Chancellor Rachel Reeves has announced an overhaul to the benefits system will be unveiled by the Labour Government before the Spring Budget during her speech to “kickstart economic growth” in Oxfordshire this morning.
Reeves revealed the Work and Pensions Secretary Liz Kendall will outline changes to the Department for Work and Pensions (DWP), impacting those on payments such as Universal Credit and Personal Independence Payment (PIP), as part of a benefits clampdown.
These changes to the social security system come as part of the Government’s wider plans to bolster the economy following the pandemic and get more people back into work.
During her speech, the Chancellor said: “Growth isn’t simply about lines on a graph, it is about the pounds in people’s pockets, the vibrancy of our high streets and the thriving businesses that create wealth, jobs and new opportunities for us, for our children, and grandchildren. We will have succeeded in our mission when working people are better-off.”
Among the senior Labour figures in the audience during the Chancellor’s speech included Environment Secretary Steve Reed, Transport Secretary Heidi Alexander and science minister Lord Vallance.
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The Chancellor unveiled her plan to “kickstart economic growth”
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Despite the focus of the Chancellor’s speech being on improving GDP, she confirmed that “fundamental” reform to Britain’s welfare system is on its way, which will lead by Kendall.
Specifically, Rachel Reeves cited that the Government ministers will be “looking at areas that have been ducked for too long, like the rising cost of health and disability benefits”.
According to the Chancellor, the Work and Pensions Secretary will break down the Labour’s plans for widespread reform ahead of the Spring Budget, which is set for March 26.
Last week, Kendall confirmed plans to give the DWP sweeping new powers to crack down on benefit fraudsters in which is being referred to as the “biggest clampdown in a generation”.
According to the forecasts from Office for Budget Responsibility (OBR) in October, around half of claims for Universal Credit will be for poor health by the end of the decade.
If this estimate is accurate, taxpayers will be forking over around £100billion annually by 2030 unless action is taken. Under plans rolled out last week, fraudsters who scammed £7billion from the DWP could face driving bans.
Those who repeatedly falsely claim benefit support, and refuse to repay their debts, may end up disqualified from driving for up to two years, under legislation brought forward to Parliament.
DWP investigators will be given power to apply for search warrants, allowing them to work alongside police to search premises and seize evidence like computers and smartphones.
While it is unknown what will be announced before Reeves’s fiscal statement in March, Kendall has signaled the Government is committed a tougher stance on those taking advantage of the welfare system.
The DWP minister explained: “said: “We are turning off the tap to criminals who cheat the system and steal law-abiding taxpayers money.”
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“”Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are used proportionately and safely. People need to have confidence the Government is opening all available doors to tackle fraud and eliminate waste, as we continue the most ambitious programme for Government in a generation – with a laser-like focus on outcomes which will make the biggest difference to their lives as part of our Plan for Change.”
On top of this, Kendall has also revealed plans to transform Jobcentres into a comprehensive national jobs and careers service, despite a new DWP survey finding that less than a third of people would consider using one for job-seeking advice.
Kendall added: “Thousands of employers are desperate to recruit, and millions of people are desperate to earn money and get on in their jobs but both sides are being failed by a system that is not fit for purpose.”
“That is why we will bring forward the biggest reforms to employment support in a generation. This includes overhauling our jobcentres into a genuine public employment service, open to everyone who wants to use it and is the go-to recruitment centre for businesses.”
