DWP Universal Credit Fails to Support 2 MILLION Job Seekers: New data released on Thursday, 13 March, reveals that 1.8 million people on Universal Credit are now classified under Limited Capability for Work Related Activity (LCWRA), meaning they receive no support to find employment. This number has seen a staggering 383% increase since the pandemic began, when just 360,000 people were considered too ill to work.
In the past year alone, the LCWRA count has jumped from 1.4 million to 1.8 million. The issue is particularly concerning among young people aged 16 to 24, where cases have surged by 249%, from 46,000 to 160,000, trapping many in long-term inactivity.
Government’s Plan to Tackle Economic Inactivity
The UK government is moving forward with major welfare reforms to address the rising number of people excluded from the workforce. As part of the Plan for Change, Work and Pensions Secretary Liz Kendall MP has committed to fixing what she calls a “broken benefits system”, which fails to support those who want to work but lack the right opportunities.
The reforms aim to:
- Empower local mayors to reduce economic inactivity.
- Overhaul Jobcentres to provide better employment support.
- Deliver a Youth Guarantee, ensuring every young person is either working or in education.
These efforts build on the biggest employment reforms in a generation, designed to boost economic growth and improve living standards.
Problems with the Current Work Capability Assessment (WCA)
Under the existing system, individuals are classified into binary categories—either fit for work or not fit for work—based on the Work Capability Assessment (WCA). Those deemed not fit for work are placed in the LCWRA category, meaning:
- They do not receive employment support or any further engagement after their assessment.
- They are locked out of work indefinitely, even if they wish to re-enter the workforce.
The financial structure of Universal Credit also creates issues. Currently, individuals 25 and older receive £393.45 per month under the standard rate, while those classified as having a health condition receive an additional £416.19 per month. This disincentivizes work, as many individuals may feel compelled to prove their inability to work simply to receive higher financial support.
Over the last five years, 67% of people on Universal Credit who went through a WCA were deemed LCWRA, highlighting systemic flaws in the assessment process.
Government’s Investment to Support Health and Employment
To tackle health-related inactivity, the government is investing £26 billion in the NHS to improve healthcare services and help people stay fit for work. Measures include:
- 2 million extra medical appointments to reduce waiting times.
- Hiring 8,500 additional mental health workers to support people’s well-being.
Additionally, a £250 million plan has been launched to increase workforce participation, alongside the redeployment of 1,000 Work Coaches to provide intensive employment support for 65,000 sick and disabled individuals.
Why Has the LCWRA Caseload Risen So Drastically?
While an increase in LCWRA cases was expected due to the transition from legacy benefits to Universal Credit, the actual rise has far exceeded government projections.
- 70% of the increase in LCWRA cases over the last five years was not anticipated by the Department for Work and Pensions (DWP).
- The UK is now the only G7 country where economic inactivity remains higher than pre-pandemic levels.
The sharp rise in LCWRA cases underscores the urgent need for reforming the Work Capability Assessment, ensuring those who want to work receive proper support, rather than being permanently excluded from employment.
The 1.8 million people now in LCWRA highlight deep flaws in the current benefits system, which discourages employment rather than facilitating it. As the government pushes forward with major welfare reforms, the goal is to create a fair and inclusive labour market, ensuring those who can and want to work receive the right opportunities and support.
The upcoming changes could mark a major turning point in tackling economic inactivity, helping the UK workforce regain momentum post-pandemic.
FAQ’s
What is Limited Capability for Work Related Activity (LCWRA)?
LCWRA is a Universal Credit category for people considered too ill to work after a Work Capability Assessment (WCA). They receive financial support but no employment assistance.
Why has the number of people in LCWRA increased so much?
The LCWRA caseload has risen by 383% since the pandemic due to the transition from legacy benefits to Universal Credit, flaws in the Work Capability Assessment, and post-pandemic economic changes.
What is the UK government doing to fix the benefits system?
The government plans to reform or replace the Work Capability Assessment, empower local authorities to reduce economic inactivity, and invest in NHS services to keep people fit for work.
How much money do people in LCWRA receive?
Individuals 25 and older on Universal Credit receive a standard rate of £393.45 per month. Those in LCWRA receive an additional £416.19, making their total benefits £809.64 per month.
Does the benefits system discourage people from working?
Many argue that higher financial support for LCWRA claimants incentivizes them to stay classified as unfit for work instead of seeking employment.
What support is available for people who want to work?
The government is redeploying 1,000 Work Coaches to provide intensive employment support to 65,000 sick and disabled individuals, helping them return to work.
How does the UK compare to other G7 countries in economic inactivity?
The UK is the only G7 nation where economic inactivity remains higher than pre-pandemic levels, highlighting the urgent need for welfare reforms.
What role does the NHS play in reducing economic inactivity?
The government is investing £26 billion in the NHS, hiring 8,500 mental health workers, and offering 2 million extra appointments to help people stay healthy and work-ready.
What is the Youth Guarantee?
The Youth Guarantee is a government initiative to ensure every young person is in education, employment, or training, reducing long-term youth inactivity.
When will the new welfare reforms take effect?
The government has already started implementing changes, with further reforms expected to be announced soon as part of the Plan for Change.
The idiots want to sort out the gp surgery’s I’ve seen my doctor twice in three years it’s that bad now I can’t get appointment to have my bloods taken for a myeloma test I was told to go to the hospital that’s how good the labour party are improving the system