21st Century Welfare.

Topics: Welfare, Taxation in the United Kingdom, Social programs Pages: 63 (14448 words) Published: February 21, 2013
21st Century Welfare.

Presented to Parliament by the Secretary of State
for Work and Pensions by Command of Her Majesty
July 2010
Cm 7913.


21st Century Welfare.

Presented to Parliament by the Secretary of State
for Work and Pensions by Command of Her Majesty
July 2010.
Cm 7913.


© Crown Copyright 2010.
The text in this document (excluding the Royal Arms and other departmental or agency logos) may be reproduced free of charge in any format or medium providing it is reproduced accurately and not used in a misleading context. The material must be acknowledged as Crown copyright and the title of the document specified.

Where we have identified any third party copyright material you will need to obtain permission from the copyright holders concerned. ISBN: 9780101791328.
Printed in the UK for The Stationery Office Limited
on behalf of the Controller of Her Majesty’s Stationery Office. ID: 2380091 07/10.
Printed on paper containing 75% recycled fibre content minimum. This publication can be accessed online at:
For more information about this publication, contact:
Benefit Reform Division
Department for Work and Pensions
1st Floor
Caxton House
Tothill Street
Tel: 020 7449 7688
Email: benefit.reform@dwp.gsi.gov.uk
Copies of this publication can be made available in alternative formats if required.

Foreword by the Secretary of State


Executive summary


Chapter 1 Introduction


Chapter 2 Problems with the current system


Chapter 3 Principles and options for reform


Chapter 4 Other areas of reform


Chapter 5 Delivery of a reformed system


Chapter 6 Conclusion


Chapter 7 Questions




Seeking views

List of figures.
Figure 1 Benefits, Tax Credits and earnings


Figure 2 Universal Credit – outline structure


Figure 3 The Single Unified Taper


Figure 4 Conditionality


Figure 5 A real-time payment system


21st Century Welfare 1

Foreword by the Secretary of State
After less than three months of innovative Coalition Government, we want to begin real change to the benefits system by making it simpler and more efficient, with a view to fewer benefits, fewer layers of bureaucracy and with financial support firmly focused on making work pay. Less than one year ago, I said that unless politicians and civil servants acted to reform our complicated and inefficient benefits system, then further talk about work being the best route out of poverty would be more empty rhetoric. Too often governments have tried to tackle poverty but ended up managing its symptoms. The changes outlined here are based on a recognition that poverty cannot be tackled through treating the symptoms alone.

The benefits system has shaped the decisions of the poorest in a way that has trapped generation after generation in a spiral of dependency and poverty. This has cost the country billions of pounds every year in cash payments and billions more in meeting the social costs of this failure.

The only way to make a sustainable difference is by tackling the root causes of poverty: family breakdown; educational failure; drug and alcohol addiction; severe personal indebtedness; and economic dependency.

These problems are interrelated and their solutions lie in society as a whole. However, we must recognise that the benefits system has an important role to play in supporting personal responsibility and helping to mend social ills.

We are going to end the culture of worklessness and dependency that has done so much harm to individuals, families and whole communities. Our aim is to change forever a system that has too often undermined work and the aspiration that goes with it.

By actively putting work at the centre of working-age support we want to create a new contract with the British people, which is why we are...
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