Deal struck for £9bn bonfire of the benefits

Mr_Mumble

Millions of welfare claimants will have their benefits scrapped and replaced with one “universal credit” under a ground-breaking deal secured by Iain Duncan Smith.

Housing benefit, income support, incapacity benefit and dozens of other payments are set to go after the Work and Pensions Secretary won a months-long dispute with George Osborne, the Chancellor, over whether the reforms were affordable.

The new system will carry a guarantee that anyone in work will be better off than someone on the dole. Claimants will be allowed to keep more of their benefits when they take a job or increase their hours.

The deal paves the way for a revolution in the way benefits are paid and marks a considerable victory for Mr Duncan Smith. Mr Osborne had argued that the proposed system was too expensive at a time when Whitehall was facing the deepest cuts for more than a generation.

However, The Times understands that Mr Duncan Smith will be allowed to claim up front “a large chunk” of the expected £9 billion of savings which he predicts can be made every year from lower administration costs and reduced fraud.The fate of child benefit is still being hammered out in the Treasury; the decision is expected to go right to the wire as the Government prepares to detail £83 billion worth of cuts in the spending review on October 20. Means testing, taxation or scrapping it for older children are being discussed.

Rest of the article (paywalled) at The Times.

Gotta say this is a pretty radical step. Hope it works because if fraud and admin costs don't fall there'll have to be another round of cuts.

Sibley

Speaking of the dole and benefits.

I've got a friend of a friend on my Facebook.
She's an unmarried mother. She's been given a 2 bedroom flat. She's just had another baby. The dads around but doesn't live with her. Well, he does but she claims he doesn't. You know the score.

Anyway, I was amazed to see this morning that she's bought an I phone and Ps3 for her other kid. It's his christmas presents????

I'm not a bitter sort of chap but how can that be right?

She's going to get a decent house and has better toys than most workers.
I want an I phone myself. I was thinking about buying one last week and decided to wait until pay day.

A question.

All the crash gang. Why don't they just go the council house/pregnant route if they want a house?

Easy option.

Kohoutek

Starting again with a blank piece of paper was what was needed to address the Byzantine benefits system Labour created. I would expect the savings from reduced fraud and admin overheads are significantly overstated though.

However, I think it's likely people on benefits are being affected disproportionately compared with the lack of cuts for universal benefits for the over 60s (for political reasons obviously).

Shakethedisease

Why don't they just go the council house/pregnant route if they want a house?

You're about 20 years out of date there... I know you posted for 'effect'.. but you're out of touch mate.

I'm not a bitter sort of chap but how can that be right?

No you, are, bitter.

Anyway, I was amazed to see this morning that she's bought an I phone and Ps3 for her other kid. It's his christmas presents????

Just how 'did you see' ? Were you there when she ordered ? Or how do you know that she wasn't just posting !!!!! up like a lot of other people do on public forums ( like you with this post for instance ) just to make themselves look good to others ?

If you have absolute proof of these purchases, and that yes indeed, she bought them purely from the benefit money she gets ( and they weren't gifted, or second hand, ebay fakes etc )..and bought at full price with receipts you've seen personally ?

Then you're just posting crappy facebook chinese rumours in order to make youself feel a bit better and self-righteous about benefits and what its really like to be on the 'dole' or a single parent.

Easy option.

1984ReturnsForReal_2

I cant wait for the detail.......


Very interesting times ahead me thinks



Shame about the not many jobs about thing though

neverdespairgirl

"The new system will carry a guarantee that anyone in work will be better off than someone on the dole. Claimants will be allowed to keep more of their benefits when they take a job or increase their hours."

Whatever changes there are, that part is absolutely essential.

gubdlog

1984ReturnsForReal wrote: »

I cant wait for the detail.......


Very interesting times ahead me thinks



Shame about the not many jobs about thing though

You are right there.

This decade is going to be like nothing the world has ever seen.

ILW

Shakethedisease wrote: »

You're about 20 years out of date there... I know you posted for 'effect'.. but you're out of touch mate.



No you, are, bitter.



Just how 'did you see' ? Were you there when she ordered ? Or how do you know that she wasn't just posting !!!!! up like a lot of other people do on public forums ( like you with this post for instance ) just to make themselves look good to others ?

If you have absolute proof of these purchases, and that yes indeed, she bought them purely from the benefit money she gets ( and they weren't gifted, or second hand, ebay fakes etc )..and bought at full price with receipts you've seen personally ?

Then you're just posting crappy facebook chinese rumours in order to make youself feel a bit better and self-righteous about benefits and what its really like to be on the 'dole' or a single parent.

Easy option.

Are you saying that there are not a large number of long term dolites that own Iphones.
If that is what you believe I am sorry but you are mistaken.

Sibley

Blimey dont get out of your pram I was only saying.
I can see this weeks house rise figures have left a lot of people very touchy.

Look on the bright side. Your rents due today. Thats a few hundred more quid off your landlords mortgage.

Cheers.:beer:

mardatha

Would any of the nice people who pay for access to the Times please tell me if there's anything in that report about Pension Credit, or over 60s ? Thanks !

bendix

Sibley wrote: »

Blimey dont get out of your pram I was only saying.
I can see this weeks house rise figures have left a lot of people very touchy.

Look on the bright side. Your rents due today. Thats a few hundred more quid off your landlords mortgage.

Cheers.:beer:

do you own in Bangkok Sibley? Genuine question. If so, where?

For the sake of disclosure, I do own over there.