DWP Secretary Liz Kendall Announces Increase in Universal Credit Payments
Published on Wales Online
The Department for Work and Pensions Secretary, Liz Kendall, has made a significant announcement regarding an increase in Universal Credit payments. In her statement to the Commons, Liz Kendall revealed plans for a permanent, above-inflation rise in the standard allowance of Universal Credit. Moreover, there will be legislative reforms aimed at rebalancing payments for the benefit. This move is part of a broader strategy to focus on prevention and early intervention to prevent individuals from exiting the workforce.
One of the key highlights of the announcement is the commitment to raise the standard Universal Credit allowance by £775 by the financial year 2029/30. Additionally, Liz Kendall confirmed that Personal Independence Payment (PIP) will not be frozen or means tested. Individuals with severe disabilities and health conditions will not undergo reassessment for their ability to work. This increase in Universal Credit payments is accompanied by a reform of disability benefits outlined in a new green paper, aiming to address and rectify issues within the current benefits system.
According to the Work and Pensions Secretary, these changes signify a decisive effort to create a more proactive and pro-work system for those capable of working, while ensuring long-term protection for those unable to work. Liz Kendall emphasised the government’s commitment to providing a social security system that is always accessible to individuals in genuine need. Furthermore, she stressed the importance of equality, asserting that disabled individuals and those with health conditions who can work should have equal opportunities and support to enter the workforce.
In a proactive approach, the government aims to generate savings of up to £6 billion from the bill as Chancellor Rachel Reeves navigates economic challenges and increasing debt interest costs. To support this initiative, Liz Kendall announced the abolition of the “work capability assessment” for Universal Credit. This assessment, previously used to determine eligibility for incapacity benefit payments, will no longer be a part of the process for individuals with illnesses or disabilities affecting their job prospects.
The reforms introduced by Liz Kendall underscore the government’s commitment to creating a fair and inclusive benefits system that supports individuals in need while empowering those capable of work. This approach aligns with a broader agenda to address the shortcomings of the current system and ensure that individuals with disabilities and health conditions have equal opportunities in the workforce.
The announcement of the increase in Universal Credit payments and the reform of disability benefits marks a significant step towards achieving a more equitable and supportive social security system in the UK. By prioritising prevention, early intervention, and equality, the government aims to create a system that provides assistance to those in need while enabling individuals to fulfil their potential in the workforce.