DWP is using a sleight of hand in its disability benefit cuts impact assessment: Actual increase in poverty is closer to 400,000, not the 250,000 in the impact assessment.
Changes to rates in Universal Credit increase poverty by 50,000 (Table B3) 3/7
Reversing the previous Government’s planned changes to Work Capability Assessment (WCA) descriptors (which never happened in the end) reduces poverty by 150,000 (Table B4) 4/7
The net effect of the three policies is an increase in poverty of 250,000 (Table B1) 5/7
BUT, this means the total effect of just policies 1 and 2 (i.e. the main cuts announced last week and today) is an increase in poverty of between 350,000 (i.e. 300k from Table B2 plus 50k from Table B3) and 400,000 (i.e. 250k from Table B1 plus 150k from Table B4). 6/7
In summary: The 250k net poverty rise in impact assessment is extra to an assumed 150k rise that previous Conservative plans would have created - even they never happened. But DWP has assumed that increase was already on the books and added to it. Real poverty impact is 400k. 7/7
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Big picture today is Government chose to cut unprecedented £5bn of income from disabled people at highest risk of hardship. This drive for cost savings undermines any positive changes contained in the disability benefits green paper.
Here are some other big problems:🧵1/11
New claimants of Universal Credit’s health element from 2026 will receive ~£48 a week less UC in total than under current system - a huge halving of support (comprising ~£51 cut to UC LCWRA element, offset by only ~£3 rise in UC standard allowance) 2/11
Our @jrf_uk @scope report shows that people currently in this group (UC LWCRA) experience unacceptably high levels of hardship. Cutting health-related UC will just make people poorer and make it harder for people trying to recover from ill health or move towards work. 3/11
Yesterday, a Government press release claimed the number of people “considered too sick to work” had "quadrupled" since the pandemic (a "383% rise"). This is incorrect. In fact, it’s not even close. It's more like 40%.
This thread explains why 🧵1/7
The press release ignores that Universal Credit was still early in rollout pre-pandemic, so starts from a very low number. It ignores equivalent group in the legacy ESA benefit that UC is replacing. You can't compare UC LCWRA over time without including the equivalent ESA. 2/7
As a recent DWP statistical analysis shows, the actual rise between 2019 and 2023 in total LCWRA and equivalent group is around 40%. 3/7
Govt has committed to £3bn cuts to health/disability benefits. But targeting arbitrary savings (set by previous Govt) won't lead to effective reforms that unlock work, and risks deeper hardship for disabled people.
New @jrf_uk @scope report shows the changes we really need🧵1/12
This affects disabled people at severe risk of hardship. Of adults on health-related Universal Credit:
- 75% are in material deprivation (a Govt measure of inability to afford basic items)
- 34% couldn't afford to keep their house warm
- 24% used a food bank last year. 2/12
Even comparing only within families on UC where no one is in work, people on health-related UC have similarly high deprivation risk as people on non-health-related UC. This is despite receiving extra health-related payments via the LCWRA element. 3/12
Today's report from cross-party committee of MPs @CommonsWorkPen calls on Govt to set out a plan to address inadequate benefits that leave people unable to afford life's essentials, pointing to @jrf_uk @TrussellTrust work on an Essentials Guarantee🧵1/6