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Labour question effectiveness and compassion of welfare reform

9 February 2011

Liam Byrne, Labour’s Shadow Secretary of State for Work and Pensions, expressed doubts about the Coalition Government’s plans for welfare reform in the current economic climate.

In his keynote speech, given at the IPPR, Wednesday 9th February 2011 he expressed support for the principles of Universal Credit and the new Work Programme but questioned their ability to deliver results.

“You can plan all the welfare reform you like. But you can’t have welfare to work without work. Without a faster growing economy, the government’s changes won’t push people into a job. They will push them into a corner. The recession has now been over for more than a year. Unemployment should be falling. Instead…IPPR are warning of a double dip in employment. Instead 5 unemployed people are chasing every job vacancy that is advertised. Instead, in over 120 constituencies, more than ten unemployed people are chasing every job.” 

He also questioned some of the Coalition Government’s proposals because they were lacking in compassion. In particular he singled out cutting housing benefit by 10% and cutting the mobility component for those in residential care because it is a punishment for people “who need our help”.

On the subject of the one year cut off for contributory ESA he thought that this could hit people recovering from cancer but that a two year limit could work.

He also supported DLA reform but thought that it needed a very carefully designed new gateway, not a reform driven by a top-down cuts target which  risks denying support for those in search of a more independent life.

Next week Liam plans to set out the detail of Labour’s policy review on delivering full employment, re-forging the welfare state for the 21st century and delivering justice, fairness, security for those in old age? The intention is to report in June as part of the policy review he is coordinating for Ed Miliband.

DA says: Labour appear to have moved away from the simplistic tone of office and brought in the helpful condition of genuine work opportunities being available, which is hugely important to disabled people. We believe DWP must develop, in partnership with employers, sustainable employment opportunities for disabled people rather than focus on reducing benefit levels.

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