At the DWP, we have been targeting three separate areas to transform our broken, outdated welfare system and encourage a self sufficient and confident attitude that will be so crucial in helping those on benefits take control of their lives after years of dependency.
The first is to rebuild the benefits system so that work always pays; the second has been to introduce new back to work support; the third has been to tackle the spiralling costs of housing benefit.
The toughest challenge is undoubtedly the first, and we launched a consultation paper on the main options, “21st Century Welfare”, at the end of July. At the centre of this paper are approaches that aim to get rid of the barriers people face when moving from out of work benefits to in-work tax credits. It is often not worthwhile, or only marginally so, to work and the system is so complex that it can be financially risky to move into employment. We would like to make that decision straightforward and risk-free.
When people have been out of work for years, they will need help into the workplace – even if the financial incentives are there. Accordingly, we have announced that we will end the present myriad of welfare-to-work programmes and introduce our new single Work Programme in the first half of next year. This programme – announced at the Conservative conference last October – aims to provide individualised support for all those who need it. It is based on payment by results and will be designed to reward investment by providers with the savings in welfare cost that they generate. So far we have had more than 800 expressions of interest by providers in this programme.
Housing benefit has been escalating out of control and payments were scheduled to reach more than £25bn by the end of this Parliament. So in the emergency budget we took steps to slow this growth with a number of measures, including capping the level of rents. The changes to housing benefit are central to benefit reform. Clearly if people are so expensively housed that they could never meet the rent if they entered work, housing benefit becomes yet another barrier to employment.
( 24 comments ) Tags: housing benefit, welfare, Work Programme
Comment by Nick on August 31, 2010 at 6:27 pm
Lord Freud, this is fantastic news and I wholeheartedly welcome the conservative plans to improve and look at the system, long overdue. One thing to consider is that there are those whom wish to work and cannot (i.e. those whom genuinely need assistance). Then there are those whom simply do not wish to work and would rather continue to get free handouts, indeed many individuals and their extended families flock to the UK for a life of living on benefits. Through intelligence, will the government be tackling the latter? Welfare problems are also directly linked to immigration and asylum, how does the government plan on tackling this? Additionally, in terms of your work programme and 800 EoI, please do feel free to make contact if there is anything we can do to help, as they say every little helps. Once again very pleased that the welfare system is being scrutinised/overhauled in this way. Streamlining welfare such that it meets its intended purpose efficiently can only be a good thing and ensuring the system is not seen as a means of living a life of luxury at the expense of the hardworking ethical tax payer is an even better thing! Conservatives have not only hit the ground running but much more than this so far. So pleased I voted conservative at the election! The skies are looking blue and there may just be light at the end of the tunnel…
Comment by Malcolm Tayalor on September 2, 2010 at 8:20 am
I have a great idea although I don’t think it will ever happen.
How about every person who’s worked for the last five years continuous gets a £2000 thank you from the government this could be called thank you for staying in work bonus.
lets say i claim Employment support allowance for the next 5 years at £91.40 a week that would be £23764 then my council tax get fully paid that would be £5115 then my rents gets paid at £72 a week that would be £18720.
The grand total for me being on benefits and getting my housing cost paid for would be £47599.What a staggering amount of money don’t you think.
I think a bonus for people who work and put things into society by working would be great but will never happen
Comment by Nish on September 2, 2010 at 3:19 pm
Totally agree with Nick – August 31, 2010 @ 6:27pm – particularly the link to immigration and asylum.
My Fellow British, Ask not what your country can do for you, but what you can do for your country.
Money should not be the ONLY incentive to get back into work, and if it is, then that is exactly what is wrong with our society. Family values, ethics, self pride, feeling valued, drive, desire, passion, duty, self respect and contributing to society through a sense of responsibility are the important things here. Surely being out of work is demoralising to say the least and widens the class gap over time. If for nothing else, the great British people should get back to work to re-engage with society, build their skills, self worth, esteem and set a good example to their families, friends and neighbours, thus contribute to the Big Society and outclassing offshore skills in the process. People must not sit back comparing what they get from welfare to what might be offered through prospective employment. The benefits of employment and work will ALWAYS outclass the benefits of being on welfare, regardless of which forks out the most money! It is not simply a comparison of ‘how much money’ you get with one compared to the other. Others can take away your money, certificates and your property but they cannot take away your knowledge, pride, esteem, values and respect.
Let the British People be the highest skilled on the planet. Let the term ‘offshore skills and innovation’ change to ‘onshore skills and innovation’ and let’s make that change happen collectively for OUR country the UNITED Kingdom, for our Government and for us, the British People…
Best Regards, Nish
Comment by Derk on September 4, 2010 at 11:03 pm
The more i read about British politics, the more i despair, and it isn’t just British politics, it could be European parliament, todays reading sickens me that we are asked to do what we can for our country!? our country (government) bleeds us dry for every form of tax it can, then some more for every sort of Beuracracy, we are told that for the 15th year running, the auditors cannot sign of the accounts for the european parliament as it is not correct, how on earth can the British or Eurpean Governments expect the people of their respective countries to respect them when British Politicains do not have to declare expenditure up to the first £500 i believe, i find it very hard to persuade myself to actually turn up at the electoral station and vote.
Comment by Tony on September 7, 2010 at 6:43 am
I cannot but agree with the principal of reformingthe benefits system however, the aim of “getting people back to work” – this just doesn’t make sense. Here we have a Government cutting jobs, reducing the deficit, hammering the bank but, as far as I can see, making no mention of how they are goiing to generate these jobs??
I beleive the figure is 93% of bank lending is for the property market and only 4% fro manufacturing. Why not take a gamble and relax the criteria for lending to manufacturers? Sure, in some cases the money will simply delay inevitable closures so is money down the drain but for others this could be the opportunity for expansion and more jobs.
I find it incredibly frustrating that this Government goes on about getting people off of benefits and into work but has no policy (that I can find) for generating these jobs.
Yes, I work full-time (and am registered disabled) so I pay my taxes, don’t burden the state but I do meet many who would like to get into work but there simply isn’t any suitable work for them!
Give it a rest – bash these “scroungers” when you have given them an alternative and until then start to develop sensible policies to generate the vacancies
Comment by a horrocks on September 7, 2010 at 10:58 am
We need a workfare not welfare system people who want too work should be encurige with a fare tax system & we should encurige married couples with children to stay together with tax brakes.
Comment by Nish on September 7, 2010 at 1:31 pm
Focussing on the subject matter of Welfare, It is interesting that the term ’15th year running’ has been used. Which politicians/government was in control during that period and which government very recently inherited the legacy of those last 15 years?
The British have two options here, either go on complaining about the past and/or present and do nothing or we can help drive forward a new era of productive change by working in cohesion with our new government – which as per Lord Freud’s statement on welfare reform, is clearly taking action. And so they should! Given a choice between historical failures and even the slightest hope for change and a brighter future for all, which should we vote for?
Comment by Jean on September 7, 2010 at 3:47 pm
One area where savings could be made is child benefit. I think all are agreed that we are an overcrowded island so why do we pay people to reproduce? Contraception is freely available – if religious belief prohibits its use that is a personal choice. Simply pay the benefit for the first two children, regardless of income. If you pay tax and want more than two children why should you expect state support? Conversely, if you are paid state support then you really can’t afford more than 2 children and should not expect the state to subsidise you. Give a year’s notice and cease to pay child benefit to any child born after that date where there are already 2 children in the family. Any family arriving to live in this country for whatever reason should also not be eligible for child support for more than 2 children. It will not be an immediate saving but will help the deficit year on year as the children currently eligible for benefit become 16.
Comment by Nish on September 8, 2010 at 4:07 pm
@ Jean on September 7, 2010 at 3:47 pm:
Fantastic idea!!! A true demonstration of how such constructive ideas from the public can make so much sense and ‘kill two birds with one stone’ i.e. the welfare and population issue at the same time. Hope our wonderful new government and Prime Minister makes it happen. And a lot more ideas like this will flow and be legislated…
Comment by Stuart Hewlett-Clarke on September 8, 2010 at 8:41 pm
I just hope you don’t bottle out and let it drift on like your predessors did when Frank Field tried, without succes, to reform welfare. When I read of a couple with 10 children, no job, she is ‘disabled’ with a bad back and he quits his job to look after her and their 10 children who between them are paid a staggering £95,000 a year for doing diddly squat. It should be noted that during the past 6 years of this lady being ‘incapacitated’ with her bad back she has still managed to produce 5 additional children in the knowledge that they have no way of taking care of them. This is a disgrace and such families must be made to work and stop paying them to have children they cannot afford. Total irresponsibility should not be rewarded with almost 1 hundred grand a year tax free. Disgusting.
Comment by Roger Fox on September 9, 2010 at 10:23 am
It is housing benefit which is the real problem because those out of work and receiving HB will never earn enough to make work pay after tax and NI. The only solution is not to cap rents but to cut HB after six months and keep cutting it until a job is found, and to subsidize rents for the low paid which actually happens.
Comment by pablo on September 9, 2010 at 9:26 pm
jean is correct,i brought an ex council house in wales 7 years ago’ most of the properties are privatly owned,and most families are hard working,however the ones who are on the benefits realise to make money they must have lots of children,so that whats happens,left wing politics has completly created a underclass of people who will only ever know welfare,they believe they have a right to it,it is not fair to the tax payer and also not fair to the first born kids of these families, there has to be a understanding to these people that the state cannot sustain the cost of any more than 2-3 children. in most of europe a family is seen as anti-social if they have more than 3 children and living on benefits. most of the young mums i see with these large families always have a fag in the mouth,but you never see them with a bag of grocceries,
Comment by Nish on September 10, 2010 at 10:47 am
A new family housed recently by a not so ‘wonderful’ labour run council, the council pays the tenants rent to a private landlord. They receive benefits galore. The couple have 5 kids, the lady is only 29/30 years old and no job. she stays home all day every day and is proud of it and enough money to affort drink and cigarettes. The couple have two/three cars, sublet, and have said they are getting a another new car soon. The father works and earns decent money. Both are always seen swearing and shouting and even to their own children right out on the public road or their rear garden. Both have sufficient money to go out drinking and sunday lunch/evenings out. The lady is planning for massive decorations and party for christmas. No doubt again at the tax payers expense…working neighbours have complained through not being able to sleep at night owing to noise, shouting and swearing…fair?
On another note, residents/business owners avoid tax by using cheap/unskilled illegal workers desperate to abscond and remain in the uk (particularly for property construction/extensions). The latter is a major epidemic. Root cause: Find these sorts of residents/business people (and perhaps some councillors!) whom exploit/support illegal wokers and the government will find a massive pot of gold at the end of the rainbow…Bring on the new NCA…as a serious force not to mess with…
Comment by Emilie on September 10, 2010 at 4:39 pm
I would like to add to, and re-affirm Nish’s comments on September 10, 2010 at 10:47 am. I also completely agree with all comments made by Nish.
The father mentioned in Nish’s comments has himself this afternoon (in person) advised the local neighbourhood watch team that he must not reside at the premises with his partner for three days of the week and makes himself scarce owing to them claiming benefits (assume this is a requirement to qualify for the benefits the lady of the house receives!) Assume someone from the government will be investigating as we have very little hope that the local labour run council will as they enable such activities in the first place! Further details available if required.
Comment by Pamela on September 10, 2010 at 4:40 pm
Well done to the Tory party for cracking down on the benefits culture in our country. I am so glad I gave you my vote but I would suggest more needs done including the following:
1. Reduce housing benefit to £100 a week as it is still far to high. Myself and my husband both work but could not afford to pay £400 a week in rent so I do not see why people who dont work should be able to afford to rent a house that costs up to £400 a week. I do not understand why a lazy couple who dont work should be afforded the privilege of living in a good area which is something that a working class couple often cannot afford.
2. Do not allow any type of benefit to any non UK born person that has not worked and paid taxes in this country for 5 years. This should include housing and child benefit. As a tax payer I do NOT want my hard earned money being spent on people who have never contributed to the UK tax system but expect to benefit from it.
3. Stop people being able to claim child benefit for anymore than 2 children effective from one year today. If people choose to have more than 2 kids they will have to pay for it and for those that only have kids to gain more benefits it will act as a deterrant.
4. Change the rules that state the council must give a certain number of bedrooms depending on how large your family is. If people choose to continue having children they should not be rewarded with a larger house and more benefits.
4. I love the suggestion someone made that stated hard working tax payer should be rewarded with a £2000K bonus after working and paying taxes for 5 years as at the moment there are very few incentives to work and pay tax when dole bludgers are having a better standard of life than tax payers.
Comment by susan nichol on September 12, 2010 at 5:42 pm
i agree with most of the above but look at the rents people pay a standard 4 bedroom house of a houseing company rent is 90 pounds aweek but put in four disable people and it gos up to 200 pounds a week which then is paid for from beneifitsand that happens in the thousands i know that as a fact so yes reward workers not drunks drug users and unmarried young mothers because thats all weve had for the last 14 years
Comment by Nish on September 13, 2010 at 11:59 am
Thanks Emilie.
Point 1 – agree with Pamela, but £100 is still too high, would even this ammount really be a deterrent? Reducing HB/Child benefits even further is a great idea particularly when linked to the number of children/population issue. It should be noted that in London, local councils pay housing benefit to couples and families whom in turn rent from private landlords and commercial companies they have deals with. These landlords are known to charge 1300 GBP to 2500 GBP PCM or more in one area I know of. The local council supports this. (off the topic but as a comparison the same local council wishes to charge residents 400 GBP for planting a single tree!)
Point 2 – Brilliant idea, but 5 years of paying tax is no where enough to qualify in my opinion, that’s less than half the entire term of the last labour government and critically its social engineering objectives for mass immigration, when masses flocked to the UK from both the EU and Internationally.
Point 3 – agree, views as before. I think this should be reduced to one child for the time being, effective immidetiately and perhaps increased to two chuildren in the future after government review/debate etc.
Point 4 – No objection however my personal opinion as already mentioned before, no need for it (at least right now), it’s only a financial incentive and doesn’t meet the other ingredients for why folks should be incentivised to work in my view. Additionally, such a bonus may just negate all the good work being done – we are after-all in a deficit. Cutting back in one place and then dishing out in another would not help build UK reserves for times of national crisis. The government needs to rebuild the countries reserves, particularly since our previous labour government quietly sold our gold reserves…
Comment by Pamela on September 14, 2010 at 10:43 am
Hi Emilie
Point 1. Actually having thought about the £100 a week you are right in the fact it should be less than this as otherwise there is still little incentive to work.
Also out of curiosity does anyone know if the Tory party actually reads the comments on these blogs and takes on board the thoughts of the tax payers?
Comment by Nish on September 15, 2010 at 4:57 pm
Hi Pamela – many thanks. Apologies, it was me (Nish) whom suggested that it should be less than 100 – but in essence agreeing with all that you have said albeit suggesting welfare needs to be even stricter. I was thanking Emilie for her comment on my previous comments on the rolling blog above, sorry if starting my previous post in this manner confused…
RE. Tory Party reading – well if they don’t they would be losing highly valuable resource/research which also costs money to maintain/administer! I suspect that the web master or domain administrative/technical contact has a system set up whereby user comments are directed to the blog owner for review/approval prior to publishing…
PS if you have a mobile device with internet access, you can add the blue blog to your rss feeds…
Comment by Mike McGee on October 20, 2010 at 3:06 pm
This is a genuine staement from a serving Fire Officer and if you read it properley I think you will agree that there is a policy opertunity to write around this sort of toughness you promised.
The Urine test; This was written originally by
Paul Watson a fireman – What he says makes a lot of sense!
I work, they pay me. I pay my taxes and the government distributes my taxes as it sees fit.
In order to earn my monthly pay, I work on a fire station for the Fire and Rescue Service, I am required to pass a urine test for drugs and alcohol at my three yearly medical, with which I have no problem.
What I do have a problem with is the distribution of my taxes to people who don’t have to pass a urine test. Shouldn’t one have to pass a urine test to get a benefits cheque because I have to pass one to earn it for them?
Please understand that I have no problem with helping people get back on their feet. I do on the other hand have a problem with helping someone sit on their arse drinking beer and smoking dope and the like.
Could you imagine how much money the government would save if people had to pass a urine test anually to get a benefit cheque if found to have illegal substances in the system non pescribed?
Hope you will pass it along to Prime Minister Cameron,because something has to change in the UK benefit system, and soon!
Comment by David Knight on October 26, 2010 at 3:12 pm
Who does the current benefit system work for?
I have for the last 10 years worked on short term contracts all over the country and had to pay my own expenses. In effect running two homes and not getting the lavish expenses of my MP.
In the last 12 months work has been harder to find and therefore I have been unemployed on occasions. Normally this is for a few days but as most of my work has been for Local authorities and the NHS the work has dried up.
So I apply to JSA. Oh sorry because you have a small pension (doesn’t cover the mortgage let alone food) you do not qualify! I do qualify for a full Council Tax rebate. This bizarre situation is because children don’t count for JSA because they are dealt with via the Tax Credit system.
So I cannot go to the dentist because I cannot afford it. JSA receipients get free treatment, I have to pay for prescription because I don’t get JSA.
I cant claim Tax Credits as my income when working changes weekly so I dare not leave myself open to a large overpayment being reclaimed.
So current position is I get no help from the DWP, pay tax on my pension and have to pay for everything.
PS At the moment can’t afford petrol to go to interviews or look for work, if it was not for help from friends.
Even given this desperate situation I find myself and my family in I still think that benefits should be rationalised to help those in need and not those who will not help themselves.
Can we have a tax and benefit system that does not penalise those who work (yes Lord Tebbitt I have got on my bike) when they fall on hard times like the current system invented by G Brown and Co.
Comment by lee jones on October 28, 2010 at 12:44 pm
Why not make voluntary work compulsory for those unemployed. God knows we’re going to need all the help we can get!!!
Comment by lee jones on October 28, 2010 at 12:48 pm
So who’s going to impose rent limits onto landlords? I suggest specified £ per square footage of rental space? You can’t have one housing benefit reform without the other – that’s not ‘forward thinking’ and shows how ignorant higher earners are to the REAL problems of being in private rents…
Comment by Heston CDA on November 7, 2010 at 7:48 pm
Iain Duncan Smith on welfare reform benfits/job seekers allowance this week – great stuff indeed 10 out of 10 and about time too. Are we really saying that no government in UK history has ever though of such a simple but great idea?
Only potential negatives:
is 3 months really sufficient?
perhpas there should be a longer road map so its not just limited to gardening, cleaning the streets etc.
A Negative situation can be turned into a wholistic positive outcome for all – if given the right conditions/environment and mentoring.
a final note – we often hear ministers talking about ‘outcomes’, there are both ‘outcomes’ and ‘outputs’. There is a difference between the latter two.
Heston CDA