DWP target Universal Credit and disability benefits in ‘radical reforms’

Liz Kendall singled out Universal Credit and disability benefits as part of her recent statement over “unavoidable” higher costs in welfare. However, the Secretary of State for Work and Pension has also promised “radical reforms” to shift the bill.

Kendall was forced to justify the staggering welfare bill that the Office for Budget Responsibility expects to breach the spending cap by a staggering £8.6billion. In a written statement the politician shared: “The forecast breach, due in particular to expected higher expenditure on universal credit and disability benefits, is unavoidable given the inheritance from the last Government.

"This breach could only have been addressed through implementing immediate and severe cuts to welfare spending. This would not have been the right course of action.” The original cap was set by the previous Government at £137.4 billion.

Reforms on health and disability benefits are due in the Spring as Kendall announced a Green Paper. She noted it could “put spend on a sustainable footing and ensure disabled people and those with health conditions have the same rights as everybody else, including the right to work”.

The Work and Pensions secretary claimed this breach could have been predicted from March 2023, but “no action was taken”. Kendall also noted the budget breach was particularly driven by Universal Credit and disability benefits spending.

She wrote: “It is a symptom of a failed approach to employment support and a broken health and disability benefits system that does not incentivise or support people who could work into work and is not geared up to deal with the fact we are an older, less healthy nation. It is also a symptom of previous failures to think across public services and to