Metro

DWP to make key change to unemployment benefits in a major system shake-up

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The UK government is set to introduce a major overhaul of the welfare system, prioritizing workers who lose their jobs over those who have never been employed.

The plan, led by Work and Pensions Secretary Liz Kendall, aims to address the soaring unemployment rate, with 9.3 million working-age people currently out of work and not seeking employment. The reforms will merge Jobseeker’s Allowance and the Employment and Support Allowance into a single benefit, requiring all claimants to actively seek work.

Under the new system, nearly all disabled individuals and those with long-term health conditions will be required to participate in discussions about employment support, though exemptions will remain for those unable to work. The government emphasizes that the changes are driven by a “moral duty to get Britain working again” and to provide meaningful opportunities for people to improve their lives, rather than simply cutting costs.

A government source told *The Sun on Sunday*, “We will deliver reform with real people and real voices at the heart of the changes—people who for too long have been ‘signed off’ rather than ‘signed up’ to support which will help them back to work.” The reforms come as the UK faces a growing welfare bill, with £65 billion spent on sickness benefits in 2024 and projections suggesting the cost could reach £1 billion per week by 2030.

The full details of the welfare shake-up will be unveiled next week, with a Green Paper expected to be published for consultation in the coming weeks. The plan reflects the government’s commitment to reducing dependency on benefits and helping people re-enter the workforce, while ensuring those in genuine need continue to receive support.