Speaking in parliament on Tuesday (18 March), work and pensions secretary Liz Kendall announced reforms including the end of reassessments for disabled people who will never be able to work, and people with lifelong conditions, to ensure that they can receive the benefits they require.
The government is also set to scrap the Work Capability Assessment (WCA) which is used to decide whether universal credit claimants are capable of working, and to what extent.
The government stated that the assessment was a “dysfunctional process” that drives people to dependency.
Kendall also announced a new employment support package backed by £1 billion, which will include new tailored support conversations for people on health and disability benefits.
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This overhaul is positive but the “devil is in the details”, according to Raj Tulsiani, CEO of search and leadership advisory firm Green Park, who specialises in leadership hires and inclusive cultures.”
firm Green Park, who specialises in diverse and inclusive recruitment.
Tulsiani told HR magazine: “This overhaul represents a fundamental shift in how the government supports sick and disabled people in the workforce. Scrapping the WCA is significant, as this test has long been criticised for being too rigid and punitive.
“However, the success of this reform will depend on how eligibility for benefits is reassessed and whether alternative mechanisms genuinely support those who need assistance rather than simply reducing overall benefit costs.
“While the government's intention to support more disabled people into work is commendable, the devil is in the details. If these reforms focus purely on reducing benefit costs without ensuring real employment support, they could harm disabled individuals and place new pressures on employers.”
Another reform the government announced was changing the eligibility requirement for personal independent payment (PIP) to a minimum score of four on at least one of the daily living activities.
The government will also consult on delaying access to the health element of universal credit (UC) for people under 22, reinvesting savings into work support and training opportunities through the Youth Guarantee instead.
These reforms are aimed at ensuring that the welfare system is sustainable into the long-term.
Tulsiani expressed concern about these reforms. He said: "PIP is not a work-related benefit; it supports disabled people with the extra costs of living with a disability. If access to PIP is restricted, many disabled individuals could face financial hardship, potentially making employment less viable rather than more accessible.
The consultation on delaying the health element of UC until age 22 could also be controversial. Young disabled people often face significant barriers to employment. Delaying support might put them at a greater disadvantage.”
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Viki Carpenter, director of the Association of Accessible Employers, stated that the reforms may cause issues in the long term for employers.
Carpenter told HR magazine: “We feel very strongly that more support needs to be given to employers to support those with disabilities and long-term health conditions, to ensure that those re-entering the workplace gain the right support to succeed.
“Without the right processes and support in place, these changes will result in poor outcomes for disabled individuals and employers alike. Likely impacts will be high drop-out rates, negative impacts on mental and physical health of employees, and increased pressure on the resources of employers.”
Tulsiani echoed this, warning of higher sickness absences and a rise in low-paid and insecure work.
He said: “If people with significant health conditions are pushed into work without proper accommodations, employers could see an increase in sickness absences or employees working while unwell, which can reduce productivity.
“If employers are not incentivised to provide meaningful, sustainable roles, there is a risk that sick and disabled workers end up in low-paid, temporary jobs with little job security. This could lead to a cycle where individuals move in and out of employment without long-term stability.”
Richard Dickins, managing director at Social Value Business, also warned of employer challenges.
He told HR magazine: “We foresee a delay in the potential for individuals being ready to gain employment as they prioritise their personal health prior to becoming active in the job market.
“However, there are good prospects for long-term social value if individuals can have their broader health and social care needs met in order to reduce barriers to employment – physical, psychological and emotional – and therefore, reduce the number of those on long-term benefits. Ethically it is the right thing to do if implemented with the right intentions and managed successfully."
