The UK government plans significant welfare changes, risking £5000 annual losses for claimants
The new rules may stop long-term sick people from getting benefits without meeting requirements. Kendall might also cut financial incentives that let some earn double what jobseekers do.
People with mental health issues will find it tougher to claim disability benefits. This is part of the biggest welfare changes in a decade.
Several options are being considered, but nothing is final yet. One idea is to eliminate the universal credit category for limited work capability. This could mean losing about £5000 a year.
Ministers want to get rid of the work capability assessment for incapacity benefits. They aim to align it more with personal independence payments (PIP), which are given regardless of work ability.
PIP payments may also change. It’s unclear if severely disabled individuals will receive higher payments to make up for lost benefits.
Those with mental health conditions like depression and anxiety may struggle more to claim benefits.
Reports say ministers told business leaders that adjusting PIP thresholds will be a top priority for spending cuts in March.
Options include one-time payments instead of regular income and means testing. However, vouchers for specific equipment have been ruled out.
Kendall believes the current system is “broken” and needs change to help people return to work and boost the economy.
She faces pressure from the Treasury to find billions in savings soon. Chancellor Rachel Reeves wants to avoid more tax increases.
A government source stated that the previous government failed on welfare and work. The Labour government aims to support sick and disabled people who want to work with the right help.
