The Office of the Minister for Work and Pensions (DWP) has responded to concerns expressed by the Celtic League about potential changes to the benefit system which seem set to plunge many more children into poverty. The League are particularly concerned about the impact of the plans in deprived areas of Scotland, Wales and Cornwall.

Whilst the response from the DWP is detailed the agenda to claw back benefits from some of the most needy groups in society such as low income families and single parents on benefits is not concealed.

Purnell's attack on the poor has already been criticised by Sir Richard Tilt, Chairman of the Social Security Advisory Committee, who said the reforms in Wales, England and Scotland could "push people into poverty" as unemployment rises. Sir Richard also said that children 'will suffer' as a result of the proposed reforms.

"Our Ref: 10/08127256

Dear Mr Moffatt

Thank you for your letter of 21 November to James Purnell concerning Sir Richard Tilt's remarks over the Government's welfare reform programme.

I am sorry that the Minister has not been able to reply personally but I hope you will appreciate that he receives a great deal of correspondence on a variety of subjects. I have been asked to reply and I apologise for the delay in doing so.

Between 1979 and 1997, the number of people claiming incapacity benefits rose from 700,000 to 2.5 million. During that time there was little attempt to help people overcome the barriers they faced in returning to work, and they were effectively written off. We know that being off work for a prolonged period leads to deteriorating health, lack of confidence and a loss of skills, all of which make a return to work even more difficult. We therefore want to remove the concept of incapacity by establishing a system which focuses on a person's potential to move back to the labour market, while providing continuing and unconditional support for the most severely disabled people.

There are over 2.6 million people on incapacity benefits. The longer a person remains on benefits, the less chance they have of leaving. Indeed if someone is on incapacity benefits for two years they are more likely to die or reach retirement age than get a job. The structure of incapacity benefits, alongside the name itself, sends out a message that a person deemed 'incapable' is unlikely to ever return to the labour market even though 80-90 per cent of people coming on to incapacity benefits want and expect to move back to work.

Regrettably, the current system does not give enough help, support or incentives for them to work towards their aim. This needs to be rectified. We want to remove the concept of incapacity by establishing a system which focuses on a person's potential to move back to the labour market, while providing continuing and unconditional support for the most severely disabled people.

We believe that work is a right and that the right to work is as important as the right to equal treatment or access to services. For too long, people on Incapacity Benefit have been written off as incapable of work and consigned to a life on benefit. Of course, we know that the vast majority of people on Incapacity Benefit have genuine health problems or disabilities. But we also know that a large proportion want to work and so we want to ensure that they are given the opportunity to do so. We do not believe in writing anyone off. Staying in, or returning to, work can often support an improvement in the health and well being of the individual - work can be part of the solution, not part of the problem. Our task is to break down the barriers that Incapacity Benefit recipients face and give them the support they need, so that they can get a job and enjoy all the benefits that work can bring.

The plans for lone parents are a key part of the Government's ongoing package of welfare reform. The Government believes it is right to increase obligations on lone parents. It will mean that lone parents will no longer be entitled to Income Support (IS) on the grounds of being a lone parent when their youngest child reaches: 12 and over as of 24 November 2008; 10 and over from October 2009; and 7 and over from October 2010. At these points lone parents who are capable of work will have to claim Jobseeker's Allowance (JSA) or another appropriate benefit.

When claiming JSA lone parents will be expected to actively seek and be available for paid work. They will complete a Jobseeker's Agreement (JSAg) with a Personal Adviser (PA) that sets out what they can and will do to get work. The JSAg is tailored to their individual circumstances and any restrictions agreed between them and the PA on availability and actively seeking work will be included in this. This includes the ability to reduce the hours they must be available for work down to 16 hours per week.

In addition, to safeguard the welfare of children, we have amended the JSA Regulations which will accommodate all parents who face special circumstances that need special consideration on a case by case basis. We have increased Jobcentre Plus (JCP) Adviser discretion so that a lone parent who is claiming JSA may not be penalised if they have genuine reasons, or Good Cause for not complying with their obligations to seek, or take up work. Illness of the lone parent, their child(ren) or their childcare support, transport difficulties, unforeseen family circumstances, domestic violence or relationship breakdown could all be considered as Good Cause.

We have also amended JSA Regulations so that JCP staff will consider an additional matter for Just Cause and Good Cause, so that a parent who is claiming or receiving JSA may not be penalised if they leave paid employment, or fail to take up paid employment, because appropriate or affordable childcare is not available.

Yours sincerely,

Michael Whitworth"

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J B Moffatt Director of Information Celtic League 13/12/08

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