Blair set to cut disabled benefit

TONY BLAIR is set to cut incapacity benefit in a move aimed at getting more of those who claim they’re unfit to work back into a job.

In a move that will enrage Labour backbenchers, the Prime Minister wants to see the reduction in order to cut the 7 billion a year welfare budget and put pressure on claimants to find employment.

The controversial move will be revealed in the Department of Work and Pensions’ five-year plan due to be published in the next few days.

It will include proposals to pay new claimants incapacity benefit at 56 a week, the same as JobSeekers’ Allowance.

Mr Blair and Work and Pensions Secretary Alan Johnson believe this will encourage people swiftly back into the labour market.

It is likely to prove controversial with disability campaigners who fear the welfare reforms will leave the sick and disabled short of cash.

The move would be part of a radical overhaul of the benefits system to be included in a Welfare Reform Bill following the expected May General Election if Labour is returned to power.

Incapacity benefit currently starts at 56 a week rising to 66 after six months and 74 after a year.

The changes would be closely tied to the new "pathways to work" scheme being rolled out across the UK at the moment.

Claimants actively seeking work or on special programmes to help them would get an extra 20 a week as a premium and a help towards employment.

There will be more personal advisers to help claimants look for a job as the special programme of interviews and training is stepped up.

Mr Blair has made previous attempts to reform incapacity benefit but had to pull back from a full-scale shake-up because of opposition by Labour MPs and campaign groups.