Work and pensions secretary says benefits system ‘bust′ and many people who take jobs viewed as ‘morons’
Britain’s welfare system “bust”, such penal disincentives work that many people benefits regard those who take up job offers as “bloody morons”, Iain Duncan Smith, the new work and pensions secretary, says a Guardian interview setting out the most ambitious welfare reform plans for decade.
Duncan Smith says he is to propose to Treasury radical scheme that includes simplification of complex benefits system designed to make it financially worthwhile for unemployed people to work, including part-time jobs.
He claims that at present it is not worth going from the dole into work if the job pays £15,000 or less. He also suggests that it is an imperative that the state retirement age rises because growing life expectancy. The coalition agreement published last week said the state retirement age should rise to 66, although it added that this would not happen before 2016 men 2020 women.
He also hints at curtailment welfare the middle class, saying the government is already paring back tax credits those earning over £50,000. “My general view is that the benefit system is deeply ineffective costly way subsidising people’s lives. If you want to help people above certain income the route to do that is through tax – it is simple, straightforward easy. The benefit system is about helping people in difficulty.”
Duncan Smith says, in advance speech tomorrow: “What we want do reform the welfare system – in the way Tony Blair talked about 13 years ago, but never achieved – system that was created for the days after the second world war.”
He will also publish a report tomorrowclaiming that income inequality UK now at its highest level since comparable statistics began 1961. He says 1.4 million people UK have been unemployment benefit nine or more last 10 years.
The former Tory party leader concedes that his proposals, initially drawn up his Centre Social Justice (CSJ) thinktank, will cost more short term, he argues that basis figures given him since going into government he is confident that “the short-term costs minuscule, and potential savings enormous″. However, he acknowledges: “I have yet arrive at point where everyone agrees that is way forward.”
The CSJ report proposed the merger of eight benefits into just two, the withdrawal of benefits much more slowly for low earners, the removal of rules that stop people claiming out-of-work benefits entirely they do only few hours’ work week.
The scheme was thought to cost as much as £3bn, Duncan Smith has stressed that those figures going down since he has had access to government statistics. He says £2m-3m year is being wasted tax credit overpayments.
Change would come, CSJ report said, at expense of some middle-income families on £30,000 year who would lose their child tax credit.
Admitting that both Tory Labour governments have used incapacity benefit keep jobless figures down, Duncan Smith promises press ahead autumn review work capability all 2.5 million people claiming benefit.
“People basically get parked on this benefit and forgotten about. If you have been on this benefit for more than two years, you are likely die on it.”
He argues: “The present benefits system so complex and unfair that no one understands it. It leads at bottom end one most regressive tax and benefit withdrawal rates that it possible imagine.
“We ask people go work for first time and then tell them pay back 70%, 80% and 90% back state. These levels none of wealthiest bankers asked pay – they moaning at 50%.
“If you are unemployed, and you come a family that unemployed, all you can see when you think about work risk. It a real risk because all the efforts you make the rewards are very minimal and some cases none at all.
“Socially, everyone says: ‘You are bloody moron – why are you doing this? You don’t have to do this.’ So taking responsibility real risk for you.”
Duncan Smith’s ultimate aim is a single withdrawal rate all benefits. He also discloses that he is looking at widening definition child poverty include other measures besides previous government’s definition poverty, which he says was a measure inequality. “You get this constant juddering adjustment poverty figures going up when, instance, upper incomes rise.”
He will chair a cabinet committee social justice, saying it is ironic that it has taken Conservative party set up such a committee.
Duncan Smith also promises be tougher claimants who refuse job opportunities. “The jobseeker’s allowance has sanction at present. It just has not been used. If you simply not going play ball, then taxpayer has right say: ‘You need know there limit amount support we going give you.’ The sanction comes into play.”
But he stresses: “I did not come into this department cheesepare. I came into this department reform. My purpose in life here improve quality of life of worst off in society. If somebody tells me that I have do something different then I won′t be here any longer.”
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