Some people claiming sickness and disability benefits could continue to receive payments even if they find work, according to plans under government review.
The proposals aim to get more people back into employment.
At present, benefits can be reduced or eliminated entirely when you return to work.
A source told the BBC there will be a “radical rewiring” of how the benefits system works.
Recent figures suggest that around 2.5 million people are absent from the labor market due to illness.
In his fall statement last year, Chancellor Jeremy Hunt expressed concern that employment had not returned to pre-pandemic levels.
And last week Prime Minister Rishi Sunak said the government was looking at a range of measures to tackle the problem, adding: “We need to look at how our welfare system is working… we want to make sure we’re supporting it and incentivising people who are.” it can be to work.”
- Record numbers not looking for work due to illness
Work and Pensions Secretary Mel Stride has been tasked with finding ways to reduce unemployment.
A white paper on health and disability detailing the new plans – which are ongoing – is expected in the spring.
The Times reported that the paper would recommend scrapping the “fitness to work assessment” system used to check eligibility for benefits, with ministers describing it as a “perverse incentive to prove how ill you are”. .
It could be replaced by a procedure whereby applicants are instead asked to show what work they could accept.
The newspaper also said the Treasury Department is considering offering people tax breaks to enter jobs.
Labor has outlined plans to reform the system if it comes to power, saying applicants who take a job but then stop within a year will not have to undergo a further skills assessment to re-apply for benefits.
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