How disability benefit assessment changes will work

Welfare changes set out by the government will mean sick and disabled people will face a higher threshold before being signed off benefits.

As part of a wider plan to tackle economic inactivity, the Government wants to encourage sick, disabled and long-term unemployed back into work.

When will it apply and to who?

The Department for Work and Pensions (DWP) has published its response to a recent consultation around how best to change the current disability assessment process.

The changes will apply to new claims only, with the reform coming in from 2025 onwards.

Government sources stressed no one currently classed as unable to work due to health conditions will lose any money from the changes – which will apply only to new claims after 2025.

What will change for existing claimants?

Existing claimants will instead be offered a new policy called the “chance to work guarantee” from 2025.

This will mean they are no longer assessed for work – unless they have a change in health condition – and that will remain the case even if they move into employment and it does not work out.

The “chance to work guarantee” policy is designed to remove the threat of reassessment which prevents people who do want to try working from doing so.

At the same time better support will offer integrated and tailored support to disabled people and people with health conditions to work through Job Centre support.

What do the new rules mean for 2025?

Ministers want to utilise the rise in home and flexible working to make it easier for disabled people to move into employment.

They said the work capability assessment (WCA) – a test to see what out-of-work benefits a sick or disabled person is entitled to – will be reformed “to reflect greater flexibility and availability of home-working after the pandemic”.

This will involve changing the categories used so people with certain conditions are not ruled out from having to find work.

It would apply to people such as those with mental health issues, but who are not in crisis or acute psychosis, and those with certain mobility issues but who are not immobile.

There will be protections for people who would suffer deterioration of health if they were asked to move into work.

The DWP said: “At the same time, we recognise that for some claimants with the most severe health conditions even undertaking work preparation activities could lead to a deterioration in their physical or mental health. Where we intend to amend the WCA, we will also ensure that those people with the most severe limitations will remain protected.”

The Government wants to readdress the mental health characterisation of “substantial risk” so it applies to “extreme circumstances” such as those in crisis and with “active psychotic illness”.

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Ministers also want to remove the “mobilising” test, which assesses whether someone can move unaided for 50m, and “getting about”.

The Government believes “flexibilities in the labour market mean that many people with mobilising limitations can undertake some form of tailored and personalised work” and “there is less need to get to a place of work”.

But they say there will be protections for people who would suffer deterioration of health if they were asked to move into work.

The changes are not designed to change working rules for the most unwell or disabled people and several protections will be in place to protect them. Examples are people undergoing treatment for cancer, those who struggle with social engagement.

Why are they doing this?

Ministers believe the changes will halve the flow of people being signed off work permanently due to a health condition.

Spending forecasts published alongside the Autumn Statement, however, show spending on disability and sickness benefits in working age adults will still rise from around £44 billion in 2022 to £77bnin 2028.

Labour has argued that these figures show that the only way the Government can reduce the sickness benefit bill is to improve access to NHS care.

Eventually, ministers intend to totally abolish the so-called “work capability assessments” entirely and completely reform the way disabilities are assessed.

They intend to move over to one system, relying on the personal independence payment (PIP) process for all assessments.