Hundreds of thousands at risk of losing £350 a month with Jeremy Hunt's new plans

New plans in Jeremy Hunt’s recent budget announcement could mean that up to 1 million people on Incapacity Benefit could have their support taken away. The warning comes from The Institute for Fiscal Studies (IFS) who say that dropping the work capability assessment (WCA) could have a negative impact on disabled claimants' payments.

The budget is being described by experts as involving the ‘biggest reforms to the welfare system in a decade’ as the chancellor sets out plans for long-term sustainable growth, as per The Guardian.

Work Capability Assessment

The UK budget is described on the government’s webpage as, according to gov.uk:

A revolution in childcare, a £27 billion tax cut for business and a trio of freezes to help families with the cost of living.

However, what’s been grabbing the headlines is the removal of the controversial WCA, which assesses capacity for work, and using the personal independence payment (PIP) test instead, which only measures the extra living costs involved with having a disability.

The new plans could mean up to 1 million people would lose their £350 a month payments according to the IFS. The PIP tests they would now be assessed on are widely distrusted and currently take 14 weeks to process, as per IFS:

The 1 million people who are currently on incapacity but not disability benefits could potentially lose out from this change - with a typical health-related UC claimant losing £354 per month.

Charities and campaigners have welcomed the removal of the WCA as they are considered humiliating for disabled people and discourage them from working. However, many assert there is still a long way to go with Scope warning the government that it has ‘a mountain to climb to win back the trust of disabled people’, as per the BBC.

Read more:

⋙ Millions to see DWP payments increase due to major change in April

⋙ Jeremy Hunt announces new spring budget, here's how it will affect you

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⋙ Millions eligible for marriage allowance can claim backdated payments of over £1200

Universal Credit benefit controls

In addition to Incapacity Benefit payments being at risk, there is also concern over the government’s plans to apply benefit controls more stringently to universal credit claimants. One example of this is in the case of main carers of children, who would be expected to look for work or increase their hours in the future or else have their benefits reduced.

Overall, a forecast by the Office for Budget Responsibility shows that the government is expected to spend almost£80bn on health and disability benefits in 2026/27. This represents 11.7% more than was projected a year ago as more people are claiming these benefits. There will also be a voluntary support scheme providing £4,000 a year work-help grants to up to 50,000 disabled people.

Commenting on the budget, Jeremy Hunt said, as per gov.uk:

Our plan is working – inflation falling, debt down and a growing economy.

Britain is on a lasting path to growth with a revolution in childcare support, the biggest ever employment package and the best investment incentives in Europe.

Sources used:

- The Guardian 'Hunt’s disability plans put 1 million people at risk of losing £350 a month, IFS says'

- BBC 'Disability work tests to be scrapped in welfare shake-up'

- Gov.uk 'Chancellor unveils a Budget for growth'

- IFS 'Spring Budget 2023 response'