Welfare-to-work benefits scheme 'could increase hardship' » Housing » 24dash.com

A senior government advisor warned tough new measures to get the jobless into work or face benefit cuts could leave people worse off, it was reported today.

Sir Richard Tilt, chairman of the Social Security Advisory Committee (SSAC), wants ministers to reconsider plans to force lone parents, disabled people and the long-term jobless to seek work in the face of rising unemployment in the UK.

Sir Richard said the welfare-to-work drive could increase hardship in lone parent families and should be delayed by one or two years, the BBC reported.

Under the plans, only full-time carers and disabled people "with the greatest needs" will be exempt from being expected to find work in future.

Currently, single parents with a youngest child under 16 can claim income support without having to show they are seeking work.

But from next week, lone parents with a youngest child of 12 or over who apply for income support will be put on Jobseekers' Allowance and expected to look for work or face sanctions, including having their benefits cut by up to 40%.

Only those with disabled or sick children will be exempt.

By 2010, the rule will be extended to lone parents with a youngest child aged seven or over.

Sir Richard said: "Benefit rates are relatively low and if you are going to reduce someone's benefit for a few weeks by 40% you are pushing people much closer to poverty.

"Of course, the child will suffer, but it's not the child that has fallen foul of the system."

His remarks will come as a blow to ministers who have already faced a backlash over the reforms from left-wing MPs and charities who claim they will penalise the most vulnerable among Britain's 4.5 million benefits claimants.

However, employment minister Tony McNulty was quoted by the BBC as saying that the economic downturn meant it was more important than ever to equip people for work.

"Now more than ever it is important to help people prepare for work and move closer to the labour market," he said.

"In the 1980s and 1990s people were moved onto incapacity benefits and left to languish with no help or support to return to work.

"These changes will ensure that lone parents are ready for work whenever jobs become available."

Work and Pension Secretary James Purnell rejected calls for a delay.

"I disagree. I think it would be wrong, at a time when it may be harder for people to find work, to provide them with less help," he told BBC Radio 4's Today programme.

"We know that our help works; we know that the help they get from the voluntary sector, from providers and from JobCentre Plus works, it changes people's lives.

"What we require people to do is come in and take up that help and when I talk to people about it they say: why didn't you make me do this earlier because it has changed my life."

His Opposition shadow Chris Grayling said the changes were essential.

"It would be disastrous for Britain to do a U-turn on welfare reform," he said.

"It would have the effect of making poverty worse and condemning millions of people in some of our most deprived communities to endless benefit dependency.

"Right now, when the jobs market is tough, we need real action to help people who've been on benefits for a long time to make the journey back into work and not simply assume that because unemployment is rising that there's no hope for them."

TUC general secretary Brendan Barber said: "As thousands join the dole queue every day, this is the worst possible time for a further benefits crackdown and introducing workfare.

"If the Government continues, more people will be left in poverty, unable to work or claim benefits, and at £60.50 a week, many of those claiming jobseekers allowance will still find themselves in poverty.

"The Government must increase jobseekers allowance and boost resources at JobCentre Plus to help more people back into work."

Dr Alice Maynard, chairwoman of disability charity Scope, said: "Scope shares the Government's ambition to support significantly more disabled people into work.

"However, evidence shows that the best way to achieve this is through tailored personalised support, not punitive sanctions.

"It's tough enough at the best of times to gain meaningful employment, but in the current economic downturn and with greater competition for jobs, disabled people are likely to find themselves even more disadvantaged."

She added: "Therefore, we urge the Government to review its targets on disabled people moving into work to ensure they are achievable and will not result in more disabled people living in poverty."

ERSA (the Employment Related Services Association) welcomed the assurances by James Purnell, Secretary of State for Work and Pensions, that those furthest from the labour market should receive the support they need to seek work, despite challenging labour market conditions. 

Amanda McIntyre, Director of ERSA, said: “Work transforms people’s lives for the better, especially for those who overcome complex personal barriers to find and keep a job.

"The specialist support from innovative private and voluntary sector providers is invaluable for those who are furthest from the labour market.

"It not only helps them to compete for jobs, with impressive results, but also transforms their quality of life, by helping them to believe in themselves, recognise their strengths and develop life skills.

“We encourage the Government to make sure there is a balance of welfare-to-work support, to help those recently unemployed and those furthest from the labour market.

"Although intensive support for people with complex needs is more costly to provide, it represents excellent value for money overall, once you take into account the savings in benefit payments, the reduced dependency on other public services and the social value of helping people to turn their lives around.  It must not be squeezed out as public finances come under pressure.”