This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/uk-27927843
The article has changed 16 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
Government 'could breach its own welfare spending cap' | Government 'could breach its own welfare spending cap' |
(35 minutes later) | |
The government could breach its self-imposed cap on welfare spending as a result of the cost of the main sickness benefit, leaked documents say. | The government could breach its self-imposed cap on welfare spending as a result of the cost of the main sickness benefit, leaked documents say. |
Internal government memos seen by the BBC suggest Employment and Support Allowance (ESA) costs are rising and few cost-cutting options are available. | Internal government memos seen by the BBC suggest Employment and Support Allowance (ESA) costs are rising and few cost-cutting options are available. |
In March MPs agreed a 2015-16 welfare cap of £119.5bn, excluding the state pension and some unemployment benefits. | In March MPs agreed a 2015-16 welfare cap of £119.5bn, excluding the state pension and some unemployment benefits. |
Ministers say welfare spending will come in under the cap. | Ministers say welfare spending will come in under the cap. |
If the limit is breached, ministers will have to explain to Parliament and ask MPs to approve additional spending. | If the limit is breached, ministers will have to explain to Parliament and ask MPs to approve additional spending. |
'Vulnerable' to breach | 'Vulnerable' to breach |
ESA was introduced in 2008 to replace Incapacity Benefit - intended for people who are unable to work because of sickness or disability. | ESA was introduced in 2008 to replace Incapacity Benefit - intended for people who are unable to work because of sickness or disability. |
Claimants undergo tests to see how their illness or disability affects their ability to work before learning whether they are eligible. | Claimants undergo tests to see how their illness or disability affects their ability to work before learning whether they are eligible. |
A key aim of the benefit is to get people off welfare and into work. | A key aim of the benefit is to get people off welfare and into work. |
Work and Pensions Select Committee chairman Dame Anne Begg told BBC Radio 4's Today programme that the ESA did not appear to be doing any better than Incapacity Benefit. | |
"A lot of complaints and criticism of Incapacity Benefit can now be laid at the door of Employment and Support Allowance," she said. | |
Dame Anne, who is a wheelchair user, said "The big criticism of Incapacity Benefit was that people were put on it and left and nobody reassessed. | |
"With the ESA, there is constant reassessment, but of course that's expensive and that's putting a burden on the health assessors... in order to keep up with the numbers they have to deal with." | |
It emerged on Thursday that the leaked memos say ESA is "one of the largest fiscal risks currently facing the government". | It emerged on Thursday that the leaked memos say ESA is "one of the largest fiscal risks currently facing the government". |
The cost of ESA is projected to rise by nearly £13bn between the current financial year and 2018-19, the documents say. | The cost of ESA is projected to rise by nearly £13bn between the current financial year and 2018-19, the documents say. |
The papers suggest the main reason for the rising cost of ESA is an increasing number of claimants, caused by people moving off Jobseeker's Allowance and on to ESA. | The papers suggest the main reason for the rising cost of ESA is an increasing number of claimants, caused by people moving off Jobseeker's Allowance and on to ESA. |
BBC social affairs correspondent Michael Buchanan said that, according to those writing the papers, this was because ESA has fewer sanctions - when someone's benefit is stopped for misconduct - than Jobseeker's Allowance. | BBC social affairs correspondent Michael Buchanan said that, according to those writing the papers, this was because ESA has fewer sanctions - when someone's benefit is stopped for misconduct - than Jobseeker's Allowance. |
The documents also say the severity of ESA claimants' illnesses and disabilities has been underestimated - meaning people are staying on the benefit longer than expected. | The documents also say the severity of ESA claimants' illnesses and disabilities has been underestimated - meaning people are staying on the benefit longer than expected. |
The memos reveal a range of options for reducing costs, but conclude there appears to be "not much low-hanging fruit left". | The memos reveal a range of options for reducing costs, but conclude there appears to be "not much low-hanging fruit left". |
"This leaves us vulnerable to a breach [of the cap]", says one memo. | "This leaves us vulnerable to a breach [of the cap]", says one memo. |
'Fiasco' | 'Fiasco' |
Problems with the private firm Atos, which has carried out benefit health assessments for the government, have also increased ESA costs. | Problems with the private firm Atos, which has carried out benefit health assessments for the government, have also increased ESA costs. |
Earlier this month ministers said more than 700,000 people were waiting for an assessment for ESA. | Earlier this month ministers said more than 700,000 people were waiting for an assessment for ESA. |
It blamed the delays on Atos, which has agreed to end its contract early. | It blamed the delays on Atos, which has agreed to end its contract early. |
But the leaked documents say the new contractor - due to be appointed in early 2015 - is expected to cost roughly "three times as much" as the £100m annual deal with Atos. | But the leaked documents say the new contractor - due to be appointed in early 2015 - is expected to cost roughly "three times as much" as the £100m annual deal with Atos. |
The memos have come to light as a report by MPs brands the implementation of another disability benefit, Personal Independence Payments (PIP), a "fiasco". | The memos have come to light as a report by MPs brands the implementation of another disability benefit, Personal Independence Payments (PIP), a "fiasco". |
PIP is replacing Disability Living Allowance, but the Commons Public Accounts Committee said the reform had been "rushed", with claims delayed by over six months in some cases. | PIP is replacing Disability Living Allowance, but the Commons Public Accounts Committee said the reform had been "rushed", with claims delayed by over six months in some cases. |
Committee chairman Margaret Hodge said the Department for Work and Pensions had "let down some of the most vulnerable people in our society". | Committee chairman Margaret Hodge said the Department for Work and Pensions had "let down some of the most vulnerable people in our society". |
She told the BBC's 5live Breakfast programme that the introduction of the benefit had been "shambolic". | |
She said seriously ill people were having to wait too long just to be assessed. | |
"This is an example of a very shambolic introduction of a new benefit designed to help the most vulnerable group in our society to the extra costs in their living," she said. | |
"We are talking about people who probably face life changing conditions." | |
Do you claim Employment and Support Allowance? Do you receive Personal Independence Payments? You can email your experiences to haveyoursay@bbc.co.uk using the subject line 'Welfare'. | Do you claim Employment and Support Allowance? Do you receive Personal Independence Payments? You can email your experiences to haveyoursay@bbc.co.uk using the subject line 'Welfare'. |