Connect with us

Published

on

Issues or errors surrounding the system of health assessments for benefits has contributed to the deaths of some claimants, MPs have heard.

The Work and Pensions committee said they are “deeply concerned” people are still experiencing psychological distress because of the process – despite an inquiry five years ago highlighting “significant problems”.

In a new report published on Friday, the committee said: “In some cases, issues or errors in the system are associated with or have been found at Coroner’s Inquest to have contributed to the deaths of claimants.”

Politics live: ‘Significant blow’ if nurses reject pay offer – result of ballot expected today

It recommended the government review the impact of its assessment process and implement safeguarding and suicide prevention training for staff.

Commenting, the SNP’s Social Justice spokesperson, David Linden MP, said: “Five years ago, the Tories were warned by this very committee that the DWP’s health assessment system required urgent change. They didn’t act, and now some claimants have paid the ultimate price.

“This is a scandalous revelation which lies squarely with the Tories.”

In 2020, the National Audit Office found that at least 69 suicides could have been linked to problems with benefit claims over the last six years.

But it said the true number could be “far higher” as the DWP had failed to actively seek information from coroners or families, or investigate all of the cases that have been reported to it.

The committee report did not have an updated figure on deaths but heard from experts who noted a “very strong association between those places where more people had been through the (health assessment) process, and a rise in mental health problems and suicides”.

Professor Ben Barr, from the University of Liverpool, was asked about research he carried out in 2015 which looked at the impacts of the increase in Work Capability Assessment (WCA) as claimants were reassessed to move onto Employment Seekers Allowance.

He said across England the process had led to an additional 600 suicides, 300,000 additional cases of mental health problems and a large rise in the prescribing of antidepressants over a nine-year period.

Please use Chrome browser for a more accessible video player

Chancellor announces changes to welfare system

“We looked at whether it could be explained by other factors or other economic trends, but there was quite a unique pattern in the increase in mental health problems, and the most likely explanation was that it was due to the reassessment process”, he told the committee.

He said it is difficult to assess improvements since this study as “there are no systems in place” to monitor the impact of the health assessments and potential adverse outcomes.

But MPs on the committee pointed to a survey from the University of Kent last year which found half of claimants who have been through the WCA process said it made their mental health worse.

Dr Ben Baumberg Geiger, who led the research, said at the time: “It is not sufficient to say that this is a historical problem and that everything is fine now. If there were more transparency, it would be easier to know a bit more about it, but the evidence suggests that there are still major problems with the WCA that could lead to an increased risk of poor mental health.”

The committee urged the government to improve its data on deaths and serious harm related to health assessments as part of a series of measures to improve the system.

WCA’s are in place to help those with disability or ill-health access benefits, but accounts of poor accessibility, factual inaccuracy, delays, and communication problems “speaks to a system that is still not adequately supporting often vulnerable people,” the report found.

MPs surveyed more than 8,000 people as part of the inquiry and discovered “a profound lack of trust in the system as a consistent theme”, according to the committee chair and Labour MP Sir Stephen Timms.

It comes ahead of a shake-up of the entire system, with the government planning to scrap WCA’s to get more disabled people into work by focusing on what they can do – and not what they can’t.

This means there will only be one assessment in the future, the Personal Independence Payment (PIP) assessment, however the WCA will remain in place until at least 2026.

Read More:
Call for more help to get millions of long-term sick back into employment

Sir Stephen said many “will welcome the changes” but added: “Waiting years for changes won’t cut it when quicker wins are available: flexibility of choice on assessment by phone or face-to-face; recording assessments by default; extending deadlines to reduce stress; and sending claimants their reports.

“All this will give much-needed transparency to a process that so few trust yet affects their lives so fundamentally.”

A DWP spokesperson said: “This government is committed to ensuring people can access financial support in a timely and supportive manner and therefore reducing processing times and further improving the claimant experience are key priorities for the DWP.

“The proposals set out in our recent Health and Disability White Paper will make it easier for people to access the right support and improve trust and transparency in our decisions and processes.”

Continue Reading

Business

US and EU agree trade deal, says Donald Trump

Published

on

By

US and EU agree trade deal, says Donald Trump

The United States and European Union have agreed a trade deal, says Donald Trump.

The announcement was made as the US president met European Commission chief Ursula von der Leyen at one of his golf resorts in Scotland.

Speaking after talks in Turnberry, Mr Trump said the EU deal was the “biggest deal ever made” and it will be “great for cars”.

The US will impose 15% tariffs on EU goods into America, after Mr Trump had threatened a 30% levy.

He said there will be an EU investment of $600bn in the US, the bloc will buy $750bn in US energy and will also purchase US military equipment.

Mr Trump had earlier said the main sticking point was “fairness”, citing barriers to US exports of cars and agriculture.

He went into the talks demanding fairer trade with the 27-member EU and threatening steep tariffs to achieve that, while insisting the US will not go below 15% import taxes.

More from World

For months, Mr Trump has threatened most of the world with large tariffs in the hope of shrinking major US trade deficits with many key trading partners, including the EU.

Ms von der Leyen said the agreement would include 15% tariffs across the board, saying it would help rebalance trade between the two large trading partners.

In case there was no deal and the US had imposed 30% tariffs from 1 August, the EU has prepared counter-tariffs on €93bn (£81bn) of US goods.

Ahead of their meeting on Sunday, Ms von der Leyen described Mr Trump as a “tough negotiator and dealmaker”.

Follow the World
Follow the World

Listen to The World with Richard Engel and Yalda Hakim every Wednesday

Tap to follow

This breaking news story is being updated and more details will be published shortly.

Please refresh the page for the latest version.

You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow us on WhatsApp and subscribe to our YouTube channel to keep up with the latest news.

Continue Reading

Business

Bread producers Hovis and Kingsmill close in on historic merger

Published

on

By

Bread producers Hovis and Kingsmill close in on historic merger

The owners of Hovis and Kingsmill are closing in on a definitive agreement to merge two of Britain’s most famous grocery brands following months of talks.

Sky News has learnt Associated British Foods (ABF), the London-listed company which owns Kingsmill’s immediate parent, Allied Bakeries, has proposed paying roughly £75m to acquire Hovis from its long-term private equity backers.

Banking sources said a deal could be formally agreed to combine the businesses as early as the end of next week, although they cautioned the complexity of the transaction meant the timing could yet slip.

Confirmation of a tie-up would come nearly three months after Sky News revealed ABF and Endless – Hovis’s owner since 2020 – were in discussions.

Industry sources have estimated that a combined group could benefit from up to £50m of annual cost savings from a merger.

ABF has also been exploring options for the future of Allied Bakeries separate from its talks with Hovis in the event a deal could not be agreed or is prevented from completing by competition regulators.

If it does go ahead, the merger will unite two historic bread producers under common ownership, with Allied Bakeries having been founded in 1935 by Willard Garfield Weston, part of the family which continues to control ABF.

More from Money

Hovis traces its history back even further, having been created in 1890 when Herbert Grime scooped a £25 prize for coming up with the name Hovis, which was derived from the Latin ‘Hominis Vis’ – meaning “strength of man”.

Persistent inflation, competition from speciality bread producers and shifting consumer habits towards lower-carb diets have combined to impair breadmakers’ financial health in recent decades, however.

In accounts filed at Companies House earlier this month, Hovis said it had “achieved positive financial progress despite continued tough trading conditions”.

The company reported sales of £439.6m in the 52 weeks to 28 September last year, down from £477.6m in the 53 weeks to 30 September 2023.

Earnings before interest, tax, depreciation and amortisation fell from £20.9m to £18.7m, which Hovis said was the result of the revenue decline and higher distribution costs.

“Overall bread share remained stable, despite significant price inflation and the ongoing cost-of-living crisis, demonstrating the resilience of the Hovis brand and its iconic status as one of Britain’s most loved food brands,” the accounts said.

This week, the trade publication The Grocer reported that Britain’s big four supermarkets, including Asda and Sainsbury’s, had delisted a number of Hovis-branded products.

The publication quoted a Hovis spokeswoman as saying the company was “aware of some adjustments to Hovis product lines in certain stores”.

“We remain fully committed to working collaboratively with our retail partners to grow our mutual businesses.”

The overall UK bakery market is estimated to be worth about £5bn in annual sales, with the equivalent of 11m loaves being sold each day.

Critical to the prospects of a merger of Allied Bakeries, which also owns the Sunblest and Allinson’s bread brands, and Hovis taking place will be the view of the Competition and Markets Authority (CMA) at a time when economic regulators are under intense pressure from the government to support growth.

Warburtons, the family-owned business which is the largest bakery group in Britain, is estimated to have a 34% share of the branded wrapped sliced bread sector, with Hovis on 24% and Allied on 17%, according to industry insiders.

A merger of Hovis and Kingsmill would give the combined group the largest share of that segment of the market, although one source said Warburtons’ overall turnover would remain higher because of the breadth of its product range.

Responding to Sky News’ report in May of the talks, ABF said: “Allied Bakeries continues to face a very challenging market.

“We are evaluating strategic options for Allied Bakeries against this backdrop and we remain committed to increasing long-term shareholder value.”

In a separate presentation to analysts, ABF – which is also in the process of closing its Vivergo bioethanol plant in Hull after pleading for government support – described the losses at Allied, which also owns own-label bread manufacturer Speedibake, as unsustainable.

The company does not disclose details of Allied Bakeries’ financial performance.

Prior to its ownership by Endless, Hovis was owned by Mr Kipling-maker Premier Foods and the Gores family.

At the time of the most recent takeover, High Wycombe-based Hovis employed about 2,700 people and operated eight bakery sites, as well as its own flour mill.

Hovis’s current chief executive, Jon Jenkins, is a former boss of Allied Milling and Baking.

This weekend, ABF declined to comment, while Endless could not be reached for comment.

Continue Reading

Business

Good economic news as sunny weather boosted retail sales

Published

on

By

Good economic news as sunny weather boosted retail sales

Retail sales grew in June as warm weather boosted spending and day trips, official figures show.

Spending on goods such as food, clothes and household items rose 0.9%, the Office for National Statistics (ONS) said.

It’s a bounce back from the 2.8% dip in May, but last month’s figure was below economists’ forecast 1.2% uplift as consumers dealt with higher prices from increased inflation.

Money blog: The odd rules that could land you with a big fine on holiday

Also weighing on spending was reduced consumer confidence amid talk of higher taxes, according to a closely watched indicator from market research firm GfK.

Retail sales figures are significant as they measure household consumption, the largest expenditure in the UK economy.

Growing retail sales can mean economic growth, which the government has repeatedly said is its top priority.

More on Retail

Please use Chrome browser for a more accessible video player

What does ‘inflation is rising’ mean?

Where have people been shopping?

June’s retail sales rise came as people bought more in supermarkets, and retailers said drinks sales were up.

While hot and sunny weather boosted some brick-and-mortar shops, the heat led some to head online.

Read more from Money:
Satellite tracker Spaceflux reaches lift-off with £5m funding boost
Trade war uncertainty prompts halt to eurozone rate cuts

Non-store retailers, which include mainly online shops, but also market stalls, had sold the most in more than three years.

Not since February 2022 had sales been so high as the Met Office said England had its warmest ever June, and the second warmest for the UK as a whole.

The June increases suggest that the May drop was a bump in the road. When looked at as a whole, the first six months of the year saw retail sales up 1.7%.

Filling up the car for day trips to take advantage of the sun played an important role in the retail sales growth.

When fuel is excluded, the rise was smaller, just 0.6%.

Welcome news

Despite lower consumer sentiment and more expensive goods, consumers are benefitting from rising wages and are cutting back on savings.

The ONS lifestyle survey – backed up by hard data like the Bank of England’s money and credit figures – shows that households have rebuilt their rainy day savings and are cutting back on the amount of money they squirrel away each month.

Continue Reading

Trending