1.3 Million People Could Lose Sickness Allowances Under New DWP Proposal: Could You Be Affected?

On: Wednesday, April 16, 2025 7:41 AM

1.3 Million People Could Lose Sickness Allowances Under New DWP Proposal: Could You Be Affected?

The UK government has recently proposed a major change, which aims to tighten sickness allowances. This proposal is going to particularly affect those who are receiving allowances due to illness or disability. If this proposal is implemented, around 1.3 million people could lose sickness allowances. In this article, we will understand this proposal in detail, how it will affect people, and what steps you should take if you may be affected.

What is the Government’s Proposal?

The UK government is proposing to tighten the conditions for receiving sickness allowances. The aim is to encourage more people to work and reduce government expenses. The government says that this change will help people get employment, but its opponents believe that this change will create more difficulty for the vulnerable and needy.

What Changes Are Proposed?

1. Work Capability Assessment (WCA) to Be Toughened:

At the moment, the Work Capability Assessment (WCA) is used to determine whether a person is capable of employment. The government proposes to toughen up this assessment, allowing more people to be considered capable of working. For example, a person who suffers from chronic back pain and was previously receiving sickness allowance may now have to prove they can do an office job for a certain number of hours.

2. Reevaluating Allowances for Long-Term Illnesses:

The government says many people are receiving long-term sickness allowance, but they could be fully capable of working if they got the right kind of support. For example, if someone has depression and is receiving sickness allowance, they may now be asked to participate in employment programmes or look for a job according to that condition.

3. Sick Pay Proposal for Low-Income Workers:

Under the new proposal, if a person earns less than £123 per week, he or she is legally not entitled to the benefit of Sick Pay. The government proposes that low-income workers get 80% of their pay for day-to-day illness. For example, a person earning £100 per week will now get £80 per week during illness, whereas previously he or she would get no payment.

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Why Could 1.3 Million People Be Deprived of Sickness Allowance?

The government says that the current allowance system is becoming unsustainable, and many people are now taking advantage of allowances that they should not be getting. Some of the key reasons are:

Rising Costs: Health-related benefits in the UK are likely to cost £100 billion by 2030. This has led the government to believe that changes to the allowance system are necessary to reduce this cost.
Rising Claims: Since the pandemic, many people have made claims for disability and long-term sickness allowances, which the government believes is making the system too costly.
Working Shortages: Many companies are struggling with a shortage of workers, and the government believes that many people who are receiving sickness allowance may be willing to work if they get the right support.

Who Could Be Affected?

This proposal could affect all individuals who are receiving sickness allowance. In particular, those who have physical or mental problems that the government believes are too weak to work may be more affected.

People who have maintained receiving sickness allowance continuously, such as those affected by coronavirus conditions, must now demonstrate their ability to work. People who suffer from depression together with anxiety disorders experience challenges when attempting to secure employment.

Opposition and Issues of Concern

Many experts, charities, and opposition politicians are concerned about this proposal. Their main concerns are:

Lack of Mental Health Services: Many people suffer from mental health problems and are receiving sickness allowance. Critics say that mental health services are already overloaded, and these changes will force these people to work when they do not have enough support.
Not Everyone Is Employable: Just because someone is physically or mentally able does not mean they are ready for a job. Many people cannot work simply because some jobs are not suitable for them in their situation.
Financial Crisis for the Poor: If 1.3 million people lose their sickness allowance, many may struggle to pay for basic needs such as rent and food. This could make their lives more difficult.

What Should You Do If You May Be Affected?

If you are on sickness allowance or think you may be affected by these changes, here are some steps you can take:

1. Stay Informed:

Try to keep up to date with official announcements from the DWP so you know how these changes will apply and how you may be affected.

2. Seek Professional Advice:

If you think you may be affected by these changes, speak to a qualified benefits adviser. Some useful organisations include:

Citizens Advice
Disability Rights UK

3. Prepare for a Reassessment:

If you are on sickness allowance, you may have to undergo a reassessment. To do this, you will need to make sure you have all the necessary documentation and evidence:

Up-to-date reports from a doctor
Recordings of the impact of the illness on your day-to-day life

4. Use Employment Support Services:

The government intends to improve job support services specifically targeting individuals with health-related disabilities. The availability of flexible or part-time employment may be suitable if you receive an order to work.

Frequently Asked Questions (FAQs)

Q1: When will these changes come into effect?

A: The government will release a green paper about these proposals, followed by a consultation process. The final decision will be taken after public feedback.

Q2: How do I know if I will get benefits?

A: If you are currently receiving sickness allowance, you will be reassessed under the new strict criteria.

Q3: Can I appeal if I lose my benefits?

A: Yes, you can request an appeal when the government stops your benefits payments. If your benefits payments end without your consent, you can initiate a Mandatory Reconsideration process followed by a tribunal appeal if the decision is not resolved.