THOUSANDS could be banned from claiming Universal Credit under a huge shake up to get Brits back to work.
The proposals were announced today as part of paper published by the government on benefit reform.
As part of the plans those aged under 22 could be banned from claiming the health element of Universal Credit.
The UC health element is the payment replacing the limited capability for work-related activity (LCWRA) element of UC.
To be eligible for the UC health element you will need to be getting the UC standard allowance and any element of PIP.
This proposal is intended to redirect resources towards the Youth Guarantee, which is focused on getting young people into work or training.
The Work Capability Assessment, which determines whether someone is deemed fit for work or has limited capability for work (LCW) or limited capability for work-related activity (LCWRA), will be scrapped by 2028.
Instead, the only assessment to determine eligibility for additional financial support related to health would be the PIP assessment.
It’s worth noting that these proposals are subject to consultation.
It comes as the government said it would halve the Universal Credit incapacity benefit health top-up for new claims from 2026/27.
New claimants will see their money fall from £97 per week to £50.
Meanwhile existing claimants will see the top up frozen at £97 a week until 2030, which is a year-on-year real terms cut.
[bc_video account_id=”5067014667001″ application_id=”” aspect_ratio=”16:9″ autoplay=”” caption=”Debunking Myths: Life on Universal Credit” embed=”in-page” experience_id=”” height=”100%” language_detection=”” max_height=”360px” max_width=”640px” min_width=”0px” mute=”” padding_top=”56%” picture_in_picture=”” player_id=”default” playlist_id=”” playsinline=”” sizing=”responsive” video_id=”6360943912112″ video_ids=”” width=”640px”]A number of other proposals were also laid out in the paper.
That includes merging jobseekers’ allowance and employment support allowance, where people who have worked get more than those who have not.
A new eligibility criterion will be introduced for the daily living component of PIP.
To receive the £105 per week support, Claimants must achieve a minimum score of four points in at least one of the daily living activities evaluated during the assessment to be eligible.
Currently, it’s possible to qualify for the daily living component with a lower overall score spread across multiple activities.
This change means individuals with lower needs in daily living activities could no longer be eligible for the aid.
The government said that this change will impact some current claimants and is considering how to best support them, including options for transitional protection.
They are also consulting on further support measure and a review of the PIP assessment process,.
Today. the government also announced changes to statutory sick pay, with plans to provide the support for one million of the lowest paid workers
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Today’s announcement comes as part of a sweeping package of cuts to the UK’s benefit system as the Treasury looks for ways to plug a hole in public fiances.
The key changes include:
- Merging jobseekers’ allowance and employment support allowance, where people who have worked get more than those who have not
- Scrapping the Work Capability Assessment by 2028, with all health payments made via PIP in future
- Under-22s to be banned entirely from claiming Universal Credit incapacity benefits
- An above-inflation rise to the standard allowance of Universal Credit, but the highest incapacity payment cut
- A much higher bar for people to claim Personal Independence Payments to save £5billion a year
- A “right to try” scheme that allows jobless Brits to have a go at working without losing their benefits if they cannot manage
The Government plans to make savings of up to £6billion through these changes.
Liz Kendall also unveiled details of these reforms in Parliament this afternoon.
Read our article to find out exactly what the changes could mean for you.