Fearing the brown envelope: sickness benefits and welfare reform

"I try not to read about it cos it’s so frightening."

For the past three years, and at a time of increased anxiety for sick and disabled people given ongoing welfare reform, I have been studying the lives of long-term sickness benefits recipients in North East England as part of my PhD research.

Narratives revealed a huge amount of fear and trepidation over ongoing welfare reform. Participants spoke about worrying about the Work Capability Assessment (WCA) carried out by Atos on a daily basis, accompanied by a deep mistrust of the entire system. Below, Fred (all names are pseudonyms), 53, who has been receiving Incapacity Benefit (IB) for 9 years and suffers polyarthritis, gives his thoughts on the process:

I think it’s gonna cause breakdowns, possibly even the worst case scenario y’know topping yourself. If the Government could cut a penny in half, they would. I think if they could bring euthanasia in, they would. If they could find a way of getting round all the moral outrage they’d probably do it. Take all the lame ones out, just like a sick animal.

This is particularly noteworthy given that statistics suggest sick and disabled people have considered suicide as a result of fear over the assessment process. In a survey of over 300 people receiving IB, MIND found that 51 per cent of people reported the fear of assessment had made them feel suicidal.

Some respondents specifically mentioned their fear over receiving an official-looking brown envelope through their letterbox – a possible indicator of communication from the DWP. Sarah, 54, has battled with mental health problems all her life and is now dealing with a range of physical health problems such as arthritis and Reynaud’s syndrome, said of her daily dread of being selected for the reassessment:

When the postman comes with any sort of brown envelope it is really worrying… I try not to read about it cos it’s so frightening, it’s like 'oh my God they’ll send you to the dole straightaway' is what’s in your mind. Who will employ you, and what jobs are there? Where are the jobs? If they send me for a job 20 miles away, how do I afford the bus fare on minimum wage?

Aside from the obvious fear presented in the narratives, a feeling of stigma and shame was described as being created by political and mass media representations of the reform process. An increasingly unavoidable occurrence within government rhetoric and the media is the labelling of sick and disabled people who are receiving welfare benefits. There is no mention of the causes, symptoms, lack of diagnosis, treatment or support.

Upcoming Disability Living Allowance (DLA) reforms are poised to create further anxiety and distress for sick and disabled people. The Government has pledged to cut DLA by 20 per cent and are replacing DLA with Personal Independence Payments (PIP) which sees the end of the automatic entitlement of people with certain impairments and focuses instead on support for those deemed 'most in need' (pdf).

Iain Duncan Smith suggested that the 30 per cent rise for claims for DLA was a result of fraud in the system, despite the fact that official DWP figures estimate fraud is a mere 0.5 per cent. What is often unsaid is that DLA is not simply an out-of-work sickness benefit – it is intended to help people meet the extra costs of disability-related care and mobility whether in paid employment or not. In August the government announced that Atos will be responsible for carrying out the PIP assessment, a contract worth a huge £400m. Given that the handling of the WCA by Atos was "impersonal and mechanistic" and essentially deemed unfit for purpose, it can only be hoped that history will not repeat itself with the forthcoming DLA assessments.

Photograph: Getty Images

Kayleigh Garthwaite is a Postdoctoral Research Associate in the Department of Geography at Durham University

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR