Government responds to Welfare Report
4 Jun 2014 02:44 PM
Independence needed to reform welfare and tackle
poverty.
Support to get
people into work, action to make work pay and the provision of a strong and
decent safety net for those who are unable to work, should be the focus of the
welfare system in an independent Scotland, according to the Deputy First
Minister.
Ms Sturgeon was
responding to the second report from the independent Expert Working Group on
Welfare, which outlines a vision for a fairer, simpler and more personal
welfare system and provides nearly 40 recommendations for change following
independence.
The Deputy First
Minister confirmed that in an independent Scotland the current government would
take forward recommendations, including those to improve support for carers,
restore the link between benefits, tax credits and the cost of living and
abolish the current Work Capability Assessment.
She also confirmed
that the Scottish Government would carefully consider the Group's
recommendations on the minimum and living wage, introduction of a new Social
Security Allowance and replacement of the Work Programme with more targeted
support to help people find and sustain employment.
Ms Sturgeon
said:
“I warmly
welcome the independent Expert Working Group’s report and thank the
members for their significant contribution. The Group’s report includes a
wide ranging package of recommendations which would help us create a welfare
system in an independent Scotland that better meets our needs.
“As part of
their discussions, the Group have engaged with a wide range of people and
organisations. It is clear they have listened closely not only to how people
feel about welfare, but also how the current reforms are affecting their
lives.
“In
particular, I strongly endorse the Group's view that the welfare system
should act as a strong safety net and a springboard to a better life. They are
right when they say that work should be the best route out of poverty for most
people but that the rise in in-work poverty needs to be addressed if this is to
be the reality.
“Following a
vote for independence, we would be committed to taking on several
recommendations straight away to deal with those aspects of the current system
that are pushing so many people into poverty.”
The Government
would:
• Increase
Carers’ Allowance to £72.40 per week, the same rate as
Jobseeker’s Allowance for those aged 25 or over. This would amount to an
extra £575 a year for the 102,000 people in Scotland who are eligible to
claim the allowance.
•
Re-establish the link between benefits and the cost of living, with benefits
and tax credits being increased each year by the Consumer Prices Index of
inflation.
• Abolish the
‘Bedroom Tax’.
• Replace the
current system of sanctions with one that is fairer, more personalised and
positive.
• Abolish the
current Work Capability Assessment that determines the ability to work of the
sick and disabled.
• Establish a
National Convention on Social Security at the start of 2015.
The Government
will also carefully consider the Group’s other recommendations. These
include:
• Increasing
the National Minimum Wage to equal the Living Wage and with reductions in
Employers’ National Insurance contributions to help businesses make this
transition.
• Replacement
of the Work Programme with new initiatives developed in partnership with those
out of work to help them find, and stay in, employment.
• Introducing
a new Social Security Allowance that would bring together existing benefits but
which would exclude Housing Benefit.
• Better
supporting those with long-term disabilities and illness into work.
The Deputy First
Minister added:
“We are
committed to mitigating the harmful effects of Westminster’s welfare
reforms where we can, such as securing the transfer of powers over
discretionary housing payments to the Scottish Government, allowing us to help
people struggling with the Bedroom Tax.
“The report
recognises the increased pressures of in work poverty and some of the
difficulties in the current labour market. These are challenges all countries
face but we are committed to tackling them head on wherever possible. The
growing numbers of people in work but still facing poverty is extremely
worrying. They need our support and one way to do this, as the Group suggests,
would be through making the Living Wage the National Minimum Wage. We will be
looking closely at this proposal.
“We will be
considering the Group’s recommendations to replace the Work Programme
with more innovative, locally-based schemes, designed to help people find jobs
and, importantly, stay in work.
“We will
also look at the introduction of a new Social Security Allowance, but would
keep Housing Benefit separate from this.
“Our focus
will be on prevention rather than dealing with existing symptoms, to develop a
society that not only provides fair support and decent opportunities for all
but also protects the vulnerable in our society. The only way to guarantee that
is to have the powers to deliver progressive reform of the Welfare
State.
“Only with
independence will we have the opportunity to create a welfare system that is
fairer and works for all the people of Scotland.”
Notes To
Editors
The second report
from the Expert Working Group on Welfare is available to view here:http://www.scotland.gov.uk/Publications/2014/06/7760
The first report
from the Expert Working Group on Welfare was published last year and is
available to view here: http://www.scotland.gov.uk/Publications/2013/06/8875
Group
membership:http://www.scotland.gov.uk/Topics/People/welfarereform/EXPERTWORKINGGROUP
ONWELFARE/Membership
SoundCloud audio of the Deputy First Minister:
https://soundcloud.com/#scotgov/nicola-sturgeon-welfare-report