MILLIONS of Brits could be stripped of all their benefits if they fail to find a job after a fixed period of time.
Chancellor Jeremy Hunt unveiled what he described as the “biggest set of welfare reforms in a decade” in his Autumn Statement.
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He insisted reforms including tougher fit-to-work tests and jobseeker support would get 200,000 more people in work.
As a result of the changes to the work capability assessment (WCA), the Government is expected to save an average of £1 billion per year between 2026-27 and 2028-29.
The reforms are part of the Government’s “Back to Work Plan”, which will see the expansion of key health and employment programmes such as NHS Talking Therapies, Restart, and Universal Support in a bid to get people off benefits and into work.
Mr Hunt also said the Government would provide a further 1.3bn of funding to offer extra help to the 300,000 people who have been unemployed for over a year.
However, he warned this will come alongside tougher sanctions for people who don’t look for work.
He said: “If after 18 months of intensive support jobseekers have not found a job, we will roll out a programme requiring them to take part in a mandatory work placement to increase their skills and improve their employability.
“And if they choose not to engage with the work search process for six months, we will close their case and stop their benefits.
“Taken together with the labour supply measures I announced in the Spring, the OBR say we will increase the number of people in work by around 200,000 at the end of the forecast period, permanently increasing the size of the economy.”
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In September, Work and Pensions Secretary Mel Stride launched a consultation on plans to tighten the controversial work capability assessment, which determines whether someone is eligible to claim universal credit instead of working.
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The response to the consultation was published alongside the Autumn Statement today.
Currently, individuals who are unable to walk 50 meters without assistance qualify for the “limited capability for work and work-related activity” category.
This status exempts them from the requirement to seek employment.
However, the “mobility” criterion will be scrapped.
Autumn Statement Jeremy Hunt announced:
In his speech, the Chancellor also confirmed he will raise benefits by 6.7 per cent, aligning with September’s inflation rate.
There had been speculation the Chancellor would choose the October’s 4.6 per cent inflation figure as it would have saved the Government around £3 billion.
In a “turbo-charged” mini-Budget, Mr Hunt also confirmed plans to cut National Insurance for workers and boost the minimum wage to £11.44.
That’s a pay rise of more than a quid for more than three million of the lowest paid.
With the triple lock untouched, the state pension is also set to increase by 8.5 per cent, keeping in step with the usual earnings measurement.
And drinkers will breathe a sigh of relief as an alcohol duty freeze means pints, spirits and wine prices will not be hiked heading into the Christmas party season.
