Poverty Protests Over Benefit Threat

John Hutton’s threat to reduce or withdraw benefits from a section of the long-term unemployed in a bid to break the cycle of dependency was yesterday condemned by anti-poverty campaigners.

Making a keynote speech in London at the Institute of Public Policy Research, Mr Hutton, the Work and Pensions Secretary, floated the prospect of penalising individuals if they did not co-operate with government schemes to return to the work.

Government sources insisted they had still to decide whether a tougher approach was the right way forward.

Announcing plans for a widespread review to strengthen the welfare reform system, he said: “We know there is a small group of benefit claimants without the major physical or health barriers to work associated with Incapacity Benefit – who live in areas where there is no shortage of vacancies, particularly for low-skilled jobs, but who nonetheless remain on benefits for long periods of time.

“This is a key group on which we now need to focus our attention. We need to be prepared to offer individuals more help and support; to better understand how to intervene with individuals on Job Seeker’s Allowance who have mild mental health or alcohol-related problems.

“We need to address basic skills deficiencies with job seekers so they are not a barrier to sustaining and progressing through the workplace. But if we are to break the cycle of benefit dependency, we need to ask whether we should expect more from those who remain on JSA for long periods of time in return for the help we provide … more active steps to get back into the labour market … more involvement in programmes that could increase the prospect of getting a job.

“And for those who won’t do so, then there should be consequences, including less benefit or no benefit at all.”

Mr Hutton, along with other government ministers, strongly believe the welfare system has to be built on a coalition of public support, and they fear that support will disappear if claimants are allowed to abuse the system.

But John Dickie, head of the Child Poverty Action in Scotland, argued that there was little evidence that benefit sanctions work. “People who are long-term unemployed often need specialised support to prepare them for the labour market. Work needs to be done with employers too, some of whom can have unfounded negative attitudes towards long-term unemployed people and are unwilling to give them a chance,” he said.

Colette Marshall, UK director of Save the Children, said: “Before the government talks about benefit cuts, they should be recognising the multiple problems faced by families trying to work such as high transport and childcare costs, low wages for people with few skills, and the very high tax rates faced by people on low incomes. These barriers must be broken down to help people access work in a sustainable way.”

Chris Pond, chief executive of the One Parent Families charity, welcomed the review but counselled caution. He said: “The government is right to revisit its strategy for increasing lone parent employment, but the emphasis will need to be on how to help lone parents to stay in a job once they have one, including tackling low skills and providing more help with childcare.”