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

Eco-tycoon Vince weighs sale of solar energy project

Published

on

By

Eco-tycoon Vince weighs sale of solar energy project

The energy group founded by Dale Vince, the eco-tycoon, is kicking off a hunt for investors in a solar park which is expected to become one of Britain’s biggest renewable energy projects.

Sky News understands that Ecotricity, Mr Vince’s company, has hired KPMG to explore talks with prospective investors or buyers for the project at Heckington Fen in Lincolnshire.

The development was approved by Ed Miliband, the energy secretary, earlier this year, and when completed it is expected to generate roughly 600MW of solar power.

It has been designated a Nationally Significant Infrastructure Project by the government.

Heckington Fen will also provide 400MW of battery storage capacity.

According to documents circulated to potential bidders, Ecotricity is prioritising the sale of 100% of the project, but is open to retaining a minority stake.

The company wants to complete a deal during the third quarter of the year.

More from Money

Responding to an enquiry from Sky News, Mr Vince said: “Heckington Fen is a fabulous opportunity; it’s also a massive one, possibly the biggest onshore renewable initiative in Britain.

“The project is shovel-ready with a grid connection in 2028 – something which is increasingly hard to find these days.

“Whilst this is a great project which is going to go ahead, the sums of money required to build this alone in a short timeframe, means we’re looking for investors or partners to help make this happen.”

Continue Reading

Business

Sir Keir Starmer pledges to protect UK companies from Trump tariff ‘storm’

Published

on

By

Sir Keir Starmer pledges to protect UK companies from Trump tariff 'storm'

Sir Keir Starmer has said his government stands ready to use industrial policy to “shelter British business from the storm” after Donald Trump’s new 10% tariff kicked in.

The UK was among a number of countries hit with the lowest import duty rate following the president’s announcement on 2 April – which he called ‘Liberation Day’, while other nations, such as Vietnam, Cambodia and China face much higher US levies.

But a global trade war will hurt the UK’s open economy.

The prime minister said “these new times demand a new mentality”, after the 10% tax on British imports into America came into force on Saturday. A 25% US levy on all foreign car imports was introduced on Thursday.

It comes as Jaguar Land Rover announced it would “pause” shipments to the US for a month, as firms grapple with the new taxes.

On Saturday, the car manufacturer said it was working to “address the new trading terms” and was looking to “develop our mid to longer-term plans”.

Please use Chrome browser for a more accessible video player

Jobs fears as Jaguar halts shipments

Referring to the tariffs, Sir Keir said “the immediate priority is to keep calm and fight for the best deal”.

Writing in The Sunday Telegraph, he said that in the coming days “we will turbocharge plans that will improve our domestic competitiveness”, adding: “We stand ready to use industrial policy to help shelter British business from the storm.”

It is believed a number of announcements could be made soon as ministers look to encourage growth.

NI contribution rate for employers goes up

From Sunday, the rate of employer NICs (national insurance contributions) increased from 13.8% to 15%.

At the same time, firms will also pay more because the government lowered the salary threshold at which companies start paying NICs from £9,100 to £5,000.

Also, the FTSE 100 of leading UK companies had its worst day of trading since the start of the pandemic on Friday, with banks among some of the firms to suffer the sharpest losses.

Sir Keir said: “This week, the government will do everything necessary to protect Britain’s national interest. Because when global economic sands are shifting, our laser focus on delivering for Britain will not. And these new times demand a new mentality.”

Please use Chrome browser for a more accessible video player

Trump defiant despite markets

UK spared highest tariff rates

Some of the highest rates have been applied to “worst offender” countries including some in Southeast Asia. Imports from Cambodia will be subject to a 49% tariff, while those from Vietnam will face a 46% rate. Chinese goods will be hit with a 34% tariff.

Imports from France will have a 20% tariff, the rate which has been set for European Union nations. These will come into effect on 9 April.

Read more:
Red wall on Wall Street – but Trump undeterred
How will UK respond to Trump’s tariffs?

Sir Keir has been speaking to foreign leaders on the phone over the weekend, including French President Emmanuel Macron, Italian Prime Minister Giorgia Meloni and Australian Prime Minister Anthony Albanese, to discuss the tariff changes.

A Downing Street spokesperson said of the conversation between Sir Keir and Mr Macron: “They agreed that a trade war was in nobody’s interests but nothing should be off the table and that it was important to keep business updated on developments.

“The prime minister and president also shared their concerns about the global economic and security impact, particularly in Southeast Asia.”

👉 Follow Trump 100 on your podcast app 👈

Trump’s warning

Mr Trump has warned Americans the tariffs “won’t be easy”, but urged them to “hang tough”.

In a post on his Truth Social platform, he said: “We are bringing back jobs and businesses like never before.

“Already, more than FIVE TRILLION DOLLARS OF INVESTMENT, and rising fast!

“THIS IS AN ECONOMIC REVOLUTION, AND WE WILL WIN. HANG TOUGH, it won’t be easy, but the end result will be historic.”

Continue Reading

Business

Santander UK lines up ex-Treasury chief Scholar as new chair

Published

on

By

Santander UK lines up ex-Treasury chief Scholar as new chair

Sir Tom Scholar, the former top Treasury civil servant sacked by Liz Truss during her premiership, is being lined up as the next chairman of Santander UK, Britain’s fifth-biggest high street bank.

Sky News has learnt that Sir Tom, who played a pivotal role in the UK’s response to the 2008 financial crisis, is the leading candidate to replace William Vereker.

The appointment, which is subject to regulatory approval, could be announced later in the spring, according to insiders.

Sir Tom’s prospective recruitment comes amid a period of intense speculation about the future of Santander UK, which bulked up rapidly during the banking crisis by absorbing Alliance & Leicester and Bradford & Bingley.

The Spanish banking giant entered the British retail market in 2004 when it bought Abbey National, setting in motion a chain of dealmaking which would result in it becoming a serious challenger to Barclays, Lloyds Banking Group and NatWest Group.

If confirmed in the role, Sir Tom will follow a pattern of former senior public officials in taking on the chairmanship of Santander UK.

The post has been held in the past by Baroness Vadera, a Treasury minister during the 2008 meltdown, and Lord Burns, the former Treasury permanent secretary.

Sir Tom also held that latter role until his ousting during the shortlived Truss government, which led to him receiving a payoff of more than £350,000.

In addition to his position during the banking crisis, he was instrumental in devising the COVID-19 furlough scheme, which protected millions of private sector jobs during the series of lockdowns imposed on the British public.

He was widely respected among international banking regulators and finance ministers, and his sacking by Ms Truss sparked fury among senior civil servants.

Since leaving the Treasury, he has been appointed as chair of the European operations of Nomura, the Japanese bank.

At Santander UK, he will work closely with Mike Regnier, the former building society boss who has been its chief executive since 2022.

In recent months, there has been growing speculation that Santander UK’s parent is open to a sale of the business amid frustration about the scope and burden of British banking regulation.

Both Barclays and NatWest have been sounded out about a potential merger of their UK retail businesses with that of Santander UK, although formal talks have not progressed to a meaningful stage.

Ana Botin, Santander’s group executive chair, has appeared to publicly rule out a disposal, saying that the UK remains a “core market” for the group.

An attractively priced offer could yet gain Ms Botin’s attention, according to people close to the earlier talks.

One insider said, however, that Sir Tom’s recruitment was likely to dampen further speculation about a possible sale of the British business.

Shares in the Madrid-listed parent company, Banco Santander, have performed strongly in recent months, but fell by more than 8% on Friday as investors digested the fallout from President Donald Trump’s global tariffs blitz.

The company now has a market capitalisation of about €83.25bn (£70.7bn).

City sources said the search for Mr Vereker’s successor had been led by Heidrick & Struggles, the headhunter, in conjunction with Baroness Morgan, the former cabinet minister who sits on Santander UK’s board as its senior independent director.

This weekend, Santander UK said in a statement issued to Sky News: “Santander UK is conducting a thorough appointment process.

“The new chair will be announced once that process has concluded, including having obtained board and regulatory approval.”

Continue Reading

Trending