The Conservative Party has urged the Department for Work and Pensions to close a £1 billion benefits and welfare loophole, proposing reforms that would reduce payments for over 300,000 people. If the Tories win the next general election, they plan to overhaul the benefits cap so households cannot receive unlimited payments unless all adults who are able to work are employed.
Proposed Changes to the Benefits Cap
Tory shadow work and pensions secretary Helen Whately announced the party would reform the benefit cap to prevent households from avoiding it when one adult qualifies for disability benefits like Personal Independence Payment (PIP), even if other adults in the home are not working. Currently, households can escape the cap if one person works 16 hours a week at the National Living Wage. Whately stated, “That means one adult can work part-time while another – who could work – stays home.”
Government Response and Savings Estimates
A government source defended the Universal Credit system, saying, “The Conservatives created the Universal Credit system – which has left too many people signed off without support to get into work. We are fixing the system and investing in helping people into jobs.” Tory estimates indicate that bringing 200,000 more families into scope would save £600 million annually, while 400,000 more would save around £1.2 billion. This suggests more than 300,000 households would be affected to meet their savings target.
Think Tank Recommendations and Criticism
Last week, the Tony Blair Institute (TBI), a think tank founded by former Labour Prime Minister Sir Tony Blair, recommended an “emergency handbrake” to reduce the number of people receiving health and disability benefits. The TBI argues that conditions such as mild depression or ADHD should be classed as “non-work limiting” and not eligible for cash benefits. Ministers said they would “consider the report.” However, learning disability charity Mencap called the proposals “deeply unhelpful and ill-informed.”
