Chancellor Jeremy Hunt has announced that most working-age benefits will rise by 6.7%, in line with September's inflation rate, ending speculation of a less generous offer. However, he outlined plans to limit welfare access for the long-term jobless, describing it as 'wrong' that thousands of people are on benefits with no requirement to look for work.
The reforms include stricter fit-to-work tests and enhanced jobseeker support, which the government claims will get 200,000 more people into employment. The changes are part of a £2.5bn back-to-work plan aimed at reducing the record 2.6 million people out of work due to long-term sickness or disability since the pandemic.
From 2025, the controversial Work Capability Assessment will be scrapped, meaning hundreds of thousands with mobility and mental-health problems will be told to look for work they can do from home. Mr Hunt said: 'We will reform the work capability assessment to reflect greater flexibility and availability of home working after the pandemic.'
Disability rights groups have criticised the move. Scope described the statement as a 'disastrous plan that demonises disabled people', while Mind's chief executive called it 'a backwards step for the UK'. Shadow chancellor Rachel Reeves argued the assessments were 'discouraging people from seeking work' but said the government was failing to address long NHS waiting lists.
The Office for Budget Responsibility predicts the reforms will increase employment by about 50,000 over five years, with a 'small positive impact' of 0.04% on GDP. However, it also forecast that spending on health benefits will rise by £12bn by 2028/29 as 600,000 more people fall into ill health.
