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Friday, 11 January 2013

Mid term review Jan 2013 Coalition and Welfare

http://www.bbc.co.uk/news/uk-politics-20969484

JOBS AND WELFARE

A woman walks past a job centre
Original coalition agreement pledges:
  • Introduce payment-by-results in welfare-to-work
  • Make benefits conditional on "willingness to work"
  • Re-assess incapacity benefit claims
  • Support unemployed people keen to start new businesses
  • Simplify the benefits system
What coalition says it's achieved:
  • Reforms will save £19bn per year by 2014-15
  • Benefits cap to apply from 2013
  • Universal Credit to simplify benefits system "radically"
  • Number of people on incapacity benefits cut by 145,000
Where it accepts it has missed targets:
  • Jobseeker's Allowance claimants "facing the most significant barriers to work" were to have been put onto the new welfare to work programme "immediately"; this commitment is now to refer them within three months. Similarly, the target for jobseekers under 25 has shifted from six months to nine
Labour's verdict on coalition so far:
  • Benefits reforms hitting working people not "scroungers"
  • Welfare-to-work programme less effective "than doing nothing"
  • Welfare bill £13bn higher than planned
  • Universal Credit late and over-budget
  • Number of long-term unemployed young people doubled
  • "Genuinely ill" people suffering from changes to incapacity benefits
Coalition's mid-term 'to do' list:
  • Push forward with Universal Credit and the Youth Contract
  • Introduce the Personal Independence Payment for disabled people
  • Provide start-up loans and business mentors to unemployed people
  • "Protect key benefits for older people"
BBC business correspondent Jonty Bloom says: Unemployment rose after the coalition came to power but has been falling back recently, and is now at about the same level as at the election. This is quite a surprise with economic growth so slow unemployment would normally have risen much faster. No one is quite sure why it hasn't shot up but despite the government shedding hundreds of thousands of staff in the public sector the private sector has continued to create work.

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