Government risks prioritising short-term cost savings over effectively reforming the welfare system


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The Work Foundation at Lancaster University responded to to the latest announcements from the Government's Pathways to Work Green Paper. Ben Harrison, Director of the Work Foundation at Lancaster University, commented:

“A number of the changes proposed by the Secretary of State today could have a positive impact on supporting more of those out of the labour market to enter work. But they risk being undermined by other measures which seek to deliver £5 billion in welfare spending cuts which could hit the living standards of some of the most vulnerable people in society.

“A commitment to invest £1 billion in new, more tailored employment support programmes and a new “right to try work” for disabled people and those with long-term ill health could boost the number of people able to enter employment.

“But in reducing and constraining access to health-related benefits, the Government risks prioritising short-term cost savings over effectively reforming the welfare system for the long haul. For example, new claimants to the health-related element of Universal Credit stand to be £40 per week worse off as a result of the changes proposed today.

“Indeed, with several cuts to health-related benefits due to be introduced ahead of new employment support becoming available, those impacted may be left without the support they need, or find themselves with little choice but to opt in to insecure and low paid employment. This could further impact their health and wellbeing, and lead to them bouncing in and out of work, and remaining reliant on the welfare system.”

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