Welfare Reform and Work Act 2016

Official Summary

A Bill to make provision about reports on progress towards full employment and the apprenticeships target; to make provision about reports on the effect of certain support for troubled families; to make provision about life chances; to make provision about the benefit cap; to make provision about social security and tax credits; to make provision for loans for mortgage interest and other liabilities; and to make provision about social housing rents.

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Overview

This Welfare Reform and Work Bill aims to reform aspects of the UK's welfare system. The bill's core disagreements center around the implementation of changes to Employment and Support Allowance (ESA) and Universal Credit (UC), with the House of Lords seeking further impact assessments before their implementation.

Description

The bill focuses on amendments to Clauses 13 and 14. The House of Lords proposed amendments (8 and 9) to delay the implementation of changes to the work-related activity component of ESA and the limited capability for work element of UC, respectively. These amendments required the Secretary of State to submit reports to Parliament assessing the impact of the changes on recipients' physical and mental health, financial situation, and ability to return to work, before implementation. The House of Commons disagreed with these amendments, citing concerns about altering the financial arrangements of the bill.

Clause 13 (ESA Changes):

Deals with changes to the work-related activity component of Employment and Support Allowance. The Lords sought an impact assessment and parliamentary approval before implementation. The Commons rejected this.

Clause 14 (UC Changes):

Deals with changes to the limited capability for work element of Universal Credit. Similar to Clause 13, the Lords requested an impact assessment and parliamentary approval which was rejected by the Commons.

Government Spending

The exact financial implications are not explicitly stated in the provided text. However, the Commons' repeated objections to the Lords' amendments, based on altering financial arrangements, suggest that the proposed changes would have a significant impact on government spending, although the direction and magnitude of the change aren't specified.

Groups Affected

This bill primarily affects:

Recipients of Employment and Support Allowance (ESA): Changes to the work-related activity component could impact their financial situation and ability to return to work.
Recipients of Universal Credit (UC): Changes to the limited capability for work element could affect their financial stability and employment prospects.

Full Text

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