Statement on the Chancellor’s Autumn Statement

22nd November 2023

Media Statement from the Centre for Social Justice

Commenting on the Chancellor’s statement in the House of Commons today, Andy Cook, Chief Executive of the Centre for Social Justice said:

“The Government is right to put employment at heart of its ‘Autumn Statement for Growth’. It was good to see the doubling of Universal Support and introduction of a “Chance to Work Guarantee”, both longstanding CSJ recommendations.

The “Chance to Work Guarantee” should give a cast iron commitment that anyone not fit to work who tries work out will have their benefit entitlement protected if it falls through. It is a simple change, but will help to overcome the distrust so often seen between claimants and the welfare system.

Stronger employment support, together with the decision to uprate benefits in line with inflation, provides the political cover necessary for Government to push through harder-edged welfare reform. The decision to restrict access to higher-rate incapacity benefits is the most contentious.

While some may feel squeamish about tougher sanctions, it is reasonable to expect those in receipt of taxpayer-funded benefits to do what they can to find a job. The welfare system is a safety net, not a choice, and while vulnerable claimants must be protected, the principle of reciprocity is fundamental to maintaining public consent for the spiralling welfare bill. That said, there will be deeply challenging political questions to answer when, as it inevitably will, vulnerable people become locked out of the welfare system and left to fend for themselves.

The Chancellor’s restriction of access to higher rate disability benefits may also prove problematic.

His Work Capability Assessment (WCA) changes are expected to save £1 billion annually by 2028, but the Chancellor’s claim to be motivated by the desire to help workers with health conditions access an increasingly flexible labour market rings hollow. Home working opportunities are skewed towards higher wage jobs inaccessible to the typical higher rate disability claimants.

DWP data reveals that these claimants are typically older, less qualified, and less digitally literate than the general population. ONS data shows that the highest levels of home-only or hybrid working are seen among workers earning £50,000 a year or above. Just 8 per cent of people earning under £10,000 year work exclusively from home.”

ENDS

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