Unions attack leaked 'work-for-dole' plans

Published on Friday 18 July 2008 22:05

INCAPACITY benefit will be scrapped within five years and the jobless will have to work full-time after two years out of work in exchange for the dole, under welfare reform proposals leaked yesterday.

American-style "work for dole" sanctions are part of the controversial package of radical reforms that were due to be unveiled just days before the Glasgow East by-election.

The proposal was met with outrage by unions. Brendan Barber, the general-secretary of the Trades Union Congress, said the radical reforms were a mistake.

Other controversial measures include depriving addicts of welfare unless they attend treatment programmes and forcing all claimants to carry out four weeks' work in exchange for the dole after a year on benefits.

In a letter to the Treasury accompanying the leaked paper, James Purnell, the Work and Pensions Secretary, said: "For too long, certain groups have been left to drift into long-term inactivity and become detached from the labour market."

The "vast majority" of disabled people would be helped to stay in or get back to work, he said, promising a "significant increase" in support funding.

Private companies will also be enlisted to help steer people into jobs and will receive payment by results.

One of the pilot areas for the scheme is expected to be Glasgow, where Labour faces the crucial by-election on Thursday.

Rules on government announcements during elections prevent the government from confirming where the pilot areas will be, but Glasgow East's 11,000 incapacity claimants might be targeted by the reforms. The paper from the Department for Work and Pensions spells out its tougher approach, saying: "For those who are capable of working, there will be no right to a life on benefits."

The paper shows that the government has rubber-stamped the recommendations by David Freud, an investment banker who believes up to two million people are unnecessarily claiming incapacity benefit.

Chris Grayling, the shadow work and pensions secretary, said it was a "quite brave" move to publish the radical proposals – opposed by some Labour MPs – just days before the election.