Rob Moss examines the Pathways to Work Green Paper and its possible implications for employers.
Liz Kendall, minister for work and pensions, spoke yesterday in the House of Commons about the stark realities facing the UK’s economy. 10% of people in working age claim disability or sickness benefits. One out of eight young people, or almost one million people, are not in school, work or training. There are 2.8 million people who have been out of work for a long time due to illness.
The number of people who claim personal independence payments (PIPs), which are based on the individual’s income, is expected to double in this decade from 2 to 4 million. This will be a higher rate among younger people and those with mental health problems.
Kendall said that “our Pathways to Work Green Paper outlines decisive actions to fix the broken benefit system.” “Creating a proactive, work-oriented system for those that can work.” We protect it now, and in the future, for those who are unable to work.
The consultation launched yesterday on the topic of benefits, the greenpaper Pathways To Work: Reforming Welfare and Support to Get Britain working proposes:
- From November 2026, PIP eligibility criteria will be tightened. This could result in a reduction of payments for many.
- Many PIP claimants will have more frequent face-to-face reviews, but those with severe and long-term conditions won’t be reassessed as often.
- In 2028, the work capability assessment for incapacity benefit will be abolished. People will only have to undergo one assessment based on current PIP.
- The universal credit incapacity benefit will be reduced from PS97 to PS50 for those who are already receiving it. Those with severe disabilities, however, will still receive an extra premium.
- Universal Credit will no longer allow people under the age of 22 to receive incapacity benefits.
The biggest change on the employment front is that those who receive welfare will have the “right to test” the possibility of working without risking losing their benefits.
Reassessment triggers
A DWP survey last month on work aspirations revealed that 54% of respondents were concerned that they wouldn’t get their benefits if they attempted paid employment but it didn’t work out. 60% also agreed with the following statement: “I worry that DWP may make me do work I am not suitable for if i ask for help.”
The consultation argues that this shows people are afraid to engage with employment support. The government proposes to make it law that working will not trigger a reassessment. The law will ensure that attempting work won’t trigger a reassessment.
The government will consult on creating “Unemployment Insurance”, which would provide income to those who paid national insurance, as well as the support they need to return to work. This would replace some types of Employment and Support Allowance and Jobseeker’s Allowance benefits.
In the final chapter of this green paper, it is stated that the success of reforms proposed depends on an “accessible” and “inclusive” labour market which is “strong and dynamic”.
In order to support disabled workers into employment, workplaces must be able accommodate their needs.
The government stated that it wanted to “galvanise” a culture shift so that workplace modifications and accessibility are fully integrated into the recruitment and retention processes.
Inflexible employers
Employers are perceived as “untrained” and “uninformed” when it comes to disability by some disabled people. Just 23% of companies reported they made workplace adjustments for disabled employees and those with long-term illnesses.
In the consultation, it is asked how government can help “shift culture and practices” in relation to workplace adjustments. It wants to reform the support for workplace adjustments to be more “active, supportive, and ensure we support employers to fulfill their legal obligations”.
Access to Work
Access to Work, a scheme which provides tailored assistance to people with disabilities and health conditions, is also being reformed by the DWP.
The scheme will cost PS385 millions in 2025-2026, up from PS142 in 2019-20. However, it only supports 60,000 people – or around 1% of the working disabled population.
The scheme hasn’t changed much since 1994, despite the fact that the types of disabilities reported by people have changed, as well as the changes to the technology and labour market.
The government is reforming Access to Work to achieve the right balance in helping people to access employment while also helping them to stay employed.
It wants to help employers make their workplaces more accessible and inclusive in line with their legal obligations. It wants to give individuals targeted funding to pay for workplace modifications, above and beyond what employers could reasonably make.
To reduce costs and increase adoption, the government wants to “shape” the market for assistive devices, appliances, and technology.
The green paper states: “We are committed to bringing about systemic changes in the labour market.” We want employers to create inclusive and accessible workspaces. We also recognize that employers need to do more to meet their legal obligations.
When considering the future of Access to Work the government will want to consider:
- The Equality Act 2010 contains a number of legal obligations relating to reasonable adjustments.
- The government provides support to employers and individuals alike
- Both workers and employers can benefit from advice and guidance
- The powers of enforcement
The report said that the EHRC and Acas, as well as the HSE, should be involved in this process.
The government wants to know how to support employers including SMEs and make sure they are aware of workplace adjustments. It also wants to know how to fund individuals and employers directly so that Access to Work reaches as many people as it can. And how to better define the roles and responsibilities of the EHRC and Acas to create a “cultural change in employer awareness”.
Devil in the details
Ben Harrison, director at Lancaster University’s Work Foundation, stated: “A number changes proposed by Secretary of State could have a positive effect on helping more people out of work to get into employment. They risk being undermined, however, by other measures that aim to cut PS5bn from welfare spending. This could have a negative impact on the living standards for some of society’s most vulnerable.
“An investment of PS1bn into new, more tailored programmes for employment support and a new ‘right to try work’ for those with long-term illness and disabilities could increase the number who are able to find employment.
“But by reducing and restricting access to health benefits, the Government risks prioritising cost-savings in the short term over reforming the welfare systems for the long-term. The changes today will leave new Universal Credit claimants PS40 worse off per week if they choose to apply for the health element.
“In fact, several cuts in health-related benefits are due to be implemented before new employment assistance becomes available. Those impacted may find themselves without the support they require, or have little choice but opt into insecure, low-paid employment. It could also have a negative impact on their health and wellbeing. They may be forced to bounce from job to job, and become dependent on welfare.
Stephen Evans, CEO of the Learning and Work Institute said that only one out of ten disabled people who are unemployed receives help in finding work, even though two out of ten want to work. The green paper includes steps that will help change this, such as regular support conversations and an expansion of voluntary employment assistance worth PS1bn.
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The devil lies in the details. It will take a broad-based approach to bring about lasting improvements in people’s lives, and to save money for the taxpayer. This includes integrating work, skills and health services and working with employers on healthy workplaces and innovative ways to design jobs. Cuts made in the short term don’t always produce the savings hoped for and can even increase poverty. “A more inclusive system that is supportive and inclusive can benefit people, employers and tax payers.”
The Pathways to Work Consultation closes 30 June 2025.
