Disability benefit reforms will allow people to continue claiming payments after returning to work, and could include tax breaks for getting jobs under plans being considered by the minister.
The government has taken into account the rising number of working-age adults with long-term illnesses, following apparent concerns about fulfilling Rishi Sunak’s promise to achieve economic growth by the end of the year. I’m thinking about how to get people back to work.
Sources emphasized that the idea is in its early stages, but did not dispute that “fundamental” changes are being considered to “rewire” the system.
It has been suggested that performance assessments used to assess eligibility for benefits may be overhauled or eliminated.
Employment and Pensions Secretary Mel Stride wants to get rid of ‘perverse incentives to prove how sick you are’ and instead let claimants prove what jobs they might be able to do It is said that he thinks
The overhaul of the payment system, first reported by The New York Times, will be similar to the tapering of universal credit, with support dwindling gradually as revenue increases.
The Treasury Department is also reportedly considering tax cuts to encourage people to return to the workforce. Whitehall officials have allegedly proposed exempting people over the age of 50 from income tax for up to a year if they return to work.
Last fall, Sunak asked Stride to look at issues preventing employee participation by earlier this year.
The prime minister has previously said, “We need to look at how our welfare system operates and we want to make sure it’s operating in a way that supports and encourages people who are able to work. is needed.”
A white paper outlining the government’s plans is understood to be issued by the Ministry of Labor and Pension before the spring budget on March 15th.
Since the pandemic, the number of people forced out of work has increased significantly.
In the second quarter of 2019, there were 42% more people aged 25-34 with long-term illness compared to the same period in 2022. According to the National Statistics Office, 64.
Encouraging more people to return to work is part of the government’s efforts to ensure it delivers on one of Sunak’s five “New Year’s Promises” of delivering economic growth.
The UK economy contracted by 0.3% in the three months to September last year. The British Chamber of Commerce considers this to be the start of his five-quarters recession that will last until the end of 2023.
Delivering on the economic pledge is his mission to restore voter confidence by demonstrating that the government is still strong enough and making progress on its promises such as tackling the NHS waiting list and halving inflation. is key to Sunak’s hopes of proving that it can fulfill