Welfare Reform Bill

The tax and benefits system will be made fairer and simpler.


The purpose of the Bill is to:

• Simplify the benefits system in order to improve work incentives.

The main benefits of the Bill would be:

•Making the benefits system less complex.

•Improving work incentives.

•Getting the five million plus people languishing on benefits into work and out of poverty.

•Reducing the scope for fraud and error.

The main elements of the Bill are:

•Removing the confusing complexity of the benefits system, which too often leaves people afraid to make any change to their circumstances and can be a barrier to moving from benefits to work.

•Making people see a gain when entering work through simplifying the benefits system.

•Reducing the scope for fraud and error by making the benefits system simpler.

•Reducing unnecessary administration of benefits. Currently people can have overlapping entitlements or switch between different benefits – around 200,000 people a year cycle between Jobseeker’s Allowance (JSA) and Incapacity Benefit (IB/ Employment and Support Allowance (ESA).

Related documents:

•Building Britain’s recovery – achieving full employment Feb 2010 – http://www.dwp.gov.uk/docs/building-britains-recovery.pdf

•Raising expectations and increasing support Dec 2009 – http://www.dwp.gov.uk/docs/fullversion.pdf

•No-one written off – reforming welfare to reward responsibility – July 2008 – http://www.dwp.gov.uk/docs/noonewrittenoff-complete.pdf

•Benefit Simplification Guide 2009 – http://www.dwp.gov.uk/docs/simplification-guide-best-practice.pdf

•Simplification and the customer – http://www.dwp.gov.uk/docs/simplification-and-the-customer.pdf

Existing legislation in this area includes:

•Welfare Reform Act 2009

•Welfare Reform Act 2007

•Social Security Contributions and Benefits Act 1992

Devolution:

Any benefit changes will apply to Great Britain. Provision or benefits in Northern Ireland is devolved and will require parallel legislation.




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