New analysis from the Centre for Social Justice (CSJ) reveals
that in November 2022, there were 3.7 million claimants with No
Work Requirements. Claimants with No Work Requirements are exempt
from work due to physical and mental health conditions,
disabilities or caring responsibilities.
This has risen by 480,000 since before the pandemic, mirroring
the post-Covid surge in economic inactivity due to long-term
sickness. Out of work benefits spending for this group of people
exempt from work has risen to around £25 billion per annum, the
think tank estimates.
While many claimants with No Work Requirements will never be able
to work due to the nature of their conditions or
responsibilities, analysis by the CSJ of official survey data
reveals that at least 700,000 in this group say they want to work
and think they could with the right support.
At a time of soaring immigration, the CSJ is demanding ministers
look to untap more of the potential in our communities by helping
those languishing on sickness benefits who want to work move into
roles and fill labour shortages. Helping this group into work,
the analysis reveals, would net HM Treasury £7bn in savings in
benefit payments and taxes, boosting growth and changing
lives.
The CSJ recommended the roll out of Universal Support – an
intervention proven to help people with complex barriers to work
achieve and stay in employment – which the Government accepted
and announced at the Spring Budget 2023. HM Treasury expect the
programme to help tens of thousands into work next year, rising
to 50,000 per annum by 2025.
However, concerns remain that claimants will not take up the new
voluntary employment support offer owing to fears around engaging
with DWP employment support, worries over fluctuating conditions,
and triggering reassessment for health-related benefits.
Of those in this group who think they could work with the right
support, DWP survey data shows 53% are ‘worried they wouldn’t get
their benefits back’ if it didn’t work out, 73% are ‘worried
people won’t employ me because of my health condition’, while 72%
said their health condition fluctuated too much.
The Government’s Health and Disability white paper sets out
welcome measures to reform assessments so they are more tailored
to individual needs and ambitions to work. But the measures are
not expected to be fully rolled out until 2029. And so the CSJ is
asking ministers to introduce additional measures urgently:
- The CSJ is calling on Government to announce an ‘Into Work
Guarantee’, providing a cast iron commitment that claimants
trying work will be supported and will be able to return to their
additional health-related benefits without a new assessment
should their condition unexpectedly worsen. Some claimants are
exempt from reassessment currently, but this is patchy and not
well known.
- The CSJ is also calling on HM Treasury to accelerate the
managed migration of ESA claimants onto Universal Credit where
they can receive additional support into work, after this was
slowed down at last year’s mini-budget.
Joe Shalam, Policy Director at the Centre for Social Justice,
said:
“Mel Stride deserves credit for seeking to complete the
unfinished business of welfare reform. But we know this will take
years. What we need are further interventions now to stem the
rising tide of sickness related inactivity, and to give the
700,000 exempt claimants who want work the confidence to step
into the labour market.
“Employers must be incentivised away from their reliance on
immigration – unlocking the talent in our communities will cut
the benefit bill and change lives for the better.”
ENDS
Notes for Editors:
1. CSJ analysed data from the DWP to provide a combined estimate
of claimants with No Work Requirements across Universal Credit
and legacy benefits. Data from Stat X-plore shows that, as of
November 2022, there were 1.8 million UC claimants with NWR, 1.7
million claimants on Employment and Support Allowance and
predecessor benefit, and less than 200,000 on other legacy
benefits. The combined total was 3.7 million as of November 2022,
the most recent month for which all benefit data is available.
The analysis excludes disability benefits including Personal
Independence Payment and Disability Living Allowance, focusing on
out of work support.
2. Research from the Department for Work and Pensions found that
20 per cent of claimants with No Work Requirements said they want
to work. Applying this figure to the total number of claimants
with No Work Requirements produced a total of 740,000 who want to
work. This is believed by the Centre for Social Justice to be a
conservative estimate, given the structural incentives for
claimants in this group to focus on what they can’t do rather
than what they can in work capability assessments.
