The new Universal Credit and Personal Independence Payment Bill
What we know, where it falls short and what comes next?
This week, the Government issued a press release outlining its new Universal Credit and Personal Independence Payment Bill, which it claims will “protect the most vulnerable and help households with an income boost.” The long-anticipated announcement comes just nine days before the consultation on the Green Paper’ Pathways to Work: Reforming Benefits and Support to Get Britain Working’ is due to close.
The press release reveals several details about the forthcoming changes to Britain’s welfare system that had not previously been made public. These proposals raise several significant concerns.
The ‘Severe Conditions Criteria’ Group
The Government stated in the Green Paper that “those with the most severe, life-long health conditions, who have no prospect of improvement and will never be able to work, will see their incomes protected through an additional premium”. This week is the first time we know what that means.
The Government states that these people will not be called for reassessment for Universal Credit under new legislation and will be paid a higher rate of UC health top-up of £97 per week. They expect this to affect approximately 200,000 people.
To qualify for the Severe Conditions Criteria group:
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“The individual’s level of function will always meet LCWRA
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The individual’s condition will last for the rest of their life
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There is no realistic prospect of recovery of function, and
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The condition has been diagnosed by an appropriately qualified healthcare professional in the course of the provision of NHS services.”
Most concerning is that an individual must meet the stringent criteria of the Limited Capability for Work and Work-Related Activity (LCWRA).
The rigour of this criteria makes it clear that many people who genuinely need support, particularly those with mental health conditions or who are neurodivergent, could easily fall through the cracks and be excluded.
The vicious cycle of the mental health crisis in the UK
The press release highlights a significant rise in PIP claims since the COVID-19 pandemic. Much of this increase is attributed to a rise in the number of people citing anxiety and depression as their primary condition. While these figures are indeed significant, they should not be viewed solely as an increase in benefit dependency. Instead, they must prompt serious reflection on the root causes of poor mental health in the UK.
We are deeply concerned that those who are experiencing poor mental health to the extent of being unable to work now risk losing their PIP and UC Health Element awards altogether.
Removing financial support from those already experiencing poor mental health is not only unjust but also entirely counterproductive.
As highlighted by the Mental Health Foundation (2016), poverty increases the risk of mental health problems and can be both a cause and consequence of poor mental wellbeing.
The increase in PIP claims for anxiety and depression is a symptom of a deeper problem: the widespread lack of access to early, effective and sustained mental health support. The Government’s plans to remove financial support without any solutions or plans to address the drivers of mental illness will not only harm individuals but will also place further pressure on already overstretched and underfunded NHS mental health services.
The Government must address the root causes of poor mental health, including poverty, housing insecurity and limited access to care, as part of any welfare reform.
Clear guidance and safeguards must be developed with urgency for those at risk of losing their PIP to prevent harm and mitigate the risk of increasing pressure on the NHS.
The £1billion ‘Employment Support Package’
In the Green Paper, the Government announced that they would be investing £1billion into a new employment support package for those accessing benefits, with the aim of getting people into work.
While we welcome the Government’s commitment to introducing new support options for people claiming health-related benefits, we are concerned that the measures outlined in the recent press release for the Welfare Bill will fall short of delivering a meaningful impact.
The proposed introduction of 1,000 ‘Pathways to Work Advisers’ across the UK is intended to improve access to employment support. Yet this figure translates to fewer than one adviser per town.
It is difficult to see how such limited provision could offer the intensive, tailored support that many people with disabilities would need to enter or re-enter the workforce.
The press release also notes that all those affected by the reforms will be contacted and offered a conversation about their support needs, goals and aspirations, along with access to one-to-one follow-up and help with employment, health and skills.
While this is a welcome intention in principle, it falls short in practice. Support conversations must consider the whole person, not just their work-readiness.
Many people face complex, overlapping challenges that prevent them from securing or sustaining work. These include unsuitable or unstable housing, unmet care needs, long waiting times for treatment or therapy, and the demands of unpaid caring responsibilities.
A one-size-fits-all employment-focused model risks excluding or pressuring people whose challenges are not addressed by job-centred interventions.
Conversations should be adapted to individual needs and preferences, especially for those with profound or complex needs.
No one should be made to feel that they are constantly having to justify their existence or the support they rely on.
What happens now?
It is essential to note that none of these changes will occur immediately. The proposals must first pass through Parliament before becoming law. We are backing Rethink Mental Illness’ campaign, which gives you the opportunity to email your MP and raise concerns about the real impact these changes could have on disabled people’s lives.
In the meantime, we are preparing our response to the Green Paper consultation and will share our full comments as soon as they are ready.