Universal Credit claimants could lose out on receiving an extra £390 on top of their benefits as the Department for Work and Pensions (DWP) expands a new scheme.
Currently, people claiming Universal Credit who are not able to work due to an illness or sickness can get sick note from their healthcare professional. With this sick note, they can then potentially claim the "Limited Capability for Work-Related Activity" (LCWRA) payment of £390 a month on top of their standard benefits.
However, under the new scheme, Universal Credit claimants and health practitioners develop a "work ability plan" over a one-hour conversation, which the DWP said will "identify barriers to employment" and highlights actions and support that can be given to overcome them. This plan is then shared with a claimant's work coach.
The DWP says it is trying to encourage more benefit claimants to address any health-related barriers to getting a job before they claim Universal Credit's extra £390 LCWRA payment. The DWP said initial feedback from those involved in the Leeds pilot showed that most claimants were able to "understand their own health better" and "felt more confident" about what they are able to do, and how to overcome barriers – making them more inclined to take further steps towards getting back into work.
The new places where the DWP is expanding the scheme to include:
- Aberdare
- Bradford
- Chelmsford
- Doncaster
- Durham
- Hull
- Lancaster
- Newcastle
- Norwich
- Sunderland
- Wigan
- York
The Government data revealed that 700,000 had a Work Capability Assessment in 2022, and there are currently approximately 2.45million people claiming "Limited Capability for Work-Related Activity" or the equivalent Employment Support Allowance (ESA) "support group" payments alongside their benefits.
The new reforms aim to reduce that number ahead of the abolition of work assessments in three years' time. The Government are looking to reduce the amount of people claiming the LCWRA payment by getting more people into work.
Secretary of state for work and pensions Mel Stride MP said: "We are pushing ahead with the next generation of welfare reforms to ensure benefit claimants get as much support as soon as possible to move towards work and the more prosperous life that brings.
"This pilot is an important part of that, helping people understand what they need to do to move towards employment through a simple and effective conversation. The findings will help us build the new disability benefits system once the Work Capability Assessment is removed later this decade."
In a statement about the news, the DWP said: "We support millions of disabled people every year and the reforms in the Health and Disability White Paper will improve the experience of the benefits system for disabled people. Many people who have the LCWRA top-up will become eligible for PIP. Transitional protection will be provided to those not in receipt of PIP, so that nobody will see a financial loss as these reforms come into place."