As Rachel Reeves prepares Labour’s upcoming Budget, significant changes to disability benefit assessments are on the horizon. The Treasury reportedly seeks to cut £3 billion from the welfare bill, with reforms to the Work Capability Assessment (WCA) central to these plans. While advocates call for meaningful reforms, critics warn of the devastating impact these changes could have on vulnerable individuals.
Table of Contents
What’s Changing in the Work Capability Assessment?
The WCA determines eligibility for benefits such as Employment Support Allowance (ESA) and Universal Credit (UC). Changes announced by the previous Conservative government in 2023 are expected to significantly tighten qualifying criteria. Labour has recommitted to overhauling the WCA, citing its inefficiency and the need for reform.
Under the proposed changes:
- The “Mobilising” descriptor, used to assess Limited Capability for Work and Work-Related Activity (LCWRA), would be removed.
- The LCWRA Substantial Risk rules would be realigned, limiting their application to “exceptional circumstances.”
- Points awarded for “Getting About” activities in the assessment process would be reduced, making it harder to qualify.
These reforms could mean 450,000 fewer people are deemed to have limited capability for work, saving the Treasury £3 billion over four years.
The Impact on Disabled People
While the government argues these reforms will encourage more people into employment, experts warn they could push vulnerable individuals into deeper financial hardship. The Resolution Foundation, a leading think tank, has expressed concerns about the swift implementation of these measures.
Key findings from their report include:
- Up to 450,000 disabled individuals could lose as much as £4,900 per year in benefits.
- Only 3% of affected individuals (around 15,400 people) are expected to re-enter the workforce.
- The majority of those impacted would remain unable to work while also facing reduced financial support.
The report likens the scale of these cuts to Labour’s controversial decision to scrap winter fuel payments for millions of pensioners earlier this year.
Experts and Advocates Urge Caution
Disability advocates and policymakers are calling on the government to reconsider these reforms. David Southgate, policy manager at the disability equality charity Scope, highlighted the emotional toll these changes are taking:
“Disabled people still don’t know what is going to happen to the Work Capability Assessment. This is leaving thousands feeling anxious and confused. The government needs to scrap its predecessor’s plans and work with disabled people to fix our broken welfare system, rather than making it more punitive.”
The Resolution Foundation echoed these concerns, cautioning that rushed changes could:
- Further degrade living standards for low-income families.
- Shift the cost burden of supporting disabled individuals to other areas of government, such as local councils or the NHS, without addressing the root causes of disability and long-term illness.
Labour’s Employment Goals and the Health Challenge
Work and Pensions Secretary Liz Kendall has acknowledged the need to address long-term sickness to meet Labour’s employment goals. With 2.8 million people currently out of work due to illness, Kendall has pledged to work with experts to achieve an 80% employment target, up from the current 75%.
However, Kendall has also admitted that tackling the nation’s deteriorating health is a prerequisite for reducing welfare dependency. This echoes the Resolution Foundation’s conclusion that the “real public policy failure” lies in the growing prevalence of poor health and inadequate healthcare infrastructure.
Disability Benefits Spending on the Rise
Spending on disability and incapacity benefits is projected to grow from £43 billion in 2022/23 to £63 billion by 2028/29—a nearly 50% increase. This growth is largely driven by claims for Personal Independence Payments (PIP), which are assessed through a separate process from the WCA.
The government has justified its reforms by stating that “spiraling inactivity” is stifling the economy and denying individuals the opportunity to work. A DWP spokesperson said:
“We believe the Work Capability Assessment is not working and needs to be reformed or replaced, alongside a proper plan to support disabled people.”
What’s Next?
Details of Labour’s WCA reforms are expected to be unveiled soon, with changes likely to take effect from April 2025. Advocates are urging the government to proceed cautiously, ensuring the new system is fair and supportive rather than punitive.
As the debate continues, one thing is clear: reforming disability benefits must balance fiscal responsibility with compassion and a commitment to improving lives, not worsening them.
For further updates and expert insights on these reforms, stay tuned.
Leave a Reply