October 16, 2006
Welfare Reform: what happens next
In the week when people are trying to create the biggest blog in history I guess it’s kind of fitting that I’m launching this new blog. After all, reforming the welfare state is one of the biggest challenges not only facing us as a Government or a Department, but as a country.
We are all sadly familiar with stories of people and, in some cases, communities abandoned to a life on benefits. These individuals wanted to work, wanted to contribute but were left high and dry instead – dependent on the state.
It’s frightening to think that, after two years on Incapacity Benefits (IB) you’re more likely to die or retire than ever work again. This has to change. The majority of people who go on Incapacity Benefit want to go back to work. The welfare state should make the most of an individual’s potential – not waste it.
We want to look at what work is reasonable to expect someone to do and ensure those individuals have the help to succeed.
That is what our Welfare Reform Bill is all about.
This week I was again reminded why this Bill is so essential. I met IB claimants in Fife, in Essex and from Reading. Many have been let down by society in the past because they didn’t get enough support to help them achieve their goal of getting back to work. This was especially true of many people I met with mental health conditions.
Of course, to get our reforms off the ground we need to introduce legislation. The Parliamentary committee stage which begins tomorrow is a vital part of that process and will give MPs the chance to quiz us on our plans.
But our reforms are not just about changing the benefits system. We also want to eradicate child poverty. It might have been one of last century’s shameful secrets, but child poverty is still around today. I’ve listened to many children and parents who have all suffered poverty first-hand. Their concerns mustn’t be ignored.
John Hutton, Secretary of State for Work and Pensions, declared earlier this year this is the Department’s number one priority. And so it should be.
We will be publishing a new revised strategy on child poverty that, hand in hand with the welfare reform paper, will help to address these important issues.
When it comes to welfare reform proposals and tackling child poverty everyone has an interest. Now I want to hear your thoughts and ideas on these topics.
This entry was posted on Monday, 16 October 2006 at 12:39 PM by Jim Murphy.
posted in General, Child Poverty, Incapacity benefits, Health, work and well-being.
Comments (23)
Dennis Stepan wrote:
The tax credit system improves incomes in the short term but provides an excuse for low paying employers (including the government itself)to leave the responsibility of providing a decent income for hard working employees to the tax credit system rather than accepting that responsibility themselves. Whatever the short term benefits the long term effect is to extend and institutionalise the poverty trap for millions of working people who should not have to do a hard weeks work and then have to rattle a begging bowl for government hand outs in order to get an income they can keep a family on.
#1 – Posted on 17-Oct-06 at 2:12 pm.
Name withheld wrote:
Re: Child Support
I have been concerned for a few years regarding the child support agency, as I am a single parent with two children and unfortunately no involvement from my ex husband and unfortunately as the Child Support deemed my husband unable to pay (new family and he is working) my CSA entitlement was reduced to nil, I find this worrying as many other parents must be in my situation and I think more ought to be done to help with these people, and I will eventually be forced to take full time work, as my ex husband is unwilling to pay
#2 – Posted on 17-Oct-06 at 2:26 pm.
James Watterson wrote:
I think one of the key reasons why there has been so much child poverty is that only 2 types of families felt they could afford to have (more) children, the very rich and those already on benefits.
Those in work often could not afford to do so, particularly juggling the lack of support from most employers including the Civil Service.
As for the challenge of pepople on Incapacity Benefit, the key surely rests with preventing people becoming ill and claiming it to begin with. This should start with encouraging (or legislating) employers to lower the pressure on their employees and be realistic about the amount of work expected from individuals.
Far more should be done to provide free or low cost Gyms and Health clubs to working people (not just low incomes/benefits) they would pay for themselves. In my city Leicester anyone over 60 can obtain these free. Great, but for those under 60 - who are needed to stay well, continue working and pay the tax and NIC etc to pay for them there is nothing !
Good luck with a noble cause.
James
#3 – Posted on 17-Oct-06 at 5:14 pm.
Mohammed Shafiq wrote:
The Government should be given credit for lifting so many children out of poverty, the way i see it is had the work of the past ten years not happened there would have been more poverty and depreviation.
Minister Ethnic minorities are more likely to suffer from poverty,depreviation, unemployment and discrimination. I dont believe the government has seriously tackled this, when the funding for projects has been cut you cannot expect the thrid sector to pick up the bill and work.
There needs to be a cross government sustained strategy to deal with these issues.
#4 – Posted on 18-Oct-06 at 9:44 am.
Lesley Forster wrote:
When reforming benefits try to narrow the gap between benefits for two single people and those for a couple. Couples are discouraged from living together with their children as they stand to loose benefits. Advantages to society as a whole would be the release of housing stock for those who need it, children will have both parents living together (and access to extended family), reduction in housing and council tax benefits, reduction in income support etc. Many people claiming as ‘lone parents’ continue to have children by a previous partner whilst claiming income support - this can be very demotivating to advisers. They are trying to encourage people to take up employment to improve their financial circumstances but if they are receiving support from a part-time partner (not declared)they may not be better off working.
#5 – Posted on 18-Oct-06 at 10:24 am.
karen T wrote:
My family never seems to get any better off. I look forward to my small pay increase each year, but then my child tax credit goes down with a wallop and the bills go up. especially the utility bills. Its hard to keep up.
#6 – Posted on 18-Oct-06 at 10:40 am.
Claire Jones wrote:
There is no incentive to go back to work. Some people with children who do work are worse off than if they were on benefits. More needs to be done for single parent families who are in debt through no fault of their own but through divorce and separation. They struggle to make a living but want to work but cannot afford to. And those who do choose to work are getting into a worse and worse financial situation.
#7 – Posted on 18-Oct-06 at 11:25 am.
Mick Keenan wrote:
Dear Sir/ Madam,
It is a disgrace that the DWP does not have 0800 numbers in place for all our Benefit Processing Centres as I can understand the frustration of our customers after visiting a front line office to be informed that they will have to pay money they can’t afford to ring their local Benefit Processing Centre to get assistance.
Many benefit processing sections have only one telephone line available for customer calls due to the high volumes of processing work therefore, in most cases cutomers are waiting on the phone for more than 10 minutes to get assistance which is very costly for someone who is on benefits.
What is even more ludicrous is that this government is always harping on about getting people out of poverty surely the cost of ringing Benefit Processing Centres at local rates does the opposite.
The only people who benefit from not having an 0800 Benefit Processing Centre number are the private telecommunication companies so can we please please please change the Benefit Processing Centres to 0800 numbers as this has a direct impact on child poverty.
By not having benefit freephone 0800 numbers in place DWP front line DWP staff suffer daily verbal and sometimes physical abuse because customer’s have to pay to phone Benefit Processing Centres from outside local JobcentrePlus Offices if they have any benefit queries.
Regards
Mick Keenan (DWP)
#8 – Posted on 18-Oct-06 at 2:40 pm.
J Midgley wrote:
As a starter I would like to post a letter which I wrote to my MP a couple of months ago on the subject of carers and Welfare Reform. The letter remains unanswered. It reads:
One aspect upon which the proposed Welfare Reform Bill appears to be silent is the role of the carer. I myself am one such and I am puzzled as to how my role will be affected should the Welfare Reform Bill become law.
The Department of Work and Pensions says it expects the number of people who will receive the “Support” element of the proposed Employment and Support Allowance will be much smaller than the current PCA exempt group. As the PCA exempt group is 461,000 and as the are about 4 million carers in the UK of which 444,000 receive Carers Allowance it is clearly the case that the requirement for sick and disabled people to engage in Work Related Activities is going to have a significant impact on the nation’s carers and yet I cannot see any references in the Bill as to what role the carers will play in the proposed Welfare Reforms. This is clearly a very significant omission which needs to be both addressed and clarified. Two obvious situations will illustrate my concerns:
1) Supposing a disabled person is required to engage in voluntary work (or any other work related activity for that matter). What are the government’s plans for the carer in this situation? Is the carer expected to take part in this work? Is he or she to attend to the disabled person while they engage in this unpaid labour? Is the carer to remain at home? Is the carer to continue to receive Carers Allowance? If the numbers of hours worked by the carer are reduced by the fact of his not being engaged in care for the duration of his charge’s work related activities can he lose his Carers Allowance?
2) When a sick or disabled person has to attend work focused interviews and complete Work Action Plans at the local Jobcentre Plus will the disabled person’s carer be allowed or required to attend or not allowed to attend? If either of the former two cases represent the government’s intention is the carer to be paid and have his expenses reimbursed for this function or is he expected to perform his duties for free? If the government intends that carers be excluded from the process of interviews etc. what measures are being implemented to ensure the sick or disabled person will be given the required level of support and care while engaging in these required activities?
I think you will agree that the process of welfare reform cannot be fully addressed without the role of the carer in the reformed process being revealed. I await therefore your considered clarification of the government’s position on this very important issue.
Please regard this letter as open.
Regards
J. Midgley (Dr.)
#9 – Posted on 19-Oct-06 at 6:54 am.
Graeme Ellis wrote:
Reforms to get disabled people back into work are all well and good but they need substence not fair ideas. There are many of us disabled out here who have had jobs and have lost them for whatever reasons and now finfd it impossible to find another job. I personally am 400 applications and only 2 interviews down the line. One job I failed to get because the process of applying and getting access to work help did not fall into the employers need for someone to start ASAP. I believe that the comments made by Mr Cameron of the conservative party open the possibility of a more realistic pathway to work. I am desperate to find work and at this stage in my life would not object to some positive discrimination. A period of time could be set where the public sector could only employ disabled candidates and train them to do the job if neccessary (exceptions would have to be allowed for this of course)
#10 – Posted on 20-Oct-06 at 10:06 am.
Shaf wrote:
I can’t understand why such a big deal is made of incap claimants - surely there is a larger drain of monies where lone parents are concerned!
A lone parent sees an advisor once a year but can defer this for a further 12 months if they come up with a plausible reason (usually done over the phone)
What never ceases to amaze is the lone parents who have been claiming IS for a long time through having separated from their partners but manage to have kids in between whilst still being a lone parent!
What happens next? They stay on IS, get a £500 maternity grant to buy essentials for the new baby and no doubt in the near future, they will have another babay.
As a follow-on, they have no work skills, will go to college to study but then complain they are unable to work as childcare costs are too high.
Why not encourage them to go to college earlier, sanction those having kids as lone parents (”Honestly I don’t know where the kids dad is!!!!”) UNLESS they give the fathers details so that HE can be chased up for maintenance, offer employers incentives to take on lone parents etc. Why oh why does the government not talk to the people involved with working with lone parents (if not the lone parents themselves!) to see how the government can be of assistance rather than being a hindrance!
#11 – Posted on 21-Oct-06 at 6:11 pm.
peter wrote:
You can throw as much money as you like at single parents or those who are married (marriage ummm do the labour party even believe this is valid anymore) but when you are on Benefits then any extra money given in increases who say child benefit or child tax credit simply reduces the amount given to you by Housing Benefit, you are no better off it’s just that it becomes a different stream of income, do the government really think we can’t see that? Why do they count these as unearned income? They should ring fence child benefit for the kids, and this should be not be looked at when working out someone’s rent etc Untill some of these child related benefits are protected they simply reduce money we get elsewhere to help pay bills etc
It’s all good and well saying we all need to keep fit, but at £40-50 a month for gym membership who’s paying, and why do we keep selling off our parks, and why do those on benefits and the poorer folk not get free after schools clubs, i’m afraid it’s only the rich that can aford these and those which are free are over subscribed, and you can’t get in anyway. I think before ministers come up with these ideas they need to think alittle and engage with those that they are aiming these ideas at to see how they would/could work.
#12 – Posted on 22-Oct-06 at 10:44 pm.
Dave wrote:
I Agree, with most of what people have said here. Marriage seems to have been devalued, and the average working family hit hard. It seems that those who struggle on benefits and have kids seem to have money given with one hand and taken with the other, and still come up with the same amount? Child Benefit should be seen as not applicable when working out entitlement to other benefits. You need a science degree to work out the formula’s infact I saw something on TV six months ago, a programme like Watch Dog, where the reporter asked 5 Cambridge students all studying Maths/Computer Science etc to work out a formula from the Child Tax Credit Form the reporter had the answer hidden away and he gave them seven hours to work it out between them….they came up with the wrong answer, and then they couldnt agree in fact some had another answer..wrong again. Now either Cambridge has gone down hill and students applying and getting in are thick! or the forms for claiming benefits are so over complicated that your mind boggles and you really do not know what it is you might get once you sent the forms back anyhow…
#13 – Posted on 22-Oct-06 at 10:56 pm.
john wrote:
Scrap New Deal because it is a complete con. For working more than 28 hours a week for an extra £15 pw on top of jsa, new deal is slave labour. You work with a company for less than part-time wages whilst everyone employed in the company gets more than £200 per week!
#14 – Posted on 23-Oct-06 at 10:29 am.
Emma Blackaby wrote:
I’m a full time student getting governement funding for attending my course which lasts for 2 years. I was on benefits for 6 months prior to commencing the HND i’m doing and found it a struggle to pay bills,buy food, clothe me and my 2 kids etc. I am a single mother and think that if i want to set my children a good example by studying at college and embarking on a new career earning money then they wont sit on there back sides all day living of the state when they have left school.
Where i live there’s loads of families living of benefits, on drugs, alcoholics etc where there mums/dads or most of the family are on benefits, how can we break the chain?
As our future generation are only looking at there role models and the children who are living in poverty see this as the norm there way of life.More re-hab programmes should be made available, a better scheme for absent parents to pay up for there kids, scheme’s to motivate parents into studying at college or gaining experience for work.
As i said before i’m a single mum with 2 kids struggling at college for 2 years, but would rather struggle and gain a brighter fruitful future for me and my kids than sit on income supposrt wasting away, like alot of people who choose the benefit system as a career path.
#15 – Posted on 23-Oct-06 at 10:34 am.
ALISON REYNOLDS wrote:
When Child and Working Tax credit was introduced I saw this as a step in the right direction to help the low paid with or without children to increase their income. My opinion has completly changed though since returning to work after a career break. The tax credit system as far as i can see does not encourage people to take on extra work especially if the extra work is intermittent as the tax credit is either reduced or not paid the following year and for people like me who rely on tax credit and budget accordingly find any loss can be a financial disaster and can lead to a person getting into debt. Bring back PAYE.
#16 – Posted on 23-Oct-06 at 12:10 pm.
mike roncone wrote:
Why is it that, it is illegal to discriminate against the disabled yet this Parasitical government thinks it can, by forcing disabled people back to work and undermining medical opinion.The new reforms for the disabled on Incapacity should be treated with total contempt I am disabled through no fault of mine yet some pigheaded politician thinks they have the right to point a finger and say I could be working for maybe a pittance I don’t think Politicians or the Dwp are qualified to infringe my rights as a disabled person.
#17 – Posted on 25-Oct-06 at 12:55 pm.
gerardus Kohlinger wrote:
The story is nice, reality is darker than ever experienced.
Take this weekly amount to live on is 26.35 for one adult and one child over 16 but under 18.
Reason she get Carrers allowens to assist 60 hours a week where the Government refuse to act and that carers allowens is then in full deducted from the income. If you want to talk abouth poverty look arround you Britain is getting poorer by the hour, the MP’s however richer by the hour this a a matter of speaking.
#18 – Posted on 27-Oct-06 at 12:20 pm.
caroline dawn hart wrote:
I too am a single mum of four, i welcome this opportunity to voice what i feel are the real issues that surround the poverty and struggle many thousands face in bringing up their children. Unfortunately from my own experiences i have found that the very agencies set up to assist and support families like mine are sadly falling far short of the mark. In my own case i am a working mum no easy task with four children, something that has been made considerably harder by the failure of agencies and maladministration of the same. I wish i could say this was now rectified and that my life had been made a little easier but i cant. Instead i find that these failings are repeated over and over again, and the effects are devastating my family. I feel that we have been badly let down at a time we needed all the support and help we could get, in my own case i have indeed decided to take matters futher and have just contacted government ministers to high light my concerns, i do this not only for my own family but also hopefully with a view to making life easier for the many thousands like me trying to bring up our children with values and morals and the work ethic. I believe that you work for what want to achieve and will instill this in my own children, although reforms are needed to support families the agencies designed to support these families need to fulfil their own obligations and deliver the standard of service they were set up to achieve. I feel that the failure of this is adding immense pressure to families who are genuinely working hard to improve their childrens lives and standards, and in real terms the opportunities and potential for these children to go on and have fulfilling and positive lives which will in turn lead to positive and proactive adults. The link may seem tenuous but the view of many is that this is indeed the case, resulting in the Governments initiatives about ‘Every Child Matters’ and the Positive approach to parenting. If the Agencies were fulfilling their role i feel the government would have less families at crisis point which would negate the need for futher interventions.
#19 – Posted on 04-Nov-06 at 12:38 pm.
Norman Lee Plumpton wrote:
As a politics undergraduate, I have read with great interest the governments proposals for welfare reform, but would like to pose insistence to get tough on people who show attributs to being workshy. Also in particular, the incapacity benefit system is known as “the club”, and that people often get onto IB as an easy way out of finding work. I hope that you will absorb these comments into the policy-making process, and begin to end 3rd generation poverty, and the automatic expectancy by some that the state will provide.
#20 – Posted on 04-Nov-06 at 11:02 pm.
john lichey wrote:
hi i am a full time carer for my partner does ths reform affect existing claimants or just new claimants
#21 – Posted on 27-Nov-06 at 10:57 am.
ian wrote:
as regards the clampdown on longterm unemployed it’s the same old ideas with a different title and hasnt worked before and still wont work if the goverment stopped eu persons from taking our jobs which the employers exploit by paying them below the minimum wage and also taking a large whack for accomodation the unemployed of this country would be able to find work
#22 – Posted on 18-Dec-06 at 11:37 am.
Layna Manning wrote:
How can children be taken out of poverty when working families are worse of the being on benefits my story is very simple i work part time my husband doesnt as we have disabled daughter(so he is her carer) we claim tax credits which go do each year we also claim housing and council tax benefits but every £1 we have over benefit rates we have to pay 85p towards our rent and council tax so my story is that i go to work for 42p per extra i dont get any help with school dinners(wich would be free on benefits)or bus fares to work so i am worse of by at least £24 per week it is only the fact that i have a had a job since i was 13 years old that stops me claiming benefits and it makes me angry that we are getting poorer than those on benefits
#23 – Posted on 02-Jan-07 at 11:09 pm.