Written evidence submitted by the Department
for Work and Pensions
WELFARE REFORM
BILL
When we met on 9 February, I undertook to provide
you with further information on the Welfare Reform Bill prior
to Introduction, and to set out - at a high level- the content
of the Bill.
I hope that we can continue to work together fruitfully
during the passage of the Bill, particularly during parliamentary
scrutiny of the provisions. The main policies in the Bill are:
- As announced in the White Paper Universal
Credit: welfare that works, we will take powers to introduce
the Universal Credit; an integrated working-age benefit replacing
the current means-tested benefits and tax credits to support people
both in and out of work.
- Changes to the conditionality and sanctions regime
to strengthen the link between welfare and work. This will include
requiring all claimants of out of work support, and the Universal
Credit, to have a claimant commitment which will set out the requirements
placed upon them and the consequences of failing to meet them.
We also plan to implement a new sanctions structure, which will
include the ability to impose a three year sanction for the most
serious failures by those who are expected to look for work, and
prevent benefit being paid for a period of time following disentitlement.
As now, recipients will be able to demonstrate if they have good
reason for failing to meet a requirement and, if so, no sanction
will be applied.
- The powers to implement policies announced in
the Emergency Budget, including reforms to Housing Benefit and
reducing the age of the youngest child when lone parents cannot
be required to look for work.
- As set out in our recent consultation paper,
Disability Allowance reform, we intend to take the primary
powers needed to replace Disability Living Allowance with the
Personal Independence Payment.
- The powers needed to implement the policies announced
in the Comprehensive Spending Review, including the time-limiting
of contributions-based ESA to 12 months, and a limit on the maximum
amount of benefit income that a household can receive in line
with the median after-tax earnings of a working household.
- Legislation for changes announced as part of
the Fraud and Error Strategy Tackling Fraud and Error in the
Benefits and Tax Credits Systems to better tackle benefit
fraud in the benefits and tax credits system. We will legislate
for a "three strike" system; increase the period for
which fraudsters lose benefit; and introduce a £50 civil
penalty for those who fail to take reasonable care of their claim
and incur an overpayment. We will also create a new single, integrated
fraud investigation service which will bring together fraud investigators
from across HMRC, DWP and local authorities.
- The Child Maintenance Green Paper Strengthening
families, promoting parental responsibility: the future of child
maintenance was published in December. This Bill will take
forwards those parts of that green paper which require primary
legislation: to allow non-resident parents to unilaterally choose
to pay child maintenance via Maintenance Direct in the statutory
child maintenance scheme; to provide for a calculations-only service;
and to tlghten the gateway to the statutory scheme by insisting
that people use the Child Maintenance Options service.
- Powers to introduce changes to the appeals process
so claimants can be required to seek a revision of the disputed
decision before making an appeal to the First-tier Tribunal.
- Repeal provisions which require persons claiming
jobseeker's and employment support allowance who are dependent
on, or have the propensity to misuse, drugs to engage in certain
activities to reduce their propensity to misuse drugs if their
condition affects their prospects of finding work.
- Powers to ensure that Jobcentre Plus is not required
to advertise certain types of vacancies in the adult entertainment
sector.
Rt Hon Iain Duncan Smith MP
February 2011
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