Welfare Report: New Ambitions For Our Country: A New Contract For Britain.

Feature

posted 1 Apr 1998 in Volume 3 Issue 3

Welfare Report - "New Ambitions For Our Country: A New Contract For Britain."

An ambitious title for the Government's green paper on welfare reform, but did it promise more than it delivered? Writes Mark Ralphs.

The recent green paper on welfare reform was much anticipated but, as with the recent Budget, contained relatively little of substance with regards to the elderly. Instead Frank Field, the minister for welfare reform, has presented us with is a few concrete policies surrounded by a myriad of policy aims and New Labour window dressing. The document, which shows all the signs of having its "teeth pulled" by the mandarins at Number 10 and Number 11, is, in reality merely a contribution to a well worn debate rather than a clear policy of reform.

The green paper set out the central principles by which the Government's approach to welfare would be guided. This included the following points:

All reform should be based upon the twin principles of work and security "work for those who can, security for those who cannot."

The public and private sectors will be encouraged to form partnerships to ensure that the people are insured against foreseeable risks and make suitable provision for their retirement and old age.

The disabled should get the support they need to "lead a fulfilling life with dignity."

The system should encourage honesty and the gateways to benefit should be "clear and enforceable."

The provision of modern welfare should be flexible, efficient and easy for the public to use, it should deliver not only money but also a higher quality of service.

However, beyond these policy aims there are some areas of concern to those who advise elderly clients. The policy towards those unable to work because of disability is to undergo some changes: the "all or nothing" nature of the test for incapacity benefit (the cost of which now stands at £7.8 billion) will be modified to encourage people back to work. The Government's aim is to ensure that those able to work are not paid simply to stay at home.

There will be some changes to the rules concerning Disability Living Allowance and Attendance Allowance with Mr Field announcing an end to the 16 hour limit on the amount of unpaid work disabled people on benefit can do. In addition, there will be an extension, from eight weeks to a year, of the time in which disabled people can have a job and yet still return to their old levels of benefit if their health fails.

Many will be relieved that the minister lifted the threat that these two benefits would be means tested, declaring that they would remain "universal benefits". However, there were warnings of tougher medical tests for new claimants for benefit, Mr Field stating that two thirds of claims did not have sufficient supporting evidence.

In the area of pensions Thursday's document again contained more icing than cake. A specific green paper on pensions will be published later in the year and this may contain details of extra pensions for carers and the possibility of having to take out a compulsory second pension.

The government will try and ensure that help reaches the poorest pensioners through pilot schemes, already in effect, designed to ensure that those who are entitled to income support but do not claim it, (an estimated one million), receive their benefits.

While a commitment to the basic state pension remains, it is clear from the paper that the Government will look towards requiring those who can afford it to make their own provisions for sickness and old age.

For those who feared a real crackdown on disability benefits Thursday's announcement may prove to be something of a relief. But those who hoped for real reform of the structure of the welfare state will inevitably be disappointed by a document that delivers far less than they might have hoped for.

From the point of view of the elderly client very little has actually changed, although advisers will have to wait until later in the year to discover if the proposed green paper on pensions delivers any significant new measures. Until then we will have to make do with the Government's stated intention to "lift people from poverty and dependence to dignity and independence" before finding out exactly how they intend to do it.

Mark Ralphs