7/23/2019 UK Welfare Reform in the 21st Century
1/29
Welfare Reform Bill
Page 1of 29
Kirstein Gourlay
UK Welfare Reformin the 21st Century
Word Count: 6982
The
Consequencesfor the
Vulnerable in
Society
7/23/2019 UK Welfare Reform in the 21st Century
2/29
Welfare Reform Bill
Introduction
The Welfare Reform Bill 2011 (WRB11) is a controversial shake up of the British WelfareState currently at the committee stage in the House of Commons. Initial reforms started by
the incumbent Labour Government have been radically carried forward by the Conservative-
Liberal Democrat (ConDem) coalition Government and have been the subject of immense
controversy ever since.
Outlined below are the key elements of the WRB11, which shall be discussed further
within this project.
In summary the main changes are:
Introduction of Personal Independence Payments to replace the current Disability
Living Allowance
restricts Housing Benefit entitlement for social housing tenants whose
accommodation is larger than they need
up-rates Local Housing Allowance rates by the Consumer Price Index
amends the forthcoming statutory child maintenance scheme
limits the payment of contributory Employment and Support Allowance to a 12-month
period
caps the total amount of benefit that can be claimed1
These reforms appear to reinstate the principle of less eligibility that was first
implemented by the 1834 Poor Law Amendment Act2 and could be seen as a means of
reversing the poverty trap claimants often find themselves in.
The Secretary of State, Work and Pensions Minister, Iain Duncan Smith MP believes that
taxpayers need to see that the Government is spending their hard-earned money
responsibly so that they can receive support as well as supporting welfare recipients.3
The WRB11 has not yet received Royal Assent, and as such is still a work in progress.
The aim of this project is to explore welfare reform past, present and future, and the effect it
will have on the most vulnerable people in our society.
3Duncan-Smith2011
2Fraser2003
1Parliamentary Copyright2011
Page 2of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
3/29
Welfare Reform Bill
I shall discuss the Governments position insofar as it has responded to certain concerns,
look at the critical response to changes already in force and consider public opinion as
expressed in public forums. I shall use mainly internet resources, as they are the most up-to-
date resources. I also acknowledge that some resources may not be academic or fully
reliable, but I believe that unconfirmed and speculative responses are valid in this discussion
as they also reflect public perception of how the reforms will change the lives of people
involved.
The WRB11 can be considered the most radical shake-up of the Welfare System since its
inception in 1944.4 The Coalition Government has taken the notion of welfare reform to
radical lengths5and has been using the current fiscal situation to justify bigger and deeper
cuts than any other Government since Beveridge. I shall explore this reasoning against a
backdrop of political ideology and discuss whether budget deficit is merely a smokescreen
for change that would always have been the bedrock of Conservative policy.
Initially, I will define poor and vulnerable under current legal guidelines. Then I shall look
at changes to welfare from Thatcherism to Brown due to political ideologies. Finally, I will
look at how the WRB11 develops these changes further.
My conclusion will pull together all the arguments discussed in this project and will look at
how these reforms compare to a pre-Beveridgean welfare system. It will consider the future
for vulnerable people in the UK.
5 (ibid.)
4w4mp.org2011
Page 3of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
4/29
Welfare Reform Bill
To Protect the Poorest and Most Vulnerable in Society
In 2010, the Coalition Government pledged to protect the poorest and most vulnerable in
our society6 despite the heavy cutbacks proposed and the drastic reform of the Welfare
System. This pledge does seem like an antithetical position, and is one open to the most
criticism. But what makes someone part of the poorest or most vulnerable category, and
how will the reforms protect them?
Some people are easily identifiable as poor. Those who live on the meagre weekly
payments of means-tested benefits are the most visible: those on Income Support, Job
Seekers Allowance, Carers Allowance and income-based ESA. Pensioners on Pension
Credit and those who qualify for certain levels of Working Tax Credit or Help with NHS costs
are also considered in this definition. However, sometimes people whose working income
takes them just outside of this bracket can be just as poor. Taking into account the payment
of rent/mortgage and council tax, dental treatment, NHS prescriptions, travel expenses,
childcare expenses and school meals plus the loss of access to legal aid and other benefits,
for many families on the threshold of the ambiguous amounts predetermined as the amount
the law says you need to live on7 some people returning to work can find themselves in
more poverty than when they were on benefits.8This is known as the Poverty Trap. These
people are often overlooked but can find themselves in real financial trouble.
In accordance with the principle of less eligibility, the Prime Minister has declared that,
The "refreshingly radical" reforms would mean people would always be
better off in work9
However, there are many people on benefits for whom work is not always a viable option.
These are the most vulnerable in our society. This group of people consists of the lone
parent, long-term sick, disabled, mental health patients, children, people with learning
disabilities and the elderly. The Poor Relief Act (1576) classified these groups (except the
lone parents) as the impotent poor and under the Poor Law Amendment Act (1834) they
9BBC2010
8Mumsnet2011
7 Janet-M2006
6Crown Copyright2011
Page 4of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
5/29
Welfare Reform Bill
would be seen as the deserving poor10. The Government has pledged to protect them, yet
the proposed welfare reforms and the current method of transferring people from long-term
Incapacity Benefit to ESA has shown that this pledge is not as watertight as they would like
the general population to believe.
10Fraser2003
Page 5of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
6/29
Welfare Reform Bill
From Atlee to Cameron
When looking at welfare reform, it is important to understand the basic political ideologies
that influence any changes proposed. No government works in isolation and all decisions
made are based on the mistakes made by previous governments and hopefully lessons are
learned. The table below outlines the major changes to welfare since the 1944 Beveridge
report. It is an overview of political ideology.
Welfare Ideology Since 1944: (Table 1)
PrimeMinister
Political Party Ideology Changes to Welfare
Atlee(1945-1951)
Labour Comprehensive welfaresystem and NationalHealth Service;nationalisation of utilities,railways, British Airwaysand Steel.
Birth of Welfare StateBased on comprehensive benefits tohelp the unemployed, families, sick,elderly. Provided healthcare that wasfree at the point of use.
Thatcher(1979-1990)
Conservative Aim to 'roll-back' thewelfare state and toallow a free marketapproach to providingservices. Privatisation of
previously nationalisedservices, including thecoal mines.People should work, notbe dependent on thestate.
Tenants given the 'right-to-buy' theircouncil houseYTS introduced for 16-18 years oldsand income support removed formost of this age group.
Tougher eligibility for benefits.Brought in privatisation of NHS andSocial care provision as part of aquasi-free market policy.NHS and Community Care Act 1990.
Major(1990-1997)
Conservative Introduced the ThirdWay into UK politics:based on centralist viewson welfare provision.
Introduced JSA to replaceUnemployment Benefit withrequirements to seek work andsanctions for non-compliance.
Page 6of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
7/29
Welfare Reform Bill
The late twentieth century saw Britain politically dominated by a neo-conservatism
approach to social welfare, known as Thatcherism. Thatcher wanted to roll-back the
Blair(1997-2007)
New Labour Followed the Third Wayand rejected old Laboursocial democraticideology.
Introduced tax credits as part ofwelfare-to-work initiative in April 2003Creation of Jobcentreplus and theNew Deal to provide training andsupport for long-term unemployed,
lone parents, young people and thedisabled.Devolved Scotland, Wales andNorthern Ireland, who were free tomake their own social policy andbudget decisions within agreed fiscallimits set by Westminster.Welfare Reform Act 2007:IntroducedESA to move long-term IB claimantsinto work and to reassess everyclaimant under new PersonalCapability Assessments, changes toHousing Benefit, changes toDisability Living Allowance ageconditions and other miscellaneouschanges.
Brown(2007-2010)
New Labour Traditionally Old Labour.Had ideologicaldifferences with Blair, butcame into power underNew Labour identity.
Welfare Reform Act 2009:Abolishment of Income Support,Work for your benefit schemes,Progression to work for lone parentsand partners of benefits recipients.Right for disabled people to control
provision of services.Enforcement of Child Maintenanceby disqualifying from driving orimprisoning non-resident parentswho fail to pay.
Cameron (2010-Present)
ConDemCoalition(Conservative)
Thatcherism with a hintof Liberal concessionson tax, NHS reform andlistening to consultationon these reforms.Embraces the notion of
less eligibility from the1834 Poor LawAmendment ActBelieves no one shouldbe better off on benefitsthan in work.
Welfare Reform Bill: IntroducingUniversal Credit (UC) to streamlinebenefit system and persuade peopleinto work with incentives for workersand sanctions for non-compliancewith benefit requirements.
Targeting disability and sicknessbenefits, housing benefits and JSAas a priority.Reform of the NHS.
Page 7of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
8/29
Welfare Reform Bill
welfare state and privatise services and utilities previously nationalised under Labour; this
included British Gas, BT and the coal mines.11
In addition, social housing was scaled back, and the 'right-to-buy' scheme was
introduced. A council house could be purchased by its tenants and heavy discounts were
given on the purchase prices of these houses to reflect the length of tenancy a person had
accrued.12Although it gave people a foot on the housing property ladder, it also depleted the
stock of affordable housing available for social housing.
Neo-conservatives believethatby peopletaking unattractive and low-paid work to sustain
them, promotes the dignity of the population, and that the state should interfere with this
dignity as little as possible.There should be welfare provision for those incapable of being
self-reliant, such as the sick, elderly and disabled; but the family and charity should be
encouraged to provide services before the state intervenes. They believe that uniform
provision by the state would lead to a stagnation of life, rather than progress. 13
I believe that this ethos can be a very positive one. In other countries the welfare state is
a fall-back or safety net to help those in dire need and for a limited time.14
In my opinion, Thatcher made a terrible mistake in the closing of the coal-mining pits in
the 1980s. These closures led to mass unemployment in previously prosperous areas. The
Labour MP, Dennis Skinner, campaigned long and hard for his constituents and became
known as the Beast of Bolsover15. All the areas in Bolsover District fell into hard times after
the pits were closed. Now the areas have extremely high levels of unemployment, with
21.5% of this group being long-term unemployed,16and property prices are well below the
national average.17.
I would argue that by creating mass unemployment, Thatcher created a bigger need for
the same welfare provision she wanted to roll-back. Additionally, high levels of
unemployment reduced the amount of taxes and National Insurance contributions filling the
coffers, whilst the amount of money needed to finance the increase in welfare exponentially
increased.
17Mouseprice2011
16Research & Information Team2010 p.16
15Derby Evening Telegraph2010
14WelfareInfo.org2011
13Moore2002 p.21
12Joseph Rowntree Foundation1998
11Fraser2003
Page 8of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
9/29
Welfare Reform Bill
To offset the increased unemployment levels the Conservatives introduced tougher
measures to decrease eligibility of benefits and to force claimants to actively seek work,
whilst cutting benefits. Young people were required to attend Youth Training Schemes (YTS),
if they did not continue education. In 1987, Income Support (IS) was stopped if a claimant
refused an YTS placement and by 1988 16-18 year olds were ineligible to claim IS at all,
(unless they had a dependent child). The rationale was that this age group would either be in
education or in an YTS scheme.
After Thatcher left power in 1990 and was succeeded by John Major, in 1996, Job
Seekers Allowance (JSA) was introduced to replace Unemployment Benefit. JSA was a
difficult regime that would target the idle claimant, as it introduced tough sanctions and
eligibility criteria. Contribution-based JSA was capped at 6 months, after which the claimant
would move to income-based JSA if they qualified. A claimant had to prove they wereactively seeking paid employment over 16 hours a week and would have to be immediately
available for work, even if they currently worked less than 16 hours a week.18
In 1997 Tony Blair moved into Downing Street and set his sights upon changing the face
of the Labour Party from a social democratic viewpoint to embrace the Third Way.
The Third Way is in favour of growth, entrepeneurship, enterprise and
wealth creation but it is also in favour of greater social justice and it sees
the state playing a major role in bringing this about.
19
20
Tony Blair was adamant that his party was NewLabour, and in many ways the politics of
this revitalised party bore little resemblance to Old Labour. Blair's agenda held little common
ground with social democracy at all and the party was Labour only in name. The Third Way
sought to bring UK politics into a modern, globalized world.
Blair believed that Britain should be devolved and each country should able to manage
their own social policies in line with Westminster, but gave them their own spending power
20 (Ibid.)
19Dickson1999
18Daguerre et al.2002
Page 9of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
10/29
Welfare Reform Bill
and self-government. This was in line with the Third Way principle of accountability and
responsibility, as he recognised that each country was distinctive and had different priorities
to England. He also believed that equality of opportunity was the twofold responsibility of
both the individual and the State.21
Old Labour believed that the community was more important than the individual, whereas
Thatcher believed that the individual rather than community was important. Blair recognised
that both the individual andthe community were equally important in creating a healthy and
productive society; and this was the biggest shift from both Thatcherism and Old Labour.22
During the Blair years, welfare reform began in earnest. The aim was to repair the
damage caused by Thatcherism and a free market approach to society; although Blair did
believe in a free-market economy linkedto state provision.
On the subject of welfare reform, Blair said in 1999:
"It means modernising the welfare system so it helps people, rather than
holds them back - a welfare system that recognises work is the best
route out of poverty and that the vast majority of people want to work."23
A system of Tax Credits was introduced in April 2003 to support low-income families. The
aim of this was to make work pay and to encourage people to go back to work. He
introduced the Welfare Reform Act 2007 which created the Employment and Support
Allowance (ESA).24 This is discussed in detail later in the project. Other relatively minor
changes are summarized in Table 1 (above).
When Gordon Brown replaced Blair in 2007, he continued to implement his predecessors
changes and followed them with the Welfare Reform Act 2009.25The major changes in this
Act were to abolish new claims for Income Support and to move current claimants onto ESA
or JSA.
Disabled people were given the right to make choices about their services and a system
of Direct Payments was introduced so that they could pay for their care. Tougher sanctionsfor non-resident parents who failed to pay child maintenance were introduced as well.
25Disability Alliance2011
24Disability Alliance2011
23BBC News1999
22 (Ibid.)
21 (Ibid.)
Page 10of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
11/29
Welfare Reform Bill
The Conservative-Liberal Democrat (ConDem) Coalition Government came into power in
2010. This appeared to be an unusual mix of political ideology, especially after the three
televised Leaders' Debates. During the television debates Nick Clegg gave such a good
account of his party's political stand that their popularity increased exponentially.26 The
LibDems were seen as a political contender for the first time in many years. As a result,
although the LibDems lost 5 seats overall, the General Election saw the formation of a 'hung
parliament' with the LibDems having the choice to join either the Conservatives or Labour to
form a coalition27.
Although the Conservatives, who won the most seats, could have formed a minority
government, David Cameron feared that it would be unstable. Nick Clegg decided to join
them in exchange for some concessions and a share in political power.28Critics feel that the
LibDems 'sold out' and have allowed themselves to be manipulated by the Conservatives.29
However, Cameron defended Clegg and insisted that the LibDems have a big influence on
the Coalition policy.30However, subsequent bi-elections have proved that LibDem popularity
has dramatically fallen since the General Election.31
One of the biggest bones of contention has been the LibDems agreement to fast-tracking
welfare reform, under the guise of reducing the 'Budget deficit'. The Coalition Government
touts welfare reform as immediately necessary to reduce the budget deficit.32Although David
Cameron made it totally clear in the Election debates that it was Conservative policy from
the outset.
In 2001 their manifesto clearly stated their intentions to increase employment figures in
the UK through sanctions and penalties. Welfare dependency was a major concern. This
echoes the sentiment of the 1988 Secretary of State, who believed that welfare recipients
needed to move from dependence to independence.33
I believe that the move to push through welfare reform by 2013, and the introduction of
some changes by 2011, as a measure to reduce national debt is a smokescreen for political
33Daguerre et al.2002
32Cawston2010
31Wheeler2011
30Unknown Author2010
29Hasan2010
28Travis2010
27BBC News2010
26Lewis2010
Page 11of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
12/29
Welfare Reform Bill
intentions already publicised. I also believe that the LibDems are using the current negative
fiscal position to mask their defection to a political ideology that is antithetical to their
propagandised manifesto in 2010. I believe they have chosen power over promises. Political
promises are known as spin and the Coalition has used spin to pursue an agenda by
manipulating the fears and prejudices of our society whilst we are in dire fiscal
circumstances.
The reforms introduced from Thatcherism to the Third Way marked an end to full state
dependency and actively forced claimants to earn their right to benefits. I believe that this is
the cornerstone of current welfare reforms proposed by the ConDem Government in 2011,
which I shall summarise and discuss below.
Page 12of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
13/29
Welfare Reform Bill
21stCentury Welfare: The Universal Credit
One of the most radical reforms34,35proposed is to introduce the Universal Credit (UC)
to replace a myriad of different benefits available under the current system. The aim is tosimplify the system and to reduce the budget deficit by reducing the amount of
overpayments (and underpayments) caused by error and fraud. Furthermore, as UC would
incorporate both in and out-of-work benefits it would ease the transition into work by
incorporating benefits currently administered by three different departments: the Department
for Works and Pensions (DWP), Her Majestys Revenue and Customs (HMRC) and local
councils. In addition, PAYE earners would have their money reduced or increased in line with
their earnings automatically.36
The new UC would take into account household income and there would be a withdrawal
rate of benefit for working families at a rate of 65p in every pound. This last figure is higher
than the 55p per pound that the Centre for Social Justice (CSJ) recommended for the 2010
Green Paper: 21st Century Welfare. The CSJ (ironically headed by Iain Duncan-Smith)
believed that a higher withdrawal percentage would lead to less incentive for people to work
additional hours and have a negative impact on second earners.37
Original proposals for UC suggested that there would be two elements: Universal Work
Credit aimed at the unemployed and very low paid and the Universal Life Credit designed to
provide additional help with living costs for those with low incomes. 38
The table below, (Table 2) summarises the main benefits to be replaced by the proposal.
Current Benefits Type of claim and Administrator
Job Seeker's Allowance (JSA) Income-based element. Out-of-workbenefit. Administered by DWP
38 (Ibid.)
37 (Ibid. p 10)
36Crown Copyright2011 pp. 4-13
34w4mp.org2011
35BBC2010
Page 13of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
14/29
Welfare Reform Bill
Income Support (IS) Out-of-work benefit. Administered byDWP
Employment and Support Allowance
(ESA)
Income-based element. Out-of-work
benefit. Administered by DWP
Incapacity Benefit (IB) Income-based element. Out-of-workbenefit. Administered by DWP
Carer's Allowance (CA) Paid if looking after disabled person 35+hours a week. Can work, but benefitaffected after certain level of earnings(Currently 100 a week) Administered byDWP.
Housing Benefit (HB) Paid towards rental or mortgage interestof main home for claimants whosehousehold income is under the amountappropriate for their needs. For claimantson some benefits rental is paid in full:social housing tenants or private tenantswhose rent is under the Local HousingAllowance for their area. Administered byLocal Council.
Council Tax Benefit (CTB) Paid towards council tax of main home forclaimants whose household income isunder the amount appropriate for theirneeds. For claimants on some benefitsCouncil Tax Benefit is paid in full and ispaid regardless of tenure of the mainhome. Administered by Local Council.
Working Tax Credit (WTC) Payable to low-paid working householdswith or without children. Help withchildcare costs may be paid for approvedproviders through the childcare element.Administered by HMRC
Child Tax Credit (CTC) Replaced child-related premiums formerlyincluded within certain out-of-workbenefits. Payable to families with childrenthat also claim child benefit, whether in orout of work. Administered by HMRC
Disability Living Allowance (DLA) Paid to disabled people to help meet extracosts related to their care or mobilityneeds. Administered by DWP
Page 14of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
15/29
Welfare Reform Bill
This new method of paying benefit would certainly streamline the process and make it
easier to ensure that claimants were claiming the right amount of benefit for their
circumstances. Many people are not currently claiming all the money they are entitled to, as
there are so many different benefits on offer; often the uninformed claimant does not know
that they are being underpaid. Data suggests that there is 1.3bn of benefits under-paid.39I
would argue that this may affect people with learning difficulties and hidden disabilities (like
autism) the most; as they are most likely to accept what they are given without digging
deeper.
I can understand the need to streamline the system. In my experience, different benefit
departments using different computer systems do not always communicate changes of
circumstance in a timely manner. This leads to over- or under-payments of benefits and, in
the case of over-payments, can lead to investigations for benefit fraud and huge cuts to
benefits to repay the debt.
However, the Government is not simply consolidating existing benefits into one payment;
they are introducing new thresholds and constraints on the system. There will be new and
fixed limits set on the amount to be paid and time constraints on certain entitlements.40
According to The Guardian,
The Department for Work and Pensions said that the central aim of the
universal credit was to "make work pay", especially for the lowest
earners.41
The Institute for Fiscal Studies (IFS) would disagree with this sentiment. According to
their statistics 1.4 million families will be worse off under the new system and the target
group to be most disadvantaged will be Lone Parents.42They do, however concede that 2.5
million families would be better off, particularly those on the lowest incomes, which would
endorse the Government claims that
42 (ibid.)
41The Guardian2011
40Crown Copyright2011
39Full Fact2011 p.4
Page 15of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
16/29
Welfare Reform Bill
"Our reforms will move 350,000 children and 500,000 adults out of
poverty. This will change Britain for generations a change we cannot
wait any longer for.43
The news is not so positive for the sick and disabled. Their needs are different to the
general population. Many long-term sick, autistic and mental health patients have hidden
disabilities that make it impossible for them to undertake functional employment. Most of
these will be on long-term Incapacity Benefit, soon to be reassessed under ESA criteria, and
could lose out on the help and support they need to be able to live productive and healthy
lives. In addition, unless UC takes into account the possible need for vulnerable people to
drop into and out of work and accommodate this without penalty, there could be a real issue
with the loss of certain benefits for these people and the passported benefits they receive in
health and social care.
One of my biggest concerns is how each aspect of the Universal Credit will work
alongside the others. Why spend millions of pounds moving everyone from Incapacity
Benefit to ESA just to abolish ESA as soon as everyone has been reassessed? Surely, if
there is a likelihood of UC passing into law then all reassessments of current IB claimants
should be postponed until 2013 and be integrated into the merging of all the out-of-work
benefits into one? In my opinion, by appearing to make immediate changes to welfare,
Osborne and Cameron are likely to cost the taxpayers more money through being so hasty
in their decisions. They could argue that they are carrying out plans already in place from the
Brown Government, but in light of their criticism of the Blair/Brown governance I believe the
ConDems should have paused and taken stock of Browns plans and seen how they fit into
their own plans for UC.
43 (ibid.)
Page 16of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
17/29
Welfare Reform Bill
Welfare Reform: The Deeper Cuts
In 2008, the Labour Government introduced ESA, which replaced Incapacity Benefit for
new claimants. ESA is a complicated benefit in some ways: it has a contributory element for
people who have paid National Insurance and a means-tested, or income-based, element
for other people unable to claim JSA or Income Support. In addition, it has different tiers of
support.
After a medical assessment, (and currently a Works Capability Assessment), claimants
are given a decision about their fitness-to-work and are awarded one of the following
benefit entitlements:
1.ESA Support Group (SG), which means that the claimant has limited capability for
work-related activity.
2.ESA Work Related Activity Group (WRAG), which means that the claimant must attend
regular Work Focussed Interviews (WFI) and agree an action plan to return to work.
3.Job Seekers Allowance, which means the claimant is deemed able to work and must
meet all the criteria to receive benefit, including actively seeking paid work.44
The aim of moving people from Incapacity Benefit to ESA is to reduce the number ofclaimants and to encourage people back into work. Since April 2011, the Government has
been actively moving people from Incapacity Benefit onto ESA, although they piloted the
transference in Aberdeen and Burnley from 11th October 2010 with 1,700 claimants.
According to the website www.benefitsandwork.co.ukthis pilot had some flaws as it used the
WCA rather than the new Personal Capability Assessment (PCA) detailed below. In addition
the computer systems were different from the ones expected to be used for the wholesale
migration. The Government estimated that 23% of claimants would be forced onto JSA.45
However, there is a lot of controversy surrounding the assessment of certifying people as
fit-to-work and moving them into WRAG or onto JSA. This involves the use of an outside
agency, called Atos Healthcare, conducting medical examinations on claimants to prove their
fitness for work. These include face-to-face and paper assessments.46Furthermore a radical
change in viewpoint concerning a persons fitness to work will also be implemented.
46DWP2010 pp.3, 4
45Donnison et al.2010
44Crown Copyright2011 p.4
Page 17of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
18/29
Welfare Reform Bill
In the past, Incapacity Benefit claimants had to carry out a WCA to determine their level
of incapacity. This test looked at what the claimant could not do in the workplace. Certain
claimants were exempt from the assessment altogether, e.g. people in receipt of the High
Rate Care component of Disability Living Allowance, which was estimated at May 2010 to be
39% of claimants.47
Under the new regulations, all claimants must undertake a PCA, where the emphasis is
on looking at what the claimant is ableto do. This could appear to be a positive emphasis,
as it allows someone to recognise the skills they still possess and the aim is to encourage
them to find work within their capability.
But the situation has not been so clear cut. The test does not take into account the nature
of the claimants illness. Someone with a mental health problem may hate crowds or noise;someone with fibromyalgia may become more ill with increased levels of stress. In the case
of people with illnesses like Lupus, Fibromyalgia and Chronic Fatigue Syndrome their
symptoms can flare up and down many times in the same day. Who would employ a person
that may need to leave work early and be bed-bound for the next three days? Who would
employ someone who may forget instructions the moment they were given? Who would
employ someone so drowsy from the high doses of painkillers they are taking? In a climate
where there are thousands more jobseekers than jobs, what employer would choose the
unreliable employee over the reliable one?
The Government has stated that it wishes to cut 20% of the budget from sickness
benefits and move some claimants into work-related benefits; yet statistics show that there is
only a 0.5%-0.6% fraud rate in DLA48. In essence up to 19.5% of genuinely ill people will
have their ill-health related benefits stripped and will be forced to apply for work that they
simply cannot undertake, with the penalties that are applied for non-compliance of the
conditions of receiving JSA.
The agency that undertakes the medicals have been known to lie on the forms to stop
benefit payments. The internet is full of forums where victims of this and professional welfare
advisers alike have complained about this issue. Many people are told they are fit for work
when they are clearly not and many medicals have been overturned by tribunals at a later
stage.49On some forums claimants have stated that they are stockpiling tablets to commit
49Gentleman2011
48Crown Copyright2011 p.35
47 (Ibid.)
Page 18of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
19/29
Welfare Reform Bill
suicide if they are deemed fit to work. On other forums, people have spoken about how
degrading and unfair the assessments have been. There is a lot of talk of suicide.50These do
not seem like idle threats, but cries of despair from a vulnerable group in society who
certainly do not feel protected by the new legislations.
I would argue that the medical assessments are unfit for their theoretical purpose: to
ensure that those who are unable to be able to carry out functional employment due to
illness or disability are entitled to extra help and financial support by the State.
Functional employment refers to the ability of a sick or disabled person to enter into paid
employment adapted to meet their personal needs on a regular basis, including the ability to
carry out the duties required of them to meet the conditions for such paid employment. For
people with stress-induced or stress-enhanced illnesses, such as Fibromyalgia, Lupus andsome Mental Illnesses, functional employment should not induce or exacerbate the
symptoms of their illness. I would furthermore argue that the medical assessments arefit for
their ideologicalpurpose: to reduce the numbers of genuine claimants who would ordinarily
meet the criteria for being unfit to work in order to reduce the budget deficit and to meet the
targets set by the coalition Government for Welfare Reform as detailed above.
Changes to the benefits awarded to the long-term sick and disabled are some of the most
controversial aspects of the Welfare Reform Bill. In addition to the change from IB to ESAdiscussed above is the change from DLA to Personal Independence Payment (PIP). This
latter change is one that will cause a lot of impact on the people who need help the most.
Central estimates put the rate of fraud on DLA at 0.5% of all claimants; yet the
Government has targets to reduce the number of claimants by 20-23%.51 This raises the
concern that up to 22.5% of genuine claimants with genuine needs will lose their entitlement
to benefit. DLA currently passports a lot of other benefits, including access to the Blue
Badge scheme, extra payments in means-tested benefits and tax credits. As DLA is needs-
tested rather than means-tested, even a millionaire can claim the money if the need is there.
Controversially, the first cut will be Mobility payments for people in care homes that are
funded by the Local Authority (LA). The issue concerns duplicate payments for the same
services. The belief is that the LA provides help with transport. However, critics argue that
residents contribute towards transport costs through their mobility payments and that without
51Crown Copyright2011 p.35
50BBC2009
Page 19of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
20/29
Welfare Reform Bill
these extra payments residents will lose the ability to go out for social reasons. The LA
currently provides transport for essential reasons only, e.g. going to hospital.52
PIP will differ from DLA in several ways:
Daily Living Component: based on ability to carry out key activities in daily life with
two tiers, instead of the three levels of Care in DLA.
Mobility component: based on ability to get around will be removed for people living
in LA-funded care homes.
Six month qualifying period instead of three.
No automatic entitlement for people with particular condition (except terminally ill)
Regular checks on individuals needs
Takes into account aids and adaptations
Face-to-face assessments by independent healthcare professional
Penalty for failing to notify changes to health and ability
Can be forced to seek help with health needs as eligibility for benefit.
Disabled people have argued that the inclusion of aids and adaptations in assessment of
ability, and reducing benefit entitlement accordingly, will disadvantage them, as they often
use their DLA to maintain the aids or pay for additional energy costs in charging up batteries
and using electrical equipment. Cutting their funding could render the aids useless or allow
them to fall into disrepair. Now disability charities are threatening to take the Government to
court for a judicial review.53Furthermore, due to the problems already identified with Atos
Healthcare and their methods of undertaking assessments for ESA, many people on DLA
are concerned that they may lose their benefit altogether after being reassessed.
Housing benefit changes will also impact on disabled people, especially where they live in
adapted social housing with extra bedrooms and classed as under-occupied. The cost of
rehousing and readapting properties for people in accommodation deemed under-occupied
has been argued to have a negative effect on the deficit.54
54Birch2011
53Moynihan2011
52 (Ibid. pp37-44)
Page 20of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
21/29
Welfare Reform Bill
Other changes proposed in the WRB11 include forcing lone parents onto JSA as soon as
their youngest child is five. This will come into effect in January 2012 and the aim is to
encourage lone parents to return to work once their youngest child is in school.55
I am concerned that this measure will create unnecessary stress on these parents, who
will need to find work that is flexible enough to cater for the children's school hours and the
possibility of taking time off for sick children or INSET days. This concern is backed by the
charity Gingerbread, who voiced similar concerns during the consultation period.56I believe
that JSA requirements to actively seek full-time work will also negatively impact on lone
parents without additional family support.
Landlords will be less likely to accept Local Housing Allowance (LHA) recipients once the
payment is linked to the Consumer Price Index (CPI) rather than the Retail Price Index
(RPI), as the LHA increases may not match the market rent. The CPI does not take into
account housing costs. This will negatively affect vulnerable people living in private rented
accommodation who may fall into rent arrears.57
I believe that it is unfair to use a fiscal tool that explicitly excludes housing costs to
determine the rate of increase of those same housing costs. I believe that the people who
experience the most difficulty in finding and keeping full-time employment will be the most
disadvantaged by these measures, and the proposal is certainly not protecting them.
Social tenants will be affected by the reduction in Housing Benefit for under-occupied
properties. Although it seems reasonable to ask people to move into smaller accommodation
if necessary to free up the social tenancy market, there are not enough properties available
to move these people into.58As a result many tenants may fall into arrears and face eviction
from their properties. This creates a tautological situation whereby the Housing Associations
need money to build more properties for people to afford to live in, but with rent arrears and
a lack of stability in the social market financial companies may refuse to lend sufficient
money to build those houses.59
Furthermore, the move to cap the amount of benefits one household can receive at50060 will cause even more difficulty for vulnerable groups, as they may not be able to
60 (Ibid. p 18)
59Crown Copyright2011 p.24
58Birch2011
57Crown Copyright2011, pp.17, 25-27
56 (Ibid.)
55Crown Copyright2011 p.10
Page 21of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
22/29
Welfare Reform Bill
afford to top-up their rent. Estimates suggest that 40,000 people could be made homeless
by the new proposals61, and will affect families who may have to move away from their
communities to find affordable housing. This could have a direct knock-on effect on
employment as these decanted families may have to move far away from their jobs in order
to find suitable affordable accommodation, and may have to leave extended family behind
who could help them with childcare and other support that would allow the family to work. 62
Again, I believe that lone parents will suffer the most from these changes.
62 (Ibid. pp23-24)
61Boffey et al.2011
Page 22of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
23/29
Welfare Reform Bill
Conclusion:
Although current welfare reform in the UK looks progressive compared to the 1940s, I
would argue that we are moving backwards rather than forwards. Many of the ideologies
currently espoused echo the ideologies from the sixteenth century and the Victorian era.
During the Victorian era, workhouses were introduced to discourage the use of welfare
benefits as a way of life. Entering the workhouse was seen as a last resort.63The
cornerstone of the institution was that doing anypaid work was better than entering the
workhouse.
I would argue that abolishing the workhouses and introducing comprehensive benefits
has encouraged generations of dependent people who would rather choose a relatively
good life on benefits, than working for a pittance.
However, there is a lot of discrepancy between how the benefits system affects different
groups in society: a single person trying to cope on approximately 60 a week JSA will
struggle more than a family with several children living in a big rent-free house with a total
benefit income of over 30,000 a year.64 I would argue that this family may never achieve
this level of finance through low-paid work, and that by returning to work, the family may see
a drop in their standard of living. They are caught in the benefit trap.
The welfare state currently makes it harder to return to work due to its comprehensive
and often complicated system of passported benefits. I believe it is a good thing that the UK
has begun to replace this wide variety of benefits with an ever-decreasing range that are
monitored and sanctioned where necessary.
I believe that, although we have a nation of people who have had different expectations
for generations, the idea of promoting the dignity and responsibility of the individual for their
own welfare, and the reduction of state help is a change that is necessary, wherenecessary.
However, I am concerned that disabled and vulnerable people are being held responsiblefor the actions of more able and 'idle' claimants. The quality of their lives is set to deteriorate
through the reforms.
I am concerned that people who are too sick or unable to sustain functional employment
will be forced into a situation that could make their conditions deteriorate further. The idea
that the state could effectively accuse them of fabricating the extent of their conditions by
moving them off sickness benefits or reducing the level of their benefits may have a
64Daily Mail2010
63Fraser2003
Page 23of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
24/29
Welfare Reform Bill
devastating effect on the mental, physical and emotional well-being of those affected. In
setting absolute targets of a 20% reduction in claimants/disability budget the government
has failed completely to honour their commitments to those who truly need the state to
support them.
Furthermore, by putting their homes and family life at risk, the government is set to create
an even bigger divide between those who can and those who simply cannotwork.
The Coalition Government's current plans undermine the very same dignity they purport
to encourage in those whose self-esteem and place in society is often low. The very real
threat that many disabled people may commit suicide as a direct result of these changes
should not be disregarded as hyperbole; the people who push through the changes without
due care and attention would, in my view, be guilty of the manslaughter of everyone who
feels forced into this position.Although I agree with welfare reform, I would therefore argue that in its current form the
WRB11 makes a mockery of the pledge "to protect the poorest and most vulnerable in
society". It is nothing more than political spin and the Government should be ashamed of
themselves.
Page 24of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
25/29
Welfare Reform Bill
Works CitedBBC http://www.bbc.co.uk/ouch/messageboards/NF2322273?
thread=7004085&post=95505288Ouch! Didability Forums[Online]2009[Cited: 26 05
2011]Posts up till 2011http://www.bbc.co.uk/ouch/messageboards/NF2322273?
thread=7004085&post=95505288
BBC News National Results after 650 of 650news.bbc.co.uk[Online]06 05 2010
[Cited: 07 07 2011]http://news.bbc.co.uk/1/shared/election2010/results/
UK Politics Blair determined on welfare reformnews.bbc.co.uk[Online]23 05 1999
[Cited: 01 07 2011]http://news.bbc.co.uk/1/hi/uk_politics/350558.stm
BBC NI minister 'vigilant for unjust welfare reform cuts'bbc.co.uk[Online]03 10 2010
[Cited: 20 05 2011]http://www.bbc.co.uk/news/uk-northern-ireland-11462542
Victory in overpaid benefits casebbc.co.uk/news[Online]14 10 2009[Cited: 05 06
2011]http://news.bbc.co.uk/1/hi/uk/8307059.stm
Birch, Jules Going spareinsidehousing.co.uk[Online]21 06 2011[Cited: 10 07
2011]http://www.insidehousing.co.uk/home/blogs/going-spare/6516194.blog
Boffey, Daniel; Helm, Toby Eric Pickles warns David Cameron of rise in homeless families
riskguardian.co.uk[Online]02 07 2011[Cited: 03 07 2011]http://www.guardian.co.uk/
politics/2011/jul/02/eric-pickles-david-cameron-40000-homeless
Cawston, Thomas How to scale back welfare spending - and close the deficit
Conservative Home: Centre Right[Online]14 10 2010[Cited: 29 05 2011]http://
conservativehome.blogs.com/centreright/2010/10/thomas-cawston.html
Cookson, Matthew Clement Attlee's 1945-51 government: when Labour's best wasn't good
enoughsocialist worker online[Online]16 08 2003[Cited: 09 07 2011]http://
www.socialistworker.co.uk/art.php?id=3048
Crown Copyright Early day motion 1529www.parliament.uk[Online]03 03 2011[Cited:
20 05 2011]http://www.parliament.uk/edm/print/2010-11/1529
Page 25of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
26/29
Welfare Reform Bill
Welfare Reform Bill: Reform of disability benefits, Housing Benefit, and other
measuresparliament.uk[Online]04 03 2011[Cited: 26 05 2011]www.parliament.uk/
briefing-papers/RP11-23
Welfare Reform Bill: Universal Credit provisionsparliament.uk[Online]07 03 2011
[Cited: 26 05 2011]www.parliament.uk/briefing-papers/RP11-24
What to do if your benefit is overpaid[Online][Cited: 19 05 2011]http://
www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/
BeginnersGuideToBenefits/DG_10035707
Daguerre, Anne; Taylor-Gooby, Peter Welfare reform in the UK, 1985-2002kent.ac.uk
[Online]2002[Cited: 20 05 2011]http://www.kent.ac.uk/wramsoc/workingpapers/
firstyearreports/nationalreports/ukcountryreport.pdf
Daily Mail Daughter of benefits scrounger with TENTH child on the way brands her own
father 'lazy and useless'dailymail.co.uk[Online]17 08 2010[Cited: 23 06 2011]http://
www.dailymail.co.uk/news/article-1303794/Daughter-benefits-scrounger-tenth-child-way-
brands-father-lazy-useless.html
Derby Evening Telegraph Miners' Strike, 1984-85: Dennis SkinnerBygone Derbyshire
[Online]02 02 2010[Cited: 15 06 2011]http://www.bygonederbyshire.co.uk/stories/8203-
Miners-Strike-1984-85-Dennis-Skinner/article-1798014-detail/article.html
Dickson, Niall UK Politicsnews.bbc.co.uk[Online]27 09 1999[Cited: 09 07
2011]http://news.bbc.co.uk/1/hi/458626.stm
Disability Alliance Welfare Reform Act 2007disabilityalliance.org[Online]20 06 2011
[Cited: 01 07 2011]http://www.disabilityalliance.org/ibchange.htm
Welfare Reform Act 2009disabilityalliance.org[Online]20 06 2011[Cited: 01 07
2011]http://www.disabilityalliance.org/welfare5.htm
Donnison, Steve; Whitehead, Holiday IB to ESA pilot begins
www.benefitsandwork.co.uk[Online]11 10 2010[Cited: 05 06 2011]http://
www.benefitsandwork.co.uk/news/latest-news/1254-ib-to-esa-pilot-begins
Duncan-Smith, Iain Welfare Reform Bill: 9th March 2011: House of Commons Debates
They Work For You[Online]09 03 2011[Cited: 30 04 2011]http://
www.theyworkforyou.com/debates/?id=2011-03-09a.919.0
Page 26of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
27/29
Welfare Reform Bill
DWP Ad-hoc analysis of incapacity benefits face-to-face assessments
Research.dwp.gov.uk[Online]12 2010[Cited: 05 06 2011]http://research.dwp.gov.uk/
asd/asd1/adhoc_analysis/2010/Adhoc_analysis_of_face_to_face_assessments.pdf
Fraser, DerekThe Evolution of the British Welfare StateHampshirePalgrave
Macmillan3rd Edition2003
Full FactWelfare Reform BillFull Fact2011Parliamentary Briefing: Second Reading, 9
March 2011
Gentleman, Amelia 'The medical was an absolute joke'guardian.co.uk[Online]23 02
2011[Cited: 12 05 2011]http://www.guardian.co.uk/politics/2011/feb/23/government-
reform-disability-benefits
Hasan, Mehdi The Liberal Democrat surrenderNew Statesman[Online]12 05 2010
[Cited: 01 06 2011]http://www.newstatesman.com/blogs/mehdi-hasan/2010/05/lib-dem-
tory-labour-clegg
Humphrys, John Welfare reform: will it work this time?yougov.co.uk[Online]08 07 2011
[Cited: 09 07 2011]http://today.yougov.co.uk/commentaries/john-humphrys/will-welfare-
reform-work-this-time
Janet-M Thread: How much the law says you need to live onConsumer Action Group
[Online]18 03 2006[Cited: 12 07 2011]Post #1http://www.consumeractiongroup.co.uk/
forum/showthread.php?2001-How-much-the-law-says-you-need-to-live-
on&p=12544&viewfull=1#post12544
Joseph Rowntree Foundation Reviewing the Right To Buyjrf.org.uk[Online]12 1998
[Cited: 11 07 2011]http://www.jrf.org.uk/sites/files/jrf/HRD28.pdf
Kennedy, Steven Recovery of benefit overpayments due toParliament.uk[Online]08 02
2011[Cited: 05 06 2011]http://www.parliament.uk/briefingpapers/commons/lib/research/
briefings/snsp-05856.pdf
Lewis, Paul Nick Clegg: Leaders' debate 'just the start' of Liberal Democrat campaign
guardian.co.uk[Online]16 04 2010[Cited: 07 07 2011]http://www.guardian.co.uk/
politics/2010/apr/16/nick-clegg-liberal-democrat-campaign
Moore, StephenSocial Welfare Alive!CheltenhamNelson Thornes3rd Edition2002
Page 27of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
28/29
Welfare Reform Bill
Mouseprice Average current values - Bolsovermouseprice.com[Online]2011[Cited:
09 07 2011]http://www.mouseprice.com/area-guide/average-house-price/S44/Bolsover
Moynihan, Tim Legal action threatened over disability cutsindependent.co.uk[Online]02
07 2011[Cited: 11 07 2011]http://www.independent.co.uk/news/uk/politics/legal-action-
threatened-over-disability-cuts-2305760.html
Mumsnet Benefits calculator says I'm worse off to work - is this possible?!!!mumsnet
[Online]01 05 2011[Cited: 20 05 2011]http://www.mumsnet.com/Talk/lone_parents/
748025-Benefits-calculator-says-I-39-m-worse-off-to-work/AllOnOnePage
Owen, Paul Hardest Hit: Disabled people march in London Wednesday 11 May 2011
guardian.co.uk[Online]11 05 2011[Cited: 11 05 2011]http://www.guardian.co.uk/society/joepublic/2011/may/11/disabled-people-hardest-hit-march-in-london
Oxford Mail Tony Blair backs the New Dealoxfordmail.co.uk[Online]28 01 1999[Cited:
10 07 2011]http://www.oxfordmail.co.uk/archive/1999/01/28/Oxfordshire+Archive/
6637391.Tony_Blair_backs_the_New_Deal/
Parliamentary Copyright Welfare Reform Bill 2010-11Parliament UK[Online]29 04
2011[Cited: 30 04 2011]http://services.parliament.uk/bills/2010-11/welfarereform.html
Research & Information Team Monthly Unemployment Statisticsbolsovercvp.org.uk
[Online]01 07 2010[Cited: 09 07 2011]http://bolsovercvp.org.uk/lsp_laa/lsp/mun
%20(2).pdf
The Guardian Welfare reforms will make 1.4m families worse off, says IFS
guardian.co.uk[Online]12 01 2011[Cited: 20 05 2011]http://www.guardian.co.uk/
politics/2011/jan/12/welfare-reforms-make-families-worse-off-ifs
Travis, Alan Q&A: How the coalition government will workguardian.co.uk[Online]12 05
2010[Cited: 11 07 2011]http://www.guardian.co.uk/politics/2010/may/12/coalition-
government-explained?intcmp=239
Unknown Author Cameron: Clegg has not sold outmetro.co.uk[Online]29 06 2010
[Cited: 01 07 2011]http://www.metro.co.uk/news/833385-cameron-clegg-has-not-sold-
out
Page 28of 29
Kirstein Gourlay
7/23/2019 UK Welfare Reform in the 21st Century
29/29
Welfare Reform Bill
w4mp.org Welfare Reforms - What's going on?[Online]21 03 2011[Cited: 26 05
2011]http://www.w4mp.org/html/library/guides/1103_welfare_reforms.asp
WelfareInfo.org Welfare Information: US Welfare System - Help for US Citizens
welfareinfo.org[Online]2011[Cited: 11 07 2011]http://www.welfareinfo.org/
Wheeler, Brian Barnsley by-election: What now for Lib Dems?news.bbc.co.uk[Online]04
03 2011[Cited: 05 07 2011]http://www.bbc.co.uk/news/uk-politics-12645311