UK government plans welfare reform amid concerns over rising costs-Xinhua

UK government plans welfare reform amid concerns over rising costs

Source: Xinhua

Editor: huaxia

2024-12-04 21:34:15

LONDON, Dec. 4 (Xinhua) -- The government of the United Kingdom (UK) is under growing pressure to reform the welfare system as the cost of sickness benefits continues to surge, Employment Minister Alison McGovern warned on Tuesday.

Speaking before the Lords Economic Affairs Committee, McGovern acknowledged flaws in the current system, admitting that the cost of the welfare system will reach 65 billion pounds this year and could climb to 100 billion pounds by 2030.

Currently, 3.3 million people are claiming incapacity benefits, a figure projected to increase to 4.1 million by the end of the current parliament. Experts have suggested that the disparity in payments between incapacity benefits and Jobseeker's Allowance (JSA) has contributed to this trend. Incapacity benefit recipients receive about 5,000 pounds more annually than jobseekers, while facing fewer eligibility conditions.

McGovern criticized past Conservative government policies that cut jobseekers' benefits while increasing support for the long-term sick. These measures, she argued, have widened the gap between those unable to work and those actively seeking employment.

She emphasized the need for reforms to reduce these barriers and adopt more integrated approaches to help individuals transition back into the workforce.

The Labour government is drafting a green paper on welfare reform, expected to be published next year, which will outline strategies to address these challenges. McGovern also proposed closer collaboration between the Department for Work and Pensions and healthcare providers, suggesting measures such as placing work coaches in healthcare settings to address broader issues that prevent individuals from re-entering employment.