“Investment to test a joined up approach to bring together work, health, skills support locally, upskilling work coaches, and reviewing the role of employers, is a positive step forward. We need to see these plans supported by a new approach to job seeking rules to minimise unfair sanctions and truly see a move away from a ‘tick box’ culture.”
Research by the Office for Budget Responsibility (OBR) previously found that a high number of conditionality and sanctions has helped drive the growing number of disability benefit claims.
Ahead of the white paper being released, prime minister Keir Starmer pledged to crackdown on the “bulging benefits bill” which he claimed is a “blight on our society”, but experts have repeatedly warned that threats of cutting people’s benefits has a damaging impact on people’s health.
Poverty has been estimated to cost the healthcare system in the UK £29bn a year – and if people cannot afford the basics they need to stay healthy, like food and heating, it is likely that they will struggle to engage with Jobcentres.
Ayla Ozmen, director of policy & campaigns at anti-poverty charity Z2K, said: “Despite the unhelpful rhetoric we heard over the weekend, the measures the government has announced on employment support today are broadly welcome. We hope that this marks the beginning of a new approach to reducing economic inactivity that is based on meaningful help, rather than ever-increasing conditionality and sanctions.”
The government has a target to slash £3bn from the disability benefits bill, honouring savings inherited by the Conservatives who planned to reform the work capability assessment. It is unclear how Labour plans to make these savings, but there are fears that threats of cuts could be harmful.
The Big Issue previously spoke to a woman who had a stroke days after losing her disability benefits.
Ozmen said: “The government must urgently reassure disabled people that its reforms to health and disability benefits will not plunge them into deep poverty, alongside setting out a plan to increase the basic rate of universal credit to mitigate the impact of these incoming cuts.”
Kendall said she does “not blame disabled people for feeling frightened and worried after what has happened over the last 14 years” and that Labour will work with disabled people in their reforms.
James Taylor, Director of Strategy at disability equality charity Scope said: “There is much that is positive about this white paper. The Connect to Work scheme and a desire to enhance the role of employers are both promising developments.
“But we know there’s still a huge amount of anxiety about what changes the government is planning to make to the benefits system. Disabled people fear being forced into unsuitable jobs, or losing benefits if they engage with employment services. This lack of trust could seriously undermine the government’s plans to boost employment.
“As these plans develop, the government must remove these risks, and work with disabled people to transform employment support and fix our broken benefits system.”
Tom Pollard, head of social policy at the New Economics Foundation, said there is plenty to be welcomed in Labour’s plans, but he added: “It feels like in the conversation around what’s going to help people get back on their feet and get back to work, we’re often reluctant to talk about the importance of money and adequacy of income.”
Universal credit already falls around £120 short of the money they need to afford their basic essentials every month, according to research from Trussell and the Joseph Rowntree Foundation.
Rabindrakumar said: “People will not have the security they need to prepare for and explore work opportunities unless we fix the foundations and ensure people can at least afford the essentials. As a first low-cost step, the government should urgently introduce a protected minimum floor within universal credit, setting a level below which payments cannot fall.
“We particularly welcome plans to involve disabled people and young people in advisory panels. For too long, people have been shut out from shaping policy reforms that most affect their lives. We look forward to working with the government on its final proposals.”
Iain Porter, senior policy advisor at the Joseph Rowntree Foundation, said: “Many of the reforms announced today are rightly focused on tackling the root causes holding people back from decent work including by encouraging employers to recruit and retain disabled people and intervene early to help people stay in work.
“However, these positive first steps risk being undermined by the government’s commitment to £3bn of cuts to the health and disability benefits budget, if this simply comes from removing support for disabled people. Putting arbitrary cost savings ahead of effective reforms leaves a cloud of uncertainty hanging over the disabled people on low incomes who rely on health and disability benefits.”
The Joseph Rowntree Foundation has found that almost nine out of 10 low-income families receiving health-related universal credit are going without essentials.
Porter added: “The government’s approach won’t have the desired impact of getting more people back to work if they are not fit and healthy because they are unable to feed themselves or keep their homes warm. It’s vital that the government ensures any reforms that are made don’t aggravate this existing hardship.”
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