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Leading article: A welcome return to the principles of Beveridge

Tuesday, 22 July 2008

Some were bound to react to the Government's proposals for further welfare reform by attacking them for "punishing people for being poor". They are nothing of the sort, and it does not foster mature political debate to dismiss as right-wing or illiberal the idea that people have a responsibility to work, alongside a right to social support when they are in difficulties. It is true that yesterday's Green Paper targets those in the bottom quartile of the social economy. But the plans are an attack not on poverty so much as on dependency.

It is perfectly reasonable to expect those looking for a job, and receiving benefits, to do a month's community work after a year, and do full-time voluntary work after two years, if they have not found a job. Those receiving incapacity benefit should have to prove they are incapable of any work. Single parents who lack the support or skills to find a job should be obliged to accept that support or acquire those skills as the start of the journey back to economic self-sufficiency. Likewise, drug addicts should be obliged, in return for benefits and help, to accept treatment designed to help them out of their dependency.

It may be politicians' hype to describe this as the biggest shake-up of the modern welfare state since the Beveridge Report of 1942, but it restores an important principle of that settlement. One of its key principles was that the welfare state should not stifle incentive, opportunity and responsibility. So the benefit system is not there to give people a choice between benefits and work; it is there to help those who genuinely cannot find work.

All this was reiterated when New Labour arrived on the scene and Frank Field was brought in by Tony Blair as welfare minister to "think the unthinkable". Mr Field's programme to reduce means-testing, crack down on benefit fraud and get people "off the sick" proved too radical for the then chancellor, Gordon Brown. Better late than never, Mr Brown has come to embrace much of Mr Field's approach, which insists that human potential is most generally realised through work and by acting in a community with others.

Work expresses human dignity and also increases it. Some have said that forcing the unemployed to pick up litter and erase graffiti is demeaning. But where is the dignity in sitting at home, dependent on the state, caught in a benefits trap? Those claiming cash from the state have a duty to try to change their predicament. The alternative is defeatism as well as deprivation. A situation where two-thirds of the 2.7 million people currently on incapacity benefit are judged to be claiming illegitimately is not just bad for the taxpayer, it is bad for the claimant. Those "on the sick" tend to get more unhealthy, doctors say, than those who return to work in a different kind of job.

When the Conservative Party made similar reform proposals recently, government ministers dismissed them as unworkably expensive. Certainly these changes will cost more in the short-run – or at least they ought to. The Government may be right not to embrace Mr Field's most extreme proposal – to reduce the benefits system to a single level of payment. That would reduce the incentive for people to feign illness. But it would be unfeasibly expensive.

What the Government must not do – as recession and increased unemployment loom – is try to avoid the real cost of the proposals it has embraced. This is not a programme that should be driven by cash targets, but by the need for a cultural change. The consequences of reform on the cheap could be social unfairness, increased crime and political chaos. If benefits reform is to be done, it is essential that it is done properly.

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19 Comments

"No. Because they're NOT going to make people work for £1.20 an hour. The proposal is a few hours of work - even if it's 10 hours a week for unemployment benefit that would still be over minimum wage, and a great deal better for the country and the individuals' self-esteem than a simple handout."


As I understamnd it, the hours and the frequency will be at the discretion of the provider of the "services" to "help" the unemployed.

"Help" really, of course in this context means "bully" and as Freud has said, licking his lips "providers will be able to make millions".

I wonder if Freud has interests in such outfits as well as his banking interests?

Posted by Alan | 26.07.08, 12:40 GMT

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No. Because they're NOT going to make people work for £1.20 an hour. The proposal is a few hours of work - even if it's 10 hours a week for unemployment benefit that would still be over minimum wage, and a great deal better for the country and the individuals' self-esteem than a simple handout.

Posted by Tobias Joss | 24.07.08, 13:52 GMT

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Oh, also, if the government are going to force people to work for £1.20 an hour, does this mean that all the employers the government prosecuted or fined for paying less than the minimum wage can claim their money back?

Lets face it , how can the government pay a quarter of the minimum wage and get away with it? It is absolutely disgusting, and like someone else said, probably invented at the golf club with his CBI mates. I for one will be voting Lib Dem, not because i trust them, just because they're the only one out of the 3 that don't want to publicly and sadistically humiliate the poor

Posted by TREV | 23.07.08, 16:49 GMT

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I thought the patronising Labour woman went out with the welcome departure of Patricia Hewitt, who took condescention to new heights, but it seems others are after the Hewitt title: How about this from Hansard on Monday's debate with Purnell:

"Kali Mountford (Colne Valley, Labour) Link to this | Hansard source |
In congratulating my right hon. Friend on his statement, may I say that it is part of an evolving process over some years whereby the Government have concentrated their efforts on those who are completely isolated from the world of work, who have become used to dependence on benefits, and who have perhaps become comfortable in poverty, which is not a position that we should be satisfied for them to be in?"

"Comfortable in poverty?"


There speaks somebody who is highly paid for doing her job, where she can decide whether to turn up or not, and weho, until recently, would have been entitled to claim expenses of up to £250 without producing a receipt.

Posted by Alan | 23.07.08, 14:38 GMT

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"Why does someone unemployed for a year get a worse sentence than someone committing an assault? Where is David Freud's evidence that 2/3 IB claimants are getting benefits 'illegitimately'?"


This amateur "welfare reformer" is a multi-millionaire investment banker: I daresay a lot of his "evidence" was anecdotal stuff he picked up down the golf club or a CBI booze-up.

Posted by Alan | 23.07.08, 10:47 GMT

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Why does someone unemployed for a year get a worse sentence than someone committing an assault? Where is David Freud's evidence that 2/3 IB claimants are getting benefits 'illegitimately'? You call that journalism? Faithfully repeating the government's fraudulent propaganda without even investigating never mind challenging it? He made it up and the government gave him a great big fee for telling them what they wanted to hear.

Its time to stop romanticising Beveridge. Yes he was ground breaking at the time but his model also assumed a 2 parent family with the man as the sole breadwinner and the wife staying at home. That was a perfectly reasonable assumption in 1944 but it sure ain't now. Its not much of a claim that these changes are a return to Beveridge, so would be abolishing paid maternity leave.

Todays bunch of Oxbridge lawyers and accountants find the presence of the poor as mystifying and inconvenient as the landed gentry led by a grocer did in the 80s.

Posted by Andy | 23.07.08, 00:19 GMT

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"
When is someone working full-time clearing litter for £1.20 an hour supposed to go and find a real job, assuming that their humiliation at being treated like a criminal hasn't utterly crushed their ability to do one anyway? ...... What do we do with the people already employed to clear litter and remove graffiti? Add them to the slave army at a quarter of the pittance they already get?

I trust we'll be putting benefit claimants in orange jumpsuits soon enough."

Quite. It would seem people who can't get work (maybe they live in an unemployment blackspot, maybe no employer will take them on due to ill health record -like most people on IB, or caring responsibilities) will be treated more harshly than the average criminal!

Posted by Madeleine | 22.07.08, 18:58 GMT

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What a load of rubbish! You cannot get more right wing than forcing the sick to work, and not even pay them the minimum wage for doing so. It's straight out of Hitlers Germany and will lead to a huge increase in crime as people have to steal to survive - let's face it, if they're going to be forced to do community service when they HAVEN'T committed a crime , may as well do the crime anyway...

Posted by trev | 22.07.08, 18:30 GMT

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The truth is in the middle.
It is much harder to achieve the Govt's aims than it sounds.
If it was easy, previous Govts would have done it.
It is just like the Child Support Agency and its predecessor (based in the main social security system).
Probably, it should be piloted and independently evaluated.
A lot of people are sick.
A lot of people lack skills for today's jobs.
Heavy manual work has virtually disappeared - this particualrly affects men.
Society has changed since Beveridge.

Posted by David H | 22.07.08, 17:30 GMT

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Julie Parker, get a brain or grow-up you odious Daily Mail-reading bigot. Of course there is a problem but it might have something to do with the fact that there are only 600,000 vacancies and we have MILLIONS out of work. Now, of course there will be some that will be lazy and don't want to work ever but not all of those people are in that position and this government by its shameful rhetoric has made the job of finding work harder by pandering to your kind of outright prejudice. The New Deal has failed because it ISN'T individualised enough and NO I don't see why somebody who has been unemployed (often through no fault of their own) should be made to sweep the streets and be treated like a criminal.


So why not target the real fraudsters and not denigrate everyone as a 'scrounger'?

Posted by Mark | 22.07.08, 15:38 GMT

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19 Comments

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