DWP benefit claimants to lose 'up to £4,900' if Labour keep Tory plans

As Labour's first Budget looms and Chancellor Rachel Reeves weighs how to balance the £22 billion "black hole" left in the nation's finances by the previous Tory government, concerns are growing that a derided change to Work Capability Assessments carried out by the Department for Work and Pensions (DWP), might end up going ahead despite the change at Number 10.

Government benefits have already proved a fruitful way to slash day-to-day spending, with millions of pensioners now missing out on the £300 Winter Fuel Payment, unless their monthly income qualifies them for the Pension Credit top-up. But under Conservative plans to change the DWP's disability benefit assessment, roughly 450,000 benefit claimants could lose as much as £4,900 a year, according to the Resolution Foundation.

The change would make it more difficult for disabled Brits to qualify for the Limited Capability for Work Related Activity (LCWRA) award, which is worth £416 a month and means the claimant is unable to, and therefore does not have to, find gainful employment. Currently, this level of disability accounts for the majority of people who go through the DWP assessment system.

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When this change was initially floated under the previous government, it was with the intention to reduce the number of people dropping out of the labour market due to mental health difficulties, while keeping the LCWRA as "a safety net for those with the most severe mental or physical health conditions."

Part of this change would have been the removal of the "substantial risk" distinction, which now accounts for around a fifth of successful claims for the higher award of disability benefit. This distinction allows for a higher disability award if the claimant is likely to suffer "substantial risk" to their physical or mental health if they do not receive the LCWRA - which can often help people suffering a severe mental health crisis.

Regardless of the outcome of the Budget at the end of the month, the Work Capability Assessment is likely to be changed under the new administration, with Labour mentioning reform in their election manifesto. It read: “We believe the Work Capability Assessment is not working and needs to be reformed or replaced, alongside a proper plan to support disabled people to work.”

Though Labour are yet to announce whether they are dropping this change, which could see half a million vulnerable Brits who would currently qualify for the LCWRA be forced to apply for jobs, under the fiscal rules laid out by Labour as they came into power, they are unable to borrow money to pay for benefits. This means they will have to follow through with the change, which has been accounted for by the Treasury, or raise taxes to pay for it.

A Resolution Foundation report on the cutback's impact explained: "The rising spending on disability and incapacity benefits is a genuine pressure on the public finances, but the real public policy failure here is the underlying deterioration in the nation’s health.

"If the need for support for the nearly half a million people affected by this reform is not alleviated, then it’s almost certain that other parts of local or central government will end up stepping in to support these disabled people."