Labour’s Plans for Universal Credit and Employment Support
researchbriefings.files.parliament.uk/documents/LLN-2024-0042/LLN-2024-0042.pdf
Summary:
The Labour manifesto committed to “reviewing universal credit so that it makes work pay and tackles poverty” but did not detail the scope of the review. It emphasised reforming employment support to drive growth and opportunity, with a system underpinned by rights and responsibilities, indicating that those who can work should work, with consequences for those who do not fulfill their obligations.
When Keir Starmer campaigned to be elected Labour leader in 2020, he pledged to abolish universal credit and end the sanctions regime. However, Labour’s current policy is to reform rather than abolish universal credit. In March 2024, the shadow secretary of state for work and pensions, Liz Kendall, criticised the Department for Work and Pensions’ focus on benefits and universal credit, contrasting it with Labour’s investment-focused “back to work plan,” which emphasises employment support, mental health services, careers advisers in schools and job centre reforms.
Following the general election, Liz Kendall made her first official visit as secretary of state for work and pensions on 11 July 2024. The DWP press release highlighted the “three pillars” of the government’s back to work plan:
– A new national jobs and careers service
– New work, health, and skills plans for the economically inactive
– A youth guarantee for all young people aged 18 to 21
“The manifesto proposes reforming or replacing the work capability assessment (WCA), which provides access to health-related payments in employment and support allowance and universal credit. This commitment echoes a policy from the previous Conservative government. On 15 March 2023, the government published a health and disability white paper, proposing to abolish the WCA and instead use the personal independence payment (PIP) assessment for accessing these benefits. This change would require new legislation. Keir Starmer, the then leader of the opposition, welcomed the announcement, as Labour had long advocated for WCA reform.
The Institute for Fiscal Studies (IFS) analysed the proposal, noting that about 1 million people receiving additional health benefits through the WCA might lose £354 per month. The reform could increase the number of PIP assessment applicants, exacerbating the current 14-week wait times. The IFS highlighted the challenge of reallocating WCA resources to handle the increased PIP claims.” ifs.org.uk/publications/effects-reforms-work-capability-assessment-incapacity-benefits
https://researchbriefings.files.parliament.uk/documents/LLN-2024-0042/LLN-2024-0042.pdf
Oral statement to Parliament: The King’s Speech 2024 and King’s Speech 2024: background briefing notes.
