Universal Credit health element to be cut by £200 a month: "It won’t magically make people work-ready"

Any thoughts on the Government press release below (just out), send them across ASAP as this story is BREAKING.

Welfare reforms designed to rebalance the benefits system and support more people into work move forward today, as Universal Credit legislation is laid in Parliament (Monday 9 February).

The system inherited from the previous Government means people receiving Universal Credit for health reasons are paid more than twice as much as a single person looking for work and aren’t given the support to move closer to - or into - jobs.

The reforms – coming into force in April – will tackle these perverse incentives by introducing a lower Universal Credit health element rate of £217.26 per month for new claimants, compared to the higher rate of £429.80.

Those with the most severe, lifelong conditions, those nearing end of life, and all existing Universal Credit health claimants will continue to receive the higher rate.

To give people the support they’ve long been denied, this Government is investing over £3.5 billion in employment support by the end of the decade, ensuring everyone affected by the changes to Universal Credit will be offered personalised help to access the skills they need to progress, move into good, secure jobs, and boost their living standards - building a growing workforce and a growing economy for the future.

And as part of the Government’s focus on tackling the cost of living, the changes will also see almost four million households on the standard rate of Universal Credit receive the first sustained above-inflation increase to the benefit .

The boost is worth around £295 extra this year in cash terms for a single person aged 25 or over, rising to £760 by the end of the decade, and means those who are searching for and in work will have more money in their pocket as they look to get into and on at work.

Work and Pensions Secretary Pat McFadden said: "The benefits system we inherited was rigged with the wrong incentives and wrote people off instead of backing them. We are changing this. These reforms put more money in the pockets of working people on Universal Credit, while ensuring those who can work get the support they need to do so. By boosting the standard allowance and investing in proper employment support, we’re building a welfare system that rewards work and offers people a route to a better future."

Over 1,000 Pathways to Work advisers are now based in Jobcentres across England, Wales and Scotland, offering personalised help to people on health-related benefits with no requirement to work – many of whom had no support before.

Tens of thousands have already taken up this support, with 65,000 people expected to benefit this financial year, and the Government is on track to meet its promise that everyone affected by these Universal Credit reforms will be offered personalised help.

Kate Underwood, Founder & Chief People Strategist at Southampton-based Kate Underwood HR and Training commented:

"This welfare reform will shove more people towards your jobs, but it won’t magically make them ‘work-ready’. The Government is cutting the Universal Credit health element for new claimants from April, while protecting existing claimants and the most severe cases. At the same time, they’re boosting the standard allowance above inflation for nearly four million households. Translation: more pressure to take work, plus a bit more cash for those already looking or working. For SMEs, expect more applicants with health conditions who can do the job, but need flexibility, a phased start, or sensible adjustments to stay well. If your knee-jerk is “we need someone fully fit”, you’re basically spray-painting “tribunal” on your front door. Disability discrimination is about impact, not intent. This only works if employers stop pretending humans are machines. Otherwise, you’ll just see more churn, more absence and more risk."
 

Colin Crooks MBE HonDsc, CEO at Intentionality commented:

"£3.5bn for jobseekers, £0 for the employers expected to employ them. These reforms invest billions in getting people job-ready, but offer nothing to employers willing to take the risk. Without matched support for businesses – covering the real costs of supervision, training, and pastoral care – and without assessing whether employers have the empathy and infrastructure to support people with complex needs, we're setting both parties up to fail. Small businesses can't bridge this gap on goodwill alone."