Major Reform Targets ESA in Latest DWP Overhaul
An estimated 150,000 people could lose out on Employment and Support Allowance (ESA) under new proposals from the Department for Work and Pensions (DWP). The changes are part of a wider plan to reform the welfare system, specifically targeting how work capability is assessed in the UK.
ESA is a benefit provided to people who are unable to work due to illness or disability. While most public attention has focused on reforms to Personal Independence Payment (PIP) and Universal Credit (UC), the DWP’s latest changes concern ESA and the Work Capability Assessment (WCA) – a process that determines whether claimants are fit for work.
The Proposed Changes Explained
The reform would reduce the number of people automatically deemed unable to work due to certain health conditions. Under the proposed plan, many individuals currently considered unfit for work could instead be told they are capable of engaging in employment with appropriate support.
Specifically, the DWP is planning to:
- Remove or revise some of the WCA categories, particularly for those with mental health conditions and mobility issues.
- End the WCA altogether by 2026, replacing it with assessments tied more closely to Universal Credit and PIP claims.
- Shift the focus from what people cannot do to what they can do, encouraging more individuals with health challenges to rejoin the workforce.
The reform aligns with the government’s strategy to cut the number of working-age people out of the labour market due to long-term illness, which has risen sharply in recent years – a trend the DWP says must be reversed to help the economy.
Who Will Be Affected?
Approximately 150,000 ESA claimants are expected to be impacted by the changes. These are individuals who are currently receiving the limited capability for work-related activity (LCWRA) component of ESA, which exempts them from job-seeking requirements due to the severity of their conditions.
Under the reform, many of these claimants could be reclassified as fit for some form of work-related activity, which would affect both their financial support and their obligations to seek employment or engage in job preparation tasks.
This does not affect those already receiving PIP or UC directly, though indirect impacts could occur for people who receive both ESA and UC.
Government Justification
According to the DWP, the current system creates a “barrier” to work by labelling people as completely incapable of employment, when many could perform flexible or part-time jobs with reasonable accommodations.
In a statement, a DWP spokesperson said:
“We want to ensure that everyone who can work is supported to do so, in a way that works for them and their employer. The current system too often writes people off. We are reforming assessments to focus on how we can help people live independently and thrive.”
The government believes this approach will also ease pressure on the benefits system by reducing long-term reliance on state support.
Concerns from Advocacy Groups
However, disability rights groups and mental health charities have expressed serious concerns about the proposals.
Critics argue that removing the WCA without robust safeguards could lead to vulnerable individuals being wrongly assessed as fit for work, especially if the system places too much emphasis on a “one-size-fits-all” view of employment potential.
James Taylor, director of strategy at disability charity Scope, warned:
“This reform risks making life harder for disabled people who already face significant barriers in the labour market. Many will be forced to prove repeatedly that they are too ill to work, under even tougher rules.”
Others have pointed out that employers are not always equipped to accommodate people with fluctuating or invisible conditions, meaning that people deemed “fit for work” may find themselves without sufficient support or job opportunities.
Timeline and Next Steps
The Work Capability Assessment is due to be scrapped by 2026, with the transition expected to begin in 2025. This means current ESA claimants will start to feel the impact within the next 12–18 months.
The DWP has launched consultations and pilot programs to explore how best to implement the changes. New systems for health assessments are also being trialled, focusing on how best to merge or streamline processes for ESA, PIP, and UC.
For now, those receiving ESA are being advised to:
- Stay informed through official DWP updates.
- Engage with Work Coaches or advisers if contacted.
- Ensure medical evidence and supporting documents are up-to-date in case of reassessment.
Final Thoughts
This is one of the most significant changes to the welfare system in over a decade, with the potential to reshape how disability and illness are treated in relation to work. While the government claims it will empower more people to enter the workforce, critics fear it may disproportionately penalise those with genuine and complex health needs.
As the reforms move forward, transparency, fairness, and adequate support will be critical to ensuring that vulnerable individuals are not left behind.