DWP to start contacting all those on sickness benefits with 'new plan'

Jobcentre Plus staff will soon be regularly contacting claimants of sickness benefits for the first time, as part of a strategy to reduce the welfare bill by focusing on two million individuals who are currently not required to look for work or prepare for future employment.

Tens of thousands ofclaimants suffering from mental health issues, back pain, and other ailments who receive benefits without any conditions will now be offered skills training and help to get ready for work. The Times reported that ministers have instructed job centres to focus on what they describe as a "shocking" increase in long-term sickness absence.

Sickness has now surpassed unemployment as the main reason for universal credit claims, with nearly half of the recipients of Britain's principal working-age benefit having no obligation to seek employment or undertake preparatory actions like creating a CV.

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Out of the 2.2 million people considered to have limited capability for work or work-related activities such as job preparation, the majority who apply for incapacity benefits are placed in this highest category and receive their benefits unconditionally.

Government work coaches, who typically provide advice and keep tabs on jobseekers, are set to change their focus to also include those who are long-term sick, according to ministerial plans.

Pat McFadden, the Work and Pensions Secretary, commented: "Two million people stuck on benefits with no opportunities, no help and no prospects is the shocking inheritance we must tackle. I'm determined to give people the skills they need to thrive in the modern economy, and help them move into good, secure jobs."

Specialist employmentadvisers positioned in jobcentres nationwidewill lead the first-ever countrywide push to reach those claiming the highest level of incapacity benefits.

They will offer support on skills training and job applications, plus targeted coaching or medical help geared towards work prospects.

"These dedicated staff are key to unlocking work for tens of thousands of people as we get on with our plan to get Britain working, ensure our welfare system is fit for the future and deliver economic growth," McFadden said.

While the scheme will begin voluntarily, ministers are considering introducing a "responsibility to engage" for the long-term sick that would require them to take part in talks with employment support services.

Around half of those claiming the top rate of incapacity benefits blame their situation on mental health problems. Ministers argue that work can often improve their wellbeing.

Back and joint problemsare the second most common reason for making such claims. Concerns exist within government about further contentious welfare reforms after Sir Keir Starmer was compelled to scrap £5 billion worth of cuts to separate disability benefits following fierce resistance from Labour MPs.

McFadden is attempting to focus on improving support for the long-term sick after evidence showed it enhanced their employment chances. He seeks to extend help to an additional 65,000 claimants this year.

The new Work and Pensions Secretary has refused to rule out tightening eligibility for universal credit, saying welfare reform “is happening all the time”.

Speaking to the BBC, Pat McFadden also did not rule out ending health-related universal credit payments for claimants under the age of 22.

“Look, I’m not ruling anything out. Welfare reform is really important,” he said.

“At the moment, this system is unhealthy for people and in the long run is pushing up the benefits bill because we’re not getting the help to people who could work.”

His comments come after the Government’s decision to abandon proposed changes to personal independence payments (Pip) and universal credit’s health-related benefits.

A review of these payments was launched by disability minister Stephen Timms following the Pip U-turn. However, Mr McFadden said further changes could still happen before the report — which is not due for another year — is handed down.

“Welfare reform is happening all the time. Anyone who looks at the current system shouldn’t conclude that the thing to do is to circle the wagons around it,” he told the public broadcaster.

However, experts caution that even a £1 billion yearly boost for employment support is expected to reach only a fraction of those with long-term illnesses and is unlikely to substantially impact the rising costs of sickness in the near term. Britain spends roughly £80 billion annually on all sickness benefits, a figure that has risen by more than £20 billion since the pandemic began and is forecast to near £100 billion by the decade's close.

Some figures within government are eager to proceed with additional reforms to the benefits system, following the cut to universal credit health premiums for new claimants, one of the few elements of Starmer's reforms to survive. McFadden has ruled out any changes to disability benefits until a review concludes next year, but has not provided the same guarantee regarding universal credit as ministers seek to tackle "perverse incentives" that may encourage people to take sick leave.

Stephen Evans, chief executive of the Learning and Work Institute think tank, has backed the focus on long-term sick individuals as "sensible", describing the scheme as "re-focusing a significant proportion of the government's work coaches toward people who get little help today, likely achieved by reducing the amount of box ticking checks on unemployed claimants."

He added: "There is evidence that this kind of support can make a positive difference - but to be a game-changer the government must come up with a much broader plan to engage people on long-term sickness benefits and refer them to a wide range of help."