What the benefit system reforms mean for disabled people

Phoebe Eden-Mann, National Policy Analyst

The benefit system reforms announced earlier this week have caused a lot of concern for many disabled people. We know that many disabled people receive some form of benefit, and with the numerous barriers to accessing the Supported Living Payment, many are left receiving Jobseekers with Medical Exemption. Essentially, the new system ranks beneficiaries as green, orange, or red. Red is the high risk category and can face sanctions. Here’s a quick crash course in what we know so far and what they mean for disabled people.

Traffic Light Sanction System

Green: Recipient is fully complying with their obligations. No sanctions applied and will receive their benefit as usual.

Orange: Recipient has not been complying with their obligations and this is their first or second obligation breach. This includes things like not attending work readiness seminars without a good reason as to why you can’t attend. Once notified of a breach, the recipient has five working days to contact MSD to dispute the breach, if successful you move back to green. Failure to comply within five working days and the recipient will move to red and face sanctions.

Red: Recipient is now classed as high risk and will face sanctions. Sanctions could include their benefit being reduced or stopped, and from next year new sanctions are being introduced.

From 2025 for certain recipients such as those with dependent children or people who are facing their first obligation failure will face new sanctions, but everyone else will continue to face financial sanctions. New sanctions include ‘money management’ where half of the recipients benefit goes on an electronic payment card that can only be used at certain stores to purchase essentials. Also being introduced is “community work experience” which requires the recipient to find and complete work experience at a community organisation before the sanction is lifted.

Obligation failures currently stay on a persons record for 12 months, and under the new system this will be doubled to 24 months, making it more likely a persons benefit would be cancelled if they continued to fail to meet their obligations.

From 2025 Jobseeker Support recipients will need to re-apply for their benefit every six months, and will also need to create a ‘Jobseeker profile’ including work experience, job choices and history, and their qualifications prior to being approved for a benefit.

NOTE: Beneficiaries will NOT be able to access hardship assistance whilst under these sanctions.

From the information available currently, we know that Jobseekers and Jobseekers with Medical Exemption are being targeted by the new sanctions, it is somewhat unclear what if any sanctions there will be for the Supported Living Payment and I have reached out for clarification on this.

Fundamentally the reforms fail to address the significant barriers that prevent disabled people from accessing the Supported Living Payment (SLP). Securing eligibility is a long and difficult process. The SLP also doesn’t have the flexibility to work well for people whose ability to work may change over time due to their impairment. Instead, many disabled people find themselves on Jobseeker Support with medical exceptions, despite being medically assessed as unable to work.

The barriers to accessing the SLP are numerous, and until they are adequately addressed, any benefit sanctions imposed on people on Jobseeker Support will exacerbate the struggles faced by disabled people.