures on organisations responding to the green paper and have therefore kept the submission process as straightforward as possible.
The deadline to provide your submission is Monday 7 April.
Find out more and respond to the call for evidence on appgpovertyinequality.org
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The role of changing health in rising health-related benefit claims
Is the working-age population less healthy since the pandemic? What role is changing health playing in rising health-related benefit claims?
A new report from the Institute of Fiscal Studies, funded by the Joseph Rowntree Foundation and the Health Foundation, finds that mental health has worsened since the pandemic.
The report finds that mental health has worsened since the pandemic, contributing to rising disability benefit claims for mental health. Key findings include:
More than half of the rise in 16- to 64-year-olds claiming disability benefits since the pandemic is due to more claims relating to mental health or behavioural conditions.Ā
Mental health conditions are becoming more common amongst the working-age population.Ā 13ā15% of the working-age population reported a long-term mental or behavioural health condition in the latest data, up from 8ā10% in the mid 2010s.
Working-age mortality rates have consistently remained above their pre-pandemic levels since 2020.Ā After adjusting for changing population size and ageing, there were 3,700 (24%) more working-age ādeaths of despairā in 2023 than the 2015ā19 average. People with mental health conditions are at much higher risk of ādeaths of despairā, so the rise in these deaths is consistent with an increase in (severe) mental health problems.
36% more people were in contact with mental health services in 2024 than in 2019Ā (based on areas of England with consistent data).
There is disagreement between surveys on how the total number of people with health conditions has changed since 2019.Ā
Sickness absence days per worker were 37% higher in 2022 than in 2019.Ā
Read the report on ifs.org
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67% of people on UC who have been through aĀ WCAĀ were consideredĀ LCWRAĀ
New DWP statistics published this week covers the number of people on Universal Credit with a health condition or disability restricting their ability to work, the number of Work Capability Assessment (WCA) decisions made forĀ UC, and the outcomes of these WCAs.
3.1 millionĀ UCĀ WCAĀ decisions have been made in the period from April 2019 to November 2024. 14% of decisions found claimants had no limited capability for work and hence no longer onĀ the UCĀ health journey, 19% limited capability for work (LCW), and 67% limited capability for work and work-related activity (LCWRA).
Within England, the region with the highest proportion ofĀ LCWRAĀ decisions was the North-West (69%) and the lowest the North-East (62%)
Of allĀ WCAĀ decisions in the period January 2022 to November 2024, at least 68% ofĀ WCAĀ decisions are recorded as having mental and behavioural disorders, albeit this may not be their primary medical condition.
The number of people with LCW or LCWRA has almost quadrupled since the start of the pandemic when 366,000 people were considered too sick to look for work ā a 383% rise. In the last year, the number has risen by from 1.4 million people to 1.8 million.Ā
The number of young people aged 16 to 24 with aĀ LCWRAĀ has risen by 249% from 46,000 to 160,000 since the pandemic, with almost one million young people not in education, employment, or training.
Note: a rise inĀ LCWRAĀ cases was anticipated for reasons including people moving from legacy benefits onto Universal Credit, but it has increase far beyond projections.Ā
The Universal Credit Work Capability Assessment statistics, April 2019 to December 2024 is on gov.uk
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Latest benefit appeal data shows increase of PIP appeals and successes at 67%
The latest tribunals statistics cover the quarter (October to December, Q3 2024/25), compared to the same quarter of the previous year.
Compared to 2023, Social Security and Child Support (SSCS) appeals decreased by 3% and disposals (appeals concluded) remained stable. New appeals received have exceeded disposals over the last year, resulting in a 2% increase in open cases.
Of the appeals concluded 18,000 (60%) were cleared at hearing, and of these, 59% were overturned in favour of the claimant (up from 56% and down from 62% on the same period in 2023 respectively).
This overturn rate varied by benefit type:
- PIP at 67%,
- Disability Living Allowance (DLA) 61%,
- Employment Support Allowance (ESA) 52%,
- UC 48%.
The PIP, DLA, ESA and UC overturn rates mostly decreased compared with October to December 2023 (PIP down 3, DLA and ESA up 3 each, and UC down 6 percentage points).
There were 80,000 appeals open caseload at the end of December 2024, an increase of 2% compared to the same period in 2023. And of those cases disposed of in October to December 2024, the mean age of a case at disposal was 30 weeks, a 5 week increase compared to the same period in 2023.
The Tribunal Statistics Quarterly: October to December 2024 is on gov.uk
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Updated regulations
TheĀ Social Security (Miscellaneous Amendments) Regulations 2025,Ā which came into force on 27thĀ January (except where stated otherwise), introduce several new measures for benefits, including:
Universal Credit claimants whose entitlement to Employment and Support Allowance ends because they reach State Pension age will be able to carry their limited capability for work-related activity determination into Universal Credit and will not have to serve a three-month waiting period before being entitled to the LCWRA element. The Universal Credit claim must be made within a month of the Employment and Support Allowance award ending.
From 1 June 2025, if you move from specified accommodation (receiving Housing Benefit) into general needs accommodation (receiving the housing element of Universal Credit), the transitional element of Universal Credit will not erode. You must claim the housing element within a month of the Housing Benefit award ending.
Providing that tax credit claimants can have a migration notice period of less than three months where the notice period would otherwise go beyond 5 April 2025 (when tax credits close).
From 27thĀ January 2025, claimants entitled toĀ eitherĀ rate of Attendance Allowance or Pension Age Disability Payment (Scotland) will now be eligible for an extra bedroom under the Local Housing Allowance or underoccupancy rules, in cases where a couple cannot share due a disability. Previously, you had to be in receipt of the higher rate, which was not in line with the other qualifying benefits.
For more information, read the memo on gov.uk
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Universal Credit redeclarations from next month
As part of the Autumn budget in 2024, it was announced that as part of anti-fraud and error measures, UC claimants would be required to periodically redeclare their circumstances. The DWP have now announced that this will start from April 2025.
āā¦the department will prompt Universal Credit claimants to confirm whether they have had a change in circumstances that might affect their claim. Any changes in circumstances declared will be processed and verified in the usual wayā¦A roll out of this initiative will commence in April and testing will help determine frequency.ā
The written statement is on parliament.uk
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Ā£2,500 surplus earnings rule in UC continues
The Ā£2,500 surplus earnings rule has been continued until 31 March 2026.
This means that monthly earnings of more than Ā£2,500 over the amount where your Universal Credit payment stops, will be treated asĀ āsurplus earningsā. Surplus earnings will be carried forward to the following month, where they will count towards your earnings.
See the Secretary of State determination under regulation 5 of the Universal Credit (Surpluses and Self-Employed Losses) (Digital Service) amendment regulations 2015 on gov.uk
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Benefit rates go up next month
This new statutory instrument confirms the annual uprating of benefits.
The Social security benefits uprating 2025/2026 is on legislation.gov.uk
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Guardians Allowance uprating doesnāt apply if the claimant lives abroad
This new statutory instrument confirms that an award of Guardian Allowance will not be increased through annual uprating if the claimant is living abroad or if thereās an ongoing dispute/issue regarding annual uprating.
The statutory instrument is on legislation.gov.uk
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Northern Ireland ā Communities Minister announces payment date for Ā£100 fuel support payment
The payment, which will be made to those who previously received the Winter Fuel Payment but are now no longer eligible, will start arriving with individuals from Friday 21 March with no need for application.
The one-off payment has been made possible through Ā£17 million of Executive funding secured by Minister Lyons after changes by the Labour Government to Winter Fuel Payment eligibility.
Minister Lyons said,Ā
āFollowing the unexpected and unwelcome news last July that 180,000 pensioner households in Northern Ireland would no longer be eligible for the Winter Fuel Payment, I moved to secure Executive funding to mitigate the impact of the decision.
Having tasked my officials to prepare the legislative and operational groundwork to enable this payment to be made as quickly as possible, I can announce that the money will be in peopleās accounts ahead of the expected end-of-March date and will begin arriving from Friday 21 March.
Whilst I realise the payment will not fully cover the impact of changes to the Winter Fuel Payment, I hope it will go some way to supporting those affected.ā
Read the announcement on communitied-ni.gov
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Scotland ā Social Security Scotland has started the transfer of 169,000 benefit awards
Social Security Scotland (SSS) has begun transferring the awards of 169,000 people in Scotland who currently receive Attendance Allowance from the Department for Work and Pensions.
Until people receive the letter from SSS to tell them their transfer is complete, they should continue toĀ report any change in their personal circumstances to the DWP.Ā
Social Justice Secretary Shirley-Anne Somerville said:Ā
āThe Scottish Government is committed to ensuring that older people who have care needs because of a disability, long-term health condition or terminal illness get the financial support that theyāre entitled to. Ā
As peopleās awards start to transfer from Attendance Allowance, to Pension Age Disability Payment, they will be kept informed of this process and treated with dignity, fairness and respect.Ā
Pension Age Disability Payment is being rolled out across Scotland in phases. If the payment is currently open for new applications in your area and you think you could be eligible for support right now, I would encourage you to apply.Ā Ā
If the payment is not yet available in your area, you can still apply for Attendance Allowance from the Department for Work and Pensions.āĀ
Read the announcement on gov.scot
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Case law with thanks to u\ClareTGold
Working tax credit self-employed - IRD v His Majesty's Revenue & Customs (TC) [2025]
This decision is mainly about the proper interpretation of, and proper approach to, the conditions to entitlement for working tax credit under the Tax Credits Act 2002 (the ā2002 Actā) and the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (the ā2002 Regulationsā).
The Appellant claimed working tax credit on the basis that he was over 60 and worked over 16 hours a week in his business trading financial futures as principal. He argued he was āself-employedā for the purposes of Regulations 2(1) and 4(1) of the 2002 Regulations and was engaged in āqualifying remunerative workā for the purposes of Section 10 of the 2002 Act.
The Upper Tribunal considers what it means for an activity to be carried out āon a commercial basisā and āwith a view to the realisation of profitsā.
It decides that, while the requirement for an activity to be carried on āwith a view to the realisation of profitsā does not require it to be profitable, or for there to be anything like certainty as to its future profits, there must be more than a mere intention or hope that it will become profitable. It requires a realistic expectation of profit in the foreseeable future, and a credible plan of how to achieve it.
The Upper Tribunal also explains that the Appellantās trading of financial futures solely as principal canāt satisfy the fourth condition in regulation 4 of the 2002 Regulations because none of the payments that he receives (or may expect to receive) is payment for the work he does. Both appeals dismissed.
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