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Welfare Reform Act 2007

background 
what the welfare reform act contains 
personal capability assessment review 
more information

Background

In November 2002 Andrew Smith, Secretary of State for Work and Pensions announced government intentions to provide "a new framework of help for those who through illness or disability have applied for incapacity benefit" in order to help them get back into work.

The proposals for this framework were set out in the consultation paper, "Pathways to work: Helping people into employment".

Subsequently a number of pathways to work pilot areas were set up where those making a claim for incapacity benefit, severe disablement allowance or income support (because of incapacity for work) had to attend work focused interviews to discuss their work prospects.

Work focused interviews were later introduced in non-pathways to work areas, though the rules are slightly different from those in the pilot areas, which are still in operation.

Welfare reform, in part, extends the existing pathways to work and work focused interview schemes but its remit is much wider as is not solely concerned with those who have an illness or disability.

The aim of welfare reform is to achieve an 80% employment rate for people of working age. In particular the government would like to

• reduce the number of people on incapacity benefits by 1 million.
• help 1 million older workers into employment.
• help over 300,000 lone parents into work.

Government intentions for welfare reform were outlined in the dwp five year plan and the welfare reform green paper - "A new deal for welfare: Empowering people to work".

The Bill received Royal Assent as the Welfare Reform Act 2007 on 3 May 2007.

What the Welfare Reform Act contains

The Act provides for:

• the new employment and support allowance (ESA) which will replace incapacity benefit and income support paid on the grounds of incapacity from October 2008.
• the national roll out of local housing allowance
• an anti-social behaviour – pilot scheme
• various amendments affecting social security administration, fraud, widowed mothers allowance/widowed parents allowance, disability living allowance, attendance allowance, the social fund and the Independent Living Funds

You can view a summary of the act as well the Welfare Reform Act itself.

Personal capability assessment (PCA) review

Employment and support allowance (ESA) will have a new method of assessment instead of the current pca test used for incapacity benefit. You can find out more about this on our transformation of the personal capability assessment page.

More information

• disability alliance esa factsheets
• government
  1. pathways to work tenders
  2. testing the new pca test - parliamentary question
  3. work and pensions committee gives verdict on proposed reforms to incapacity benefits
  4. select committee to inquire into how the government will reach its aim to achieve an employment rate of 80%
• transformation of the personal capability assessment
• welfare reform act
  1. press release
  2. welfare green paper
  3. full text (pdf version)
  4. full text (web version)
  5. full text (northern ireland version)
  6. summary

Note: for pdf files you will need to download adobe acrobat reader. To convert the pdf to alternative formats or for more information on accessibility go to access adobe.

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