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November 12, 2010

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UK unveils big welfare reforms

THE UK government announced plans to overhaul Britain's welfare system yesterday, promising to help the jobless get back to work, but warning that those who avoided employment would face toughsanctions.

The plans are designed to simplify a web of benefits to reduce errors and inefficiencies, and to ensure people in work would benefit by keeping more of their earnings.

Critics say the plans punish the poor and unemployed, will force many people to take arbitrary jobs without taking into account their circumstances, and fail to address the problem of a lack of suitable employment opportunities.

The plans will also see separate benefits such as housing, income or incapacity support replaced by a "universal credit" where households get a single welfare payment.

"The message is clear. If you can work, then a life on benefits will no longer be an option," said Prime Minister David Cameron, who is at the G20 summit of world leaders in South Korea.

"You can't have a situation where if someone gets out of bed and goes and does a hard day's work they end up worse off," Cameron said.

Aid group Oxfam, the Public and Commercial Services union and other groups criticized the plans.

"The proposals to force people to do unpaid work are based on stigma," Oxfam said in a statement, referring to part of the welfare plan that would make community service compulsory.

"Most people receiving benefits do want to work, and punishing them as if they are criminals repaying a debt to society is not a fair way to treat someone," it added.

Work and Pensions Secretary Iain Duncan Smith said the measures, which will be introduced from 2012-3, would mean 700,000 low-earning workers would be better off.





 

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