The government has set out proposals today to reform the benefits system to create stronger incentives for the unemployed to return to work. While we welcome reforms to the complex system, benefits to the most vulnerable families must not be cut.
Friday 30 July 2010
Work and pensions secretary Iain Duncan Smith has unveiled a consultation aimed at streamlining and simplifying payments, which aim to reduce what he calls the “dramatic amounts” wasted by government in benefit overpayments and to ensure that low earners will always be better off in employment.
A range of welfare benefits could be brought together as a single payment, called a Universal Credit, that would taper off as claimants move into paid work.
“1.5 million children live in workless households that fall below the poverty line and any change that might improve this situation is a good thing” said Sally Copley, Save the Children UK’s Head of Policy.
Benefits to most vulnerable families must not be cut
“We strongly support the proposals to reform the welfare system and make work pay. The current system is too complex and produces too many disincentives to work,” Copley continued
“But the government must be prepared to invest in these changes and they must not lead to cuts in benefits for our most vulnerable families. Without adequate investment, the proposals simply will not work and could damage families further.”
Work not a cure-all for poverty
“It's also important to remember that they cannot be a cure-all for child poverty. Work is not a route out of poverty for all families. For some families work is not an option, for example families with very young children, or families affected by disability. For others, the barriers to taking up employment are not high marginal tax rates, but a lack of suitable jobs or a lack of childcare. Spending cuts could make this worse,” said Copley.