Benefits

‘500,000 to lose sick pay as welfare reforms bite’. Those words boom from the front-page of the Times this morning – and they’re based on an article by Iain Duncan Smith (£) in which he admits that some 23 percent of the country’s 2.1 million Incapacity Benefit claimants could be found fit for work. This, it is said, should save the Exchequer some £4 billion. The numbers are striking enough, but the policy behind them shouldn’t be surprising at all. Even the last Labour government intended to reverse a political deceit that they had nurtured, but which was birthed during the Thatcher years: the artificial swelling of the sickness rolls.

Today we are releasing a brand new picture of the nation’s welfare ghettos. Our research gives a disheartening insight into the extent of dependency in England and Wales. The top line: things are getting worse. This is much more detailed and useful information that the statistics often bandied about by politicians. It is well known, for example, that nearly 2 million people have been claiming out-of-work benefits for more than five years. But what does that look like? We’ve examined the smallest measurable units recorded by the Department for Work and Pensions (the technical term is ‘Lower Super Output Areas’) which are smaller even than council wards – they contain

Daniel Finkelstein and Philip Collins’ email exchanges are always enlightening. This week, they discussed child benefit. Both think it has altered the markings on the playing field of politics. Ed Miliband is yet to respond: how should he? ‘From: Daniel Finkelstein To: Philip Collins If you were Ed Miliband, where would you go now on child benefit? First option: total opposition to the Government’s plan. You get to hoover up discontent but you don’t look much like a governing force, do you? And it seems hypocritical. Plus, you said you were going to support the Government on many cuts. If not this, then what? Second: you go with it. You

One of the most intriguing questions about the decision to take child benefit away from households with a higher rate taxpayer in them is whether it marks the beginning of the end for universal benefits. The quotes today from Michael Fallon, the Tory vice-chairman, certainly suggest that it does. Fallon ridicules Ed Miliband with the line: “He wants to tax the poor to give benefits to the better off.” Now, if you accept that the poor are currently being taxed to provide child benefits for the rich (a slight exaggeration given that higher rate taxpayers contribute far more than they take out in services) then this argument applies with equal

We have a new facts and figures column in the magazine, Barometer, and I thought CoffeeHousers might like a preview of one of the data series we have dug up for tomorrow’s edition. George Osborne has this week pledged that, from 2013, no family on benefits should receive more than the average family does through work. But how many will it affect? Those living in expensive areas, for example, but also those with large families. CoffeeHousers may remember Karen Matthews, who lived on benefits with seven children. She was demonised, understandably, but I was left thinking: we paid her to do that. The more kids she has, the more money

There was a quiet momentousness about Iain Duncan Smith’s speech in Birmingham today – even before he started speaking. When IDS resigned the Tory leadership in 2003, he could barely have imagined that he would one day address his party as a leading member of the government. Even a few weeks ago, he couldn’t have been sure that the coalition would implement the policy agenda that he developed during his time at the Centre for Social Justice. Yet here IDS was, receiving a standing ovation for his efforts. What a difference seven years make. And then to the speech itself. Much of it reverberated to the same reforming drumbeat that

In the last few weeks, there has been much speculation that child benefit would be stopped when a child reaches 16. Today’s announcement suggests that this is not going to happen, although the Tories are refusing to rule it out. If there are to be changes to child benefit — and given the financial situation there need to be — then removing it from households with a higher rate taxpayer is a better move than stopping it at 16. Child benefit ending at 16 would send out a message that at 16 a child should start earning its way in the world. This would, for obvious reasons, have a negative