UK – Benefits to be replaced with Universal Credits
Now here’s the right idea, too bad this country doesn’t try the same. In Britain, the welfare system is about to be reborn. Millions of welfare recipients are about to see their benefits scrapped, and replaced with a single universal credit. Under the new changes, housing, income support, and dozens of other payments will be swept away in a major reform programme intended to break the culture of welfare dependency by making work pay. Simply put – go to work, earn your pay, don’t depend on handouts.
This new idea will try to get through to people that they would be better off working, earning a living instead of depending on government handouts. And claimants then will be able to keep more of their take home pay. Mr. Duncan Smith says his plan will save millions in the long run, when it comes to welfare. But the Treasury is opposing him. Chancellor George Osborne has made clear that the cost of benefits must come down to cushion the impact of the cuts on other frontline public services. Independent
The Department for Work and Pensions (DWP) would be able to claim upfront a “large chunk” of the £9 billion annual savings which Mr Duncan Smith believes the new system will achieve through lower administration costs and reduced fraud.
A DWP spokesman said: “We are working closely with the Treasury and any decisions will be made in the context of the spending review. “We are all agreed on the urgent need to reform the welfare system and help more people into work and off benefits.” Independent
The Defence Secretary has warned that the “draconian” cuts facing the services would have “grave consequences” for the Conservative Party and the Government, but his concerns were brushed aside yesterday by David Cameron who said his fears were “unfounded”. Ministers need to tell us which it is and where the money is coming from. They support going further on benefit reform, but it must be done in a sensible way to help people into work and keep people out of poverty.