Thursday, May 27, 2010

The missing ingredient from Welfare Reform

I have no doubt that in the short term the new Con/Lib Dem Government will have some success in getting people back to work and off benefits due to the fresh impetus of new Ministers at the Department of Work & Pensions and the need for results. It was the same in 1997 after Labour won power and wanted to get people back to work and reduce the welfare bill.

But I suspect that as previously happened in 18 months to 2 years time the Job Seekers Allowance claimant numbers will start rising again whatever the state of the economy and numbers of claimants will be back more or less where they are now despite the effort of Ministers and civil Servants and millions of pounds spent on schemes and consultants getting people off benefits.

One of the main reasons for this is because there is no focus in areas of high unemployment where much of this money is spent on medium and long term sustainable job creation with wages that make it worthwhile people to work and support their families.

For many of those who sign on in these areas, signing on is part of the work cycle, they work for a few months each year in the building trade, grass cutting, as barman and waitresses at major events etc and then have to sign on when work slows or stops all together.

So without serious investment in high benefit dependency areas that creates real jobs and improves people’s skills then any welfare reform programme whether it’s from a Conservative, Labour or the Lib Dems Government will be no more than skin deep and do little to fully tackle the benefit trap that many individuals and families find themselves in.

The issue with that this sort of approach is that is takes time plus isn’t not politically popular or media friendly and It would take a brave Minister especially a Conservative one to go against the tide of hammering everyone who signs on as ‘workshy benefits scroungers’.

Only time will tell if Iain Duncan Smith is any more successful than his Labour predecessors in ending the benefits trap for so many people especially in Wales.

More HERE from the Joseph Rowntree BlogAny source

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