– Welfare Reform: Iain Duncan Smith outlined the government’s plans and admits that he is ‘very keen’ on the idea of a Living Wage

The Secretary of State for Work and Pensions, Iain Duncan Smith, delivered a keynote speech to the think tank IPPR in which he discussed the government’s welfare reform plans, including the plans for a new Universal Credit.

He also stated that his reforms to get more people off welfare into work were not ‘wholly reliant’ on job creation. In one clear break from previous policy he emphasised that the creation of new jobs was not his primary concern, explaining that during the long boom from 1992 until 2008 there remained a residual hard core of unemployed people.

The government recently published a White Paper on welfare reform, provoking a major debate about the future of Britain’s welfare system – with implications for millions of people and many areas of policy.

The event was chaired by the director of IPPR, and former Secretary of State for Work and Pensions, James Purnell. Mr Purnell was recently reported to have turned down an offer from Ed Miliband to become Labour’s chief of staff and in an article in The Times, on 9^th November, revealed that he had proposed a universal credit under Gordon Brown only for it to be overruled: “Before I resigned from the cabinet, I proposed a similar plan to Mr Brown. But he was scared that there would be losers, and his refusal to give me any answer made me think that there was no point in staying inside the government to try to influence him.”

Some see the new Work Programme as an extension of the Flexible New Deal and it does seem that the key dividing lines between the two main parties over welfare reform are not so different. Similarities include:

• The Work Programme – a paid, four-week work experience programme was introduced by Purnell for the long-term unemployed, while Duncan Smith has recently published plans for a mandatory two-week unpaid scheme.

• Health checks – spending on incapacity benefit grew enormously during the New Labour years, and both Purnell and Duncan Smith suggested some form of regular health check should be introduced for recipients.

• Universal benefit – Purnell has branded Duncan Smith’s universal credit “a good idea”, although he has suggestions for more effective implementation.

Mr Duncan Smith agreed with Labour’s previous policy of testing those on incapacity benefit, saying that half of all claimants had only completed a paper-based assessment, and never been properly assessed by a real person.

However, the universal credit is what really marks out Duncan Smith’s approach from his predecessors. Modifying the existing complex system was not enough and his reforms to the benefits system were designed to ‘create a contract’. The government would make the system simpler, make work pay and ensure that the most disadvantaged were ready for work. In return, those in the welfare system would be expected to take up work as and when it became available. He said that, at present, it was too often a ‘rational choice’ for benefit claimants to decide that not working made them better off than taking a job.

Personalisation was one key agenda he promoted, emphasising the need for personal help and encouragement to assist the long-term unemployed back into work.

Purnell also stated in his article last month: “There is a covert consensus in Britain on welfare. Most politicians agree that it must be supportive enough, otherwise poverty becomes a trap; but it must also be tough enough or the support itself becomes a trap.”

In answer to one question from James Purnell, Mr Duncan Smith said that the Coalition was ‘very keen’ on the idea of a Living Wage and was pushing for it to be introduced across government.

To read Iain Duncan Smith’s full speech Duncan Smith ippr speech 07 12 10

Jason McGee-Abe

Policy Support Officer

www.yesminister.org.uk