DEPARTMENT FOR WORK
AND PENSIONS News Release (DRC-089) issued by The Government News
Network on 21 July 2008
Incapacity
benefits and Income Support are to be abolished as part of
far-reaching new proposals, the Secretary of State for Work and
Pensions James Purnell announced today.
In a radical overhaul of the welfare state, Mr Purnell announced
proposals to scrap incapacity benefits by 2013 and abolish Income
Support to create a more streamlined system based on just two
working-age benefits - the Employment and Support Allowance (ESA),
for those who have a medical condition which prevents them from
working, and Jobseekers' Allowance (JSA) for everyone who is
able to work.
Unveiling the new reforms in a green paper published today called
No one written off: reforming welfare to reward responsibility, Mr
Purnell said:
"Our proposals are based on a simple deal: more support in
return for greater responsibility.
"This green paper proposes a simpler benefit system that
rewards responsibility, gives people the incentive to do the right
thing and ends the injustice of people being written off on
benefits for life without any hope of getting the support they
need to get back to work.
"We will help people find work, but they will be expected to
take a job."
Under the plans, people on incapacity benefits will be moved on
to ESA by 2013. This will provide temporary support for all but
the most severely disabled people.
Everyone currently on Incapacity Benefit and new claimants will
go through a new enhanced medical assessment and be assessed on
what they can do, not on what they can't. Doctors will be
asked to make clear the point at which the individual should be
fit for work and people will be assessed again at that point.
People with severe disabilities will get more cash under ESA. The
rest who qualify for the benefit will be placed in a
"work" category. They will receive personalised
back-to-work support to help them prepare for work and overcome
any barriers they face. It will be made clear to this group that
ESA is a temporary situation to help them get fit to return to work.
The green paper also sets out proposals to move towards a
streamlined benefit system, moving lone parents with children
under seven on to JSA. While lone parents with children under
seven would not be required to actively seek work, the green paper
proposes voluntary measures to give them more support to prepare
them for work and includes a 'skills for work' premium
on top of existing benefits to act as a weekly financial incentive.
The conditions attached to receiving JSA will also be
strengthened with a "work for benefits" scheme for the
long-term unemployed. People unemployed for over two years and
those abusing the system could be forced to take part in full-time
activity such as community work at any point in their claim.
People will have to train to get their job skills and drug users
would be required to seek treatment or could lose their benefits.
In return for these greater expectations for people on benefits
to find work, Mr Purnell also announced measures offering greater
support. These include:
* Doubling the funding of Access to Work which provides
assistance to disabled workers and their employers, which already
helps 24,000 people a year gain employment or stay in their job.
There will also be significant increases for the schemes which
provide support into employment for the most severely disabled
people. People on incapacity benefits who find work through the
Pathways to Work programme could get a £40-a-week top-up on their
wages to ease the transition into work
* A "full disregard" for child maintenance, so that
payments will not be taken into account when calculating how much
out-of-work benefits a parent should get. The full disregard,
combined with existing reforms to the child maintenance system,
and measures to support lone parents with older children into
work, will lift up to 200,000 children out of poverty.
* Exploring more ways we can give disabled adults greater control
over the combined budget which the government spends on their support.
The publication of the green paper will be followed by three
months of public consultation on its proposals. Mr Purnell urged
everyone - whether large private firms or individual benefit
claimants - to make their views heard and play an active role in
shaping the policies.
Notes to editors
1. The full green paper can be found at the following link http://www.dwp.gov.uk/noonewrittenoff.
Further Information on welfare reform can be found at http://www.dwp.gov.uk/welfarereform.
2. James Purnell will be taking questions on the welfare reform
proposals as part of a webchat on the Number 10 website on Tuesday
22nd July from 4pm onwards. To take part go to the following link
http://www.webchat.pm.gov.uk/index.asp?webchatID=75
Website http://www.dwp.gov.uk
NEWS RELEASE