Summary of the Social Security measures included in the Welfare Reform Bill
The Welfare Reform Bill was introduced into the House of Commons in January 2009. It is intended to realise the Government's aspiration of an 80 per cent employment rate for people of working age, through:
- more tailored support to help people get back to work;
- increased responsibility on benefit claimants to move towards work, or lose their benefits; and
- creating a simplified benefits system.
The Bill consists of five Parts:
- Part 1 - Social security
- Part 2 - Disabled people: right to control provision of services
- Part 3 - Child maintenance
- Part 4 - Birth Registration
- Part 5 - Miscellaneous and supplementary
Proposals in the Bill include:
Part 1 – The Social Security provisions of the Bill includes:
- Abolition of income support - The Bill sets out the framework necessary for the future abolition of income support, and the movement of claimants of that benefit to jobseeker's allowance with differing degrees of conditionality, or to employment and support allowance.
- Work for your benefit schemes - These mandatory schemes will be piloted for long-term jobseekers and some jobseekers who are likely to benefit from the scheme at an earlier stage. The scheme aims to give jobseekers the opportunity to develop their work skills through undertaking full time work-experience.
- Lone parents and partners of benefit recipients - Parents with younger children (those not required to sign on) and partners of benefit recipients will placed in a 'Progression to Work' group. Those placed in this group are not expected to immediately return to work but will instead be given a "personalised conditionality regime which is tailored to the individual's circumstances, so that preparation for work becomes a natural progression rather than a sudden step up". Those in the Progression to Work group are required to undertake action planning and work-related activities.
- Employment and support allowance (ESA) claimants - Provision is made in the Bill to direct an to undertake a specific work-related activity in certain circumstances. This extends the provision in section 13 of the Welfare Reform Act 2007 which requires ESA claimants (with the exception of those in the support group) to undertake a work-related activity of their choice.
- Drug users and alcohol abusers - Clause 9 and Schedule 3 of the Bill provide for problem drugs users and those who have problems with alcohol to be directed to make, and comply with, a rehabilitation plan. In some circumstances they could also be required to undergo drug testing.
- Contribution conditions for contributory jobseeker's allowance and employment and support allowance - These will be amended so that in order to qualify, new claimants will normally need to have paid national insurance contributions for at least 26 weeks in one of the last two tax years prior to the claim.
- Adult dependency increases - There is a provision in the Bill to remove adult dependency increase from maternity allowance and from carer's allowance.
- Social Fund - Following the end of the consultation period, the Bill allows for the provision of 'external provider social loans' and payment of benefit on account, without the need to apply for a crisis loan.