» Tuesday, January 3, 2006

Incapacity Benefit

Put to him that the Government’s proposal’s for reform of incapacity benefit did not seem to be as radical as had previously been suggested, the PMOS said that the time to judge the radical nature of the proposals was when they were published at the end of January. Before we got into a discussion of how radical they were we should look at the core of the issue. The core of the issue was the question of people living in deprived areas on incapacity benefit and finding themselves in a vicious cycle where they found it difficult to get off incapacity benefit and into work as 90% of people on incapacity benefit wanted.

The proposals should be judged by the outcomes they achieved in terms of encouraging people to move from incapacity benefit into work and when they were published people would see how they would help people to become more independent. Asked if it would be wrong to suggest that saving some of the £15billion per year spent on incapacity benefit might also be part of the thinking, the PMOS said that the primary purpose was to get people back to work and given the population trends that would help the economy. What was most important though was helping individuals overcome the difficulties in getting back to work.

Asked if the Prime Minister was surprised to discover that his constituency of Sedgefield was in the top 100 incapacity recipient list, the PMOS said that he would not discuss individual constituencies. The list highlighted the connection the between the high numbers of people who were deprived and the high number of people on incapacity benefit and breaking that vicious circle was at the heart of these proposals. Of course there were real problems that people had where they needed support and we would continue to provide that. What the Government would also do however was to provide help for those who wished to get back into the job market.

Asked for further detail on the role of GPs concerning incapacity benefit, the PMOS said that this was an issue that had to be looked at in the round and we should wait to look at the full proposals when they were published.

Briefing took place at 15:00 | Search for related news

2 Comments »

  1. The proposals to reform the incapacity benefit system cannot come soon enough.

    In my city, we have one in four people of working age on benefits and the tax payers are footing the bill for this.

    We have about 27,000 unfilled vacancies in my city alone and albeit that a majority are of the minimum wage rate, a start has to be made somewhere and if people are under-qualified or under-skilled then they really have to accept what is on offer until they wish to better themselves.

    The welfare state was never intended to be a long term option and was implemented as a result of people who were down on their luck and required some temporary assistance until such times as they got back on their feet.

    In the old days, the poor had to go to their church or chapel or synagogue or mosque, hence the name, ‘I am going to the parish for some help’ came from, but even this was a stop gap measure until they found gainful employment.

    I think it is ridiculous that 4.2 million people can simply choose not to work and live off either incapacity benefit or job seekers allowance, with a number of these people being on benefits for many years.

    The proposals do not go far enough and are not tough enough.

    Comment by Robert Wills — 17 Mar 2006 on 1:02 pm | Link
  2. When asked if they would like to work people on Incapacity Benefit generally answer: "Yes, because if I could work I would be better". This is generally misrepresented by the government and press as simply "yes".

    Today the number of people receiving the NI based Incapacity Benefit is about 1.4 million up by about 75% since 1979 when it was then known as Invalidity Benefit and despite a 120% increase in the number of people paying the necessary NI premiums (Source: DWP). This under representation of recipients of Incapacity Benefit is in part due to the many cuts in this benefit over the past ten years so the average payout is now about 60% of the payout of 10 years ago. The number of IB recipients has fallen by four hundred thousand over the past ten years as the value of the benefit has been repeatedly cut (source: DWP) this massive reduction in the benefit payout has been achieved in the face of vast increases in the NI premiums received. This collapse in payouts is referered to by the press as the "spiralling cost of Incapacity Benefit" or similar misrepresentations.

    It has, it seems, always been Blair’s intention to abolish Incapacity Benefit and he has been denied by successive Secretaries of State for Work and Pensions. Such an abolition would be yet another "stealth tax" as he has declared no intention to abolish the NI premiums which would therefore remain in place and used as just another tax. If such an abolition took place then IB claimants would either forced onto the higher paying means tested benefit Income Support or onto their own resources. The Incapacity Benefit which they have paid for would in effect have been taxed at 100%. People would learn not to save for pensions and sickness in later life as their savings and pensions would be taxed at 100%. The system of self reliance and self support engendered by Incapacity Benefit would be replaced by dependence on the taxpayer and the all intrusive, cloying, choking monstrosity that is the Nanny State.

    The consultation document’s following on from the Green Paper suggest it is the governments intention to force more than 85% of claimants of all incapacity benefits (i.e. Income Support and SDA plus NI based IB) to perform work action plans. This cannot happen. It is not possible. There are two many people out there who can not only not work but who would be made worse by any such actions they try to carry out. While there are many good enabling things in the Green Paper the government needs a reality check. The medics say that only 5-10% of benefit claimants can benefit and the government says 90%.

    Someone here has got something very wrong indeed and from my knowledge of the realities it is the government who have consistently misrepresented the supposed quadruppling of claimants since 1979 which actually reflects only a change in benefit names and discounts 2 million hidden claimants from the 1970s.

    Comment by J Midgley — 3 Jul 2006 on 10:48 pm | Link

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