The aim of the welfare system is to encourage and support people into work, while providing a vital safety net for those who need it most. In 2023, to ensure the Work Capability Assessment (WCA) delivers the right outcomes, the previous Government launched a consultation on the WCA activities and descriptors. Following this consultation, Ministers then set out plans to reform WCA to ensure that it targets support fairly and effectively.
I am pleased this Government has committed to reforming or replacing the WCA. I will urge Ministers to implement the previous Government's plans, ensuring that the welfare system focuses on what people can do, rather than on what they cannot. I would ask for the Government to cement these reforms within its upcoming programme to tackle worklessness in our communities.
While I appreciate there are concerns about these reforms, I note that the WCA’s activities and descriptions have not been comprehensively reviewed for more than a decade and, under the current system, too many claimants are being assessed through the WCA as not being able to prepare for or engage in work. It is not right that such claimants are effectively being excluded from the opportunity to start, stay and succeed in work.
The previous Government set out plans to amend the limited capability for work-related activity (LCWRA) Substantial Risk regulations. I understand that Ministers would specify the circumstances, and conditions, for which LCWRA Substantial Risk should apply. I am assured that, following this reform, the WCA would continue to protect and safeguard the most vulnerable, including people in crisis and those with active psychotic illness.
The previous Government also set out plans to reduce points awarded for the limited capability for work (LCW) Getting About descriptors, to account for new flexibilities in the labour market, but pledged to retain the highest scoring descriptor, to protect claimants with the most significant limitations. Alongside this, the consultation outcome committed to remove the LCWRA Mobilising activity. However, to ensure that those with the most significant mobilising needs are protected, the LCW Mobilising activity and descriptors would be retained.
Additionally, in recognition that difficulties with social engagement may represent a significant barrier to engaging with work or work-related activities, the proposed reforms did not make any changes to the LCWRA or LCW Social Engagement activity or descriptors. Additionally, no changes would be made to LCWRA or LCW Continence, in recognition that incontinence seriously affects people's dignity and mental wellbeing.
Concerns about food bank usage, Universal Credit and support for disabled people have also been raised and these are, rightly, important issues through these cold months.
I welcomed that, according to statistics in the Family Resources Survey - most households in the UK were food secure in the financial year 2022-23, under the previous Government. This is on top of the fact that many households also had high food security (at around 83 per cent) or marginal household food security (seven per cent). This is compared to a minority of households which were food insecure, with low household food security at just five per cent and very low household food security also at five per cent. This means that most households, 90 per cent, had sufficient access to food to facilitate an active and healthy lifestyle.
Indeed, of all UK households surveyed, only 3.3 per cent had used a food bank in the 12 months prior to publication, and 1.4 per cent of all households within 30 days.
In order to support low-income households with increasing rent costs, the previous Government raised Local Housing Allowance rates to the 30th percentile of local market rents from April 2024. This was done to benefit 1.6 million low-income households by around £800 a year more on average in 2024-25. For those living in the social rented sector, maximum housing costs support is based on actual rent and eligible service charges less any deductions for under-occupation.
Regarding Universal Credit and the Work Capability Assessment (WCA), it remains a decision for the Government to reform the WCA. I welcome, however, that benefits were increased by 6.7 per cent in April 2024, under the last Government, in line with inflation. Additional details will likely be made available as the Government progresses on measures outlined in its 'Get Britain Working' white paper.
I further welcomed the last Government’s work to help people with the cost of living. Over 2023-24, the previous Government provided targeted support to the most vulnerable through Cost of Living Payments - paid to 8 million households on eligible means-tested-benefits, 8 million pensioner households and 6 million people on eligible disability benefits. I will continue to call on the Government to build on this extensive support offered across 2023-4 and support people across the UK who are in need.
