The Department for Work and Pensions has been advised to withdraw Universal Credit and Personal Independence Payment from individuals with three specific conditions.
According to analysis, shelved welfare reforms are projected to cost each taxpayer £700 annually. The Centre for Social Justice (CSJ) cautions that the government’s decision to dismiss potential savings identified in the Timms Review will lead to a significant rise in welfare spending and trap millions in a cycle of benefit dependency.
The CSJ proposes withdrawing UC Health and PIP from those suffering from milder forms of anxiety, depression or ADHD – affecting approximately 1.1 million people – and adjusting remaining awards to £103 per week.
This move could result in savings of £7.4bn by 2029/30, with at least £1bn recommended for reinvestment into significantly expanded NHS Talking Therapies, social prescribing and employment support.
The DWP has also been urged to implement a Future Workforce Credit, effectively a tax cut for employers hiring NEETs, funded by eliminating the UC health element for those under 22. This initiative could help 120,000 young people secure jobs while generating £765m in tax and welfare savings, reports Birmingham Live.
Additionally, the DWP is encouraged to establish a new Work and Health Service. Funded by £300 million in savings, this service would extend the ongoing WorkWell pilots to assist more people with workplace adjustments, thereby relieving overstretched GPs of the responsibility for fit notes.
The Government has also been encouraged to reintroduce domestic job advertising regulations, necessitating employers to advertise roles to UK workers prior to recruiting under the visa system.
Joe Shalam, Policy Director at the Centre for Social Justice, commented: “Everyone can see the system is failing. Abandoning proper welfare reform while costs surge is a political choice with a £27 billion bill attached.
“That bill lands on every taxpayer, and even worse, a lost generation will be stuck on benefits with no route back to work or independence. It is time for change this Budget.”