Fear, anger and confusion as budget blundering creates chaos over government’s plans for ‘fit for work’ test

The new Labour government’s policy on social security reform is in chaos after it issued contrasting statements and briefings on budget day about whether – and how – it would press ahead with planned Conservative cuts to spending on out-of-work disability benefits.

Disabled activists warned that the government’s refusal to clarify the position on reforms to the work capability assessment (WCA) would only add to the distress being felt by hundreds of thousands of claimants.

The confusion surrounds whether the government would implement controversial reforms announced by the last government that would tighten the WCA.

The changes would be introduced next year and would see 424,000 disabled people lose their entitlement to extra support of up to £4,900 a year by 2028-29.

It came as a high court “disclosure hearing” is due to take place today (Thursday) as part of a legal challenge into whether last year’s consultation on these changes to the WCA were lawful.

The full hearing of the legal challenge, taken by disabled activist and author Ellen Clifford, will take place on 10 and 11 December.

Yesterday’s chaos started with comments by chancellor Rachel Reeves (pictured), who was delivering her first budget speech.

She spoke of the need to “reduce the benefits bill” and “ensure that welfare spending is more sustainable”, and told MPs that Labour had “inherited the last government’s plans to reform the work capability assessment”.

She said: “We will deliver those savings as part of our fundamental reforms to the health and disability benefits system that [work and pensions secretary Liz Kendall] will bring forward.”

Although many disabled activists assumed she was referring to the plans to tighten the WCA – as did mainstream media and charities – there was no mention of any such cost savings in the budget documents.

When Disability News Service asked the Treasury why no savings were mentioned in the budget report and to clarify Reeves’ comments, a spokesperson claimed the chancellor was referring to “the government’s already-stated intention to reform or replace the work capability assessment”.

He added: “We’re taking the time to review this in the round before setting out next steps on our approach in the coming months.”

It then emerged that social security and disability minister Sir Stephen Timms had been briefing some disability organisations about the budget after the Reeves speech.

Reports from those who attended the briefings suggest that the government has not yet decided whether to go ahead with Conservative plans to tighten the WCA.

Sir Stephen reportedly said that a similar level of savings on social security would have to be made, but not necessarily by reforming the WCA in the way proposed by the last government.

But he is also reported to have said in another briefing that he would not go ahead with the Conservative WCA plans.

The chaos follows months of confusing and misleading statements from the new government on its plans for reform of disability benefits and disability employment.

Only last week, employment minister Alison McGovern appeared to quash claims made by Kendall – her boss – in a BBC interview that she was planning to send work coaches onto mental health wards.

And earlier this month, DWP refused to clarify comments by the prime minister which suggested that all claimants of long-term sickness benefits would be expected to look for work under Labour’s social security reforms.

Disabled People Against Cuts (DPAC) expressed anger at the confusion and lack of clarity on the government’s plans, and at the apparent commitment to further cuts to disability support.

Bob Ellard, a member of DPAC’s national steering group, said: “Disabled people are scared and angry, having waited too long for the budget expecting the burden of government failure to fall yet again on us.

“We’ve been led to expect better from Labour, only to find their attitude is just as uncaring and vicious as before.

“Our needs have been ignored as usual, and now more of us will suffer and more of us will die due to Reeves’ callousness.”

Rick Burgess, a spokesperson for Greater Manchester Coalition of Disabled People, said: “The lack of clarity on the WCA causes distress, as does the messaging around benefits that ministers have engaged in.

“The savings the government envisage logically can only come from fewer people getting disability benefits, yet disabled people are not reducing in numbers, we are increasing – not least due to long Covid – so this can only mean disabled people will be refused the support they have a right to while being hounded and spied upon by the state.”

Caroline Collier, from Inclusion Barnet’s Campaign for Disability Justice, said a “cloud of uncertainty still hangs over disabled people and the financial support they are entitled to expect”.

She said: “The sooner that cloud is lifted, the better – and we shall be holding the government to its word that disabled people will be fully consulted.

“And this absolutely needs to be an agenda that allows all disabled people a decent standard of living, provides genuine employment opportunities without compulsion and treats disabled people with respect.”

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