Universal Credit claimants could soon lose almost £400 in major change to benefits

People who are deemed to be too unwell to work are not obliged to look for employment and are entitled to nearly £400 on top of their Universal Credit.

But the Government is planning to scrap the extra payment.

The change that was first announced in Jeremy Hunt’s ‘Back to Work’ budgetin March, could see nearly half a million sick and disabled people miss out on the much-needed money.

The anti-poverty charities fear that those impacted are already struggling and the shake-up in benefits will make matters worse for them.

Here is what we know.

Here is who will miss out on extra support after UC changes

Those claiming Universal Credit are currently entitled to a top-up payment of up to £390.06 monthly if they are placed in the Limited Capability for Work and Work-Related Activity (LCWRA) group.

The eligibility is based on people being too unwell to work andthey are not expected to seek employment.

According to new data published by the Department for Work and Pensions (DWP), 516,000 people receive LCWRA boost.

But as Rishi Sunak’s Government is eager to send as many people as possible back to work, they are implementing a major reform of the benefits system.

The change could see more than half a million seriously ill or disabled people lose nearly £400 per month once plans on scrapping the LCWRA group go ahead.

The shake-up was first announced in Jeremy Hunt’s ‘Back to Work’ spring budget in March.

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Government: those 'too unwell' on benefits will still get support

The Government promises that LCWRA payment will be replaced with a new Universal Credit ‘health element’ but a person will only receive it if they already qualify for Personal Independence Payments (PIP).

PIP which is designed to help working-age adults living with an illness or disability, is usually made up of two components - a daily living rate and a mobility rate, and you can be entitled to either both or just one of these.

PIP eligibility is based on how your condition affects your life, rather than the illness itself.

Under the current system, disabled people may need to have a Work Capability Assessment (WCA) when they claim Universal Credit.

If they are found to be incapable of work, they can then receive additional income support.

But Chancellor Jeremy Hunt has recently announced plans to scrap the WCA - instead, the PIP health assessment would be used to decide whether a person will receive the new Universal Credit 'health element'.

Charities fear that those struggling will struggle even more

But the anti-poverty charities question the Government’s shake-up.

Ayla Ozmen, Director of Policy and Campaigns at Z2K, believes that those who already struggle are at risk of losing out on money unless they successfully apply for PIP.

She said:

Seriously ill and disabled people are already more likely to be in poverty - and these figures show half a million could lose vital income under the Government's proposals.

She urged the DWP to ‘fix its broken PIP system’ and ensure that people who are too unwell to work are still protected from ‘inadequate basic levels of benefits’.

DWP themselves insist the new reform ‘will improve the experience of the benefits system for disabled people’.

They commented:

Many people who have the LCWRA top-up will become eligible for PIP. Transitional protection will be provided to those not in receipt of PIP so that nobody will see a financial loss as these reforms come into place.

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Sources used:

- Mirror: '500,000 sick or disabled people could lose £400 under huge benefits shake-up'