Cutting Off Jobless Benefits for Millions
THE WALL STREET JOURNAL: Congressional conservatives have cut off extended jobless benefits unless Bush-era tax cuts remain in place for people earning more than $200,000 a year. Video courtesy of Fox News.

Iain Duncan Smith: It's a Sin that People Fail to Take Up Work
THE GUARDIAN: Work and pensions secretary prepares to introduce the most severe welfare sanctions ever imposed by a British government

Iain Duncan Smith, the work and pensions secretary. Photograph: The Guardian
Ian Duncan Smith, the work and pensions secretary, said today it was a "sin" that people failed to take up available jobs as he prepared to announce a tougher-than-expected squeeze on the unemployed.

This will see the jobless face the threat of losing all benefits for as long as three years if they refuse community work or the offer of a job, or fail to apply for a post if advised to do so.

In the most severe welfare sanctions ever imposed by a British government, unemployed people will lose benefits for three months if they fail to take up one of the options for the first time, six months if they refuse an offer twice, and three years if they refuse an offer three times.

Downing Street sources said the new "claimant contract" will come into force as soon as legislation is passed, and may not wait for the introduction of a streamlined universal credit system in 2013-14.

Duncan Smith will tell MPs today that he is introducing the biggest shake-up of the welfare system since the Beveridge reforms ushered in the welfare state after the second world war. He will say that a new universal credit system will make 2.5 million of the poorest people better off and reduce the number of workless households by 300,000. Read on and comment >>> Patrick Wintour, Randeep Ramesh and Hélène Mulholland | Thursday, November 11, 2010

Are Cameron and Osborne Too Rich to Know How the Middle Classes Feel About Child Benefit?
David Cameron and George Osborne too rich to understand? Photo: The Telegraph
THE TELEGRAPH – BLOG – DAVID HUGHES: Out of the smouldering wreckage of the child benefit announcement is emerging a view of the Tory leadership that will, if it takes hold, be immensely damaging. It is that they are so well-heeled that they simply do not have a clue about how most people live their lives. David Cameron and George Osborne have never had to worry about money, ever. It has never impinged on their charmed existences. Read on and comment >>> David Hughes | Tuesday, October 05, 2010

Now That’s Really Dumb, George!
THE TELEGRAPH: Middle class parents who take time out from work to look after their children will lose out on thousands of pounds of Government handouts under a reform of child benefit announced by George Osborne.

In a move designed to save a billion pounds a year, the Chancellor annouced that higher-rate taxpayers will no longer be eligible for the benefits.

However the way the system is calculated threatens to put families with just one breadwinner at a disadvantage relative to households where both parents work.

This is because families with a combined income of £87,000 where both parents earn just under the higher-rate tax threshold of £44,000 are still entitled to the benefit while those with just one breadwinner earning £45,000 are not.

If the withdrawal of the benefit is not tapered, it could also mean that parents earning just below the threshold could be penalised if they get a pay rise.

The system relies on higher rate taxpayers declaring whether anyone in their household is claiming the benefit which can then be deducted from their earnings.

Mr Osborne defended the plan by pointing out that the costs of conducting a means test on every family would eat up much of the savings from cutting the benefit payouts. He claimed that the average income for households with one higher rate taxpayer is £75,000.

Speaking in an interview on ITV's Daybreak this morning he described the move as "a tough but fair decision."

He added: "It's just not fair to ask someone who's on £15 or £20,000 a year to be paying for the child benefit of someone who's on £50,000 or even more."

"At any other time, I wouldn't do this. But Labour left us with a heck of a mess." Stay-at-home parents to lose out in child benefit reform >>> James Kirkup, Political Correspondent | Monday, October 04, 2010

BENEDICT BROGAN: Child Benefit: What's fair about taxing stay-at-home mums? >>> | Monday, October 04, 2010

Coalition Will Improve Lives Not Offer Handouts, Vows Nick Clegg
THE TELEGRAPH: The Coalition Government will try to boost social mobility by ''improving people's lives'' rather than giving them handouts, Nick Clegg has insisted.

The Deputy Prime Minister accused Labour of spending ''huge sums'' on welfare for low-income households without any ''discernable impact'' on the life chances of their children.

Mr Clegg, the Liberal Democrat leader, confirmed that former minister Alan Milburn has been appointed as the Government's independent reviewer on social mobility.

Speaking at an event organised by the CentreForum think-tank, Mr Clegg said: ''Under Labour huge sums of money were spent pushing low-income households just above the statistically defined level of household income - sometimes by just a few pounds a week - but with no discernible impact on the real life chances of the next generation.

''Tackling poverty of opportunity requires a more rounded approach. Welfare reform, for example, should be based on the need to improve people's lives, not just raise their incomes. >>> | Wednesday, August 18, 2010

Bounty Hunters to Cut Benefit Fraud by £1bn
THE TELEGRAPH: Private agencies are to be paid by the Government to reduce benefit fraud by £1billion, David Cameron is to announce.



Finance experts will identify welfare cheats by trawling through their records, household bills and credit card applications.

The agencies will get a “bounty” payment for each fraudster they identify under government plans to cut the £5.2billion annual fraud bill.

By having access to the Government’s database of incapacity and housing benefit claimants, the companies believe they can shave at least £1billion from the welfare bill, earning as much as £50million.

The Prime Minister will say today that the level of fraud is “absolutely outrageous” and an “uncompromising” strategy is needed.

Mr Cameron will also call on members of the public to report suspected cheats and promise tougher punishments for offenders. >>> Holly Watt, Rosa Prince and Robert Winnett | Tuesday, August 10, 2010

This is so 'old Tory'. Whilst I am not in favour of people cheating the system for benefits, I feel that Cameron should have the balls to target the fat cat bankers who are stealing far more from the system with their multi-million pound bonuses than the paltry sums of money that Jo Average is getting in the form of welfare. Why doesn't Cameron come up with something new and original like jailing bankers who milk the system, and thereby endanger capitalism's very existence? – © Mark | Comment also posted here

'Radical' Shake-Up The Welfare System
SKY NEWS: Iain Duncan Smith is to unveil his plans to encourage the unemployed to find work in a "radical" shake-up to the welfare system. The Work and Pensions Secretary talks to Sky's Mark Longhurst.