What does the Autumn Budget 2024 mean for disabled people?

The Government has released its Autumn Budget setting out its economic plans. We’ve created a bite-size list to give disabled people the highlights.??

The Autumn Budget was released in full on Wednesday, 30th October 2024, after Prime Minister’s Questions at 12.30pm.??

Please note, that we know the budget can cause anxiety for some, particularly as benefits and financial support were mentioned, so we’re providing you with these highlights from reputable news sources only. You can find the original source links in the article.?

What is the Autumn Budget??

Chancellor, Rachel Reeves, has set out the state of the economy, forecasts and public finances.?

Reeves chanted, “Invest, Invest, Invest”, as she set out her plans as the first female Chancellor.?

Autumn Budget highlights for disabled people:?

• Labour to continue with Work Capability Assessment reform set out by the Conservative party?

• Minimum wage increase by 6% to ￡12.21?

• No increase to National Insurance, VAT and tax for working people?

• Carers allowance increase so carers can earn over ￡10,000 whilst receiving carers allowance?

• Crackdown on criminal gangs committing welfare fraud including direct access to bank accounts to recover debt??

• ￡240 million Get Britain Working package to include work, skills and health support for disabled people and long-term sick?

• Income tax band thresholds to rise in line with inflation after 2028, preventing more people from being dragged into higher bands as wages rise?

Work Capability Assessment reform?

The Work Capability Assessment (WCA) is integral to determining eligibility for disability benefits and support through Universal Credit, and these changes may significantly impact the level of support available to those affected by physical and mental health limitations.??

The WCA scores applicants based on their ability to perform certain activities. Applicants who score highest are placed in the LCWRA (Limited Capability for Work-Related Activity) group. Those scoring below the highest levels, but still enough to qualify for support, are placed in the LCW (Limited Capability for Work) group. Those who score low receive no disability payments under universal credit and are expected to look for work.?

The DWP has proposed three changes to the WCA. First, mobility will no longer be enough by themselves to qualify for the LCWRA group. The DWP expects this to affect 260,000 people by 2028/29, who would receive lower benefits and would have to undertake work-related activity as a result.?

The second change is that difficulties getting between two places will score lower in relation to the LCW group. An expected 33,000 people will be hit by 2028/29, receiving no universal credit disability payments and being subjected to intensive work search conditions and possible sanctions.?

Finally, the substantial risk regulations, under which people whose mental health would be harmed by undertaking work-related activity are instead placed in the LCWRA group, would only apply in exceptional cases. 163,000 people are expected to be impacted by this change by 2028/29.?

Jane Hatton , CEO of Evenbreak, said: "The completely unfit-for-purpose and barbaric Workplace Capability Assessments are more than overdue for an overhaul, or banning altogether, so reform is welcome news. However, the process should work on the basis of how barriers to work are dismantled (inflexible hours, fixed locations, impacts on benefits, etc) rather than what disabled people can or can't do. Disabled people who can and want to work should be given every support to do so, whilst those for whom work would worsen their symptoms should be supported to live a decent life without additional pressure.”?

Minimum wage increase?

The legal minimum wage for over-21s will rise from ￡11.44 to ￡12.21 per hour from April, which is a pay rise for over 3 million employees.?

Pay boost worth ￡1,400 a year for eligible full-time employees - a significant move towards delivering a genuine living wage.?

The rate for 18 to 20-year-olds will go up from ￡8.60 to ￡10, as part of a long-term plan to move towards a "single adult rate".?

Carers Allowance increase?

Eligibility widened for the allowance paid to full-time carers, by increasing the maximum earnings threshold from ￡151 to ￡195 a week. This means over 60,000 carers will receive more support.?

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The new earnings threshold allows carers to earn more while still receiving the allowance, and aims to ease the financial strain for carers balancing work and full-time caregiving. Find out more about the carers allowance and check for eligibility.?

Welfare fraud?

Whilst fraud detection efforts increase, advocates call for more resources to support those struggling to claim rightful benefits, which would have a broader social and financial impact.??

Evenbreak’s CEO shares her views on this announcement…?

Jane said: “In terms of crackdown on benefit fraud, we know that this is minimal, compared to those who don't claim benefits they are eligible for. It would be fiscally more responsible to spend that energy on a crackdown on tax evasion and avoidance from the wealthy, reaping far more financial rewards."??

Get Britain Working?

This ￡240m cash injection into local services “will bring together and streamline work, health, and skills support to disabled people and those who are long-term sick.”??

The program includes “Universal Support,” a tailored employment support service specifically for disabled people, which is voluntary and aims to match individuals with jobs suited to their needs.?

Find out more at gov.uk?

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Useful links?

• How to navigate benefits and work?

• Browse Jobs with inclusive employers?

• Access resources and Guidance on the Career Hive?

• Work Capability Assessment Reform?