The DWP Secretary Iain Duncan Smith to unveil plans that would ensure that people are better off when they are working than on benefits., as part of a radical transformation of the current welfare system.
According to Ministers, the current welfare system entraps large parts of our society in "generations of worklessness" and "entrenched poverty".
"About 5.5 million people of working age in the UK simply do not work during the course of the week, and of those nearly 1.5 million people have been out of work for nine out of the last 10 years,"said the Secretary of State, as he blamed the complexity of the current welfare system as key cause.
In a speech later today, Mr. Smith is expected to lay out in detail how the Government would ensure that those who are moving from benefits to work would be able to keep more of the money they earned. The Minister would also expected to reassure those on benefit that they would not instantly lose benefits as soon as they had gainful employment. This would encourage people to take up temporary positions, the government claims.
As part of the reform package, the Government would simplify the benefits system by combine the various income related benefits and tax credit system into one single payment; at the same time, out of work support and in work support payments would be brought together in a single system as well.
The Shadow Work and Pensions Secretary, Yuvetter Cooper said this was an attempt by the Government to "cover the fact that the Budget actually cut work incentives, cut jobs and cut help for people to return to work".
"Major reform either costs billions or means taking money from those who need it most. Iain Duncan Smith needs to be honest and tell us which it is," she said.
