Likely concessions on welfare reform
The House of Lords defeated the Government on seven key elements of the Welfare Reform Bill; one of those elements include the proposal to cap out-of-work benefits at £26,000 per household.
In the Commons today, ministers aim to overturn the defeats and will table their own amendments to reinstate the original plans.
It is been reported that Secretary of State Iain Duncan Smith is likely to offer “transitional arrangements” to help families who will be hit by the cap which may include a new fund to help pay the moving costs of any family that cannot afford to remain living in a large home once the £26,000-a-year limit is introduced…. the size of the home is really irrelevant; large or small, the cost of living and indeed accommodation is higher in certain parts of the country than in others..
IDS may also offer a “grace period” so that benefit claimants who have lost their jobs after years of contributing National Insurance payments through work will not immediately fall under the cap. but will be allowed to claim unlimited benefits for a period of time.
Naturally the Lib Dems are claiming that they are a stablising force reining in the excessess of the Conservative wing of the Coalition government.. Who Knows…
The Labour Party is planning to table its own proposals which is that the cap should be set a local level… consistent with the acknowledged regional variation in the cost of living and housing…. Even with this, Labour’s general position is far too unclear even confused
Labour will oppose the Government’s amendments and table its own rival proposals — for the cap to be set at a local level, reflecting the cost of housing in different parts of the country.
Yes Minister's Blog 
The Solution to making the work programme work!!
Posted in THE GRAPEVINE! news, comment & a bit of gossip, Welfare to Work, tagged ame/del, centre for social justice, commissioning, employment and skills, iain duncan smith, personalised employment program, Treasury, unemployment, welfare reform, welfare to work on July 5, 2010|
Whilst it is true that individuals could do much more to help themselves out of poverty. Very rarely is poverty self inflicted: it is usually the result of circumstances beyond an individual’s control.
Poverty, however does not occur or remain in isolation but it is usually exacerbated by socio-economic conditions including a lack of jobs – and where there are jobs – they are low-paid, short-term, part-time, unreliable and insecure. Individuals are likely to spiral into increased dependency and ultimately intergenerational unemployment ensues which further excludes, compounds and reinforces their individual and collective position. The myth is that the poor contribute very little to society: actually; the converse is true: many people living in poverty do make important contributions through caring for the elderly, disabled, looking after the children of friends and family and volunteering. As I discussed in previous postings, our dysfunctional benefit system fails to support these and other people when they wish to transit into work.
In addition to the fact that people trying to move into work only keep a few pennies in the pound from what they earn, the costs of getting to and from work simply compounds the problem.
This does not even begin to account for those for whom work is just not viable due to health concerns and also because of their other familial responsibilities – which have financial implications to family and which has so far saved the state money…..
…yes I know…. we only hear about the costs and the scroungers …. not about the so called benefit louts who are in fact saving money… .
What do I recommend?
If we accept that people living in poverty do wish to contribute to their communities then I propose that in addition to simplifying the benefit system, increasing the earnings disregard, tapering benefit payments as proposed by Centre for Social Justice, and supporting start-up and micro businesses, that through the Community Allowance scheme the unemployed would be allowed to take on small amounts of paid community work without losing benefits.
Participants would be permitted to register for a maximum of 52 weeks. Maximum earnings on top of benefits over the year would be capped at £4,469 or the equivalent of up to 15 hours a week on the minimum wage. Participants would be paid the minimum wage or more depending on the kind of work available and their skill base.Community Allowance.
I think this could be the answer to making the Work Programme work!
12 months on Community allowance in addition added to the cost paid to providers is a win win: everyone benefits and the Treasury saves.
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