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
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.
Government Response
Accepted
HM Government
Accepted
The Severe Conditions Criteria (SCC) has been in use since September 2017 to reduce unnecessary disruption to customers with the most severe, lifelong conditions, for whom reassessment is unlikely to provide further new information or lead to a change in the outcome of their benefit application. A range of stakeholders were engaged in 2017 and involved in the development of the criteria. Conversations about the eligibility criteria in relation to the protected rate of UC health were held with representatives from Scope, Parkinson’s UK, Disability Benefits Consortium and Inclusion Barnet, Mencap, Multiple Sclerosis Society, Carers UK, Citizen’s Advice and Disability Rights UK on the 2nd and 3rd July 2025 after the UC Bill passed second and third reading in the House of Commons. Any customer who has functional LCWRA advised during a WCA will automatically be considered for SCC, irrespective of their diagnosis or medical condition. If they have a lifelong health condition, they have undergone clinical investigation and formal medical diagnosis by an appropriately qualified healthcare professional in the course of the provision of NHS services and there is no realistic prospect of recovery of function, then SCC would be advised.