Welfare Reform Bill

The Welfare Reform Bill was published on 4 July 2006 and represents the next stage in the Government's plan to modernise the welfare state. It is hoped that as many as 1 million of the UK's 2.7 million incapacity benefit claimants will be helped to return to work and thereby save on the annual spend of £7 billion. The Bill details powers to replace incapacity benefit with a new 'Employment Support Allowance' which, following a new 'Personal Capability Assessment', will help provide individuals with more relevant support to enable them to return to work.

The Bill also provides greater power to tackle benefit fraud which will strengthen the "two strikes" rule so that people who commit a second benefit offence within 5 years of their first offence, can have their benefit withdrawn. The expectation from this Bill is that with a more tailored approach and greater support for individuals, claimants will actively engage in the challenge to return to the workplace.

Alongside the Bill's publication was the announcement of the roll-out of the 'Pathways to Work' initiative. This will provide contact interviews, advice and assessments for claimants. Working in tandem with occupational health professional's, claimants will return to work as part of a more supervised and planned rehabilitation. It remains to be seen whether these proactive changes result in the desired and long term effect of reducing the high number of workers currently claiming incapacity benefit whilst also encouraging a higher number to return to the workplace.