Welfare Reform Act 2007

Tuesday 12th September 2006 at 12:12 AM

The Welfare Reform Bill was published on July 4 2006 and is the next step in the government’s move to reform the welfare state and move people off benefits and into long-term work.

It builds on the green paper ‘A new deal for welfare: Empowering people to work’ released in January 2006.

The Bill contains powers to replace incapacity benefits with a new Employment Support Allowance that alongside a new Personal Capability Assessment will help give individuals more relevant support and get them into appropriate work.

It will also provide increased provisions to tackle benefit fraud, strengthening the “two strikes” rules so that people who commit a second benefit offence within five years of their first one can have their benefit withdrawn.

Also included in the Bill is a framework to reform and improve the design and administration of Housing Benefit, through the roll-out of the Local Housing Allowance– a simplified Housing Benefit scheme that is currently being tested in 18 Local Authority areas – across the private sector and measures to tackle anti-social behaviour.

Other provisions to increase employment opportunity – such as help to lone parents and increasing employment opportunities for older people – will be implemented through secondary legislation.

At the launch of the Bill work and pensions secretary John Hutton said:

“For too long people have been written off by the system. This will change. We are putting in place more tailored help and support for individuals to help them get back into work. In exchange for this additional help we will be asking for people to engage with us and take the necessary steps to get back into the work place.

“This is not about forcing people back into work where it is not appropriate. We know that some need the extra help and assistance that only the welfare state can provide and they will continue to receive their benefits without conditionality.”

Conservative work and pensions spokesman Philip Hammond commented:

“This Bill is a step in the right direction, but for many people trapped on incapacity benefit it is far too late.

“A robust reform of the welfare system has to have measurable targets and a clear baseline. So far we have had a lack of transparency from the government.

“These reforms must be about helping existing claimants back into work not just about reducing new claimants.”

For the Liberal Democrats Danny Alexander said:

“The government must not ride roughshod over Parliamentary scrutiny with the Welfare Reform Bill. Today’s Bill fails to give any detail over the most important welfare reforms for a generation.

“The lack of clarity on incapacity benefit reform means great uncertainty for sick and disabled. People deserve to know what they will be asked to do and what rights they will have in return to guarantee their security and the support they need in finding work.

“This Bill presented a great opportunity to get millions off incapacity benefit and back into work. As it stands this bill sidesteps many of the most difficult issues and gives the government licence to make major changes without full parliamentary scrutiny system for years to come.”

2005/06 Session

House of Commons

First reading: July 4 2006 [HC Bill 208]

Second reading: July 24 2006

Standing Committee A: