What plans to 'radically' shake up DWP rules for disability assessments could mean for you

Labour is reportedly forging ahead with alterations to disability benefit assessments, but what implications could this have for individuals?

Chancellor Rachel Reeves is aiming to slash £3 billion from the government's benefits expenditure, with changes anticipated to be unveiled in the forthcoming Autumn Budget. One of her strategies is said to involve a revamp of Universal Credit's Work Capability Assessment (WCA).

Under the existing benefits framework, claimants with health conditions or disabilities are required to undergo a work capability assessment (WCA) to determine their capacity for employment and eligibility for additional financial support when claiming Universal Credit.

Previously in 2023, the former Conservative administration announced plans to reform this assessment. Data from the Department for Work and Pensions (DWP) suggests that the proposed modifications could result in approximately 450,000 fewer individuals being classified as having "limited capability for work".

Labour has also pledged to overhaul the WCA, acknowledging that the current system is "not working" and has highlighted its commitment to "radically" transform benefits for those whose health restricts their work capacity. It appears that Rachel Reeves is set to continue with the reforms initiated by her Conservative predecessor Jeremy Hunt, which were projected to save around £1.3 billion annually by 2028-29, reports the Mirror.

Labour has pledged a "proper plan to support disabled people to work", as well as initiatives to ensure all young individuals aged between 18 and 21 years are either "earning or learning". The government has yet to confirm its plans, with reports suggesting that the proposed changes will be unveiled later this autumn.

Under the previous Tory plans, the WCA reforms would alter the descriptors used to determine eligibility for certain benefits. Labour has been cautioned that changes to the WCA should not be made hastily.

The Resolution Foundation think tank highlighted that the reform could reduce benefits for those unable to work due to health by potentially £4,900 annually. The report stated: "They will degrade living standards for low-income families, with 47% of families who receive these incapacity benefits coming from the bottom 30% of the income distribution."

The report urged the government to allow "sufficient time" for effective implementation and questioned the previous government's rationale that the changes would encourage more people into work, arguing "it is in reality a straightforward cost-saving measure".

Its research indicates that only around 3% of those affected - approximately 15,400 individuals - would transition into work, while the rest would remain unable to work and nearly £5,000 worse off. .

A spokesperson for the Department for Work and Pensions stated: "Spiralling inactivity and millions of people denied the right support is holding the country back and stifling the economy. We believe the Work Capability Assessment is not working and needs to be reformed or replaced, alongside a proper plan to support disabled people. We will deliver the change the country needs; supporting those who can work, into work, and delivering growth in every part of the country."