Benefits

Cameron and Osborne may just be about to pull off something incredible. This time last year, The Spectator ran a cover story about a new proposal which we could revolutionise welfare: the Universal Credit. It was an IDS idea: he’d sweep away all 50-odd benefits, and replace it with a system that ran on a simple principle – if someone did extra work, they’d get to keep most of the money they earned. It meant a bureaucratic overhaul, of a system that controls the lives of 5.9 million people. The resistance from HM Treasury, the architect of the tax credit system, was as fierce as it was predictable. But Clegg

For the briefest of moments, the welfare war seemed to have quietened down. But, this morning, a new front may have flared open. Answering questions from the work and pensions committee, Iain Duncan Smith has struck out against the figures for benefit cuts that emerged at the weekend. The Guardian’s Haroon Siddique reports: “During questioning by the work and pensions committee, Duncan Smith was at pains to play down newspaper reports that he and Osborne were at loggerheads with each other. But when asked by committee chair Anne Begg about a variety of figures that had been ‘bandied about’ including the £11bn savings set out in the June budget and

Conservatives have long been strong on family. They believe that families are the glue that sticks us together, and that traditional nuclear families therefore plays an important role in sticking the whole nation together. As a libertarian, I believe that people should live as they choose. Too many young people of my parents’ and grandparents’ generations were forced into marriages that were or became deeply unhappy – but divorce was thought scandalous. So people – particularly women, who rarely had independent means or income enough to escape – endured that misery. Many, too, were humiliated, or prosecuted, for conducting relationships that we would happily accept today. But even as a

Infamously, George Canning and Viscount Castlereagh fought a duel over a policy disagreement; Iain Duncan Smith and George Osborne will follow suit at this rate. I had thought they’d resolved their differences over the upfront costs of IDS’ welfare reform; but the Mail on Sunday reports otherwise, glorying in the glares, savage bon mots and expletives. This is the conundrum: if IDS doesn’t find £10bn in savings, he will not get the £3bn needed to enact his reforms to make work pay. There is something quite heart-warming about IDS’ fight against the institutionally overbearing Treasury, but George Osborne is right: it is unacceptable to give one department, however well intentioned,

The Winter Fuel Allowance was an emotive part of the election campaign, with Labour accusing the Tories of planning to scrap it and David Cameron promising not to. At no point during that debate was it asked whether the WFA was a good way to spend money. Our report earlier this year, Cold Comfort, examined in some detail the demographics of fuel poverty, as well as questioning the logic behind the government’s target. If you take the fuel poverty measure (those spending more than 10% of income on energy) as read, the last government failed utterly to achieve anything on it – as the graph below shows. They introduced the

The Winter Fuel Allowance has tapdanced back onto the political landscape today, and it’s all thanks to some insightful work by the FT’s Alex Barker. He had an article in this morning’s pink ‘un which suggested that IDS is lobbying to have it, and and some other “middle-class benefits”, trimmed to help pay for his benefit reforms. And he’s followed that up with a blog-post explaining how even an apparent “cut” in the allowance may not result in savings for the Treasury or the DWP. Strange but true, as they say. This could be a delicate situation for the coalition. In the background to it all is David Cameron’s pre-election

Sometimes hope lies in the details. Take this morning’s press release from the DWP, for instance. On the surface, it is a response to today’s encouraging employment figures. But what it really is is a new way of approaching the problem of worklessness in this country. And all because of its headline: “Figures reveal five million on out of work benefits as Grayling pledges to make work pay.” This is, as far as I can remember, the first time that the total out-of-work claimant count has reached the summit of an official release. The last government always knew what the figure was, of course, but never drew much attention to

Here’s me about to go on holiday, and the welfare wars seem to be opening up. Neil O’Brien has a piece on it over at the Telegraph website. And Hopi Sen, one of the better leftie bloggers, has written a response to my post yesterday. Partly, he wants to stir: it’s not so much that the Treasury want to block IDS’s reforms, he says, but rather that they are following Osborne’s orders to reduce the deficit. And so it’s one part of the government at war with another. By contrast, the Whitehall wars I outlined are hangovers from the Brown days, where the Treasury set policy for all other departments

There’s been plenty political drama in these past few weeks, but the most crucial agenda – and by some margin – is Iain Duncan Smith’s proposed overhaul of welfare. It doesn’t deserve to be categorised as just another political tussle. As I say in the News of the World today, it is easily the most important issue in Britain, and it is overlooked because of an affliction which most of our political class suffers: that of moral long-sightedness. No one wears wristbands for the British poor, Prime Ministers pledge to “eradicate illiteracy” in Africa yet are strangely indifferent to the illiteracy on our own doorstep. The plight and lives of

So, Iain Duncan Smith has set out proposals to comprehensively reform of the welfare system. The goal is to replace 51 benefits with a single and flexible allowance. It has been claimed that this reform would allow people with jobs to retain more of their benefits and ensure that people who work will always be better off than people on benefits.   There are problems with Iain Duncan Smith’s proposals. Fiscal cost is one, and the Work and Pensions Secretary has already clashed with George Osborne over the price of these proposals. Lowering taper rates to make work more rewarding could mean that more people receive more generous assistance –