The Conservative Party, led by British Prime Minister Rishi Sunak and facing an upcoming election, unveiled plans on Saturday to tighten sickness benefit regulations. These changes are projected to yield annual savings of 12 billion pounds ($15.3 billion). Sunak views these reforms as both a moral duty and a strategy to address public financial issues.
The proposed adjustments encompass enhancements to mental health services, stricter evaluations of individuals' work capabilities, and more stringent requirements for those declining suitable job offers.
The Conservative Party anticipates reducing welfare expenditures by 12 billion pounds per year by the conclusion of the following parliamentary term, slated to extend until 2029. Nevertheless, the Institute for Fiscal Studies, a nonpartisan research institution, noted that many of the proposed modifications were already factored into existing fiscal forecasts. Tom Waters, an associate director at the IFS, highlighted a key proposal targeting the criteria for receiving benefits due to mental health conditions as the most significant new initiative.
While the annual welfare spending on sick and disabled individuals in the UK has surged by 20 billion pounds since the 2019 election, reaching 69 billion pounds pre-Covid, the IFS foresees a further increase to 10.6 billion pounds by 2029. In contrast to other leading economies, the labor force participation rate among working-age Britons has declined post-pandemic, primarily due to a rise in chronic illness and student numbers.
Sunak has scheduled the national election for July 4th, with opinion polls indicating a probable substantial defeat for the Conservatives against the center-left Labour Party. Labour has pledged to diminish health treatment waiting lists to facilitate a return to work for more individuals and curb welfare expenses.
