David Cameron delivered a speech on 25/6/2012 in which he has started debate about further changes to the Welfare Benefits system-
‘The truth is we can’t just throw money at the problem and paper over the cracks.’
‘working-age benefits – ….where the really big arguments for the future lie.’
· On cutting housing benefit for those aged under 25’s-’ ...the state spends almost £2billion a year on housing benefit for under-25s. There are currently 210,000 people aged 16-24 who are social housing tenants. Some of these young people will genuinely have nowhere else to live – but many will.’
· On increasing Benefits by the Consumer Price Index each year- ‘It might be better to link benefits to prices unless wages have slowed – in which case they could be linked to wages.’
· On how long means tested benefits are paid for- ‘Instead of US-style time-limits – which remove entitlements altogether – We could perhaps revise the levels of benefits people receive if they are out of work for literally years on end. ‘
· On further limiting Housing Benefit- ‘ask if it’s fair that the maximum amount that you can get on housing benefit is set at a level that only the top five per cent of earners would otherwise be able to afford. ‘
· On incentives to work and the benefits system-’we have been encouraging working-age people to have children and not work, when we should be enabling working-age people to work and have children. ‘
· On conditions of claiming benefit-’after a certain period on benefits, everyone who was physically able to would be expected to do some form of full-time work helping the community, like tidying up the local park. ...For those on sickness benefits too, it might be reasonable for them to take more steps to improve their health. ‘
· On conditions of claiming benefit for lone parents-’which is just to visit the Job Centre once every three months or every six months – does not seem to me to be enough, especially in the light of the free childcare that’s now there. ‘
· On having contributed to the system-’your reward for paying in is that you won’t have to face all the tough conditions that we’re imposing on those who haven’t paid anything into the system at all. ‘
· On claiming benefits after leaving school to ask- ‘if it’s right that people continue to have the option of leaving school and going straight onto benefits, without ever having contributed to the system in any way.’
· On paying contributory benefit to ask– ‘if it’s right that we are paying non-contributory benefits to those people who don’t even live in this country.’
· On paying benefits in cash to ask- ‘if it’s right that we continue to pay the vast majority of welfare benefits in cash, rather than in benefits in kind, like free school meals.’
The speech is given at a time when the Government has said it needs to identify a further £10billion in cuts to the Social Security budget. It is not clear when and to what extent these changes might take place. Some could come in the next few years and others could form part of the manifesto for the next election in 2015.