Summary of the Spring Budget 2023

Hello. In this special edition of the WheelieQueer PIP/Disability News Newsletter, we give you a summary of the UK Government’s ‘Spring Budget 2023’ on disability benefits.

Other accessible formats

To view other accessible formats of the Spring Budget Summary document including simplified, audio, easy read and BSL, click HERE

Definitions

UC = Universal Credit; a work-based benefit in the UK that is means-tested and currently has two elements for disabled people who are seen as having restrictions in work.

PIP = Personal Independence Payment; the disability benefit of the UK that is not means-tested, focusing on daily living and mobility capabilities.

LCWRA = The currently ‘higher’ needs group of universal credit called Limited Capability for Work and Related-Activities; meaning they are viewed as unable to work and do not need to take part in any activities.

LCW = The currently ‘lower’ needs group of universal credit called Limited Capability for Work; meaning they are viewed as currently unable to work but will be able to in the future. They do not need to work but must participate in work-related activities.

WCA = Work Capability Assessments, the current criteria used to assess and reassess claimants of Universal Credit, and Employment and Support Allowance for eligibility.

ESA = Employment and Support Allowance; a means-tested disability benefit for those who have limited capability to work and do not receive statutory sick pay.

Sanctions = When claiming benefits such as UC and ESA you must follow certain rules, or you may lose your benefits, or have them reduced. If this happens, this is called a sanction.

What are the Main Takeaway Points?

1. Work Capability Assessment for ESA and Universal Credit is being scrapped; the PIP assessment will decide if you are eligible for PIP and the new UC health element.

2. Sanctions for Universal Credit claimants will be applied more rigorously.

3. An “intensive” conditionality regime will be introduced; claimants deemed with some ability to work will have to work 18 hours a week with regular work coach meetings.

4. A voluntary “Universal Support" employment scheme for disabled people is to be launched. It will match disabled people with jobs and provide funding of £4,000 per person per year, for training to help find work.

5. Removal of the LCW and LCWRA UC groups and introducing a new ‘Health Element’.

6. Jeremy Hunt rejected requests to create a discounted energy bill (social tariff) to help the poorest and disabled people to pay for energy; the UK government will be only holding energy price at £2,500 for 3 months – until June 2023.

7. Hunt also turned down pleas from charities such as The Trussell Trust and Joseph Rowntree Foundation to increase the current inadequate Universal Credit benefit rates in order to cover essential living costs such as food, rent, and household bills.

8. There is going to be an increase in childcare payments and investment in ‘free’ childcare hours for working parents for early-years provision.

9. £10m is being granted to suicide prevention charities but it will not fix the loss of benefits, increased rents, and the underfunded NHS mental health support.

10. No information yet on how ESA claimants will be affected.

What Does it Mean for People on Means-Tested Disability Benefits?

Employment and Support Allowance (ESA)

• It is not clear what will happen to ESA under the new proposals.

• The White Paper only says that the DWP “remain committed to retaining a health and sickness contributory benefit in the future system” = there will be a disability benefit.

• We suspect at minimum that like universal credit:

  • WCA will be scrapped.

  • Focus on PIP assessment criteria.

  • Increased pressure to look for/start work.

  • Increased sanctions

Universal Credit (UC)

• More “intensive” condition regime will be introduced – not yet explained but will involve increased sanctions.

• Removing WCA and reassessments.

• Removing automatic assignment to the ‘no work-related requirements’ and the ‘work preparation’ groups.

• Removing the requirement for a medically-qualified assessor to be involved in deciding what work-related requirements would be ‘appropriate’.

Limited capability for work (LCW) group - _{take part in work-related activity.}

• Removing LCW group.

• The decision will be with the work coach if there are work-related requirements.

• It is unknown exactly what will happen yet but won’t change for a long time (2029).

Limited capability for work-related activities (LCWRA) group - no work requirements.

• Replacing the current LCWRA element with a new ‘Health Element’.

• The Health Element may set both voluntary and mandatory work-related requirements by a work coach and be subject to sanctions if mandatory requirements are not met.

• Award rate will stay the same.

• Must also be in receipt of PIP under new system to be in Health Element group.

• Under the new Health Element, you will stop being entitled if your health condition improves to the degree that you are no longer eligible for PIP.

• Those not receiving PIP will “receive transitional cash protection” – a top-up so that you don’t immediately lose your benefits but will fade out.

• People in LCWRA due to pregnancy or waiting to receive/are receiving chemotherapy and/or radiotherapy will get the Health Element, even if they don’t get PIP.

All work-related requirements group - look and take up a job up to 16 hours per week.

• Increasing looking for work requirements to 18 hours per week.

When Will This Happen?

• No changes will take place under the current Government; legislation reform will happen in a new Parliament.

• WCAs will then only start being scrapped for new claims "no earlier" than 2026/27.

• At minimum, this will take until 2029.

• At this point (2029), work would begin to move existing claims to the new system.

• No changes will be happening for around 6 years, especially for existing claims.

• Parents will only be able to access the free childcare scheme for 1 to 2-year-olds in April 2024, and for 3 to 4-year-olds in 2024/2025.

• Plan for working parents of 9-months old will only be introduced in full in 2025.

What don’t we know?

1. Will work capability assessment scrapping mean the scrapping of the LCW and LCWRA premiums offered to those who aren’t well enough to work?

2. How will work coaches determine if someone is eligible for UC, as PIP assessment doesn’t consider work elements?

3. How will ESA claimants be affected?

4. How will early years providers cope with an influx in demand for extra places, even if they are funded at cost? Relaxing staff ratio will only reduce quality of care.

5. We don’t know much about the proposed “intensive” conditionality regime that will be introduced.

6. Voluntary employment scheme: we don’t know enough about it yet.

7. What will happen to those who are currently in the LCW universal credit group?

8. What happens to those in LCWRA group who are not in receipt of PIP?

Why Is This Happening?

• The aim is to try and encourage (pressure) disability benefits claimants:

  1. If unemployed -> to work, and

  2. If currently working a certain amount -> to take on and work more hours.

• The UK Government claim this ‘back to work’ Budget priority is to remove barriers to apply, work, and stay in work for disabled people.

• There is a concern within the Conservative Government that the UK has an inactive workforce, as figures show that 5 million people are on out-of-work benefits.

• The current UK childcare costs are the highest in Europe.

What are the positives?

1. Childcare payments will be available to working families in receipt of universal credit for parents on low wages.

2. The age for free/supported childcare is being lowered.

3. The government will invest £4bn in free nursery places for 1 and 2-year-olds.

4. The government will invest £288m into a free childcare scheme for 3 and 4 years.

5. The government plan to provide 30 hours of free childcare a week for working parents of 9-months – 3 years old.

What are the issues?

1. Increased sanctions and regime conditions will cause people further financial and emotional distress, rather than motivation to look for work.

2. Claimants who aren’t searching for work usually cannot do so because of their own health conditions, life circumstances or caring responsibilities – punishment won’t change that.

3. There is very little evidence that sanctions are effective.

4. There could be financial consequences for removing the LCW and LCWRA groups for those who are unsuccessful in their claim for PIP.

5. The required period of having a condition for at least 3 months and 9 months going forward would rule out people from the ‘Health Element’ of Universal Credit who get the LCWRA element under current rules because of an acute but not long-term illness.

6. There is likely to be a very significant increase in PIP applications for those in receipt of Universal Credit, which will lead to even more delays in the current PIP system.

7. Parents will only be able to access 15 extra hours for two-year-olds, which for many people does not cover the hours that support is needed.

8. Not enough is being invested; the government's own pre-pandemic estimates found it would cost an extra £2bn to fully fund the existing provision. Underfunding of “free” places of early years provision is likely to lead to further nursery closures and staffing retention crisis.

9. Concerns for the quality of care provided to the children as the solution to reduce pressures on early years is to relax staff-to-child ratios.

10. £10m being granted for suicide prevention charities will not fix the loss of benefits, increased rents, and the underfunded NHS mental health support.

Where To Go for More Information

Here is where you can go to read the Spring Budget 2023 report and related information.

Other Accessible Formats Summary by WheelieQueer

Large Print, Easy Read and Other Formats of the White Paper

Factsheet of the DWP’s White Paper

Easy Read summary information by United Response