Welfare reform is the best way to get people back to work

Moving claimants from sickness benefit and tax credit on to UC means they can receive proper targeted help and bolster the labour force

‘700,000 more children were able to grow up with the advantage of seeing their parents go out to work’

The Government’s Autumn Statement contained a welcome commitment to further welfare reform to get more people back to work following the pandemic.

The debate has centred lazily on why we should not raise benefits in line with inflation. This argument failed to take into account that benefits had over the past year fallen below the rate of inflation by some 3.5 per cent. Failing to increase them proportionally this time would have been damaging for a number of families.

Building on my welfare reforms during the coalition years, however, would save money and save lives. When I brought in Universal Credit with other reforms, long-term unemployment fell by half.

Even better, the percentage of children living in workless households

‘The Health Department recognises that work is a health treatment for many with mental health problems’

‘There’s one programme that should be rolled out alongside Universal Credit, and that’s Universal Support’

fell from one in six to below one in 10, meaning that 700,000 more children were able to grow up with the simple but life-changing advantage of seeing their parents go out to work.

Astonishingly, even after all the turbulence of the pandemic, there remain a million fewer workless households today than there were before my reforms. Work also remains the single best route out of poverty.

New analysis from the Centre for Social Justice, however, estimates that there has been a 23 per cent increase in the number of working-age benefits claimants since spring 2020. This is costing an extra £13billion. The CSJ’S analysis shows that the overall rise in working-age welfare has been driven by increases in claims among those exempt from requirements to work – usually owing to physical and mental health problems, disabilities or caring responsibilities.

While the great flexibility of Universal Credit has succeeded in bringing claims back in line with pre-pandemic trends for those most immediately able to work, the numbers in the more vulnerable group remain stubbornly high. At present, people on sickness benefit are not allowed to work more than 16 hours. Such a cliff-edge, however, leads in part to those wishing to work longer often working in the black economy. The majority of those on sickness benefit are there because they have mental health issues. Most have anxiety and/or depression, both of which can be treated.

It is worth pointing out that the Health Department recognises that work is a health treatment for many with mental health problems. Official surveys show that at least one in five claimants in this group would like to work – at least 700,000 individuals.

That’s why getting the remaining part of the sickness benefit recipients on to Universal Credit quickly is vital. Once there, they can receive proper targeted help, enabling them to reenter work or increase their hours.

The same is true of the remaining tax credit recipients who have not yet been brought over on to Universal Credit. Again, once that has been done, they can receive targeted help and get into work. There’s one further programme that should be rolled out alongside Universal Credit and that is Universal Support. Once Universal Credit identifies the individual’s problem, they would then be passed on to the support system that would target specific help and thus quickly be able to move them back into work. This is the right way to save money and save lives, at a time when taxes are rising. It is a very Conservative thing to do, as well.