UK Health Benefits System Deemed Unsustainable, Calls for Urgent Reform

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UK Health Benefits System Deemed Unsustainable, Calls for Urgent Reform
HEALTH BENEFITSWELFARE REFORMUK ECONOMY
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A House of Lords committee has labeled the UK's health benefits system as financially unsustainable, urging the government to implement immediate reforms. The committee cited concerns about rising costs and a lack of incentive for individuals to return to work once receiving benefits.

The UK's health benefits system has been deemed financially unsustainable by a House of Lords committee, prompting calls for the government to implement urgent reforms. Lord Bridges of Headley, chairman of the cross-party Economic Affairs Committee, wrote to Work and Pensions Secretary Liz Kendall, stressing the need to address the escalating social and financial costs associated with the system. He emphasized that tackling this issue must be a top priority for the government.

Last year, Kendall, outlining Labour's position, stated that individuals who are able to work must do so, unveiling a 'get Britain working again' initiative aimed at assisting some of the 2.8 million people out of work due to long-term sickness return to employment. Following a brief inquiry into the reasons behind the surge in spending on incapacity and disability benefits since 2013, Lord Bridges expressed in his letter to the DWP boss that the committee found no convincing evidence to suggest that the increase in health benefits was attributable to deteriorating health or lengthy NHS waiting lists.He cautioned that people may be incentivized to claim health-related benefits and, once receiving them, lack the motivation and support to seek and accept employment. Lord Bridges urged the government to accelerate its plans to reform health-related benefits, warning that without a clear plan to address the issue, this burgeoning area of welfare spending will persist as a challenge for the forthcoming Spending Review. Long-term sickness has emerged as a significant driver of joblessness since the pandemic, with figures soaring from approximately two million in 2019 to even higher levels. Addressing this critical issue, Lord Bridges stated: '“The health benefits system is financially unsustainable, wastes human potential and – in the words of the Employment Minister – ‘does not work for anybody’. Given the pressure on the nation’s finances, tackling this must be a top priority for the Government. “Urgent action is needed to reform both the unemployment and health-related benefits system, and how they interact. 'There should be more support to help those who are able to find and accept work – and to ensure that those who cannot work for a period are not abandoned to a life on benefits. 'Without a clear plan of action, growing welfare spending will remain a significant challenge for the forthcoming Spending Review.'A government spokesperson issued a statement asserting their commitment to 'get Britain working again' and outlined their initial steps towards achieving an 80% employment rate – by integrating local work, health, and skills plans. They reiterated that the current welfare system necessitates reform to ensure fairness for taxpayers and provide individuals with the necessary support to transition into employment. Building upon their 'Get Britain Working' White Paper, they pledged to introduce proposals for reforming the health and disability benefits system in the spring. This initiative will be part of a comprehensive plan to assist disabled individuals who can work secure employment while guaranteeing support for those who require it

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HEALTH BENEFITS WELFARE REFORM UK ECONOMY EMPLOYMENT DISABILITY BENEFITS

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