Auto Amazon Links: No products found. Blocked by captcha.
Labour’s initial approach to overhaul the welfare system was a rushed attempt to slash billions of pounds from a rapidly increasing bill in order to assist the chancellor in adhering to her self-imposed government borrowing regulations. However, this recent reversal raises significant concerns about the true effectiveness of constantly adjusting financial plans every six months to meet budget targets that frequently change due to various factors, such as borrowing costs beyond the government’s control.
The revised agreement indicates that the welfare reforms will now only yield £2 billion annually instead of the initially projected £5 billion by 29-30. The proposed reduction in disability Personal Independent Payment (PIP) eligibility was anticipated to generate the majority of these savings, amounting to £4.5 billion. Nevertheless, the modifications will now only impact new claimants starting in November 2026, sparing 370,000 current claimants out of the 800,000 identified in the DWP impact assessment.
Another alteration announced in March, which will solely affect new claimants, pertains to how PIP applicants undergo assessments. These assessments encompass inquiries about various activities like food preparation, eating, washing, and dressing, each rated from zero to twelve based on the level of difficulty. Under the revised system, individuals must now score at least four points for a single activity to qualify for assistance, as opposed to being eligible across a broad spectrum of tasks.
The contemplating adjustments to Carer’s Allowance might imply an estimated cost of around £2 billion. The original universal credit health revisions, aimed at freezing the health component until 2029-30, then halving it and subsequently suspending it for new claimants starting next April, were projected to generate £3 billion in the 2029-30 fiscal year. Conversely, 2.25 million existing recipients will now witness an inflation-adjusted increase, while only the most severe cases among 730,000 new claimants will not encounter the halving of benefits. This adjustment could potentially incur several hundred million pounds, possibly up to £1 billion
Read the full article from The BBC here: Read More
Auto Amazon Links: No products found. Blocked by captcha.