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New DWP secretary Stephen Crabb signals further disability benefit changes to cut spending

Mr Crabb said the Government would adopt 'smart strategies' for reducing expenditure

Wednesday 11 May 2016 16:56 BST

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DWP Committee

Work and Pensions Secretary has signalled his intention to cut expenditure on disability benefits through further reform to the welfare system.

Stephen Crabb said he wanted to go further than the £12 billion welfare cuts set out in the Conservative manifesto and “re-frame discussion” around disability welfare reform.

The announcement comes just under two months since Mr Crabb said the Government had “no further plans” for specific welfare cuts.

Mr Crabb, who replaced Iain Duncan Smith in the role in March, said he would set out a green paper on further proposed changes to disability benefits later this year.

“The measures that have either already been legislated for or announced get us to the £12 billion [welfare cuts planned in the Conservative manifesto],” he said.

“Does that mean welfare reform comes to an end? I would say no. I’ve already pointed to what I see as one of the big challenges of welfare reform – and that’s around work and health.”

Mr Crabb told MPs on Work and Pensions Select Committee that he would deploy “smart strategies” for cutting expenditure on disability and sickness benefits and would hopefully be able to secure the support of disability charities.

“In terms of how you make progress of welfare reform there when you are talking about people who are very vulnerable, people with multiple barriers, challenges, sicknesses, disabilities – I am pretty clear in my mind that you can’t just set targets for cutting welfare expenditure,” he said.

“When you’re talking about those cohorts of people you’ve actually got to come up with some pretty smart strategies for doing it which carry the support and permission of those people and organisations who represent those people who we are talking about.

7 ways the Tories have ‘helped’ disabled people

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1/77 ways the Tories have ‘helped’ disabled people

7 ways the Tories have ‘helped’ disabled people

Closing Remploy factories

The Work and Pensions Secretary called time on Britain’s system of Remploy factories, which provided subsidised and sheltered employment to disabled people. People employed at the factories protested against their closure and said they provided gainful work. “Is it a kindness to stick people in some factory where they are not doing any work at all? Just making cups of coffee?” Mr Duncan Smith said at the time, defending the decision. “I promise you this is better.” The Remploy organisation was privatised and sold to American workfare provider Maximus, with the majority of the organisation’s factories closed. The future of the remaining sites is unclear

7 ways the Tories have ‘helped’ disabled people

Scrapping the Independent Living Fund

The £320m Independent Living Fund was established in 1988 to give financial support to people with disabilities. It was scrapped on July 1 2015, with 18,000 often severely disabled people losing out by an average of £300 a week. The money was generally used to help pay for carers so people could live in communities rather than institutions. Councils will get a boost in funding to compensate but it will not cover the whole cost of the fund. This new cash also doesn’t have to be spent on the disabled

7 ways the Tories have ‘helped’ disabled people

Cut payments for the disabled Access To Work scheme

Iain Duncan Smith is bringing forward a policy that will reduce payments to some disabled people from a scheme designed to help them into work. The £108m scheme, which helps 35,540 people, will be capped on a per-used basis, potentially hitting those with the more serious disabilities who currently receive the most help. The single biggest users of the fund are people who have difficulty seeing and hearing. The cut will come in from October 2015. The charity Disability UK says the scheme actually makes the Government money because the people who gain access to work tend pay tax that more than covers its cost. The DWP does not describe the reduction as a “cut” and says it will be able to spread the money more thinly and cover more people

7 ways the Tories have ‘helped’ disabled people

Cut Employment and Support Allowance

The latest Budget included a £30 a week cut in disability benefits for some new claimants of Employment and Support Allowance (ESA). The Government says it is equalising the rate of disability benefits with Jobseekers Allowance because giving disabled people more help is a “perverse incentive”. The people affected by this cut are those assessed as having a limited capability for work but as being capable of some “work-related activity”. A group of prominent Catholics wrote to Mr Duncan Smith to say there was “no justification” for this cut. Mental health charity Mind, said the cut was “insulting and misguided”

7 ways the Tories have ‘helped’ disabled people

Risk homelessness with a sharp increase disability benefit sanctions

Official figures in the first quarter of 2014 found a huge increase in sanctions against people reliant on ESA sickness benefit. The 15,955 sanctions were handed out in that period compared to 3,574 in the same period the year before, 2013 – a 4.5 times increase. The homelessness charity Crisis warned at the time that the sharp rise in temporary benefit cuts was “cruel and can leave people utterly destitute – without money even for food and at severe risk of homelessness”. “It is difficult to see how they are meant to help people prepare for work,” Matt Downie, director of policy at the charity added

7 ways the Tories have ‘helped’ disabled people

Sending sick people to work because of broken fitness to work tests

In 2012 a government advisor appointed to review the Government’s Work Capability Assessment said the tests causing suffering by sending sick people back to work inappropriately. “There are certainly areas where it's still not working and I am sorry there are people going through a system which I think still needs improvement,” Professor Malcolm Harrington concluded. The tests are said to have improved since then, but as recently as this summer they are still coming in for criticism. In June the British Psychological Society said there was “now significant body of evidence that the WCA is failing to assess people’s fitness for work accurately and appropriately”. It called for a full overhaul of the way the tests are carried out. The WCA appeals system has also been fraught with controversy with a very high rate of overturns and delays lasting months and blamed for hardship

7 ways the Tories have ‘helped’ disabled people

The bedroom tax

The Government’s benefit cut for people who it says are “under-occupying” their homes disproportionately affects disabled people. Statistics released last year show that around two-thirds of those affected by the under-occupancy penalty, widely known as the ‘bedroom tax’, are disabled. There have been a number of high profile cases of disabled people being moved out of specially adapted homes by the policy. In one case publicised by the Sunday People last week, a 48 year old man with cerebral palsy was forced to bathe in a paddling pool after the tax moved him out of his home with a walk-in shower. The Government says it has provided councils with a discretionary fund to help reduce the policy’s impact on disabled people, but cases continue to arise

“This is why there’ll be further information in due course about this. I want to produce a green paper later this year which starts to re-frame discussion around this set of issues.”

The Government has already make sharp cuts to the Employment and Support Allowance disability benefit, cutting the rate for new claimants in the Work Related Activity Group by £30 a week from 2017.

It has also abolished the Independent Living Fund and make reductions to payments for the Access To Work scheme.

Protest outside Department of Work and Pensions

Ministers backed down on cuts to the Personal Independence Payment after the resignation of Mr Duncan Smith, who warned that the Government was paying for deficit reduction by hurting the most vulnerable in society.

Economists, including the Institute for Fiscal Studies, have previously reacted with skepticism that the previously announced £12 billion welfare cuts were achievable – especially after cuts to PIP and tax credits were dropped or delayed.

Labour's shadow work and pensions secretary Owen Smith said the Government should reverse the ESA cuts which had already been passed, adding that the Government needed to offer clarity on how it would support disabled people into work..

"The flimsy case for the cuts to Employment Support Allowance is now totally blown apart by this broken promise and the Tories must listen to Labour’s calls for them to be reversed,” he said.

The Independent has asked to DWP to clarify whether it is planning further specific disability benefit cuts.

This article has been updated

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