The Prime Minister is set to instruct individuals receiving universal credit to seek employment that allows for remote work, or else they could face a benefit reduction of £4,680.
Rishi Sunak is poised to issue a warning of benefit payment cuts for hundreds of thousands of individuals with mobility and mental health challenges unless they secure remote work opportunities. Reports suggest that the Prime Minister will instruct them to find jobs allowing for home-based work or face a reduction of £4,680 in benefits annually, aiming to encourage more people to return to the workforce.
This initiative is part of a broader effort to trim the government's welfare expenditures, with ministers asserting that the post-Covid surge in remote working means many individuals on benefits can no longer be deemed incapable of working. In September, work and pensions secretary Mel Stride initiated a consultation to revamp the government's work capability assessments, which determine eligibility for universal credit instead of employment.
The consultation vowed to account for "the rise of flexible and home working and better employer support for disabled people and people with health conditions." Sunak expressed his desire to "help people take advantage of modern working environments" at that time.
The outcome of the consultation is expected to be unveiled alongside the government's autumn statement on Wednesday, as reported by The Times. Under the current system, those unable to walk 50 meters unaided, falling under the "limited capability for work and work-related activity" category, are not obligated to seek employment. However, it is anticipated that this descriptor will be removed.
From 2025 onwards, a "carrot and stick" approach will impact hundreds of thousands of claimants. Chancellor Jeremy Hunt recently cautioned, as part of a broader crackdown, that individuals who "coast" on benefits will face cuts if they reject job opportunities.
Claimants assessed as fit for work but failing to actively seek employment will lose access to benefits such as free prescriptions, dental treatment, assistance from energy suppliers, and discounted mobile phone packages.
The chancellor stated that this move, introduced just days before the autumn statement, is essential to prevent individuals from "choosing to coast on the hard work of taxpayers."
However, these plans have faced criticism from senior Tories, being labeled as hateful, and the head of Britain’s equalities watchdog raised concerns about their potential illegality. Former Deputy Prime Minister Michael Heseltine expressed that ministers should not "use the health service as a sanction."
On Tuesday, Tory minister Laura Trott dismissed suggestions that plans to encourage individuals with mental health or mobility challenges to work from home are lacking in compassion. The chief secretary to the Treasury, speaking to Sky News, stated, "If you can work as a principle, you should work, and that is what the government believes. That’s been the thrust of all of our policies."
She acknowledged the importance of providing support to individuals facing challenges in entering or maintaining employment. However, she emphasized the government's belief in the responsibility of citizens to work if they are capable of doing so.
Additionally, ministers are finalizing a package of tax cuts ahead of Wednesday's autumn statement, with Mr. Hunt expected to announce a reduction in income tax or national insurance. Ms. Trott expressed confidence in the economy's positive turn, stating that the government "can now talk about tax cuts."
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