5,000 hit by benefits shake-up

THE number of people on sickness benefits in Oldham will be cut by more than 5,000 within three years, a report claims.

The research from the Centre for Regional Economic and Social Research says incapacity benefit claimants across the borough will fall by 5,300 from its current 12,180 level.

Government plans to carry out strict tests on incapacity benefit claimants will see many told to return to work. Those deemed fit to work will move to Jobseekers Allowance, those who could work with help go on to the Employment and Support Allowance (ESA), which replaces incapacity benefit, while anyone found unfit to work with be paid ESA at a higher rate. Others will lose out through means testing.

The analysis claims 2,900 Oldhamers will be taken out of the benefits system entirely, and 1,700 moved on to Jobseekers Allowance. In addition, more than 4,000 will be given help to prepare them for the workplace.

In Great Britain as a whole, 6.6 per cent of the working age population are incapacity benefit claimants, but the average for Oldham is 8.8 per cent.

Report co-author, Professor Steve Fothergill, said: “The reduction does not mean that there is currently widespread fraud, or that the health problems and disabilities are anything less than real. In terms of the numbers affected and the scale and severity of the impact, the reforms to incapacity benefits that are under way are probably the most far-reaching changes to the benefits system for at least a generation.”

Incapacity benefit is paid at different amounts depending on which group people are in, but many of those who will be affected receive around £97 a week, while average Jobseekers Allowance payments are £61.73.

Employment Minister Chris Grayling said: “It’s clear that millions of people have been written off for years left on incapacity benefit with no real support to get into work. That’s why we are re-testing people to see if they have the capacity to work.

“Our changes will make sure those in genuine need get more support and those who could and should be working are given the opportunity to do so.”