/>Archived entries for Liberal Democrats
GUEST POST: Triple-jeopardy in welfare proposals increase risk of poverty
In this guest post, Young Fabian member Neil Coyle argues that, despite the supposed similarities in the welfare policy of Labour and the Coalition government, the proposed changes announced by the Coalition so far are regressive.
Incoming Secretary of State for Work and Pensions, Iain Duncan Smith, has announced welfare commitments including:
- Putting DWP at the forefront of improving quality of life for worst-off citizens;
- Ensuring work pays; and
- A Social Justice Cabinet Committee.
Sound progressive? Examination of the detail available is more worrying. Overall, proposals could mean the triple-jeopardy of:
- enforced, ineffective medical tests;
- cuts to support to find work; and
- cuts to in-work support.
Medical tests
Labour introduced a ‘Work Capability Assessment’ (WCA) to ascertain the impact of health conditions on people’s ability to work. But organisations that supported reform have criticised WCA implementation.
Disability organisations suggest the WCA is unable to effectively ascertain the impact health conditions have on ability to work. Cases have arisen of people assessed as ‘fit for work’ being exempted from undertaking work related activity on appeal. 40% of the people who appeal have DWP decisions overturned and the number of appeals already outstrips other benefits.
Instead of addressing WCA challenges, the new Government is bringing forward wider reform plans using the assessment on all 2.6 million Incapacity Benefit (IB) claimants. Labour had proposed 1.5 million IB claimants undergo the WCA at a rate of 10,000 per week to 2014. The new Government’s WCA plans will require significant additional costs – recruiting Jobcentre Plus/medical assessment staff to handle assessments and public resources wasted in costly appeals.
Support to find work
Labour provided support for people furthest from the job market through initiatives like Pathways to Work. The coalition has announced it will scrap Pathways and other programmes in favour of a single ‘Work Programme’.
But a ‘one size fits all’ approach will be ineffective at ensuring all citizens, especially disabled people, are supported to find work. At a time of higher unemployment this is doubly disadvantageous and could cause a bias in the system against helping people with highest needs to find work.
Reduced in-work support
Labour proposed a £40 per week better off in work guarantee for many people moving off benefits. The coalition has cut this proposal, instead making loose statements about ‘making work pay’ which some fear may mean cuts to benefits in the June Budget.
The coalition’s tax credit proposals also cut in-work support. The threshold of income planned to restrict access to tax credits may not reflect some people’s – especially parents of disabled children’s – higher living costs and could push families into poverty.
The coalition agreement also pledges an employment law review. A weakening of employers’ obligations on parental rights, flexible working and ‘Reasonable Adjustments’ for disabled employees could make work untenable.
The ‘C’ change
Despite shared terminology and a general media focusing on similarities in the main parties’ on welfare, the combination of recent announcements represent a sea change from Labour to Coalition.
Progressives must monitor the impact of proposals on poverty.
Lib Dem policy and the coalition
An interesting outcome of the coalition negotiations that produced the Cabinet and Ministerial teams across Whitehall is the noticeable absence of Liberal Democrats in a small number of Departments.
In DEFRA, DCMS and the Wales Office there is no LibDem representation at all, which must raise questions over the Party’s ability to retain an independent stance on policy in these areas.
The South West of England is Liberal Democrat heartland territory, and DEFRA plays a significant role in many people’s lives due to the rural agricultural nature of the region’s economy. The Liberal Democrats have to be seen to play a role in this area of policy. Who is the Liberal Democrat spokesperson for rural affairs?
DCMS controls the budgets for the Olympics and tourism, has regulatory oversight for broadcasting and journalism, among many other areas. The 2012 London Olympics will continue to be controversial due to the huge sums of money and the national prestige at stake. Who is the Liberal Democrat spokesperson for DCMS?
The answer to both questions is that there isn’t one.
The formal coalition that has been hammered means that the Liberal Democrat parliamentary party is bound into Government, regardless of whether they have members in each department. There will be no official spokespeople from the Liberal Democrat side of the house for these departments. As with any Governing party there will be backbenchers who express differing views to the Government, but no LibDem ministers to explain to their peers why a certain policy should be supported or otherwise. They now have no formal role in these areas at all.
Looking further afield, it will be interesting to see whether the LibDems as a party will continue to produce an alternative policy platform to the Conservatives in any areas of Government. It will be very difficult to retain an independently LibDem stance on any issue when they are a full coalition partner. When faced with the prospect of being totally subsumed into the Conservative party with regards policy, I wonder how long LibDem members, activists and their Councillor base will refrain from rocking the coalition boat.
