Frank Field
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There can be little doubt that welfare reform still awaits a radical government. Despite this Government spending £60billion on the New Deal and initiatives to make work pay, and a bouyant economy that has created more than three million additional jobs, the total out of work has fallen only from 5.7 million to 5.4 million.
The largest group of workless claimants - which has grown since 1997 - are the 2.7 million people on incapacity benefit (IB). Yesterday the Government proposed three important reforms to that benefit. The first is to abolish it and to replace it with an employment and support allowance. This is deeply flawed because it leaves the same structural faults in the system. It will not stop people trying to graduate from being plain jobless to being classified as long-term sick, which rewards them with more money.
The first part of any serious reform should have been to create a single rate of benefit for all claimants of working age, thus taking away the perverse incentive to join the ranks of the officially long-term sick. Claimants with a disability would still be able to claim the disability living allowance - which all disabled people can receive, regardless of whether they are in work or not.
The Government's second reform is to replace the test for incapacity with one that establishes which activities claimants can actually do. It sounds nice but it, too, is unlikely to work. There are large numbers of genuine claimants on IB. There are also, sadly, a large number who, in Barbara Castle's phrase, simply “monkey about” with no intention of working. The trouble is that the Government is poor at judging which claimants fit into which group.
It was not long after the implementation of the last, supposedly more rigorous, test for IB that claimants intent on monkeying around found out which answers maximised their chance of getting a more generous benefit.
The Government may think that its new test is on a par with the Enigma Codes, but past experience shows that the best schemes that the Department for Work and Pensions can devise are quickly broken by groups of highly talented code-breaking claimants.
The third element in the Government's programme is a faith in the private sector's ability to help claimants back into work. But the use of private agencies doesn't necessarily mean an alpha service, as worried pupils awaiting their SATs results can testify.
A truly radical reform would include three complete breaks with the past. The first would be to build on the expertise of staff in local benefit offices. They have a much better idea than any minister of which claimants need - and want - help and which are simply swinging the lead. Benefit offices should be transformed into separate business units, run by the staff.
Each office would have its own budget and be required to operate within benefit laws. Freed from the miles of red tape, staff would be able genuinely to provide personal services to get claimants back to work. Profits earned by the office would be shared between staff bonuses, lower bills for taxpayers and new investment to help more claimants back into work.
The biggest gainers would be the claimants themselves, and here is the second break with the past that any truly radical government must make. Most claimants who have been on IB for two years will retire or die on benefit. Those claimants who have found work, then lost their job, have had an awful time getting back on housing benefit, for instance. In effect, the welfare system penalises them for trying.
The Government should invite claimants to be their own liberators. For instance, all claimants who have been on benefit, say, for more than five years should be given a more powerful incentive to find a job. If they find one, they would be able to keep their benefits for a year, to get them used to the routine of going to work. If they fail to hold down a job, they would not be penalised by the risk of losing housing benefit and their homes too. And if claimants find a part-time job, the benefits office should be on hand to help to turn it into a full-time role.
The third radical departure would be to put a time limit on benefits, as most of them had under the Attlee Government. In my constituency young lads with no intention of completing their New Deal placements go sick at the point when they have to choose one of the work options, then get themselves on to incapacity benefit. In areas where there has been a sustained growth in jobs over the past ten years, benefits for young people should be limited to a few weeks. After that, if claimants wish to keep their money, they should have to join a Workfare scheme.
Unless he makes local offices engines of change, allows claimants to become their own liberators, and puts a time limit on benefits for those cheating the system, James Purnell will not be the last Secretary of State to promise the revolutionary goal of abolishing welfare as we know it.
Frank Field is Labour MP for Birkenhead and was Minister for Welfare Reform, 1997-98
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I think these plans could work as long as ageism is tackled. My mother was pushed off income support onto IB in the late 80s although she only had a minor illness. I suspect it was her age (she was in her mid-50s-hardly 'old') rather than her 'illness' that prompted this action by DSS staff.
LJ, London,
We all pay into a system of insurance and expect to get paid out when we claim. I've paid £50k plus into the system but it seems if you have a pension, saved and are debt free you get nothing. NI must be a insurance. Those that have not paid into the system must earn it by community work. Fair.
James , Brighton, England
YOU HAVE GOT TO MAKE WORK PAY..........I earn £12,000
a year. After l have paid tax and national insurance, a
further 30% of my wages goes on two bills.....COUNCIL TAX
and ELECTRIC/GAS. Many British people come to the
conclusion........WHY WORK?
Josh, Southampton, England
To anyone, including the author, who sees IB as a reward, try going from your present salary is to the median level of I B, with the same bills to pay at the end of the month, then tell me its a gravy train! And essential prescriptions arent free either.
Go on, I try it, I dare you!
BG
Bill Glanvill, Horsham, W Sussex
Every job that Labour has 'created' is at subsistence level wages and that is the trouble Mr Field. Good jobs with fair wages have all but disappeared and been replaced with Mcjobs. Who can live on the kind of money that these jobs pay? Until low wages are addressed we will keep the great unwashed
judy, Liverpool, England
Coming slump and demographics will force us to ration benefits more tightly. Structure should be to pay for housing, heating, food needs (vouchers) kids nursery (vouch.) only basics. No fags, no booze, no cars, no SKY, no living in Spain . Earning from work allows you the choice to buy luxuries
Peter, London,
Stop complaining about employers - people seem to feel that they are owed a living, that they should be paid for the amount of time they spend at work. Get real - your salary should be based on the value you add to the company, not for clocking on an extra 30 minutes each day yet doing nothing.
Gordon Greenwich, Greenwich,
Soundest evidence for evolution. Provide a niche and you soon have new species adapted to survive, milking every penny, exploiting every loop hole.
Many of these people would not exist without the state and serve no other purpose except to spend its money.
ged, manchester,
Well said, Frank. Would you be willing to work alongside David Willetts and IDS in an incoming Tory government to put these proposals into action?
After 11 years of dithering, we might actually start making headway.
Dave, Redditch, England
Or simply stop paying benefits unless people can prove they need them - if that means a weekly or even daily check so be it. If it's easier to go to work than claim benefits people will work. I keep being told how able the disabled are so this shouldn't cause any problem either.
Doug Bates, St. Albans,
I know a man 44 unemployed 4 years who would gladly do a job picking up litter but he cant get one - has some learning difficulties but never diagnosed or documented so never gets any help..homeless, got bed bugs in ropey hotel and has never claimed dole living off savings dwindling fast.....
muvva, Cambs, uk
a perverse incensitivity would be to pay someone incapable of work the same as someone who cant be bothered to work.
What they should do, is pay anyone setting up a business the same rate as IB for the first 6 months of the business. this will encourage entrepreneruship and actually create jos.
will, grimsby, uk
Rubbish! Its like saying Barclays Bank should run the corporate tax system!
Billum, Edmonton,
As an ex-employee of the DSS/BA/DWP then believe me this is political. The Tories wanted unemployment down so we pushed people off the dole and onto incap. Calamity wants folk off incap so we'll shuffle 'em back onto the dole. No doubt Dave will want unemployment down, so we'll go back to incap.....
Tony Butler, London,
Good idea but won't work. I'm a DWP fraud officer. Recently caught an incap claimant working as a personal trainer(!), hauled him in to the office but couldn't stop his benefits because we'd lost his medical file.
TB, London,
Frank, as usual, talks a lot of sense. But can the reality of finding work for the 'anti work' ever be easy? So many decent jobs require an ever deeper intelligence, of the thoughtful and articulate. EU laws need ever more' certificates'. And are there enough 'mature' trainers?
David Vinter,, Louth, Lincs,, UK.
The fundamental problem for genuine claimants is that the NHS does not have the capacity to work with those who need to be supported back to work. A civil servant CANNOT guide or support a person in recovery from a psychological disorder back to work and the NHS just will not do it, leaving a gap.
Maureen, London,
If you are on jobseekers allowance you have to apply for at least 4 jobs a week.Now do the math.4times52 times1500000equals the jobless looking for 312 million jobs a year.Insane or what?I believe computers should do the looking and stop wasting the time of the drinking classes.
G Irvine, glasgow, uk
This is another reform of a public sector institution that will fail. Benefits must be time limited. Without this people will 'play the system'. The Government refuses to time limit. Why? Because it wants to play 'smoke and mirrors'. Typical Labour - talk tough but don't actually do anything.
Chris, Reigate, uk
Sir there are many people with serious health problems who attend numerous consultation meetings which are Government Directives we are unable to work but we volunteer our life experiences to identify problems and find solutions but they dont listen to us just consult Mr Freud who has no experience
Paul Davidson, Gateshead, England
Make all benefits time bound e.g. - a maximum of 8 years benefits from the age of 18-65 with it split roughly 2 years 18-28, 29-39, 40-50 and 51-65. When this 2 years runs out you are presented with a bill for you benfits and told you have to work the bill off with voluntary work or get a job
David, london, england
The problem lies with doctors. They will routinely sign people off for a year with 'depression' or other nebulous conditions rather than do their job and tell the patient there is nothing wrong with them. This starts the incapacity bandwagon rolling. Merthyr Tydfil's doctors figures be interesting.
Tony, Bristol, England
I cannot believe that 2.7m people in this country are so ill that they cannot work. There must be something radically wrong with this figure or with the population of this country or with the doctors who can be fooled so easily. Assume a working pop of 33m, that's approx 1 in 10 on incap.benefits!
Kevin Straw, Leicester,
Do not penalise the true beneficiarys of incapacity benifit, as in my experince people who do have a disabilty try their hardest to find work to suit their abilities these people should be supported! It is the scroungers that get a signed off that should be clamped down on!
Dave Farmer, Broxbourne, England
<<<Jonathan Bryce, if you tried to create a flat payment and had to include housing benefit, you would need an income tax rate of 64%. Thus, little incentive to work. >>>from Roger Thornhill
So this is what we are all paying in reality then? If not more.
Jen, wirral,
When, under previous (Conservative) administrations it was mooted that the long term unemployed could be ASKED to do simple tasks, eg cleaning up litter, the howls of derision from the Labour Party (front and backbenchers alike) could be heard on the Moon. How times change.
Anil Chatterjee, Manchester,
This proposal fails to address the central problem. Those on IB are generally unskilled / less skilled people with low earnings capacity. If they take an (insecure, low paid) job, the combination of tax, NI, fares, and withdrawal of housing & council tax benefits, ensures they are worse off.
Jerome Healy, london, UK
Sir with respect there is only talk of financial dependancy and no talk of Healthcare dependency that is those of us who have serous health conditions who depend on sometimes non existent care or provision its about time we had a fair voice ask the experts who suffer so much stigma abuse PD
Paul Davidson, Gateshead, England
Mr Field has missed an important part of the equation: the attitude of employers.
Many people on Incapacity Benefit face prejudice and ignorance from employers who need training in how to facilitate the employment of those with chronic health problems. This is critical to the success a new plan.
Daniel, Hereford, England
Sir its I endured over 40 years without diognosis of 2 serious conditions without diognosis left untreated made my health worse the whole system let me down I had to fight for diognosis so I could get proper treatment not benefit however I cant get all the help I need stigmatising costs lives
Paul Davidson, Gateshead, England
Jonathan Bryce, if you tried to create a flat payment and had to include housing benefit, you would need an income tax rate of 64%. Thus, little incentive to work.
FF exposes real flaws in the plan (private Cos) and suggests a less bad solution - local expertise and budgets.
Roger Thornhill, London, UK
Those who are genuinely incapacitated should have no fears of losing out under any scheme with ANY political party. Those who want to find work and move on should be rewarded. The lying/cheating (playing golf etc when supposedly 'incapacitated') must be routed out and assets seized to pay it back.
karen, oxford, uk
"a bouyant economy that has created more than three million additional jobs, the total out of work has fallen only from 5.7 million to 5.4 million."
So what of the other 2.7 million jobs? Presumably most have gone to immigrants willing to work for low wages.
David Steel, Edinburgh,
All of this navel gazing about benefits is only of benefit if anyone has the guts to implement new ideas. What's the betting that it will prove impossible because of the 'game playing' FF mentions above? There are some able-bodied people who can only be persuaded to work by the threat of starvation.
Colin, shrewsbury,
Why doesn't anyone listen to Frank Field? My colleague who is a welfare benefits adviser at CAB said to me this morning that she actually had a genuine IB claimant and how refreshing it was after the majority who will go to any lengths not to find work.
Harry, Chichester,
Suppose I'm ordered to go on a Workfare placement.
Suppose I give the DWP a quote of £8 an hour before starting.
Suppose I bill them at the end of the Workfare term.
If they don't pay, then suppose I sue on the contract?
Michael Petek, Brighton, UK
Are these measures stolen from the Tory Party or are they a Labour idea ? That is more important to me than whether they will work or not !!! Afterall this Gov't will be dead in the water after 2010.
ian payne, walsall,
Can I suggest an even more radical solution? Pay the benefits to everyone, and claw the money back by abolishing the personal allowance, all the various complicated tax credits available and adjust the basic rate tax band as required. This would remove the 100% effective tax rate to the poorest.
Jonathan Bryce, Reading, Berkshire
Allow long-term claimants to keep receiving benefits for a year after they get a job, so they can earn more than their colleague who has always worked and never claimed any money from the state. And FF says the current system has "perverse incentives"...
DS, London,