Ministers have claimed that changes announced in the Autumn Statement will ‘tear down barriers’ to work for more than 2.4 million benefit claimants, allowing them to try work without fear of reassessment or losing health benefit top-ups.
The measures are designed to help grow the economy by providing long-term sick and disabled claimants a Chance to Work Guarantee and by making the Work Capability Assessment “fit for the modern world of work”. They were originally included in the Health and Disability White Paper published in the spring.
Alongside the controversial Back to Work plan, which aims to move thousands of people off the benefits system and into employment, the Chance to Work Guarantee was described by the government as a key part of welfare reforms aimed at freeing up claimants to try work without fear of losing benefits, including health top-ups, with the prospect of re-assessments removed entirely for most claimants.
Autumn Statement 2023
Also announced in the statement, Universal Credit claimants will receive boosted work allowances meaning that long-term sick and disabled claimants can keep £404 of earnings every month without this affecting their welfare payments.
The Department for Work and Pensions (DWP) will also provide targeted help as part of its Back to Work plan, including through an expanded Universal Support scheme which, it said, would place people into jobs and provided “wraparound care to give the best chance of success in a role”.
The Work Capability Assessment is being overhauled for those newly moving onto health benefits so work preparation requirements better reflect the opportunities available in the modern world of work, while protecting those unable to work.
The DWP’s policies were based on statistics showing, it said, that the proportion of people on the highest level of award and assessed as having no work-related requirements has risen from 21% in 2011 to 65% in 2022. This meant people were more than three times more likely to be written off work today than they were over a decade ago.
The DWP stated that one in five people currently on the highest tier of health benefits, with no work preparation requirements, would like to work in the future with the right support. But more than half of those who felt they could work within the next two years saw a fear of not being able to return to benefits as a barrier to work.
Reaction to the Autumn Statement overall has been mixed, with businesses welcoming measures that may promote growth but also demanding more encouragement for investment.
Chief executive of the Recruitment and Employment Confederation Neil Carberry praised chancellor Jeremy Hunt’s statement for delivering “some significant pro-business steps”. He added that the measures did “not yet add up to the industrial strategy the country really needs. And in some areas – like skills – the investments announced today were woefully inadequate. Really engaging with firms on apprenticeship levy reform is long overdue.”
Alexia Pedersen, vice president of EMEA at US media and online learning provider O’Reilly, wanted to see more prioritisation given to education “when outlining measures to alleviate day-to-day living costs”.
She echoed Carberry in saying investment was key but welcomed moves such as the Chance to Work Guarantee: “Investing in the future economy means investing in the people and knowledge that drive innovation. By facilitating the transition from benefits to employment through the ‘Back to Work Plan’, we can strengthen the job market and foster sustained growth.
“Strengthening the connection between businesses, individuals, and education is crucial to fostering a lifelong learning and development culture. By providing individuals with hands-on experience through partnerships with businesses, we can reap greater long-term benefits for the job market.”
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