Reform UK would cut £50 billion from the welfare bill if the party wins power, Robert Jenrick has said. Reform’s Treasury spokesman, who will set out the plans at a press conference tomorrow, described it as the biggest shake-up of the welfare state in a generation.
Proposals to scrap Pip and Universal Credit health element
Under the proposals, personal independence payments (Pip) and the health element of Universal Credit for working-age adults would be ditched. Almost three million people seeing disability and sickness payments would have them removed or changed.
Writing in The Telegraph, Mr Jenrick said: “We will not pretend this is painless. Existing claimants will be reassessed over three to four years: we estimate that 2.16 million will keep their present cash entitlement in full, while 2.89 million will see theirs modified or withdrawn, concentrated where recent growth has been most explosive.”
Reform's rationale and new support measures
He said the state must be there to support people who need it but “dumping our young people onto welfare isn’t compassion; it’s neglect”. Mr Jenrick added: “We are not lifting people out of misfortune. We are abandoning them to it, and calling it kindness.”
He said 6.9 million people were receiving disability benefits but “this is not an epidemic of broken backs and lost limbs” as since 2002 the share of working-age people claiming for mental health and behavioural conditions had tripled.
Mr Jenrick said a new, regularly-reviewed, health security allowance would provide support for the “gravely ill and severely challenged”. Cash payments for low-level conditions would end and be replaced with disability support accounts, run by local councils and mayors, to cover costs such as equipment, adaptations, transport and personal assistance.
Employer obligations and savings
And employers could be obliged to pay a “return to work cover” insurance to fund the cost of the first two years after an employee is signed off sick. Mr Jenrick said firms would then have a “strong economic incentive” to return the employee to work.
People who had not returned to work within two years would go through a single, rigorous assessment conducted in person to “screen out vexatious and fraudulent claims”. Mr Jenrick said the Reform proposals would save “more than double” the £23 billion promised by Kemi Badenoch’s Conservatives, with £22 billion of the savings coming from changes to disability benefits alone.
Political reaction
Shadow work and pensions secretary Helen Whately said the plans were an attempt to distract attention from the investigation into a £5 million donation to Nigel Farage and his “pointless by-election” in Clacton. She said: “Reform have been nowhere on the debate on welfare reform. They have flip-flopped on restoring the two child benefit cap and claimed they’ll only take benefits away from foreigners, which won’t do enough to bring down the overall bill. The Conservatives are on the side of working people and we’re clear about our plans. Restore the two-child benefit cap, end benefits for low level mental health conditions, remove benefits from foreign nationals and restore face-to-face assessments.”
A Labour spokeswoman said: “Reform’s £50 billion claim is fantasy economics, built on stripping support from disabled people and shifting costs onto employers.” She added that the Labour Government’s reforms to welfare “deliver credible, independently-costed savings, not arbitrary numbers with no credible plan behind them”.
