McFadden pledges welfare pivot from payments to job support amid review findings

Work and Pensions Secretary Pat McFadden has declared that the Labour government must move beyond “simply writing a cheque” to health and disability benefit claimants, advocating for a strategic pivot towards enhanced job support. Speaking at a jobcentre in south London, McFadden signalled that welfare reform would form the backbone of the government’s response to two landmark reviews: Alan Milburn’s report on youth worklessness and Stephen Timms’s review of disability benefits.

The Timms review’s interim report, published last week, concluded that the Personal Independence Payment (PIP) was “not working,” calling for radical overhaul proposals for the scheme claimed by nearly 4 million people in England and Wales. Concurrently, the first phase of the Milburn review, released in late May, urged a “whole system reset” involving welfare, schools, and employers to address the rise in young people out of work or education to over one million.

McFadden, who commissioned both reviews, emphasised a fundamental shift in the welfare state’s objective. He stated that the government’s role is to change the question from “what benefits are you entitled to?” to “how can we help you live the fullest life?” This approach acknowledges that while the system must support those unable to work, it has a duty to assist those who could change their situation through employment.

Ministers are currently awaiting final recommendations from both reviews this autumn, with work already underway on the government response. McFadden confirmed he is engaging with the Department for Education and the Department for Health to prepare a cohesive plan, noting that the issues highlighted by the reviews require a cross-departmental approach to be effective.

The policy direction comes as the government supports 100,000 people on the highest level of health-related benefits through the Pathways to Work scheme. This initiative provides no-strings attached support to help claimants gain confidence to engage with the jobs market, a model McFadden argues demonstrates the necessity of investing in support rather than leaving individuals isolated on benefits.

Amid tight public finance constraints and a rising welfare bill, speculation is mounting regarding McFadden’s potential role as chancellor under incoming Prime Minister Andy Burnham, who is expected to take office next week. Despite these political manoeuvres, McFadden maintained that welfare reform remains a priority for the incoming administration, describing it as an “agenda for all seasons” rooted in the Labour party’s belief in opportunity and work.