Source · Select Committees · Work and Pensions Committee
Recommendation 2
2
Accepted
Incapacity benefit system is broken, failing to adequately support people into work.
Conclusion
We agree that the incapacity benefit system is broken. It focuses too much on what people cannot do and on assessing claimants’ eligibility for benefits, rather than on supporting them into work. As concluded by many of the most reputable authorities in this area, the disparity in rates and conditionality rules has no doubt impacted on economic inactivity. Whether people are being parked on benefits depends largely, however, on the barriers to their engaging with the available employment support or attempting to move into work. The Government recognises this point in the Green Paper and has set out proposals to address the challenges. The success of its reforms, which we discuss later in our report, will depend on whether it really can improve levels of trust in the system. (Conclusion, Paragraph 36)
Government response summary AI-generated
The government outlined the Severe Conditions Criteria (SCC), in use since September 2017, which aims to reduce reassessments for individuals with severe, lifelong conditions, and described stakeholder engagement regarding its application within the Universal Credit system.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Accepted
HM Government · verbatim extract
Accepted
We support the Committee’s conclusion that the incapacity benefit system is broken1 and we remain committed to our principles for reform – that those who can work should work, if you need help into work the government should support you, and that those who can never work should be supported to live with dignity. The package legislated for by the Universal Credit Act 2025 puts in place important reforms that deliver on these principles by tackling work perverse incentives and making sure people with severe conditions are not subject to unnecessary reassessments.
Read the full response on Parliament ↗