What changes might the new Labour government make to the benefits system?

Following Labour’s landslide victory at the polls, the nation’s attention shifts to the possibilities that lie ahead. The newly elected government has promised to transform the welfare benefits system – a subject that has sparked much conversation and controversy.

In this article, our Welfare Benefits advisors delve into the anticipated reforms and initiatives set to unfold under the new Labour government and consider how they might affect you.

What changes did Labour set out in their manifesto?

Labour’s approach to welfare has traditionally centred on the principles of social justice and equality, aiming to provide a safety net for the most vulnerable in society. The party has criticised the existing welfare system for failing to offer adequate support to those in need, suggesting that significant changes are likely.

These could include changes to the rules around eligibility to make the system more compassionate and supportive for those with disabilities and long-term health conditions.

The Labour party manifesto and plans focused on getting people back into work and supporting them to do so. They outlined a supportive approach to upskill people at a local level, providing opportunities for those who can work to do so.

Their proposals also suggested they would address the reasons behind people not being able to work. For example, the rise in NHS waiting lists contributes to the number of people out of work due to injury, illness or poor health.

They want to clear the backlog of access to work claims and enable people to work. Although it’s not clear on the steps that will be taken, a review of the capability for work process has also been discussed.

What support will be put in place for people who can’t work?

The Labour party want to address the support available to people who are unable to work.

They’ve committed to reforms of Universal credit and reviewing minimum wage, which could include the removal of age banding to ensure equality for all adults.

The party also indicated a desire to address the issues surrounding disability benefits. Recent plans to reform Personal Independence Payments (PIP) were shelved due to the election, and the party has pledged an injection of empathy and humanity into the PIP process, which would be welcomed by disabled people.

No plans have been outlined to cut benefits, but the commitment to address fraud and encourage people back to work is clear in the manifesto. There’s a focus on rights and responsibilities, suggesting that there may be consequences for people who don’t fulfil their obligations.

Labour has confirmed their commitment to tackling child poverty and reducing the number of people who rely on food parcels, though it’s not yet clear how this will be addressed alongside the pledges around supporting people back into work.

Carers allowance has not been mentioned, despite calls for change to recognise the high thresholds and low rates of payment. Whether or not this will be addressed remains to be seen.

Expert opinion

As an expert welfare benefits advisor, I’d welcome changes from the new government that would bring fair access to the welfare benefits system and equality. This would involve reducing age thresholds for universal credit and minimum wage. This would drive forward reducing social inequality and reliance in the community on food parcels. Any support for getting those who can work back into work needs to be effective and achievable on the ground.”

Melissa Davis, Senior Welfare Benefits Advisor

How can we help?

Many people find the welfare benefits system complex and difficult to navigate. With a mixture of means and non-means-tested benefits available it can be hard to find the relevant information and work out what you can claim for.

A serious injury or illness can change your financial position suddenly, if for example, it means you’re unable to work. This means, many of our clients worry about paying their mortgage or bills.

It’s important to know that your finances are looked after so you can focus on your recovery. Claiming the benefits you’re entitled to can make a huge difference. With the prospect of change bringing additional uncertainty, it’s important that you seek expert advice to make sure you and your family are looked after.

If you, or someone you care for has sustained a serious injury or been diagnosed with an illness that means you’re unable to work, we can help. Our Welfare Benefits advisors are specialists in their field and are on hand to ease the burden and guide you through the process.