Tagged: national insurance system

Labour Policy Report Calls For Radical Reform Of Welfare State

This article was written by Toby Helm, political editor, for The Observer on Saturday 14th June 2014

 Plans for a radical overhaul of the welfare state, including a return to the principle that benefits should be linked more closely to contributions, will be part of a major policy report for the Labour party this week.

The Condition of Britain study by the IPPR thinktank, to be launched by Ed Miliband on Thursday, will also contain proposals to devolve large amounts of power and funding out of Whitehall, including the control of housing benefit to councils, in order to stimulate innovative housing policies and more housebuilding.

The project was set up in February 2013 as part of Labour’s policy review to consider how institutions and policies need to respond to today’s needs – including more childcare and better care for the elderly – within the confines of tight budgets and inevitable further cuts.

A key theme is expected to be that early intervention at every stage of life can prevent society having to continue “paying for the costs of failure”.

>  “early intervention at every stage of life” – now isn’t that an ominous phrase ?

The report will argue that a stronger society can be built on the three “pillars” of shared power, contribution (through changes to the national insurance system) and strong institutions. While some proposals, such as a plan to freeze child benefit to fund a network of children’s centres, are likely to be rejected by Miliband, many of its central ideas will be considered by the party’s national policy forum in July.

The report is expected to look at whether benefit payments can be linked more closely to levels of contributions through changes to the national insurance system.

Senior figures believe that Labour must counter the impression that it supports a “something for nothing” benefits system by looking at radical change.

> Oh great – so it’s all about image and trying to appeal to those sectors of the electorate who wouldn’t vote Labour anyway. And once again those at the bottom of the pile will get a kicking… just so Labour look tough, just like the Tories.

Not a single original thought among them, is there ?

Writing on theguardian.com, the chair of the policy review, Jon Cruddas, suggests that such ideas could form a major part of Labour’s manifesto at the 2015 general election.

Looking ahead to the report’s publication, Cruddas says: “It sets out three broad strategies for social renewal: spread power and responsibility to build democracy and strengthen society; foster contribution and reciprocity to re-establish a sense of fairness and justice; and strengthen our shared institutions to help tackle social problems for good. These establish the foundations on which we can build a competitive wealth-creating economy.”

The report will contain proposals for a one-off levy of £450m on Britain’s £180bn consumer credit industry which the IPPR says could create enough affordable lenders to take on Britain’s legal loan sharks.

It says that, as well as a new legal cap on the total cost of credit, Britain needs a new generation of not-for-profit lenders with enough capital to compete with firms like Wonga, Quick Quid and Payday Express.

The IPPR launch will be followed later in the summer by Andrew Adonis’s growth review, which will focus on developing the economic potential of cities. Richard Leese, the leader of Manchester city council, will then publish work by his local government innovation taskforce setting out plans to redistribute power across England and reform public services so that they can be tailored better to meet local needs.

Source –  Welfare News Service,  15 June 2014

http://welfarenewsservice.com/labour-policy-report-calls-radical-reform-welfare-state/

Forcing Unemployed To Wait Longer For Benefits Makes Them ‘Easy Prey’ For Loan Sharks, Say TUC

 

Increasing the length of time people who lose their jobs will have to wait before they can claim benefits will not help them find work, and risks pushing unemployed people into the arms of loan sharks, the Trade Union Congress (TUC) warns.

From Autumn 2014 anyone who is unlucky enough to lose their job will have to wait seven days before they can make a claim for Jobseeker’s Allowance (JSA) and Employment Support Allowance (ESA), according to a consultation published by the Social Security Advisory Committee (SSAC). The SSAC advises the Department for Work and Pensions (DWP) on benefits issues.

TUC say that according to the Government’s own impact assessment the change means that people will lose £40 in benefits they would have received under the current system. That system asks that people who lose their jobs wait three days before becoming eligible to claim unemployment benefits, rather than the seven days waiting period being proposed by the coalition government.

 It’s worse news for anyone forced to give up work due to illness or disability who face losing out on £50 in benefit. The TUC say that the Government’s own impact assessment shows that disabled people will be severely disadvantaged by the changes and that under Universal Creditthe potential hardship is much greater”.

The impact assessment, which forms part of the consultation published by the SSAC, suggests that the change in the waiting period for benefits will affect as many as 1.3 million people a year.

TUC General Secretary Frances O’Grady said:

Forcing people to wait for job support will not help anyone find work. Instead it will make them easy prey for loan sharks. This has nothing to do with making work pay. It is simply a mean attack on the welfare safety net and could affect any one of us.

“It won’t matter how long anyone has had a job or how much they have contributed to the system, they will all suffer the same penalty. The vast majority of people who lose a job thankfully find another one within a few months, but this is when they need help to tide them over between jobs. That is why we have a national insurance system to which we contribute when we are in work – a system that is now under attack.”

Paul Gray, Chair of the Social Security Advisory Committee (SSAC), said:

This proposal has history. An identical change was put forward by the Government in 1998 but subsequently dropped. Then, as now, an understandable desire to ensure limited public resources are used most effectively was the main driver for the proposal. However, as benefits are now being paid fortnightly in arrears, it is important that we understand the full impact of this change – particularly on the most vulnerable. We are keen to hear from anyone who is able to provide information about the consequences of this change”.

The change is expected to come into force from October and anyone wishing to have their say are asked to submit evidence to the SSAC (pdf) by 13 June 2014.

Source –  Welfare News Service,  23 May 2014

http://welfarenewsservice.com/forcing-unemployed-wait-longer-benefits-makes-easy-prey-loan-sharks-say-tuc/