Government announces incapacity benefit changes

The government has launched a series of changes to incapacity benefits, in order to help get more people back into employment.

The new plans, announced by Work and Pensions Secretary, Alan Johnson, aim to provide greater benefits for the most severely sick and disabled people, as well as more money for claimants taking part in 'work-focused activity'.

However, those who completely refuse to engage, such as those who fail to attend interviews, will only receive Jobseekers Allowance rates.

Alan Johnson said that the new reforms were aimed at making incapacity benefit "a pause in people's working life, not a full stop". He said: "We know that a million people on incapacity benefits want to work. So we must end the stifling of ambition caused by a system which, for too long, has assumed that all people with health conditions and disabilities are condemned not to work and instead live in isolation as passive recipients of benefits."

The reforms include plans to scrap the name 'incapacity benefit', so that recipients will not immediately be regarded as incapable of working and only allowing people to access the new benefits once they have completed a medical assessment.

The plans also include splitting incapacity benefit into two separate benefits – 'Rehabilitation Support Allowance' for those who have more manageable conditions and 'Disability and Sickness Allowance' for those with more severe conditions. Those who receive Rehabilitation Support Allowance will receive a basic benefit rate (around £55) and be encouraged to earn more, by attending work-focused interviews and taking steps to re-enter employment. Those on Disability and Sickness Allowance will receive more money and will be able to volunteer for employment support.

Mr Johnson said: "It doesn’t make sense to have a system that lumps everyone together – treating in exactly the same way, the person with back pain and the person with terminal cancer. And for people with conditions that the right support can make more manageable, we should be rewarding steps towards work instead of the length of time on benefits.

However, Liberal Democrats Shadow Work and Pensions Secretary, Steve Webb, said that the government had "simply failed to get to grips with this issue". He said: "We need to give individuals the support they need to get back into work rather than just forcing them off benefits and into poverty."

Mr Webb said that the Liberal Democrats policy included a refocusing of the New Deal budget to create Individual Work Schemes and the introduction of a Partial Capability Benefits, to enable those on incapacity benefit to take on some paid work without the risk of losing their benefits altogether.

Mr Webb added: "Once again, Labour is trying to sound tough and failing to find solutions."

(KMcA/SP)