Money Wellness

benefits

Published 11 Mar 2025

2 min read

Government acknowledges ‘challenges’ for disabled people claiming benefits

The government is looking at the benefits system to make sure disabled people can work more hours if they can.

Government acknowledges ‘challenges’ for disabled people claiming benefits
James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

Published: 11 March 2025

Social security minister Sir Stephen Timms was asked by Labour MP Neil Coyle if the government plans to change supported housing rules and regulations so people with disabilities can work for longer.

In response, Sir Stephen said the government “acknowledges there is a challenge presented by the interaction between universal credit and housing benefit for those living in supported housing and temporary accommodation and receiving their housing support through housing benefit”. 

“The [Department for Work and Pensions] will consider the issue carefully in partnership with stakeholders,” he said.

Nevertheless, Sir Stephen said the housing benefit taper ensures a person is “better off in work than wholly reliant on benefits”.

He added that working also has many “non-financial benefits”, such as:

  • learning new skills
  • improved confidence and independence
  • improved physical and mental health

Independent review underway

The government has already launched an independent review into helping sick and disabled people find jobs and stay in work.

Led by former John Lewis boss Sir Charlie Mayfield, this will identify the obstacles and opportunities for business when it comes to hiring sick and disabled people and keeping them on.

The review will move at pace, with recommendations due to be published in the autumn.

Ministers are also set to announce changes to health and disability benefits in the coming weeks.

Speaking to Labour MPs this week, prime minister Sir Keir Starmer said the current benefits system is “discouraging people from working”, while many of those who “really need that safety net” aren’t “always getting the dignity they deserve”.

“That's unsustainable, it's indefensible and it is unfair,” he said.

James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

James has spent almost 20 years writing news articles, guides and features, with a strong focus on the legal and financial services sectors.

Published: 11 March 2025

The information in this post was correct at the time of publishing. Please check when it was written, as information can go out of date over time.

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James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

Published: 11 March 2025

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