Tories Propose DWP Stop Accepting Benefit Claims for Three Health Conditions; IFS Questions £36bn Savings

Conservative plan to restrict DWP benefit claims for mild mental health and back and joint pain conditions: The Tories have proposed that the Department for Work and Pensions stop accepting claims for mild mental health conditions and routine back and joint pain, a reform scored at £14bn. The Institute for Fiscal Studies says the wider £36bn savings claim may not be realistic.

Conservative plan to restrict DWP benefit claims for mild mental health and back and joint pain conditions, Digi Mart USA News (United Kingdom): A plan for the Department for Work and Pensions (DWP) to stop accepting claims for mild mental health conditions, routine back pain and routine joint pain has been put forward by the Conservative Party. The Institute for Fiscal Studies (IFS) says the Tories’ claim that their DWP welfare cuts will save £36bn might not be realistic.

The Conservatives’ cuts to working-age health-related benefits, scored at £14bn, are based on a reform under which “claims for mild mental health conditions and routine back and joint pain will no longer be accepted,” the IFS said. The IFS said: “Two proposals make up more than half the proposed saving, and both come with significant uncertainties.”

The IFS explained that under the existing system, claims for Personal Independence Payment (PIP) are assessed based on what the individual is unable to do, such as cooking or getting around, while claims for the health element of universal credit are assessed based on the individual’s capacity to work. Neither assessment is linked to specific conditions.

Cutting benefits for people with particular conditions might require a diagnosis from a specified list, but this could save less than expected because many health-related benefit claimants have multiple health problems.

Previous IFS research found that two-thirds of those on disability benefits (PIP) with a mental health diagnosis also have a physical health diagnosis. The IFS said such a reform would also incentivise claimants to obtain a diagnosis to make them eligible.

Tom Waters, an IFS associate director, said: “Substantial savings from the benefit system are absolutely possible. But some savings are much more certain than others, and the Conservatives’ proposals are at the more uncertain end of the spectrum, though, if realised, they would undo all the growth in real working-age benefit spending since the pandemic.”

Waters added: “The cuts are also fairly narrowly targeted, implying large losses for a small number of people. In particular, some of the foreign nationals affected get most or all of their income from benefits, and under this plan would see a substantial increase in hardship.”

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