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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 memos suggest Employment and Support Allowance costs are rising and few cost-cutting options are available. | Internal memos suggest Employment and Support Allowance 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 suggestions the cap might be breached are "outrageous" but Labour says the system is at "crisis point". | Ministers say suggestions the cap might be breached are "outrageous" but Labour says the system is at "crisis point". |
'Meltdown' | 'Meltdown' |
A Department for Work and Pensions (DWP) spokesman said the spending projections were "spurious scenarios" based on no action being taken. | A Department for Work and Pensions (DWP) spokesman said the spending projections were "spurious scenarios" based on no action being taken. |
"We've taken action and will ensure we do not breach the welfare cap. Speculation to the contrary is nonsense," he said. | "We've taken action and will ensure we do not breach the welfare cap. Speculation to the contrary is nonsense," he said. |
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. |
Shadow work and pensions secretary Rachel Reeves said the work capability assessment was "in meltdown", the Universal Credit was "chaos" and that people were being let down. | Shadow work and pensions secretary Rachel Reeves said the work capability assessment was "in meltdown", the Universal Credit was "chaos" and that people were being let down. |
"It is a catalogue of total failure and threatens huge costs to the taxpayer," she said. | "It is a catalogue of total failure and threatens huge costs to the taxpayer," she said. |
"David Cameron must urgently get a grip of this chaotic department." | "David Cameron must urgently get a grip of this chaotic department." |
Meanwhile, a report by MPs has branded the implementation of another benefit, Personal Independence Payments (PIP), a "fiasco". | Meanwhile, a report by MPs has branded the implementation of another 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 some claims delayed by more than six months. | PIP is replacing Disability Living Allowance, but the Commons Public Accounts Committee said the reform had been "rushed", with some claims delayed by more than six months. |
But Minister for Disabled People Mike Penning said the PAC report was based on "old statistics". | But Minister for Disabled People Mike Penning said the PAC report was based on "old statistics". |
He added: "The NAO [National Audit Office] report published in February acknowledged this reform started on time and on budget, and we have reduced risk by rolling it out in phases." | He added: "The NAO [National Audit Office] report published in February acknowledged this reform started on time and on budget, and we have reduced risk by rolling it out in phases." |
'Fiscal risk' | 'Fiscal risk' |
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. |
The cost of ESA is projected to rise to £13.3bn between the current financial year and 2018-19, and is "one of the largest fiscal risks currently facing the government". | |
According to the leaked documents the costs are rising because: | According to the leaked documents the costs are rising because: |
Work and Pensions Select Committee chairman Dame Anne Begg told BBC Radio 4's Today programme that the ESA seemed to be doing no better than Incapacity Benefit. | Work and Pensions Select Committee chairman Dame Anne Begg told BBC Radio 4's Today programme that the ESA seemed to be doing no better than Incapacity Benefit. |
She said: "The big criticism of Incapacity Benefit was that people were put on it and left and nobody reassessed. | She 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." | "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." |
Flagship reform | Flagship reform |
An independent review of the fitness-to-work tests last year found dissatisfaction among disabled people. | An independent review of the fitness-to-work tests last year found dissatisfaction among disabled people. |
It found there was a "confrontational set up" and highlighted the need to treat people with dignity and respect as a particular area for improvement. | It found there was a "confrontational set up" and highlighted the need to treat people with dignity and respect as a particular area for improvement. |
Elsewhere, the government's flagship welfare reform is to be rolled out to more jobcentres from next week. | Elsewhere, the government's flagship welfare reform is to be rolled out to more jobcentres from next week. |
Universal Credit, which is six different benefits rolled into one, will be expanded in England's North West following a series of delays. | Universal Credit, which is six different benefits rolled into one, will be expanded in England's North West following a series of delays. |
The new benefit is currently available in 10 places. | The new benefit is currently available in 10 places. |
The government announced in April that it would be rolled out across 90 jobcentres in the North West from June for single people. | The government announced in April that it would be rolled out across 90 jobcentres in the North West from June for single people. |
From Monday, four more job centres will offer it. The remaining 86 should be ready by the end of the year. | From Monday, four more job centres will offer it. The remaining 86 should be ready by the end of the year. |
Do you claim Employment and Support Allowance? You can email your experiences to haveyoursay@bbc.co.uk using the subject line 'Welfare'. | Do you claim Employment and Support Allowance? You can email your experiences to haveyoursay@bbc.co.uk using the subject line 'Welfare'. |
If you are willing to be interviewed, please include a photograph of yourself and your full contact details. | If you are willing to be interviewed, please include a photograph of yourself and your full contact details. |