There were no big surprises for claimants in today’s budget, but a continued lack of certainty about what the future will bring. In particular, there is still no clarity about how the work capability assessment (WCA) will change and no mention whatsoever of changes to personal independence payment (PIP).

WCA

In today’s budget the chancellor announced that “We inherited the last government’s plan to reform the work capability assessment.  We will deliver the savings as part of our fundamental reform to the health and disability benefits system that my right honourable friend the work and pensions secretary will bring forward.”

So, the chancellor appears to be saying that Labour will match the projected savings to the DWP that were to be made by the Conservative’s WCA changes, but she has not confirmed that the savings will be made in the same way. 

ESA to UC migration

It is hardly news, but the budget document does confirm the ESA to UC managed migration has begun.

“The government will accelerate the migration of claimants onto UC from Employment and Support Allowance (ESA), bringing the start date forward from 2028 to September 2024. This move will bring more people into a modern benefit regime, continuing to ensure they are supported to look for and move into work. Around half of ESA claimants will receive more financial support on UC, while others will receive transitional protection to ensure nobody is worse off at the point at which they move over to UC.”

Carers allowance

The weekly earnings limit for carer’s allowance is to be increased to the equivalent of 16 hours a week at the national living wage. 

The chancellor also said that Labour also looking at a way to remove the current cliff edge, where going even a penny over the earnings limit ends eligibility for carer’s allowance.

The budget document states:

“The government is also giving carers greater flexibility to work and increase their financial security by raising the Carer’s Allowance Weekly Earnings Limit to the equivalent of 16 hours at the NLW. The changes will support those receiving  Carer’s Allowance, 70% of which are women, to start work or work more hours.64 This is an increase of £45 per week and will allow over 60,000 more carers to access Carer’s Allowance.65 This will be the largest increase to the earnings limit since Carer’s Allowance was introduced in 1976.”

“The government also recently announced an independent review into overpayments of Carer’s Allowance, which will consider how they occurred and what operational changes can be made to minimise the risk of future overpayments. Alongside this, the government will also carry out further work on the earnings limit to explore what more can be done to help support more carers into work.”

Fraud and error

In her speech, the chancellor confirmed that the DWP will be able to access claimants’ bank accounts.

Reeves said “I can today announce a crackdown on fraud in our welfare system, often the work of criminal gangs.  We will expand DWP’s counter fraud teams using innovative new methods to prevent illegal activity and provide new legal powers to crackdown on fraudsters, including direct access to bank accounts to recover debt.”

The budget document confirms that:

“The government is expanding DWP’s fraud and error staff by 3,000, as part of its £110 million investment in 2025-26 to tackle fraud and error. This is expected to deliver gross savings of £705 million in 2029-30. “

“The government will increase DWP’s powers to recover debt as part of the forthcoming Fraud, Error and Debt Bill. This is expected to save £260 million in 2029-30. “

“The government will invest in DWP to carry out additional checks on Universal Credit claimants who have changes in their circumstances, as part of a £110 million investment in 2025-26 to tackle fraud and error. This is expected to save £250 million in 2029-30.”

Universal credit  debt recovery

The government will reduce the proportion of money UC claimants can have deducted to repay debts from 25% down to 15% of the standard allowance.

“In addition, the government is helping low-income households on UC by allowing them to pay off their debts over a longer timeframe and keep more of their UC each month. The government is creating a new Fair Repayment Rate which caps debt repayments made through UC at 15% of the standard allowance. This will benefit around 1.2 million households as they will keep more of their UC award each month, with households expected to be better off by £420 a year on average. Around 700,000 of the poorest families with children will benefit as a result of this change, supporting the government’s ambition to tackle child poverty.”

Benefits uprating

The chancellor confirmed that working age benefits will be uprated by just 1.7% in April 2025.

“DWP and HMRC working age benefits uprating for 2025-26 – The government will uprate working age benefits by September 2024 CPI of 1.7% from April 2025. This will see around 5.7 million families on Universal Credit gain £150 on average in 2025-26.”

Get Britain working

The Chancellor confirmed that “The government will shortly be publishing the Get Britain Working white paper tackling the root causes of inactivity with an integrated approach across health, education and welfare.”

The budget document states:

“ Get Britain Working White Paper – The government will shortly publish the Get Britain Working White Paper which will set out its £240 million investment to trail new ways of getting people back into work. The government will test new approaches and collect robust evidence on how to tackle the root causes of ill-health-related inactivity, support young people who are ‘not in education, employment, or training’ (NEET), and help people to develop their careers.”

“Get Britain Working Trailblazers – As part of the Get Britain Working package, the government will establish eight trailblazer areas across England and Wales that bring together health, employment and skills services to improve the support available to those who are inactive due to ill health and help them return to work. This will include NHS England Health and Growth Accelerators in at least three Integrated Care Systems to develop evidence of the impact of targeted action on the top health conditions driving economic inactivity.“

You can download the full budget document here

 

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  • Thank you for your comment. Comments are moderated before being published.
    · 4 hours ago
    Just seen on the BBC news website that housing benefit/local housing allowance is to be frozen next year. The majority of disabled people are in rented accommodation - this is potentially very bad news. Private landlords are selling up due to taxation and impending legislation. And social housing doesn't really exist.

    We're beginning to see the direction the Government is planning in relation to welfare reform.
  • Thank you for your comment. Comments are moderated before being published.
    · 4 hours ago
    Reeves says to catch criminal gangs but she is using it as an excuse to bring in a snookers charter for ordinary claimants to catch anybody who goes a penny over the £6000 savings limit that has not been uprated for decades. Snoop on benefit claimants and pensioners bank accounts. This country is now as bad as China for snooping on its citizens.
  • Thank you for your comment. Comments are moderated before being published.
    · 4 hours ago
    Hi, so i get esa and pip mobility, when i have to move to uc does this mean i will lose pip mobility? 
  • Thank you for your comment. Comments are moderated before being published.
    · 7 hours ago
    After looking into the new wca changes and throughout the budget and papers all these wca and welfare reforms are targeting people who can work and not those who have chronic progressive conditions incurable conditions which stop you from working so example maybe say your waiting for hospital appointment for operation so you can go back to work thank fair enough or am I reading everything wrong here 
  • Thank you for your comment. Comments are moderated before being published.
    · 11 hours ago
    Interestingly the Nationwide current account to which my partners benefit is paid is asking a lot of detail confirmations today with a deadline of the end of January to complete. It says it is a legal requirement. The usual details like name address etc are required but also employment details, name and address of employer, annual income, source of income, reason for each account ie current, savings etc. Main source of income ie employment, benefits etc. Expected annual income going into the account. I'd be interested to know if everyone is getting this or just benefit recipients.
    • Thank you for your comment. Comments are moderated before being published.
      · 7 hours ago
      @blandie Yes I had one from Chase Bank but not from the bank my benefits go into. It is a legal requirement now to give those details so they can track you accordingly. I was tempted to give the wrong details though to see what happens :) 
  • Thank you for your comment. Comments are moderated before being published.
    · 12 hours ago
    https://www.campaignfordisabilityjustice.org.uk/

    Interested to know what others think of the recent and ongoing correspondence going back and forth from the Campaign for Disability Justice to the government. Thankful to this organisation for their excellent campaigning work.
  • Thank you for your comment. Comments are moderated before being published.
    · 12 hours ago
    Labour are just carrying on where the Tories left of. I'm sick of the sick and disabled being targeted and making the WCA process harder will force people into poverty and push people over the edge with mental health issues. The WCA process is already an ordeal to go through so making it harder will be horrendous. Thought labour would be more compassionate towards the sick and disabled but seems like they are taking a leaf out of the Tories proposals.  I'm 61 now can't wait till I can retire. 
  • Thank you for your comment. Comments are moderated before being published.
    · 15 hours ago
    This is a Labour party in name only, run by a bunch of petty-minded, “scroungers” and freeloaders    they do the same as all other, partys, and target, certain groups, with this bunch, it is the old, sick and the disabled, how brave of them, I worked for 30 years, before I became ill, which then turned into,a disability, and like most on this forum, was made to jump though hoops to get anything.

    And now by putting employers NI, up, there is even less chance, of a sick or disabled, people getting into employment, so call it what you will,“Get Britain Working Trailblazers", makes no difference.

    Also was it just me or did, her statement, on welfare, when she said, about new powers, nosing, into people bank accounts,was greeted with silence.
     
    • Thank you for your comment. Comments are moderated before being published.
      · 10 hours ago
      @Steve Totally agree with you. I'm the same, worked most of my life and now I need a little help, I'm thought of as a scounger by the state. I feel so angry.
  • Thank you for your comment. Comments are moderated before being published.
    · 18 hours ago
    I care for someone who has had psychiatrist involvement off and so through severe depression and anxiety for decades as well as physical disabilities. As you might imagine she is in a medically confirmed depressive episode just now, which the DWP accepts.

    So I do have some understanding of what you are going through. 

    1. The Budget itself isn’t that bad from a benefits perspective. So relax a bit if you can.

    2. Next spring might be a different issue from what has been in the news. I know you will be worried/at your wits end/considering whether life is worth living/etc. 

    3. But, what Reeves has done has been to give herself more time to look at all the options and make the best decisions she can make. That is far better than rushing ill-thought out changes yesterday.

    4. We know she is listening. Look at the Party’s turn around re the BBC reports of Work Coaches being put into psychiatric wards, they are listening. So keep them listening. Consider asking (nicely) your MP their thoughts on the welfare death book that they were recently given, on the Parliamentary Committee reports on welfare deaths, on first hand practical problems you have had. 

    5. Hopefully Reeves Spring Statement on the issue, will be fully considered and fair. But we need to recognise that a lot of younger people are claiming disability/illness post covid lockdowns and the welfare cost is seriously spiralling. That does need funding. That is a political choice. In time shorter HNS waiting lists and more capacity will help naturally resolve the money issue. In the meantime some tightening up is likely, hopefully mostly on those of us who are realistically more able to work and whom employers will realistically employ. The fear really needs removing from the system as that just destroys life and lengths NHS waiting lists.

    6. So, UC Managed Migration aside (it is what it is, and some reports on the forum here are positive), try to enjoy the next half year, and hope that the extra time Reeves has is put to good use, with sensible and realistic input, sound analysis and wise judgement. She has given herself time, let’s give her a chance.

    7. Remember to breathe! My thoughts are with you all.


  • Thank you for your comment. Comments are moderated before being published.
    · 22 hours ago
    Jesus Christ. There is no difference between Tory and Labour. I'm disgusted and appalled. It's already making my mental health worse and making me keep drinking. What's the point? This country got sold out a long time ago. Pip is the last remaining bastion of a society that once protected the poor and the sick.

    It's a race to the bottom now.

    Contact your local welfare advice charity people. And your local MP.

    Probably don't vote New Labour in again. 
  • Thank you for your comment. Comments are moderated before being published.
    · 23 hours ago
    the bizarre fear mongering in here is alas to be expected. we dont know how labour plan on making the savings, literally no one does, despite their insistence. the fact groups of people appear to be voting up such comments suggest its a co ordinated ploy for whatever reason.

    sigh. like always, im going to wait and if its actual bad news, ill be on to my MP. before that, ill be ignoring the media frenzy. 

  • Thank you for your comment. Comments are moderated before being published.
    · 1 days ago
    If they insist you need to send a fit note or see a work coach, is there anything the claimants can redirect them to such as a Gov article that has the right information?
  • Thank you for your comment. Comments are moderated before being published.
    · 1 days ago
    I think media may misunderstand her

    Despite the headlines, the budget has not actually committed to implementing the Tory plans for the WCA. Government intends to find savings through their own reforms, to be set out early next year. Details still unknown

    david

    Read 3.45

    https://assets.publishing.service.gov.uk/media/67225b9b3ce5634f5f6ef579/Autumn_Budget_2024__print_ready_.pdf
    • Thank you for your comment. Comments are moderated before being published.
      · 11 hours ago
      @coolday True.  This has been said many times by Labour: they seek to find the same amount of savings, but how they do it will be different. 
    • Thank you for your comment. Comments are moderated before being published.
      · 12 hours ago
      @coolday Let's wait and see what changes labour tend to plan about the WCA process. The whole process needs to change but not by making it harder but more compassionate for those who could not possibly work. I know it's worrying and stressful for people and will the changes apply to new clients only or everyone. They need to trial things first to see how they work 
  • Thank you for your comment. Comments are moderated before being published.
    · 1 days ago
    The transitional allowance doesn't prevent you losing out on money on the ESA to UC transfer. Our council rents have an extra week this year to cover accumulated odd days over previous years. Housing benefit covers it for esa claimants but those on UC have to pay the week's rent. My friend was forced to transfer immediately when her husband died. She gets over £100 per month less  than me, has to pay part rent, lost 3 weeks HB when the claim was being processed. We live in identical flats next door to each other, both single, both disabled and on same PIP. So why does she need less to live on? 
  • Thank you for your comment. Comments are moderated before being published.
    · 1 days ago
    Life long Labour voter and now it seems mug.. I can’t believe they are pushing ahead with these cruel cuts. Apparently it won’t affect you unless you move, but I need to move to be closer to family who care for me. So now I’m stuck miles from home with no way of being nearer to my family. Celebrated Labour landslide, because I thought it was the end of 14 years of persecution…  How wrong was I? 
  • Thank you for your comment. Comments are moderated before being published.
    · 1 days ago
    There’s probably worse to come in the spring when they “reform” the whole system which is government speak for cuts! With the added insult of 1.7% increase in April which does nothing to help with the increasing living costs! 10% just on our energy bills this month! They have just Thrown the disabled and ill to the wolves 
    • Thank you for your comment. Comments are moderated before being published.
      · 11 hours ago
      @Bart Cuts HAVE to be made.  The benefits Bill will rise by an extra 20bn a year by the end of the parliament.  That's utter unsustainable, whether we like it or not.  
  • Thank you for your comment. Comments are moderated before being published.
    · 1 days ago
    This transfer to uc fills me with very dark thoughts I don’t think I I will get through this
    • Thank you for your comment. Comments are moderated before being published.
      · 6 hours ago
      @Jobseeker jeff Well Jeff I went into job centre and asked to use the computers for migration and they said that was fine so I had different sections I had to work through asking about your rent or housing plus savings had to list disabilities then I put in something called the journal that I had come from the ESA support group and that I had transitional protection also had to set up a user name and password then once I had finished got a message saying that someone would be in touch about identification in 2 to 3 days so I'm going to take driving license plus passport and bank debit card as proof so that was it really
    • Thank you for your comment. Comments are moderated before being published.
      · 9 hours ago
      @Jon @Jon spill the beans Jon how was it?were you made to look for jobs?
    • Thank you for your comment. Comments are moderated before being published.
      · 10 hours ago
      @Mory If your rent goes up, then surely the HB should go up to match the landlords rents.
    • Thank you for your comment. Comments are moderated before being published.
      · 10 hours ago
      @Mory We are alot better off than standard rate universal credit claimants who only received £393 pounds a month
    • Thank you for your comment. Comments are moderated before being published.
      · 10 hours ago
      @Philip MP's are a waste of oxygen.
  • Thank you for your comment. Comments are moderated before being published.
    · 1 days ago
    So??? I'm none the wiser. What I hope Benefits and Work will clarify, is whether it looks as though the changes planned by the previous governemt and "inherited" by this one, will stand. In particular the policy that those 'currently' - ie in 2025 which is when the previous policies were due to come in - in the LCWRA/Support Group for ESA will NEVer have to have another WCA. ??? I'm keen to know the answer to that.

    Also keen to know when they plan to release their plans, *when* they will actually commit themselves to what they're going to do! On any of it. It's pretty disgraceful leaving vulnerable, especially mentally vulnerable, people hanging. Its an abuse of power, and they seem to be enjoying it. I knew they'd be harsh, but I expected a little more respect from Labour. 
    More fool me.
    • Thank you for your comment. Comments are moderated before being published.
      · 15 hours ago
      @Glenda Benefits and work cannot clarify what wasn't said. I have seen elsewhere publications putting forward guesses as to what they might do, as if they actually knew. This just causes baseless panic. Well done for benefits and Work for not printing stuff read between the lines. People are scared enough already. We will just have to wait to get clarification.
  • Thank you for your comment. Comments are moderated before being published.
    · 1 days ago
    there hideing a load of stuff from us, 

    like thers only 800,000 jobs on offer, how will they divide 800,000 vacancies amonst 3.5 millon disabled?  

    how many of them are part time?  they wont tell no one but tell us half truths.

    how many  % on 


    • Thank you for your comment. Comments are moderated before being published.
      · 10 hours ago
      @A Part time, split a full time job into 4 + shifts.
    • Thank you for your comment. Comments are moderated before being published.
      · 15 hours ago
      @A And now with employers NI going up, there will be even less then, 800,000 vacancies, but the simple fact is, that if employers, wanted, to take on the sick and disabled, then they would all ready, be doing it. 
    • Thank you for your comment. Comments are moderated before being published.
      · 18 hours ago
      @A This is precisely a point I made on another forum: these jobs most of them aren't full time or even 16_18 hours a week! One job I was emailed about was just 2 hours a week on a Sunday evening and would take 2 hours to travel each way assuming buses ran! Unless you live round the corner or drive, you'd be screwed! You could maybe get several little jobs but again there's onlly 800,000 advertised vacancies.....
  • Thank you for your comment. Comments are moderated before being published.
    · 1 days ago
    The comments are coming out again "it doesn't matter what anyone says, they are going to target the most vulnerable."  These kind of comments only make people even more anxious and don't do any good at all.  From what I read, the changes to the WCA are going to be what the Tories were going to do, ie look at the mobilising question in the assessment and the "getting out and about" question of the assessment is going to be changed.

    This does not seem that drastic a change to me.  As someone else said, it could have been worse.  Can we not catastrophise this, for the sake of those who are suffering depression and anxiety as it is.
    • Thank you for your comment. Comments are moderated before being published.
      · 7 hours ago
      @Alex Yet pensions went up 4.1 and benefits just 1.7 Apparently 1.7% is not the average of this year, that is over 2.0% and is apparently just a blip. The rise is suppose to take place in April next  year, what will inflation be then. according to the OBR it will go back to about 2.2%. at least.
    • Thank you for your comment. Comments are moderated before being published.
      · 10 hours ago
      @Philip Stephen timms is scared of reeves and kendall
    • Thank you for your comment. Comments are moderated before being published.
      · 16 hours ago
      @axab43 I think you're right, they haven't announced anything disastrous yet, and have given us the annual inflationary pay rise.  We need to wait until further news is released and deal with it then. 
    • Thank you for your comment. Comments are moderated before being published.
      · 17 hours ago
      @axab43 They have been given a "bloody nose" from the pensioners WInter fuel allowance debarcal. Hopefully it will make them think twice about any attacks against the sick and disabled. Starmer cannot be trusted but I think Stephen Timms whose taking the lead in benefits will hold the New Nasty party's, feet to the fire. 
    • Thank you for your comment. Comments are moderated before being published.
      · 1 days ago
      @axab43 As far as I'm aware, Labour have committed to reforming the WCA, but not necessarily in the same way as the Tories were planning.  But I'm with you, people are making it sound worse than it is.  disability benefits need  to be reformed.  The bill will supposedly be £20bn more a year by the end of the decade, and that's completely unsustainable. 

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