WELFARE reforms designed to get more people back in work have been laid out, but experts have said they “won’t magically make them work-ready”.
The Universal Credit health element is to be cut by £200 a month while the standard allowance increases by nearly £300 a year, the government announced.
It said people receiving Universal Credit for health reasons are paid more than twice as much as a single person looking for work and aren’t given the support to move closer to – or into – jobs.
The reforms – coming into force in April – will introduce a lower Universal Credit health element rate of £217.26 per month for new claimants, compared to the higher rate of £429.80.
Those with the most severe, lifelong conditions, those nearing end of life, and all existing Universal Credit health claimants will continue to receive the higher rate.
To give people the support they’ve long been denied, the government said it is investing over £3.5 billion in employment support by the end of the decade.
Almost four million households on the standard rate of Universal Credit will receive around £295 extra this year in cash terms for a single person aged 25 or over, rising to £760 by the end of the decade.
It won’t magically make them ‘work-ready’
Work and Pensions Secretary, Pat McFadden, said: “The benefits system we inherited was rigged with the wrong incentives and wrote people off instead of backing them. We are changing this. These reforms put more money in the pockets of working people on Universal Credit, while ensuring those who can work get the support they need to do so.
“By boosting the standard allowance and investing in proper employment support, we’re building a welfare system that rewards work and offers people a route to a better future.”
Kate Underwood, Founder at Southampton-based Kate Underwood HR and Training, said the government is trying to push people into work.
She added: “This welfare reform will shove more people towards your jobs, but it won’t magically make them ‘work-ready’. The Government is cutting the Universal Credit health element for new claimants from April, while protecting existing claimants and the most severe cases.
“At the same time, they’re boosting the standard allowance above inflation for nearly four million households. Translation: more pressure to take work, plus a bit more cash for those already looking or working. For small and medium-sized enterprises (SMEs), expect more applicants with health conditions who can do the job, but need flexibility, a phased start, or sensible adjustments to stay well.
“If you say ‘we need someone fully fit’, you’re basically spray-painting ‘tribunal’ on your front door. Disability discrimination is about impact, not intent. This only works if employers stop pretending humans are machines. Otherwise, you’ll just see more churn, more absence and more risk.”
It offers nothing to employers
Colin Crooks MBE, CEO at Intentionality, said employers need support too.
He continued: “£3.5 billion for jobseekers, £0 for the employers expected to employ them. These reforms invest billions in getting people job-ready, but offer nothing to employers willing to take the risk.
“Without matched support for businesses – covering the real costs of supervision, training, and pastoral care – and without assessing whether employers have the empathy and infrastructure to support people with complex needs, we’re setting both parties up to fail. Small businesses can’t bridge this gap on goodwill alone.”
Photo by Tim Mossholder on Unsplash.
