The first steps in the Work and Pensions Secretary's plan to
drive up opportunity and drive down poverty across the UK were
unveiled in the Government Budget yesterday (Wednesday 30
October).
As the department shifts its focus from welfare to work, a £240
million package will open up opportunities to millions of people
left behind and denied the opportunity to get into work and get
on at work.
These major changes will address spiralling economic inactivity
and a record 2.8 million people locked out of work due to long
term sickness and are part of the Government's ambition to reach
an 80% employment rate.
The Get Britain Working White Paper will develop:
- A new jobs and careers service to help get more people into
work, and get on in their work, by linking jobseekers with
employers, with an increased focus on skills and careers;
- Joined-up work, health and skills plans to tackle economic
inactivity and boost employment, led by Mayors and local areas;
- A new Youth Guarantee so that every young person is given the
opportunity to earn or learn.
Those with caring responsibilities will able to earn more without
losing government support, with the Carer's Allowance earnings
threshold boosted by £45 a week to £196, benefitting more than
60,000 carers by 2029/30. This is the biggest ever cash increase
in the earnings threshold for Carer's Allowance. This is
alongside an independent review into Carer's Allowance
Overpayments led by Liz Sayce OBE.
As well as boosting pensions and benefits through annual
uprating, a new Fair Repayment Rate will be introduced, reducing
Universal Credit deductions. This will mean 1.2 million of the
poorest households will benefit by an average of £420 a year.
£1 billion, including Barnett impact, will be invested to extend
the Household Support Fund in England by a full year, on top of
the six months already announced, and to maintain Discretionary
Housing Payments in England and Wales. This will help struggling
families and pensioners facing the greatest financial
hardship.
Work and Pensions Secretary, said:
We promised change, and that is what we will deliver.
For too long, millions of people have been denied opportunities
to work and build a better life, and too many children are
growing up in poverty, harming their life chances and our
country's future.
This Budget shows the first steps in our plan to drive up
opportunity and drive down poverty in every corner of the
country.
There is still much more to do, but this Budget has shown change
has begun.
Measures announced today will also improve how the department
detects and prevents fraud and error, so support is targeted
where it is needed most and taxpayers know every pound is spent
wisely. These changes are expected to save £7.6 billion by
2029/30.
The Secretary of State has also concluded her annual review of
the State Pension and benefit rates, which will see:
- A 4.1 percent increase to the basic and new State Pensions
due to the Triple Lock commitment – meaning those on the full
rate of the new State Pension will now see an increase of over
£470 per year.
- A 1.7 percent increase to Universal Credit and other
working-age benefits – worth an average £12.50 per month for a
family on Universal Credit.
Further Information
- The Get Britain Working White Paper will be published in
Autumn and will set out the government's plans to reform
employment support and tackle the root causes of record-high
inactivity.
- Welfare reforms announced at Autumn Budget include:
- A new Fair Repayment Rate to reduce Universal Credit
deductions from 25% to 15%.
- A £240 million Get Britain Working package
- An extension of the Household Support Fund
- Maintaining Discretionary Housing Payments funding.
- Raising the Carer's Allowance earnings threshold by £45 a
week
- Uprating disability benefits and working age benefits
including Universal Credit by 1.7% in line with the year to
September 2024 Consumer Prices Index figure.
- Uprating basic and new State Pensions and the standard
minimum guarantee in Pension Credit by 4.1% in line with the
average weekly earnings figure for the year to May to July 2024.
- Improving fraud, error and debt detection and prevention.
