The cross-party Work and Pensions Committee has today launched
its new inquiry on the
Government's welfare reform proposals, Pathways to Work.
The inquiry will examine the DWP's planned changes to disability
and health-related benefits, which were announced by the Work and
Pensions Secretary last month and are contained in the Pathways
to Work Green Paper.
The proposals centre on changes to both the eligibility criteria
for and the reduced payment rates of benefits and include plans
to abolish the Work Capability Assessment, meaning the new
Personal Independence Payment (PIP) assessment would determine
eligibility for PIP and the health element of Universal Credit.
The changes in eligibility for PIP are estimated to affect
between 800,000 and 1.2 million people currently receiving PIP.
Under the reformed system, to qualify for UC health, a person
would have to be in receipt of the daily living component of PIP;
but eligibility for the PIP component is being tightened: in
future, only those who score at least four points in at least one
of the daily living activities, 8 in total will qualify. The
reductions in real terms support are estimated to affect 1.5
million existing claimants.
The Green Paper sets out proposals that the Secretary of State
says will save £5 billion in 2029-30. The Government has also
said that the reforms, which are backed by a £1 billion package
of employment support by 2029, will enable more people with
chronic long term health conditions, and/or who are disabled, to
return to and stay in work.
The inquiry will examine the evidence around the impact of
welfare changes on poverty and employment and how the changes
might affect disabled people. It will also explore the link
between health and worklessness.
Committee Chair said:
“While the Chancellor undoubtedly must respond to financial
challenges, there are legitimate concerns regarding the proposed
changes to our social security system which would lead to a cut
in support for more than three million sick and disabled people
and their families, especially if these cuts happen before
employment opportunities emerge. It is therefore vital that there
is full examination of the evidence of the likely impacts this
will have on poverty and employment, as well as the health of
sick and disabled people. Our social security system is meant to
provide a safety net to support people, so that they are
protected from poverty. But we know that there are already 14.3
million people living in poverty, and half of them are sick or
disabled people who are not properly supported by our benefits
system. We must ensure that new social security policy addresses
this.”
ENDS
Notes to editors
Inquiry terms of reference
During the course of the Get Britian Working: Pathways to Work
inquiry, the Committee is seeking to explore:
- the issues with the social security system the Green Paper is
seeking to address;
- the evidence of the impacts of welfare changes on poverty and
employment;
- the experience of sick and disabled people of the current
welfare system and their views on the impacts the changes could
have on them; and
- the link between health status and worklessness, and the
potential impacts of the welfare changes on health status
The Committee is will also examine how the proposals might work
in relation to the devolved powers to the different nations of
the UK.
The Committee is conscious that this inquiry is being launched at
the same time that stakeholders will be preparing responses to
the Government's consultation on the Green paper. As such, the
Committee is not issuing a general call for written evidence.
The Committee intends to hold the first oral evidence session for
this inquiry soon after Easter and to publish its report and
recommendations before the Green Paper's closing date of
30th June 2025.
