If the Conservatives win the General Election on July 4 they have laid out some major changes to the benefits system in a pledge to halt the rising cost of welfare. The Tory manifesto outlines how they would save some £12 billion by ensuring more working-age people on disability benefits like PIP have a job.
The party claimed the 40 percent rise in economically inactive people, those that are of working age but out of work, since the pandemic is “unsustainable”. They have promised to bring that total down, claiming the cost of providing benefits for this growing population with health conditions could rise as high as £90bn by the end of the next parliament.
Several benefits and other systems will be reformed to enact these promises, including a £700 million investment in NHS mental health treatment and a tightening of the Work Capability Assessments criteria. The Conservatives also promise to toughen benefit sanction rules and clamp down on benefit fraudsters.
PIP
The manifesto states: “We will improve PIP assessments to provide a more objective consideration of people’s needs and stop the number of claims from rising unsustainably. While people suffering with mental health conditions face significant challenges, it is not clear that they always face the same additional living costs as people with physical disabilities.
“We will look at the best way to provide support, including whether treatment or services could be more appropriate for some people than a monthly cash payment, while also delivering a dramatic expansion in mental health support. At the same time, we will make the assessment process simpler and fairer for those with the most severe conditions.”
Capability for Work
The party states it will change the assessments from next September so those “with more moderate mental health issues or mobility problems who could potentially engage with the world of work are given tailored support, instead of being written off on benefits.” It adds that the OBR has forecast that these reforms will reduce the number of people on these benefits by 424,000.
Change the Fit Note process
The manifesto explains: “We will design a new system which moves the responsibility for issuing fit notes away from our hard-pressed GPs towards specialist work and health professionals, and we will test integrating this with the new WorkWell service to provide tailored support to help people stay in or get back to work.”
Tougher Sanctions
The Tories promise to ensure the benefit system maintains its role as a “safety net” without becoming a “lifestyle choice” by introducing tougher sanction rule. This will see people who refuse to take up suitable jobs after 12 months on benefits can have their cases closed and their benefits removed entirely.
The manifesto states: “We will bring forward the new claimant review point for the long-term unemployed from 18 months to 12 months. At the claimant review, Work Coaches will set renewed conditions for claimants. If they fail to accept or comply with those conditions, such as refusing a suitable job or a mandatory work placement, their claim will be closed and their benefits will stop.”
Universal Credit and legacy benefits
The ongoing, lengthy move from legacy benefits to Universal Credit will be accelerated to help remove “disincentives for them to work and ensuring they will always be better off in work”.
Tackle fraud in the benefits system
The manifesto explains that this will include a new Fraud Bill to give the Department of Work and Pensions powers similar to that of HMRC. This will allow them to treat benefit fraud in the same way it does tax fraud with “new powers to identify, investigate and pursue fraudsters”.
