Tag Archives: David Cameron

Benefits reform – will it fail David Cameron’s Big Society Challenge?

David Cameron has always been clear that that Building the Big Societyisn’t just the responsibility of one or two government departments” but  the “responsibility of  all government departments” . As we have been finishing off our response to the government’s plans for benefits reform  (21st Century Welfare). We have focused on a fundemental area that the consultation fails to mention, yet David Cameron has made a top priority for the government – the importance of communities in developing local solutions. The single largest element of government spend in most deprived communities is the billions it spends in benefit and welfare to work costs. So we have asked Iain Duncan Smith how he will ensure that the millions of pounds spent is an investment in local communities and supports David Cameron’s vision of a  Big Society?

 In order to recognise the importance of local communities in welfare reform we are proposing an eighth principle to guide welfare reform (Q5 of the consultation document)

 Individual claimants live in communities. Welfare policy should harness the power of communities to support the individual’s transition into work and welfare spend should be an investment in local communities as well as individuals.

 The Community Allowance offers a practical and affordable way to unlock the potential of communities to create new jobs, support individuals back into work and transform communities.

 The Community Allowance would create new jobs by enabling community organisations to pay local unemployed people to do part time, sessional or short-term work that strengthens their neighbourhood. The unemployed person would be able to keep these earnings on top of benefits, making work pay and providing a stepping stone to employment.

The Community Allowance

  • Is a package of training, work and personal support delivered very locally by trusted community organisations, with strong track records of working with the hardest to reach.
  • Gets people back into work, gaining experience and employability in a supportive environment.
  • Enables community organisations to develop local solutions and jobs which directly improve and regenerate their communities.

The proposed changes to earning disregards and tapers have the potential to enable the Community Allowance approach to be available to everyone on benefits and to every community. Our approach would create some of the jobs required to enable people to take their first important steps back into work.

There are two ways that the Community Allowance could make a significant contribution quickly and affordably, prior to wholesale reform:

  • An immediate option – we are already in discussions with potential Prime Contractors to offer the Community Allowance through the Work Programme for Incapacity and ESA claimants using existing disregards. However, due to the proposed reassessment of Incapacity Benefit claimants we would need to work with DWP to ensure a level of certainty which would allow delivery;

 

  • An “in the meantime” option – if the current financial constraints mean that more generous universals earning disregards are seen as unaffordable, we recommend that a Community Earnings Allowance/Disregard is created as a first step towards comprehensive reform. This would recognise the additional social and economic impact achieved through creating stepping-stone jobs that also contribute directly to stronger communities.

We are aiming to to submit our response to the Consultation in a weeks time and I would really welcome your thoughts on our eighth principle and the challenges facing Iain Duncan Smith.

Best wishes

Louise

PS I am on annual leave until Monday 27th September

Inspirational project asks PM for the Community Allowance

In my last few blogs I have written about the need to make sure community ideas and solutions are heard when discussing changes to the benefit system and employment training programmes. Well yesterday, thanks to St Peter’s Partnership, David Cameron heard how one community organisation is working with its local community to support people back into work and why the Community Allowance is needed.

On a day that was dominated by talk of “cracking down on benefit cheats”, David Cameron also went to visit St Peter’s Partnership and saw the amazing work they do to support people back into work and the commitment of the unemployed people involved. St Peter’s Partnership was originally set up by a group of local residents and is a vibrant community organisation offering a wide range of community programmes. Mr Cameron met with the Greenscape Team, one of St Peter’s social enterprises delivering landscaping and gardening services plus training and employment for local unemployed people. He also heard why we need the Community Allowance – being able to offer the Community Allowance would enable St Peter’s Partnership to work more flexibly and increase the impact of their programmes for the wider community. David Cameron described the work done by St Peter’s Partnership as “inspirational”. In acknowledging their expertise and hearing directly from unemployed people, lets hope he takes away the need to let community organisations offer the Community Allowance and how committed most unemployed people are to finding work.

With St Peter’s Partnership doing such a great job of explaining to the Prime Minister why we need the Community Allowance, I have responded to two consultations the government has set up to capture ideas:

  • DWP’s are currently asking for “Your Thoughts” on The Work Programme. The current consultation ends this Friday. I responded to their “How to cut costs” question by saying that DWP should not only think about saving money but seek to maximize the impact of the billions they spend on benefits and employment support programme. Multiplying the benefit of The Work Programme for unemployed people, the communities they live in and the taxpayer. I stressed the importance of working with unemployed people and community organisations to develop effective programmes that really meet the need.
  • The Treasury’s Spending Challenge asks for your ideas on how to “get more for less”. Last chance to comment tomorrow! I highlighted the importance of ensuring that opportunities are not lost to maximize the impact of any government spending. In a time of spending cuts we have to make sure that where the government is spending money we ensure that we multiple the impact of it. I suggested that this assumption should be built into their procurement process, with models such as the Community Allowance that will multiple the impact of any spending given priority (For every £1 invested in the Community Allowance, over £10 of social capital is created)

The feedback forms are really easy and quick – so why not let the government know what you think?

Best wishes

Louise

Cameron’s difficult decisions

Prime Minister David Cameron’s speech today, warned of “difficult decisions” on pay, pensions and benefits as he set out the case for “painful” cuts ahead. He said dealing with the deficit would be “unavoidably tough” and affect “our whole way of life”. While no new details were given on what will be cut, we were offered some reassurance that he would not cut the deficit “in a way that hurts those we most need to help”.

The Department for Work and Pensions spent £87 billon on benefits last year. For many deprived areas spending on benefits payments and welfare to work programmes is the largest public investment they receive, yet has limited positive impact. It is clear that there are going to be fundamental changes to the benefit system as proposed by the Welfare Reform Bill and more support for local councils and communities to develop solutions to local issues, in the Decentralisation and Localism Bill.

Yet we know that any discussions about making the benefit system “fairer and simpler” or giving communities more power, take place against a backdrop of large scale cuts. If we are to ensure that policy discussions are not simply dominated by calls for cuts in benefit payments and sanctions, we need to make sure that positive approaches that do give power back to communities – such as the Community Allowance – are known about and understood. Developed by local community organisations and people on benefits, the Community Allowance enables people on benefits to be paid to work in their local community – a step up into employment for people on benefit and a step up for local communities.

Last week we wrote to Ministers responsible for the Welfare Reform Bill and the Decentralisation and Localism Bill asking for meetings to discuss the Community Allowance. Both these Bills provide an important opportunity to radically change the benefit system and the role of people on benefits in transforming their local communities. The Community Allowance is supported by over 300 individuals and 100 community organisations. We would like to increase the number of people who know about the benefit trap and solutions such as the Community Allowance and need your help – Is your organisation or group signed up as a supporter of the Community Allowance? – Can you help us increase the number of people who know about the benefit trap and the Community Allowance through your website, blog or newsletter? We know that if we want to make sure any “difficult decisions” the government makes includes fair, community owned and developed solutions, we need your help to be heard. Please sign up at our website or email me at L.Winterburn@dta.org.uk

And they’re off

Just over a week since Gordon Brown called the General Election for 6th May and all three major English political parties have now launched their manifestos. So we thought we’d reflect on the different approaches to welfare reform  each party presents.

First off, Labour and A Future Fair for All. Welfare is up front in the headlines of the ‘tough choices’ that an incoming Labour government would have to make:

“Tough choices on welfare: our reforms will increase fairness and work incentives, including £1.5 billion of savings being delivered.”

Those savings are projected to be made primarily from the transfer of the last remaining 1.5 million people who are still on Incapacity Benefit onto either Job Seekers Allowance (and from there, they hope back into work) or Employment and Support Allowance. The manifesto talks about the ‘tough-but-fair’ Work Capability Assessment that will facilitate this process. Evidence emerging from many disabled people’s charities points to a contrary experience, that it is not fair to those with disabilities who perhaps would most benefit from the support available on the Employment and Support Allowance.

There is a continued commitment to the Future Jobs Fund, a temporary measure designed to provide 6 month paid work experience for unemployed young people. That it is paid work experience is to be welcomed, that it is costing the tax payer £1 billion for such a short term solution to a long term problem is perhaps not.

Worryingly it also states that, “All those who are long term unemployed for two years will be guaranteed a job placement, which they will be required to take up or have their benefits cut.” I imagine people on JSA would be delighted at the prospect of a guarantee of a job if they have endured two years of unemployment. What isn’t clear from the manifesto is if this ‘job placement’ is paid, or whether an individual who has suffered the indignity of long term unemployment is then required to work for their benefit, a policy we wholeheartedly oppose.

What the manifesto lacks, is any commitment to reviewing the benefits system itself. As with all parties that have held office for some time, it’s difficult for Labour to critique a system it has been running for so many years. And yet the benefits system needs a fundamental overhaul, a complete review and redesign to make it fit for the 21st century. This lack of vision on the part of Labour may cost them much needed votes.

And so onto the Tories and their invitation for us to join government.

Unsurprisingly, their manifesto commitments around the benefits system read much like the Labour Party’s. This is because both parties have been advised by Lord Freud, who stopped advising James Purnell MP, former Secretary of State for DWP, to take his plans to the Conservative Party back in February 2009.

What seems out of place with Conservative policy amongst Freud’s plans for welfare reform is the continued commitment to introduce Work for your Benefit, mandatory community work placements for the long term unemployed. Already being piloted by the Labour government, this initiative flies in the face of the Tories’ plans for a Big Society.

Their manifesto states that “The Big Society runs consistently through our policy programme”. If this is the case, why are they planning on punishing the long term unemployed with community work, while simultaneously trying to persuade the rest of us it’s something we should be doing in our spare time?

Community work is a carrot, not a stick and to use it in this punitive manner sends mixed messages the electorate will not warm to.

Perhaps the most disappointing aspect of the Tories’ plans on welfare is the complete absence of much of the excellent work that has been produced by Tory think tanks over recent years. In particular, the Centre for Social Justice‘s Dynamic Benefits report, which unequivocally outlines why the welfare state is broken and must be radically changed and Policy Exchange‘s Escaping the Poverty Trap.

One can only hope that should the Conservatives win the election that Ian Duncan Smith MP is able to assert more influence over the reforms of the welfare state than he has been able to over his party’s manifesto. He seems to be one of the few MPs who in JK Rowling’s words has “taken the trouble to educate themselves about the lives of all kinds of Britons“.

And finally to the Liberal Democrats who launched their manifesto yesterday. Beyond the big headlines about making the tax and benefits system fair for all there is suprisingly little detail from them about how they plan to make the benefits system fairer. They state that, “Labour has created a hugely complex and unfair benefits system, and it needs to be reformed.” It’s somewhat disappointing then, to read on and find no information about how they plan to reform the benefits system.

Is anyone from the Liberal Democrats able to enlighten us? I’d love to know. We agree the benefits system needs to be reformed, but how? Voters are going to be wary of reforms that are unarticulated, even in the broadest of terms in an election manifesto. Please let me know if I’ve missed something.

We can only hope that the pledge to stop people who earn up to £10,000 a year paying any income tax, extends to those on benefits who take part time or sessional work while on benefits. The Centre for Social Justice’s report Dynamic Benefits has said that the current benefit withdrawal rate when someone does take work is akin to between a 75% and 95% tax rate on the poorest in our society.

Hardly the incentive the unemployed need in order to get back into work. And yet in this time of recession, this remains unaddressed by all 3 main English parties in their manifestos.

What are your thoughts on the manifesto commitments on welfare reform so far?