Below is a summary of the main proposals contained within the welfare reform green paper. Following the publication of the government response to the consultation on the Green Paper some of these proposals have been amended. You can view this response as well as an easy read version by clicking on the government response to the green paper consultation link at the bottom of the page.
These amendments have been added to the summary as notes.
The main proposals are as follows;
Reforming incapacity benefit and helping people who are sick or disabled into work.
Replace incapacity benefit (and income support paid on the grounds of incapacity) with a new 'employment and support allowance' (ESA) for new claimants by 2008. This will have an enhanced employment support component for those claimants (the majority) who will be undertaking mandatory Work Focused Interviews and later work related activity. Note that following the response to the Green Paper the Government intends to move existing claimants onto this new scheme in time. It is also considering using a different name instead of employment support component. It may be called Work Related Activity Component.
ESA will be at a lower level for people under 25 in the pre-assessment statge. Find out more.
Those who cannot engage in any activity because of the severity of their condition (though they will be given help and support to find work should they wish) will receive an enhanced support component. People in this group will not necessarily be those from the current exempt categories. Note that following the response to the Green Paper the Government is considering using a different name instead of enhanced support component.
Introduce mandatory work focused interviews supported by a mandatory action plan of return to work activity for new and existing claimants.
There will be benefit sanctions for those who don't comply. These sanctions would reduce the benfit paid in "slices", ultimately to the level of jobseeker's allowance.
Revise the medical assessment (personal capability assessment) focussing upon ability and support needs (capability and capacity)
rather than incapacity.
Assessments wil take place annually where appropriate, or less often for people with conditions that deteriorate or do not improve.
The new medical assessment will be completed within 12 weeks in the majority of cases . No one will be able to receive more than the level of jobseeker's allowance before their personal capability assessment has been carried out. There will be no disability premium on grounds of incapacity during the 12 week period.
Provide in-work support to ensure people continue working - with a return to Work Credit to ensure people really are better off in work.
Simplify statutory sick pay (SSP) to enable employers to better manage sickness and to address the flow of people from SSP to incapacity benefits. Note that following the response to the Green Paper the Government has decided not to proceed with these changes at this time.
Change the rules for jobseeker's allowance and increase contact with lone parents to limit the flow of people from other benefits to incapacity benefits.
Take steps to increase their awareness of the opportunities on offer, for example through providing information at medical examination centres when claimants attend a review.
Place employment advisers in GP surgeries.
Financial incentives for local authorities to engage with the private and voluntary sectors to establish local back-to-work schemes, for people claiming benefit on the basis of incapacity.
A £360 million roll out of Pathways to Work across the country by 2008.
Extending support to lone parents
Piloting a new Work Related Activity Premium for Lone Parents on IS whose youngest child is aged at least 11 (and consulting on a younger age).
Increasing the frequency of Work Focused Interviews from once a year (now) to quarterly for those with a youngest child aged at least 11.
Increasing the frequency of Work Focused Interviews for all lone parents who have been on benefit for at least a year and whose youngest child is under 11 from yearly to every 6 months.
piloting additional Work Focused Interviews in the first year of a claim for income support.
Working with employers to develop "work taster" programmes for lone parents.
Exploring new ways of increasing the support that Jobcentre Plus can give to lone parents who are moving into, or who are already in work.
Extending support for older workers.
Aligning employment support for those long-term unemployed aged 50-59 with those in their 30s and 40s.
Improving back to work support for jobseekers over 50 and their partners.
Piloting "face to face guidance sessions" to help people to make decisions about work, training and retirement.
Working with employers to extend flexible working arrangements.
Reforming housing benefit.
Rolling out an adjusted version of the local housing allowance (LHA) to the deregulated private rented sector. Note that following the response to the Green Paper the Government LHA will not be extended to tenants in social housing.
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Welfare (incapacity benefit) reform green paper - A new deal for welfare: Empowering people to work
