Recommendation 6

HM Government Rejected

IPS for people with Severe Mental Illness (SMI), is already a national NHS service available across England. IPSPC has adapted that model for people with more moderate physical or common mental health conditions. IPSPC services began in April 2023 and will support over 25,000 disabled people in 41 top tier local authorities in England to find and stay in work by March 2025. The learning from IPSPC will inform the design and delivery of Universal Support which will be introduced nationally from 2024. IPSPC services will work alongside Employment Advisers (EAs) in NHS Talking Therapies Talking Therapies enables patients to access combined therapeutic treatment and employment support to help them to remain in, return to or find work and improve their mental health. The Employment Advisers in NHS Talking Therapies programme is expanding from 40% of NHS Talking Therapies sites across England to 100% of sites by spring 2024. The service is being extended through the recruitment and training of approximately 700 Employment Advisers so that up to 100,000 people can receive the combined offer each year from 2024/25 onwards. Conclusion and recommendation 7 The benefit rules for Universal Credit and Housing Benefit can interact in such a way that a cliff edge arises when claimants in supported accommodation who must claim both benefits work more than 12 hours a week. This is counter-productive to encouraging younger employees to return to the labour market. DWP should not maintain any policies or practices that stand in the way of people who want to work. Not only does this reduce labour market engagement in the short-term it can also prevent people from progressing at work and becoming financially independent in the long-term. DWP needs to remove this cliff edge. The Government should increase the applicable amount within Housing Benefit for young people in supported accommodation to £117.56 a week, either by raising the personal allowance or by introducing a new premium. This would bring the benefit taper in line with those not in supported housing. This change should be implemented no later than the start of the 2024–25 financial year. (Paragraph 57) Response The Department acknowledges the challenge presented by the interaction between Universal Credit and Housing Benefit for those residing in supported housing and it remains the Department’s ambition to address this issue as part of on-going work to improve support for the most vulnerable in society. The recommended approach detailed within the report risks disadvantaging some customer groups. However, we acknowledge that there would also be significant positive implications from such a change, including impact on claimants’ well-being and the wider labour market, so officials are working to develop effective and deliverable policy options. After a successful bid to the Labour Market Evaluations and Pilot Fund, we are also designing a proof of concept in conjunction with West Midlands Combined Authority. The voluntary PoC will test financial support for eligible 18–24-year-olds living in commissioned supported housing who move into work or increase their working hours and cease receiving Universal Credit. They will receive a top up payment for 6 months. We are hopeful that this will provide new insight to inform future policy. The Department are keen to act but it would be challenging to eradicate this issue as early as April 2024. All options would require secondary legislation and system upgrades to enable implementation. Funding would also need to be secured through a future fiscal event before implementation activity could begin. Conclusion 8 We welcome the Minister for Disabled People, Health and Work’s intention for “a root and branch” review of the Disability Confident scheme and his acknowledgment of the role this will play in changing attitudes around disabled workers. (Paragraph 61) In late 2021, we began a review of the Disability Confident Scheme, announced in the National Disability Strategy (NDS), which gathered evidence and views about the scheme from a broad range of stakeholders including the Disability Confident Business Leaders Group and Professional Advisers Group, and from employers’ disability charities, and other key stakeholders. However, in January 2022, the High Court declared the NDS was unlawful, therefore, we paused work directly related to the Disability Confident review. In July 2023, the Court of Appeal overturned the High Court’s previous declaration that the NDS was unlawful. In light of this decision, we have re-examined the evidence gathered and the initial review findings, and officials are refining the recommendations. We will continue the important work of implementing this long-term strategy to transform disabled people’s everyday lives for the better. The Government is currently consulting on the Disability Action Plan, the consultation closes on the 6th of October 2023. The government response to the consultation will be