The UK government is refusing to answer whether it will go ahead with its £30-a-week cuts to major disability benefits after its defeat in the House of Lords in January, raising hopes of a policy change.
It is an uncertain time for anyone applying for disability benefits in the UK and the US.
In the United States they face similar problems. Congress has bailed out the Social Security Disability Insurance program using funds from the Social Security Retirement program. Steal from Peter to pay Paul?
The first question that comes to mind when people are sick is “how am I going to make a living?” Disability insurance in the US is a priority, especially if you are unable to work even for a short period of time.
According to a 2012 survey conducted by the Consumer Federation of America and UNUM, 50% of workers surveyed knew little or nothing about disability insurance. This is scary reading, as most would consider insurance coverage to be Vital. If it’s offered as part of an employee benefit plan at work, be sure to sign up or consider purchasing it through the workplace.
According to the Council for Disability Awareness, a trade group funded by the insurance industry, back injuries, cancer, heart attack, diabetes and other diseases generate the most disability claims, but only 55% of the claims. Americans have enough savings to get them through the first month of illness.
Back in the UK we all feel like we’re on tender hooks not knowing where the hatchet will fall. It is the uncertainty that adds stress to an already troubling outlook for people receiving short- and long-term disability benefits.
A worrying issue is people affected by cancer; there are currently more than 2,300 people in the pool whose fee for new applicants would be reduced.
Research commissioned by charities has also warned that a reduction in benefits makes it harder and more unlikely for people to return to the workforce.
Today the Prime Minister offers few guarantees on the main concerns of activity groups such as WRAG (work related activities group). The effects will be detrimental not only for employment but also for people’s health.
New applicants will receive a third less money than current recipients, with 28% saying they won’t be able to afford to eat on the amount they have to live on.
I see firsthand the effects of the cuts. Having worked for over 18 months with the Citizens Advice Office here in the UK, the cuts are harsh and brutal, forcing many people to choose between heat or eat.
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