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Friday, 1st April 2011

At last, Grayling takes on the Ancien Regime

Fraser Nelson 3:16pm

To disguise the radical nature of reform, one need only make it boring. And here Chris Grayling has succeeded spectacularly. Today he has announced further details on the ‘Work Programme’ and the ‘Benefit Migration’, which sound like the type of well-intentioned but doomed reforms that ministers tried over the Labour years.

The welfare state has incubated the very ‘giant evils’ it was designed to eradicate. There are, scandalously, 2.6 million on incapacity benefit right now – a category which ensures they don’t count in unemployment figures. Brown didn’t care much, but Grayling is taking this head-on. In tests on 1,700 IB claimants in Burnley and Aberdeen, it was found that 30 percent were fit for work, 40 percent genuinely incapacitated and the rest capable of some work.

When Iain Duncan Smith was recalled to run welfare reform, his revolutionary ‘universal credit’ was adopted on the condition that it was applied over a ten-year period. Grayling was tasked with the more immediate reform. Today he began to implement the plan he devised three years ago with the Green Paper on welfare reform. It was a series of welfare-to-work reforms so radical that they caught the public imagination. Labour copied them. However, James Purnell could never get Brown to approve his more radical plans, so the agenda has been on ice. Until now.
   
The ambition is staggering. Grayling is to re-assess 2.2 million claimants – that’s the equivalent of the population of Slovenia – and place them into three categories. Those ready for work will be put onto the JobSeekers’ Allowance, those genuinely not capable of work will stay as they are, and those who are capable of doing a limited amount of work will be so categorized.

The government intends to start by assessing 7,000 people a week: a staggering amount. This will then rise to 10,000 in April. Meanwhile, more welfare-to-work providers will be appointed and paid up to £14,000 for getting hard-to-place people in work. The highest payouts would go, for example, to those who train someone off incapacity benefit and into work for at least two years. Grayling has performed the AME/DEL switch (or ‘Amy Toby’ as the BBC’s Kim Catcheside called it) which means the budget previously earmarked for the dole can be accessed to pay for people who come off dole. It says much about the difficulty of getting welfare reform through that this basic accountancy manouevre is seen as a revolution in Whitehall.
  
It will be a tortuous process. The small print of the Budget included, for example, a prediction that more people will lodge appeals against the governments’ decision than was originally thought, costing another £32 million. It will be a battle, but one that has been put off for far too long. Blair spoke about ending welfare dependency as a lifestyle choice; Grayling is about to do it.

Filed under: Benefits (159 more articles) , Chris Grayling (49 more articles) , Coalition (2088 more articles) , Economy (1021 more articles) , Employment (149 more articles) , Iain Duncan Smith (148 more articles) , Public service reform (343 more articles) , UK politics (5406 more articles) , Unemployment (92 more articles) , Welfare reform (43 more articles)

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dirtbox

April 1st, 2011 3:51pm Report this comment

Excellent, destroy the welfare culture and get them back to work with the rest of us. Let's hope that somewhere in Abu Dhabi or Scotland Mr Brown is being forced to watch this.

oldtimer

April 1st, 2011 3:58pm Report this comment

Let us hope he makes better progress than some of his colleagues who have run into difficulties at the courts.

Concerning which, Lord Heseltine was interviewed on the Daily Politics about the legisation that enabled the sale of council houses back in the early 1980s. Before he tabled the Bill he asked a leading QC to work out how he would frustrate it in the Courts once it was enacted. The QC came backwith an answer. Heseltine asked him to rewrite the Bill so it could not be so frustrated. This revised Bill was the basis for the Act. It was, he believes, the reason why he was able to get the sale of council houses through Labour local authorities, despite their hostility.

TomTom

April 1st, 2011 4:22pm Report this comment

"Grayling is to re-assess 2.2 million claimants – that’s the equivalent of the population of Slovenia"

Is Slovenia really relevant in this context ? You might add that we have had 150% population of Slovenia IMMIGRATE to Britain in the past decade, but you don't.

Tron

April 1st, 2011 4:34pm Report this comment

I wish I had your faith, Fraser. If you were running the country it might happen but David "I love the BBC" Cameron and the Limp Dems ? I think not.
They said they would get rid of regulation and Red Tape. I've heard this for 40 years,it never happens.
The whole country ,led by the BBC, love public spending. The only people who don't are Fat Cat, Posh, Baby Eating, Bankers and their friends in the Nasty Party. Don't you listen to phone-ins on the radio?

In2minds

April 1st, 2011 4:40pm Report this comment

IB claimants -

"30 percent were fit for work, 40 percent genuinely incapacitated and the rest capable of some work".

We should also consider how the fit, the 30%, get wrongly classified. Often a GP will make the assessment. So is this 'mistake' a measure of their skills?

Michael

April 1st, 2011 4:52pm Report this comment

"Before he tabled the Bill he asked a leading QC to work out how he would frustrate it in the Courts once it was enacted."

The problem now being that all the 'leading' QCs who could offer this advice are now hard lefties themselves and would leave backdoors open...

AF

April 1st, 2011 5:21pm Report this comment

In2minds,
Is this'mistake'a measure of GPs skills.
More likely fear of getting it wrong and throwing away a career,or being bullied.

justathought

April 1st, 2011 5:29pm Report this comment

The government intends to start by assessing 7,000 people a week: a staggering amount."

Really, is that all? Why is the productivity rate so low? The country is facing a financial crisis and is hemorrhaging money, lets be a little bit more ambitious in the rate of revision of these claimants.

ians12

April 1st, 2011 6:13pm Report this comment

The above rhetoric is to be expected from those that have no need of any state benefits, who no doubt fund their own private doctors and the schools their children attend. The vast majority of us though will be dependant at some time on the state "National Insurance" that many of us have paid into for numerous years whilst employed. Under the new rules anyone unfortunate enough to have an accident or suffer from stress in the workplace will only be able to claim the new ESA (sickness benefit) for a LIFETIME TOTAL of 12 months. Once you have used that up that's it, you get nowt. Strangely enough this curtailing of benefits which we have paid into the system for coincides with a major US insurance companies plans to offer out of work insurance in the UK. Any bets on which MPs and Peers have connections with this company?

Mozza

April 1st, 2011 6:30pm Report this comment

I suggest you read the comments from Prof Paul Gregg in the Guardain before you begin quoting evidence from the two IB pilots that demonstrated that the quoted figures were entirely bogus with countless numbers of genuine disabled people being wrongly calssified by countless admin errors. Chronically sick and disabled people are becoming more and more sick and tired of able bodied, well paid professionals believing government fantasy without any detailed information. Check out Citizens Advice, Macmillan, Arthritis Care or any other frontline charity's reports before you accept a word from any government Minister.

D.H.Boater

April 1st, 2011 7:01pm Report this comment

It's all very well all these Politicians saying that we must get the unemployed back into work,which I do agree with,but and it is a very big BUT,how on Earth can we do this when they are still letting immigration get out of hand?

emale

April 1st, 2011 8:22pm Report this comment

What every unemployed man and woman needs is an employer willing to exchange his cash for their skill and time. It may be difficult to find many who are willing to fork out £5.93 per hour plus another £0.82 for Employers NI and a minimum of 28 days paid holiday worth another 12% on top of that.

Dr Crackles

April 1st, 2011 8:54pm Report this comment

@ Ians12

No, the fact remains that working people do not wish to fund those who refuse to work and cheat the system. The welfare state was never set-up for 'parasites', but those that had worked and fought for the freedom we now enjoy. The have passed into history and so should the current welfare-system.

ians12

April 1st, 2011 10:21pm Report this comment

The funny thing about those "immigrants" is they (mostly) come from EU countries and so are welcome here as EU citizens. Its also significant that almost none of them are disabled in any way. Why do you think that is?

Will J

April 1st, 2011 11:31pm Report this comment

Grayling's scheme will be better than its predecessor, but it will still fail because it still involves central government trying to micro-manage what is essentially a local government function. Welfare does not need to be run centrally and does not benefit from it. As Hannan and Carswell have argued: devolve it!

ollie

April 2nd, 2011 12:01am Report this comment

It is a battle against entrenched left wing dogma that must be won. The Tories will take all the tough decsions, and Labour will, sadly, win the next election with the God awful Miliband as PM.

Fergus Pickering

April 2nd, 2011 3:31am Report this comment

Now Mozza, why would I read anything in The Guardian? And any damn fool can be a professor, don't you know?

Martin Cole

April 2nd, 2011 9:34am Report this comment

"Money is not the tool of the moochers, who claim your product by tears, or of the looters, who take it from you by force. Money is made possible only by the men who produce." Ayn Rand

Read Ayn Rand or see the movie of Atlas Shrugged, when it is released this month, if you are able to find it!

The politicians, the looters, depend upon the moochers, welfare recipients, to rob and defraud those who produce. 'Going Galt' is now the only way it can be stopped, as things have reached such a dreadful state.

Iain Hill

April 2nd, 2011 10:19am Report this comment

i had direct experience of the test, assisting a friend. It was narrowly conceived, and designed to give the answer "fit". There was no opportunity to include information on a whole range of disabilities, nor to include a doctor's assessment. The test would not have withstood any level of independent professional scrutiny. It was only my friend's inability to face a tribunal which prevented him from mounting a challenge, which he would easily have won. I urge anyone facing this test to challenge it, and expose its inability to deal with serious disability.

Incidentally, you are wrong about Purnell and Brown. The system, was implemented here in Glasgow, and my friend lost 2 years' benefit before retiring age. Not a "scrounger", he had worked and paid all his life..

lola

April 2nd, 2011 11:24am Report this comment

Not just IB, but all the 'ill health' early retirees from PS pension schemes.

As a business owner with asthma, hay fever, stomach ulcers, heart problems, back issues etc, that works 24/7 and pays his own way (and shed loads of tax) and sees IB claims and PS pension 'ill health' early retirements granted to people less 'incapacitated' than I am I have increasing reduced sympathy. Plus if you do get out on these official scams you also get a lot of other benefits as well.

lola

April 2nd, 2011 11:30am Report this comment

Ollie. I fear you are right. But why? IMHO the 'not new labour' parties are utterly failing to make the sound arguments for the small state, liberty and responsibility. There is in effect no opposition to a cod-Keynsianistic consensus. They all love the Big State and the culture of the unaccounatble functionary. Again IMHO if you do the sums and start reducing the problem to the fundamentals you end up with a major prerequisite, and that is to get out of the EU. Once you've done that and installed sound money and low tax policies the rest should follow.

Fat chance.

justathought

April 2nd, 2011 12:54pm Report this comment

The system needs to recognize that most incapacity claimants and DLR while under some genuine form of disability feel they are stigmatized by being deemed unfit for work.

The reality is the sick and disabled want the dignity that employment brings and are keen to find some suitable employment within their ability.

I agree that the new ESA should be limited as to do otherwise is to disenfranchise and isolate those most in need of assistance back into work. On a personal note my experience with working with disabled is that they were the most reliable and long term employees.

Certainly unemployment benefit should be limited to 5 years in a lifetime for the same reasons.

Keith

April 6th, 2011 1:37pm Report this comment

With luck the money saved by the nation on benefit payments can be used to increase our aid to Pakistan.

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