Labour Supply Measures In Autumn Statement - More Assessments for Benefit Claimants

24th November 2023

The government also announced today its plans to spend £3.2bn on five different measures to increase employment by around 50,000.

The first of these measures is the change to the Work Capability Assessment. This assessment is a medical process and is designed to determine an individuals capacity to work and ultimately their eligibility for health-related benefits.

The changes announced today relate to changes in the mobility and risk factors of the assessment. As well as this, these assessments will also now take place every 12 months for new claimants.

The OBR estimates that this policy will generate savings to £1bn each year between 26/27 and 28/29, resultant from a lower spend on the health measure of Universal Credit.

The overall aim therefore is that this policy change will help to reduce the overall caseload for those deemed to have severe incapacities and increase it for those with less severe incapacities.

These estimates suggest that those with the most severe incapacities claiming UC should fall by 371,000 by 28/29, with an increase of 342,000 for those with less severe incapacities.

The table below sets out the associated cost to these labour supplies policy changes, with the alterations to the WCA expected to reduce spend by £1.3bn in 28/19.

The other policies announced, such as the expansion of Universal Credit for disabled individuals in work, the expansion of the Individual Placement and Support scheme and the Restart Scheme, to get people back into the labour force, are expected to increase spend by £0.3bn in 28/29.

Source
https://fraserofallander.org/autumn-statement-reaction-a-tax-cutting-statement-that-continues-to-raise-taxes-amid-slowing-growth-and-what-does-this-mean-for-scotland/