Overview

This Welfare Reform and Work Bill aims to reform aspects of the UK's welfare system. The key disagreements between the House of Lords and the House of Commons center around the implementation of changes to Employment and Support Allowance (ESA) and Universal Credit, specifically concerning the requirement for impact assessments before these changes are enacted.

Description

The bill focuses on two main clauses (13 and 14) relating to changes in the welfare system. The House of Lords proposed amendments (8 and 9) to clauses 13 and 14 respectively, demanding impact assessments before implementing changes. These assessments would analyze the effects of the reforms on the physical and mental health, financial situation, and ability to return to work for those affected. The House of Commons rejected these amendments, citing concerns about altering the agreed financial arrangements. The Lords subsequently withdrew their initial amendments but proposed new ones (8B, 8C, 9B, 9C) which require reports on the impact of the changes on claimants of Employment and Support Allowance and Universal Credit to be submitted to Parliament, before the changes are enacted and approved by both Houses.

Government Spending

The bill's exact financial impact is unclear, as the Commons repeatedly rejected the Lords' amendments focusing on impact assessments because they would alter the original financial plans. No specific figures on government spending changes are provided in the given text.

Groups Affected

The bill primarily impacts:

• Claimants of Employment and Support Allowance (ESA): Changes to the work-related activity component may affect their financial situation, health, and ability to return to work.
• Claimants of Universal Credit: Amendments relating to the limited capability for work element could affect their financial circumstances, health, and prospects for employment.
• The UK Parliament: Both Houses are involved in the decision-making process concerning the bill's implementation, with increased scrutiny now required following the Lords' amendments.

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