Thank you for contacting me about Employment and Support Allowance (ESA) and the Welfare Reform Bill.
In the Summer Budget 2015, the Chancellor announced that, from April 2017, new ESA claimants who are placed in the work-related activity group (WRAG) will receive the same rate of benefit as those claiming Jobseeker’s Allowance (JSA). This change only affects new claims made after that date and there will be no cash losers among those who are already in receipt of ESA.
The record employment levels and strong jobs growth in recent years have benefitted many, but these benefits have yet to reach those on ESA. While 1 in 5 JSA claimants move off benefit every month, this is true of just 1 in 100 of ESA WRAG claimants. Those with health conditions and disabilities deserve better than this.
It is important to tackle this as, in addition to providing financial security for individuals, there are economic, social and moral arguments that, for those who are able to, work is the most effective way to improve the well-being of individuals, their families and their communities.
Those in the WRAG currently receive additional cash payments, but little employment support. As the Prime Minister has recently stated, this fixation on welfare treats the symptoms, not the causes of poverty; and, over time, it traps people in dependency as, in the current system, the additional cash payment acts as a disincentive to moving into employment. That is why the Government are proposing to recycle some of the money currently spent on cash payments, which are not actually achieving the desired effect of helping people move closer to the labour market, into practical support that will make a genuine difference to individual’s life chances.
This new funding will be worth £60 million in 2017/18, rising to £100 million in 2020/21. It will support those with limited capability for work to take steps to move closer to the labour market, and when they are able, back to work. This additional practical support is part of a real terms increase that was announced in the Autumn Statement. How the support will be spent is going to be influenced by a Taskforce of representatives from disability charities, disabled people’s user-led organisations, employers, think tanks, provider representatives and local authorities.
It is important to improve what is on offer for these individuals because we know that most people with disabilities and health conditions want to work, including 61 percent of the WRAG, and there is a large body of evidence showing that work is generally good for physical and mental wellbeing...
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