24/01/2006

Hutton unveils benefits reforms

Work and Pensions Secretary John Hutton has unveiled proposals that aim to get one million people in the UK off incapacity benefit.

Mr Hutton said the reforms aimed to reduce the number of new claimants, provide help for people to return to work, and provide more support for those who are seriously ill or disabled.

Under the new proposals, statutory sick pay would be simplified, but medical assessments of claimants would be revised to focus on ability to work and support needs, rather than incapacity.

People who are severely disabled and unable to work would also receive more support, under the measures. However, claimants who refuse to participate in mandatory work-focused interviews will face having their benefits docked - by as much as £10.93 per week, rising to £21.86 upon a second refusal.

The plans are include proposals to help a million older workers and over 300,000 lone parents back into employment.

Mr Hutton said that the proposals would help the government move closer to achieving an 80% employment rate. He said: "Our plans will redefine the role of the welfare state. The fundamental emphasis will be on what people can do not what they cannot. Essentially we want to return to fundamental principles where the welfare state is able to respond to people's abilities and help them into the work place - not one that condemns them to a life on benefits.

Earlier, Prime Minister Tony Blair commented on the reforms as he met with people with disabilities who had returned to work at a Marks & Spencer store in Brent Cross, north London. He said: "We have got to give extra help but give people a real incentive to get back to work and stay off benefits.

"It's actually a tragedy for people if they end up in a situation where they feel they have got no option but to stay on benefits."

(KMcA/SP)

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