The new coalition Government has published an agreement that will form the main basis of their power-sharing deal for the next five years.
DA agrees with the new Government’s statement in the agreement that it is society’s most disadvantaged people who are often hardest hit by tough economic circumstances. Disabled people are twice as likely to live in poverty as other citizens and are more likely to be hit first, hardest and longest by the current recession.
The agreement contains the following commitments that will be of interest to our members.
Work programmes and out of work benefits
Ending all existing welfare to work programmes and creating a single welfare to work programme to help all unemployed people get back into work. DA is very concerned about meeting disabled people’s needs under a ‘one size fits all’ work programme.
Immediately referring Jobseeker’s Allowance claimants ‘facing the most significant barriers to work’ to the newly created welfare to work programme (not after 12 months). Referring JSA claimants under 25 years of age after a maximum of six months.
‘Realigning contracts’ with welfare to work service providers to reflect more closely the results they achieve in getting people back into work.
Reforming the funding of welfare to work programmes ‘to reflect the fact that initial investment delivers later savings in lower benefit expenditure’.
Making receipt of benefits for those able to work conditional on the willingness to work. People on Jobseeker’s Allowance who refuse to join the Work Programme will lose the right to claim out-of-work benefits; people who refuse to accept ‘reasonable job offers’ could forfeit benefits for up to three years.
Introducing work (for benefit) programmes for unemployed people.
Re-assessing all current Incapacity Benefit claimants. Those assessed as fully capable for work will be moved onto Jobseeker’s Allowance. DA believes this will result in additional expenditure to recruit more medical examiners and in high appeals rate if the Government uses the current and problematic Work Capability Assessment.
Tax credits and in-work support
Reforming the administration of tax credits to reduce fraud and overpayments.
Bringing forward plans to reduce the couple penalty in the tax credit system using savings from welfare reform plans.
Reviewing employment and workplace law to ensure flexibility for both employers and employees while protecting fairness. This is likely to include the Disability Discrimination Act which protects disabled people at work.
Cutting tax credits for higher earners. The Conservative manifesto suggested households with an income of £50,000 would not receive tax credits;
Increasing the personal allowance for income tax from April 2011 with a longer term aim of making the allowance £10,000. The Liberal Democrat manifesto suggested the first £10,000 be tax free for all earners.
Reforming Access to Work so disabled people can apply for jobs with funding already secured for adaptations and equipment needed.
The Child Trust Fund and Sure Start
Making reductions to the Child Trust Fund. The agreement contains no detail but the Conservative manifesto suggested cutting government contributions to Child Trust Funds for all but the poorest third of families and families with disabled children. The Liberal Democrats had proposed ending all government payments into Child Trust Funds.
Taking Sure Start back to its original purpose of early intervention and increasing its focus on ‘the neediest families’. Investigating payment by results.
Care services
•Establishing a commission on long-term care, to report within a year. The commission will consider a range of ideas. DA hopes the commission will consider a tax-funded system as advocated by our members in 2009.
Extending the roll-out of personal budgets to give disabled and older people and their carers more control.
Helping older people live at home for longer through home adaptations and community support programmes.
Pensions, the retirement age and older people
Restoring the earnings link for the basic state pension from April 2011 with a guarantee that pensions are raised by whichever is the higher of earnings, prices or 2.5%.
Phasing out the default retirement age and holding a review to set the date at which the state pension age starts to rise to 66. - DA welcomes the end of a compulsory retirement age. This was covered in our Tackling Disability Poverty manifesto and older people’s organisations have also emphasised how the default age contributes to older people’s poverty.
Protecting key benefits for older people such as the winter fuel allowance, free TV licences, free bus travel, and free eye tests and prescriptions.
Poverty
DA is very disappointed the agreement contains no specific commitments on tackling disability poverty, though ending child poverty by 2020 remains a UK target under the new Government.
Equality
Establishing a Commission to investigate the creation of a British Bill of Rights that incorporates the European Convention on Human Rights obligations; DA believes this role would fit the current Equality and Human Rights Commission’s remit.
Promoting better recording of hate crimes against disabled people (which are currently not recorded well).
Introducing extra support for disabled people who want to become MPs, councillors or other elected officials.
Other initiatives relevant to DA campaigns
Introducing a banking levy and creating a free ‘national financial advice service’ to be funded by a new social responsibility levy on the financial services sector. DA supports a bank levy if the income generated is used to tackle poverty.
DA will be monitoring new Government announcements and plans closely and will make regular updates on our website at: www.disabilityalliance.org
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