New proposals emerging from within the orbit of the UK's Labour Party suggest a potential shift in welfare reform, where some cash benefits could be replaced with services such as therapy or healthy meals. This comes as the party aims to address a rising welfare bill without resorting to what it calls "crude cuts."
Research by the Good Growth Foundation, a think tank with close ties to Labour, indicates that a significant portion of benefit claimants would be willing to exchange a portion of their weekly payments for services designed to improve their quality of life or provide practical support. The foundation's findings suggest that 49% of surveyed claimants would trade at least £20 per week for services like home support, physiotherapy, therapy, or skills training. Furthermore, 31% would be willing to exchange £50 weekly, equivalent to £2,600 annually.
The survey of 1,000 claimants revealed specific preferences, with 20% willing to exchange £50 or more weekly for home support such as a carer, while 19% expressed interest in physiotherapy and 18% in home adaptations. Younger claimants, aged 16 to 34, were more inclined to opt for services over cash, showing a particular interest in employment-focused support.
The Good Growth Foundation has proposed that the Department for Work and Pensions (DWP) could offer a voluntary menu of services alongside existing cash entitlements. The think tank suggests that the state could procure these services at a lower cost than the market rate, potentially leading to billions in annual savings.
Examples of services considered in the research include weekly physiotherapy or personal training sessions, delivery of healthy meals or recipe boxes, regular assistance with cleaning or shopping, and counseling or cognitive behavioral therapy sessions to help manage conditions like anxiety, depression, or chronic fatigue. The think tank argues that such a model could move the benefits system from a passive approach to one that actively invests in claimants' potential for a fuller life.
This discussion occurs against the backdrop of rising costs for disability benefits. Spending on Personal Independence Payment (PIP), a key benefit for those with long-term health conditions or disabilities, is projected to exceed £41 billion by the end of the decade. Data from the DWP indicates that the number of PIP claimants in England and Wales has surpassed four million, roughly doubling since 2019. IMAGE1
Stephen Timms is currently leading a major review of the PIP system. An interim report from his review noted that while PIP aids independent living, the effectiveness of alternative support structures remains a subject for further examination. The final report from this review is anticipated later this year. The DWP has stated its commitment to reforming PIP and has co-produced the Timms review with disabled individuals to ensure its future suitability.