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Labour 2024 budget news

Details

There were no big surprises for claimants in today’s budget, but a continued lack of certainty about what the future will bring. In particular, there is still no clarity about how the work capability assessment (WCA) will change and no mention whatsoever of changes to personal independence payment (PIP).

WCA

In today’s budget the chancellor announced that “We inherited the last government’s plan to reform the work capability assessment.  We will deliver the savings as part of our fundamental reform to the health and disability benefits system that my right honourable friend the work and pensions secretary will bring forward.”

So, the chancellor appears to be saying that Labour will match the projected savings to the DWP that were to be made by the Conservative’s WCA changes, but she has not confirmed that the savings will be made in the same way. 

ESA to UC migration

It is hardly news, but the budget document does confirm the ESA to UC managed migration has begun.

“The government will accelerate the migration of claimants onto UC from Employment and Support Allowance (ESA), bringing the start date forward from 2028 to September 2024. This move will bring more people into a modern benefit regime, continuing to ensure they are supported to look for and move into work. Around half of ESA claimants will receive more financial support on UC, while others will receive transitional protection to ensure nobody is worse off at the point at which they move over to UC.”

Carers allowance

The weekly earnings limit for carer’s allowance is to be increased to the equivalent of 16 hours a week at the national living wage. 

The chancellor also said that Labour also looking at a way to remove the current cliff edge, where going even a penny over the earnings limit ends eligibility for carer’s allowance.

The budget document states:

“The government is also giving carers greater flexibility to work and increase their financial security by raising the Carer’s Allowance Weekly Earnings Limit to the equivalent of 16 hours at the NLW. The changes will support those receiving  Carer’s Allowance, 70% of which are women, to start work or work more hours.64 This is an increase of £45 per week and will allow over 60,000 more carers to access Carer’s Allowance.65 This will be the largest increase to the earnings limit since Carer’s Allowance was introduced in 1976.”

“The government also recently announced an independent review into overpayments of Carer’s Allowance, which will consider how they occurred and what operational changes can be made to minimise the risk of future overpayments. Alongside this, the government will also carry out further work on the earnings limit to explore what more can be done to help support more carers into work.”

Fraud and error

In her speech, the chancellor confirmed that the DWP will be able to access claimants’ bank accounts.

Reeves said “I can today announce a crackdown on fraud in our welfare system, often the work of criminal gangs.  We will expand DWP’s counter fraud teams using innovative new methods to prevent illegal activity and provide new legal powers to crackdown on fraudsters, including direct access to bank accounts to recover debt.”

The budget document confirms that:

“The government is expanding DWP’s fraud and error staff by 3,000, as part of its £110 million investment in 2025-26 to tackle fraud and error. This is expected to deliver gross savings of £705 million in 2029-30. “

“The government will increase DWP’s powers to recover debt as part of the forthcoming Fraud, Error and Debt Bill. This is expected to save £260 million in 2029-30. “

“The government will invest in DWP to carry out additional checks on Universal Credit claimants who have changes in their circumstances, as part of a £110 million investment in 2025-26 to tackle fraud and error. This is expected to save £250 million in 2029-30.”

Universal credit  debt recovery

The government will reduce the proportion of money UC claimants can have deducted to repay debts from 25% down to 15% of the standard allowance.

“In addition, the government is helping low-income households on UC by allowing them to pay off their debts over a longer timeframe and keep more of their UC each month. The government is creating a new Fair Repayment Rate which caps debt repayments made through UC at 15% of the standard allowance. This will benefit around 1.2 million households as they will keep more of their UC award each month, with households expected to be better off by £420 a year on average. Around 700,000 of the poorest families with children will benefit as a result of this change, supporting the government’s ambition to tackle child poverty.”

Benefits uprating

The chancellor confirmed that working age benefits will be uprated by just 1.7% in April 2025.

“DWP and HMRC working age benefits uprating for 2025-26 – The government will uprate working age benefits by September 2024 CPI of 1.7% from April 2025. This will see around 5.7 million families on Universal Credit gain £150 on average in 2025-26.”

Get Britain working

The Chancellor confirmed that “The government will shortly be publishing the Get Britain Working white paper tackling the root causes of inactivity with an integrated approach across health, education and welfare.”

The budget document states:

“ Get Britain Working White Paper – The government will shortly publish the Get Britain Working White Paper which will set out its £240 million investment to trail new ways of getting people back into work. The government will test new approaches and collect robust evidence on how to tackle the root causes of ill-health-related inactivity, support young people who are ‘not in education, employment, or training’ (NEET), and help people to develop their careers.”

“Get Britain Working Trailblazers – As part of the Get Britain Working package, the government will establish eight trailblazer areas across England and Wales that bring together health, employment and skills services to improve the support available to those who are inactive due to ill health and help them return to work. This will include NHS England Health and Growth Accelerators in at least three Integrated Care Systems to develop evidence of the impact of targeted action on the top health conditions driving economic inactivity.“

You can download the full budget document here

 

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  • Thank you for your comment. Comments are moderated before being published.
    Steve
    · 2 hours ago
    This is a Labour party in name only, run by a bunch of petty-minded, “scroungers” and freeloaders    they do the same as all other, partys, and target, certain groups, with this bunch, it is the old, sick and the disabled, how brave of them, I worked for 30 years, before I became ill, which then turned into,a disability, and like most on this forum, was made to jump though hoops to get anything.

    And now by putting employers NI, up, there is even less chance, of a sick or disabled, people getting into employment, so call it what you will,“Get Britain Working Trailblazers", makes no difference.

    Also was it just me or did, her statement, on welfare, when she said, about new powers, nosing, into people bank accounts,was greeted with silence.
     
  • Thank you for your comment. Comments are moderated before being published.
    SEdwards
    · 5 hours ago
    I care for someone who has had psychiatrist involvement off and so through severe depression and anxiety for decades as well as physical disabilities. As you might imagine she is in a medically confirmed depressive episode just now, which the DWP accepts.

    So I do have some understanding of what you are going through. 

    1. The Budget itself isn’t that bad from a benefits perspective. So relax a bit if you can.

    2. Next spring might be a different issue from what has been in the news. I know you will be worried/at your wits end/considering whether life is worth living/etc. 

    3. But, what Reeves has done has been to give herself more time to look at all the options and make the best decisions she can make. That is far better than rushing ill-thought out changes yesterday.

    4. We know she is listening. Look at the Party’s turn around re the BBC reports of Work Coaches being put into psychiatric wards, they are listening. So keep them listening. Consider asking (nicely) your MP their thoughts on the welfare death book that they were recently given, on the Parliamentary Committee reports on welfare deaths, on first hand practical problems you have had. 

    5. Hopefully Reeves Spring Statement on the issue, will be fully considered and fair. But we need to recognise that a lot of younger people are claiming disability/illness post covid lockdowns and the welfare cost is seriously spiralling. That does need funding. That is a political choice. In time shorter HNS waiting lists and more capacity will help naturally resolve the money issue. In the meantime some tightening up is likely, hopefully mostly on those of us who are realistically more able to work and whom employers will realistically employ. The fear really needs removing from the system as that just destroys life and lengths NHS waiting lists.

    6. So, UC Managed Migration aside (it is what it is, and some reports on the forum here are positive), try to enjoy the next half year, and hope that the extra time Reeves has is put to good use, with sensible and realistic input, sound analysis and wise judgement. She has given herself time, let’s give her a chance.

    7. Remember to breathe! My thoughts are with you all.


  • Thank you for your comment. Comments are moderated before being published.
    Sam
    · 8 hours ago
    Jesus Christ. There is no difference between Tory and Labour. I'm disgusted and appalled. It's already making my mental health worse and making me keep drinking. What's the point? This country got sold out a long time ago. Pip is the last remaining bastion of a society that once protected the poor and the sick.

    It's a race to the bottom now.

    Contact your local welfare advice charity people. And your local MP.

    Probably don't vote New Labour in again. 
  • Thank you for your comment. Comments are moderated before being published.
    alzon
    · 10 hours ago
    the bizarre fear mongering in here is alas to be expected. we dont know how labour plan on making the savings, literally no one does, despite their insistence. the fact groups of people appear to be voting up such comments suggest its a co ordinated ploy for whatever reason.

    sigh. like always, im going to wait and if its actual bad news, ill be on to my MP. before that, ill be ignoring the media frenzy. 

  • Thank you for your comment. Comments are moderated before being published.
    Ah
    · 13 hours ago
    If they insist you need to send a fit note or see a work coach, is there anything the claimants can redirect them to such as a Gov article that has the right information?
  • Thank you for your comment. Comments are moderated before being published.
    coolday
    · 14 hours ago
    I think media may misunderstand her

    Despite the headlines, the budget has not actually committed to implementing the Tory plans for the WCA. Government intends to find savings through their own reforms, to be set out early next year. Details still unknown

    david

    Read 3.45

    https://assets.publishing.service.gov.uk/media/67225b9b3ce5634f5f6ef579/Autumn_Budget_2024__print_ready_.pdf
  • Thank you for your comment. Comments are moderated before being published.
    Sammy
    · 15 hours ago
    The transitional allowance doesn't prevent you losing out on money on the ESA to UC transfer. Our council rents have an extra week this year to cover accumulated odd days over previous years. Housing benefit covers it for esa claimants but those on UC have to pay the week's rent. My friend was forced to transfer immediately when her husband died. She gets over £100 per month less  than me, has to pay part rent, lost 3 weeks HB when the claim was being processed. We live in identical flats next door to each other, both single, both disabled and on same PIP. So why does she need less to live on? 
  • Thank you for your comment. Comments are moderated before being published.
    Never voting Labour again.
    · 17 hours ago
    Life long Labour voter and now it seems mug.. I can’t believe they are pushing ahead with these cruel cuts. Apparently it won’t affect you unless you move, but I need to move to be closer to family who care for me. So now I’m stuck miles from home with no way of being nearer to my family. Celebrated Labour landslide, because I thought it was the end of 14 years of persecution…  How wrong was I? 
  • Thank you for your comment. Comments are moderated before being published.
    Bart
    · 18 hours ago
    There’s probably worse to come in the spring when they “reform” the whole system which is government speak for cuts! With the added insult of 1.7% increase in April which does nothing to help with the increasing living costs! 10% just on our energy bills this month! They have just Thrown the disabled and ill to the wolves 
  • Thank you for your comment. Comments are moderated before being published.
    Angel
    · 18 hours ago
    This transfer to uc fills me with very dark thoughts I don’t think I I will get through this
    • Thank you for your comment. Comments are moderated before being published.
      Sam
      · 1 hours ago
      @Finn Thanks for posting this, it's nice to hear it's not always bad 
    • Thank you for your comment. Comments are moderated before being published.
      Philip
      · 3 hours ago
      @Angel Make sure you get any available help. Contact your local  MP they can be very helpful. 
    • Thank you for your comment. Comments are moderated before being published.
      Angel
      · 5 hours ago
      @Finn But what about housing benefits how do I sort that? Then I have to wait five weeks for money, plus isn’t there lots of other stuff to do online it all seems complicated.
    • Thank you for your comment. Comments are moderated before being published.
      Leo
      · 12 hours ago
      @Angel I felt the same way last time I was assessed etc but there are nice people out there willing to help with the forms etc and get you through this too.....
    • Thank you for your comment. Comments are moderated before being published.
      Mory
      · 13 hours ago
      @Finn I appreciate your positvity - but when your rent starts to go up (and any increase in UC) your transitional protection will go down and you will start lose the amount the amount that you have to live on day to day. 
  • Thank you for your comment. Comments are moderated before being published.
    Glenda
    · 18 hours ago
    So??? I'm none the wiser. What I hope Benefits and Work will clarify, is whether it looks as though the changes planned by the previous governemt and "inherited" by this one, will stand. In particular the policy that those 'currently' - ie in 2025 which is when the previous policies were due to come in - in the LCWRA/Support Group for ESA will NEVer have to have another WCA. ??? I'm keen to know the answer to that.

    Also keen to know when they plan to release their plans, *when* they will actually commit themselves to what they're going to do! On any of it. It's pretty disgraceful leaving vulnerable, especially mentally vulnerable, people hanging. Its an abuse of power, and they seem to be enjoying it. I knew they'd be harsh, but I expected a little more respect from Labour. 
    More fool me.
    • Thank you for your comment. Comments are moderated before being published.
      Argotina
      · 2 hours ago
      @Glenda Benefits and work cannot clarify what wasn't said. I have seen elsewhere publications putting forward guesses as to what they might do, as if they actually knew. This just causes baseless panic. Well done for benefits and Work for not printing stuff read between the lines. People are scared enough already. We will just have to wait to get clarification.
  • Thank you for your comment. Comments are moderated before being published.
    A
    · 19 hours ago
    there hideing a load of stuff from us, 

    like thers only 800,000 jobs on offer, how will they divide 800,000 vacancies amonst 3.5 millon disabled?  

    how many of them are part time?  they wont tell no one but tell us half truths.

    how many  % on 


    • Thank you for your comment. Comments are moderated before being published.
      Steve
      · 2 hours ago
      @A And now with employers NI going up, there will be even less then, 800,000 vacancies, but the simple fact is, that if employers, wanted, to take on the sick and disabled, then they would all ready, be doing it. 
    • Thank you for your comment. Comments are moderated before being published.
      Kat
      · 5 hours ago
      @A This is precisely a point I made on another forum: these jobs most of them aren't full time or even 16_18 hours a week! One job I was emailed about was just 2 hours a week on a Sunday evening and would take 2 hours to travel each way assuming buses ran! Unless you live round the corner or drive, you'd be screwed! You could maybe get several little jobs but again there's onlly 800,000 advertised vacancies.....
  • Thank you for your comment. Comments are moderated before being published.
    axab43
    · 19 hours ago
    The comments are coming out again "it doesn't matter what anyone says, they are going to target the most vulnerable."  These kind of comments only make people even more anxious and don't do any good at all.  From what I read, the changes to the WCA are going to be what the Tories were going to do, ie look at the mobilising question in the assessment and the "getting out and about" question of the assessment is going to be changed.

    This does not seem that drastic a change to me.  As someone else said, it could have been worse.  Can we not catastrophise this, for the sake of those who are suffering depression and anxiety as it is.
    • Thank you for your comment. Comments are moderated before being published.
      Alex
      · 3 hours ago
      @axab43 I think you're right, they haven't announced anything disastrous yet, and have given us the annual inflationary pay rise.  We need to wait until further news is released and deal with it then. 
    • Thank you for your comment. Comments are moderated before being published.
      Philip
      · 3 hours ago
      @axab43 They have been given a "bloody nose" from the pensioners WInter fuel allowance debarcal. Hopefully it will make them think twice about any attacks against the sick and disabled. Starmer cannot be trusted but I think Stephen Timms whose taking the lead in benefits will hold the New Nasty party's, feet to the fire. 
    • Thank you for your comment. Comments are moderated before being published.
      darinfan
      · 17 hours ago
      @axab43 As far as I'm aware, Labour have committed to reforming the WCA, but not necessarily in the same way as the Tories were planning.  But I'm with you, people are making it sound worse than it is.  disability benefits need  to be reformed.  The bill will supposedly be £20bn more a year by the end of the decade, and that's completely unsustainable. 
  • Thank you for your comment. Comments are moderated before being published.
    Jane Dane
    · 19 hours ago
    It's been clear for a few weeks now that Labour intends to have its 'own plan' in the upcoming white paper. So anything we can conclude right now is mere conjecture. It doesn't help with anxieties, but the budget was actually very good in all but the disability area, so much so in fact that the Tories and the Tory client media didn't expect most of it. It was quite radical. Perhaps there is some glimmer of hope that the reforms to disability benefits aren't going to be anywhere near as bad as we expect them to be. The Chancellor only stated that "a crackdown on fraud in our welfare system, [which is] often the work of criminal gangs", which means one of two things depending on how you look at it. Either they lump us all in among the measures and we all suffer, or they will find a way to actually identify large scale fraud which does indeed cost the taxpayer billions. Not sure how they could do this but then I'm not working in the government and don't have the advisors and professionals to offer up suggestions like they could. Do I expect the former over the latter? Well, yes, sadly.
    • Thank you for your comment. Comments are moderated before being published.
      Argotina
      · 2 hours ago
      @MJ Well, some of us have been asking the government to scrap Universal Credit and bring in a less cruel system for years. Can but hope!
    • Thank you for your comment. Comments are moderated before being published.
      darinfan
      · 14 hours ago
      @MJ But the issue here is this: benefits claimants rely on the govt. We have no choice.  The suggestion that this anymore a period of uncertainty than normal just isn't true.  We NEVER know when things might change or how they might change, no matter what the party in govt or how long they have been in govt.  The Tory suggestions about PIP earlier in the year prove that.  Difficult though it us, it's the way our lives are and we just have to accept it.  No govt or party is ever going to promise to leave benefits alone.
    • Thank you for your comment. Comments are moderated before being published.
      MJ
      · 15 hours ago
      @Jane Dane "The Chancellor only stated that "a crackdown on fraud in our welfare system, [which is] often the work of criminal gangs""

      No she also said this which is more ominous:

      “First, we inherited the last government’s plans to reform the work capability assessment. We will deliver those savings as part of fundamental reforms to the health and disability benefits system that the Work and Pensions Secretary (Liz Kendall) will bring forward."

      We won't no exactly what this entails though until the Spring.

  • Thank you for your comment. Comments are moderated before being published.
    Alison
    · 19 hours ago
    i am going to tribunal against the dwp for the LCWRA. I had to stop working as a S/E private hire driver last october due to severe dizziness so i had to give up work, my car and revoke my driving licence and the muppets in the DWP think i can work. This is why i am appealing the wca. 
    I have many conditions the worst being fibromyalgia which is a chronic pain disorder. The health professionals say it doesnt get worse they need to walk a day in my shoes because it sure as hell does deteriorate over time. 
    Sorry for long rant everyone!
  • Thank you for your comment. Comments are moderated before being published.
    Jas
    · 20 hours ago
    It does appear that the main savings will come from tackling fraud and hoping people will be to baffled or frightened to claim. Still nothing really to give people a bit of peace of mind. I guess we will have to wait a bit longer until the plan if they actually have one? Is released in black and white. Expect fireworks with not much of a pop.
  • Thank you for your comment. Comments are moderated before being published.
    Michael
    · 21 hours ago
    'Often the work of criminal gangs' they seem to be the key words ,that they will also be targeting the ordinary claimants, and possibly checking what they're spending their money on .
    For instant ,if a claimant has a betting account, etc,
    • Thank you for your comment. Comments are moderated before being published.
      Henry
      · 14 hours ago
      @Ant. Yes I know. Just seems a bit more acceptable in some people's view for some reason.
    • Thank you for your comment. Comments are moderated before being published.
      Ant.
      · 17 hours ago
      @Henry Any benefit or wages can be spent on anything you like Henry, and in a supposedly free democracy , rightfully so. Means tested is about meeting the criteria to qualify, and non means tested benefits like PIP means you can have a pound or a million pound in saving, or earn a unlimited income and still be fully entitled to the benefit.
    • Thank you for your comment. Comments are moderated before being published.
      Henry
      · 19 hours ago
      @Michael As pip isn't means tested yet, people can spend on anything they like.
  • Thank you for your comment. Comments are moderated before being published.
    darinfan
    · 21 hours ago
    The key thing here is the aim to cut £4.3bn from benefits by targeting fraud (and reducing sickness and disability benefits.  That sounds like a huge amount but, in reality, the expenditure on PIP alone went up by close to £4bn in 2024 compared to 2023, so it's not a huge amount in the great scheme of things.  And something HAS to be done whether we like it or not.  In 2019, there were 3.8m people on PIP or DLA, and last year there were 4.6m people.  That's a huge amount.  
    Even so, what Reeves intimated was that benefits would be reduced through changes to the WCA for universal credit, and thus moving people across from one group to another (LCWRA to LCW).  PIP wasn't mentioned.  The govt has committed to reducing the bill by the same amount as the Tories...but not necessarily taking the same actions to achieve it. 

    Of course, needless to say that the "Live" group of websites is already giving a message of doom that the disabled will see their money cut, as if actual rates for PIP/UC etc are going to be reduced, and going to be reduced imminently.  That wasn't stated in the budget.
    • Thank you for your comment. Comments are moderated before being published.
      alzon
      · 10 hours ago
      @A many people say many things many times, it doesnt actually make it fact.

      it would probably be useful to not promote personal theories as facts though, i mean sure it helps a certain political party and their media masters, but not the actual people stuck in this nightmare.
    • Thank you for your comment. Comments are moderated before being published.
      Dan
      · 13 hours ago
      @MJ BINGO, this is how they hide their cruelty from the public and mainstream news, @ over £400 p/m. Does anyone really think that the Rich care about us Disabled?
    • Thank you for your comment. Comments are moderated before being published.
      MJ
      · 15 hours ago
      @darinfan "message of doom that the disabled will see their money cut, as if actual rates for PIP/UC etc are going to be reduced"

      Well even if they don't actually reduce the rates per se, if as you say they are likely to move people from the Support Group to LCW then they automatically lose money.

    • Thank you for your comment. Comments are moderated before being published.
      Mandy
      · 17 hours ago
      @darinfan This is a calming comment. They literally haven’t said what they are going to do yet either.. But they shouldn’t be going ahead with cuts, life is so expensive now. For example my car has died, to my surprise a run around 15 year old cars. with 100k on the clock now costs £2-3k who has that sort of money?  I can’t work I want to I wish I could but I can’t and this anxiety pushes me away from ever having a life. We need clarification fast. 
    • Thank you for your comment. Comments are moderated before being published.
      A
      · 19 hours ago
      @darinfan "moving people across from one group to another (LCWRA to LCW)."

      I've said the same multiple times. Their aim is to cut benefits, but not in the way many people think.

      As it's said above, they're planning to move as many claimants as possible from LCWRA to LCW and push them to look for work and, obviously, make them lose the extra support and in the medium term lose all benefits through sanctions and commitments, which Alain Millburn recommended to be made stricter.
  • Thank you for your comment. Comments are moderated before being published.
    Jane
    · 21 hours ago
    Could have been worse. I think they kind of have to say they are going to crack down on benefit fraud and get people back to work, in return for hiking tax. But once they start to actually try to get individuals in a job they are going to realise the complexities are more than they realise. Most people on disability have more than one issue, they are waiting for treatment and support the NHS and social care system are years off from providing and over a decade of lack of investment in housing, public transport, childcare etc are also huge blocks in the way. Not to mention the fact that most employers don't want to employ disabled people.
    I desperately hope that labour start to show some real improvement because the thought of Reform in power really is sickening.
    Thanks to all at Benefits and Work for keeping us up to date and providing the help to keep our heads above water
  • Thank you for your comment. Comments are moderated before being published.
    SRH
    · 21 hours ago
    It would help if the government would give some clarity on what exactly they mean by changes to the Work Capability Assessment, because on the gov.uk website it clearly states that anyone currently in the LCWRA as an existing claimant will NEVER have to be re-assessed. Yet today's announcement in the Budget has caused me to go into meltdown with Severe anxiety about what changes to the WCA they're actually talking about here. It's bang out of order to cause emotional distress to people with a medically diagnosed Severe Mental Health Disorder, by not explaining what they actually mean by such changes.
    • Thank you for your comment. Comments are moderated before being published.
      A
      · 18 hours ago
      @SRH We need to wait for the white paper to be published, as it'll have more details.

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