The Department for Work and Pensions has warned that benefits claimants could lose up to £5,000 a year due to changes in work capability assessments.
The planned changes to the work capability assessments, which will take place next year, could affect 516,000 people currently claiming benefits.
The changes mean that fewer people will receive extra money because they can’t work, BirminghamLive reports.
Universal Credit currently gives an additional £390 a month, which will increase to £416 from April, to those considered to have ‘limited capability for work and work-related activity’ (LCWRA).
Similar support is offered to people on income-related Employment and Support Allowance (ESA), who will eventually be moved on to Universal Credit under a ‘managed migration’ plan.
In future the LCWRA payment will be replaced by a new health element within Universal Credit, but only if they are already on the separate disability benefit Personal Independence Payment (PIP).
According to statistics in a House of Commons research briefing, 1,289,600 (71 percent) of the 1,805,700 claimants who get either the Universal Credit LCWRA payment, or an equivalent amount added to their income-related Employment and Support Allowance, would be eligible.
However, the other 516,100 (29 percent) are not on PIP and therefore risk losing this health element support.
Another group of 350,600 are in the lower tier ‘limited capability for work’ (LCW) group, where they don’t get any extra money and are expected to prepare to get a job in future.
Of these, there are 213,500 are not on PIP and won’t be eligible for the health element. Instead they face stricter rules requiring them to find work.
In addition, 379,300 claimants on Universal Credit or income-related ESA are also in receipt of PIP but are not on the existing LCWRA payment for being unfit for work.
These people will be given “personalised support” to help them get a job rather than having the option of applying for the LCWRA top-up.
The DWP said: “New flexibilities in the labour market mean that more people can undertake some form of tailored and personalised work-related activity, with the right support.
“For example, 40 per cent of people reported working from home at some point in the previous week in Winter 2023, compared with just 12 per cent throughout 2019.
“And of around 8 million jobs advertised online between April and October 2023, over 20 per cent were either remote or flexible, compared to less than 4 per cent over the same time period in 2016.
“That’s why we are reforming the work capability assessment to make it fit for the modern world of work.”
