Monday, 02 March 2015

Current welfare system 'completely broken' claims IDS

Universal Credit will change people’s lives and replace a welfare system which is ‘completely broken’ and ‘divorced from its founding ideals’ a government minister is expected to say.

Iain Duncan Smith, the Work and Pensions Secretary, is speaking today at a conference in Spain organised by a think tank called the Foundation for Social Studies and Analysis.

Mr Duncan Smith will say: ‘Getting somebody into work can change their lives, not to mention the lives of their children and those in their community. But we had a system of welfare and employment support that encouraged people to do the exact opposite.

‘This was a system that was completely broken, divorced from its founding ideals. William Beveridge, the man widely credited with creating the modern welfare state in the UK, was clear that the welfare system must not be allowed to stifle ‘incentive, opportunity or responsibility’.

‘But by the time we entered Government late last year it was apparent that these values had been perverted - we had a system that punished those who did the right thing while rewarding destructive behaviours.

‘We wanted to introduce reforms that would put work and responsibility back at the heart of system, changing lives not just maintaining them on welfare.

‘Our first step was outlining plans for a Universal Credit - a simple, clear welfare payment designed to replace a whole range of complex benefits and tax credits.

‘Not only is the Universal Credit designed to be much simpler for people to understand, it is also designed to make work pay.’

Mr Duncan Smith is also expected to say that the government was putting pressure on businesses to employ British citizens.

He will also call for ‘tough action’ to be taken to tighten immigration rules to stop a generation of young people ending up on benefits.

‘We have to ensure that our immigration system works in the interests of Britain, enabling us to make a realistic promise to our young school leavers’, he will say.

‘It is part of our contract with the British people. This Government is reforming welfare to make work pay, and to help people back to work.

‘And we are toughening sanctions against those who refuse to take jobs when they are available.

‘But we also need an immigration system that gives the unemployed a level playing field.

‘If we do not get this right then we risk leaving more British citizens out of work, and the most vulnerable group who will be the most affected are young people.

‘In the short term controlling immigration is critical or we will risk losing another generation to dependency and hopelessness.’

Readers' comments (16)

  • Rick Campbell

    Demonisation, Demonisation!, Demonisation?

    I'm just asking a question.

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  • Victor Singh

    Well Rick, 50% of Tory Party donations come from the CITY, so they can't really get at them can they?

    People on benefits are an easy and soft target.

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  • Arthur Brown

    Not a great vote catcher is it? Benefit cuts.

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  • Chris

    Not for the first time the far right are making speeches in Spain - IDS may as well stay on their and settle in.

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  • I dont feel without sounding too harsh, the Minister Ian Duncan-Smith, fully understands how the UK came to the current situation in the first place. I do agree with reforms whole heartedly, but they must be completed in such manner the current generation are rewarded well for work, because otherwise like the current wealth gap and social divide the problems will continue. ROME WAS NOT BUILT IN A DAY IDS.

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  • This isssue has been all over the national news media all day. One interesting issue that came up was from the head of a recruitment agency on BBC.

    His company provides many of the 'pickers and packers' (the low pay manual jobs) and his pay for his thousands of agency staff average £6.25. These are the type of jobs aimed at by IDS for young (white British) people.

    The head of recruitment agency also sais two years ago 66% of workers were Eastern European and this has reducedd to 50% today.

    Most interestingly he said that British workers mostly only sought part-time work becuase if they work over 20 hours per week then they lose a significant level of benfit making working greater than 20 hours not cost-effective.

    So once we get over the 'racist' elements of this speech from IDS can we ask him how the apparent systemic issue in the benefit system can be changed so that his claim that work always pays can be seen to be reality.

    Or simply IDS how will Universal Credit solve this problem?

    Racist themes, blaming immigration are all excuses and need to be set aside so that Universal Credit can always make work pay as if UC cant do this then IDS's 'grand plan' is thoroughly discredited.

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  • Rick Campbell

    Nobody seems to realise that there are changes to the tax credit system which may disadvantage some people

    But hey, oif it don't effect you/millionaires/the well off --- then you're all right IDS -- after all, you're in Spain at taxpayers expense are you not?

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  • Jon Southall

    "William Beveridge, the man widely credited with creating the modern welfare state in the UK, was clear that the welfare system must not be allowed to stifle ‘incentive, opportunity or responsibility’."

    Beveridge seemed to see where a welfare system would end up, yet thought that by just saying the inevitable shouldn't happen, would somehow make the system work. He was wrong.

    IDS is also wrong to try and tell businesses who they should hire. Why should a business hire less productive workers just because they are British? Why should businesses go bust so that IDS and politicians like him can claim to have 'created a level playing field'? I suppose a desert is as level a playing field as any, in their books.

    He and politicians in general should also stop promising kids jobs they cannot deliver. Tell these kids how it is: you need to see education as an opportunity, you need to take responsibility for developing your own rational mind, and the incentive is you will have a life of achievement and potentially profit from it - both at work and in relationships. Stop telling them they can fail, and everyone will fix the system so that failing becomes a reward.

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  • Janine Jarvis

    I'm certain that it would be illegal - under equalities legislation - to discriminate against a person who was not British born for a job. odd when a Minister of State is calling for unlawful acts.

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  • Alpha One

    Why do the left always, always play the race card, especially when they can't think up better arguments.

    It's not racist to say that jobs should go to people living in Britiain in priority to those who are immigrants to the country. IDS did say, jobs for whites, he said jobs for the British, you know the people who live here and pay their taxes (or at least try to).

    What sort of backwards country would look at a job and say, I know we'll hire the guys who's travelled 5000 miles to get here, instead of hiring the guy living on the door step. By paying the polish guy to pack boxes you are taking money out of our economy (most migrants send/take the money they earn back home).

    If that migrant is planning to settle in this country, then fine, there's no problem with treating them no different to the British Citizen, but when a person is coming here to earn money for his family back home, we're foolish to give him priority over the guy down the road.

    We don't need people taking money out of the economy, we need people spending it in the economy.

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  • Alpha One

    I meant to say IDS did not say jobs for whites!

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  • Did he mention anything about the farming out of jobs from our country by the big corporations to places in the world where labour is cheap, resulting in less jobs to go round here (making us less able to buy goods except on credit), much higher profits for those big corporations who could escape paying taxes here. All this means he should be honest about the future to the young who want jobs: YOU'RE TOO EXPENSIVE, THERE AREN'T ENOUGH JOBS FOR YOU, AND WE WANT THE CORPORATIONS TO KEEP MAKING THE VAST AMOUNT OF MONEY RATHER THAN YOU MINIONS.

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  • Alpha One - its a sweeping generalisation that a Polish man (or any other) sends money back home and not spend it here. Are you now advocating that the government controls on what and where any worker spends their hard-earned money?

    Tell me Enoch, why is it the left that play the race card?

    IDS ignores the reality that I noted in my post above that many British (of white skin or not) people dont want work for more than 20 hours as there is a perverse disincentive to do so due to the clawback of benefit that often sees 65% tax rates and as much as 123% in some circumstances.

    Admittedly thats an historic problem that IDS has inherited (from pre Blair days too) yet he is grandstanding on the slogan that his UC will always see work pay more than benefit. A laudable aim yet his latest use of the immigration and race card is a surefire sign that he knows it cant be done with his UC grand plan. Instead like all politicians, but mostly from the right, he reverts to the race card and claims any opposition to such views must be 'convenient' and evidence of not having a batter argument.

    IDS grand plan that he and his own think tank have spent years working on is a sham when scratched beneath the surface. Lazy politicking and frankly offensive from a Tory politician caught and caught up in the knowing deceit of the HB proposals.

    Whether left or right we need a politician capable of sortign out the problems with the welfare system and not one of highly dubious integrity who plays the race card when all else fails

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  • Chris

    Quite right Jack - but even if every Polish worker sent their pay packet back to Poland it would be a dribble of lost wealth compared to the £Trillions heamoraging out of our nation in share dividends and company profits. Without a reasonable commercial base within the UK that is situated here for tax purposes also the burden on ordinary workers (including those Poles everyone keeps banging on about) grows larger and larger. There is the true deficit and the true cause. The elite have taken the biscuit, now they want the bread as well.

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  • Jon Southall

    Chris, the irony of your position is that ridiculously costly tax and regulations in the UK is what turns off investors from being based here.

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  • Jono - ridiculously costly tax - I agree, if you are talking about someone coming off benefit and paying 65% tax on HB - 30% more in tax than the richest billionaire pays!

    Being in work will always pay more IDS - bring it on!!

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