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| Blair unveils welfare reform plan | Blair unveils welfare reform plan |
| (10 minutes later) | |
| Private firms and charities should have a bigger role in helping people off benefit and into work, a report backed by Tony Blair and Gordon Brown says. | Private firms and charities should have a bigger role in helping people off benefit and into work, a report backed by Tony Blair and Gordon Brown says. |
| David Freud's report suggests private firms and voluntary groups give individually tailored help to cut long term benefit numbers by 1.3m. | |
| This would have a "major impact" on public finances and release many people "from hopelessness", he says. | This would have a "major impact" on public finances and release many people "from hopelessness", he says. |
| Mr Blair said "we need an even greater effort" from people to get into work. | Mr Blair said "we need an even greater effort" from people to get into work. |
| Plans include making single parents look for work once their child turns 12, rather than the current 16. | Plans include making single parents look for work once their child turns 12, rather than the current 16. |
| The chancellor joined Mr Blair - who he is expected to succeed as prime minister - and Work Secretary John Hutton at the Downing Street launch of Mr Freud's report. | The chancellor joined Mr Blair - who he is expected to succeed as prime minister - and Work Secretary John Hutton at the Downing Street launch of Mr Freud's report. |
| Mr Blair said the future affordability of the welfare state was dependent on getting "even more people off benefit and into work". | Mr Blair said the future affordability of the welfare state was dependent on getting "even more people off benefit and into work". |
| He said the goal was to get 80% of the workforce into work, acknowledging "that will be very tough to do". | He said the goal was to get 80% of the workforce into work, acknowledging "that will be very tough to do". |
| 'Sustained help' | 'Sustained help' |
| Mr Freud, a former City banker, says in his report there had to be a cut in the number of people of working age on benefits for which they do not have to be actively seeking work. | Mr Freud, a former City banker, says in his report there had to be a cut in the number of people of working age on benefits for which they do not have to be actively seeking work. |
| To meet the government's aim of 80% employment, about 1.3 million people would have to be removed from long-term benefits, he said. He said such people often have low skills and "multiple" disadvantages. | To meet the government's aim of 80% employment, about 1.3 million people would have to be removed from long-term benefits, he said. He said such people often have low skills and "multiple" disadvantages. |
| "Such clients need sustained help, through pre-work training, which connects into the early years of their work experience," Mr Freud said. | "Such clients need sustained help, through pre-work training, which connects into the early years of their work experience," Mr Freud said. |
| His report recommended that JobCentre Plus should cater for the mass market of people seeking work, while people who were "harder to help" would be given individually tailored support through private or volunteer groups. | His report recommended that JobCentre Plus should cater for the mass market of people seeking work, while people who were "harder to help" would be given individually tailored support through private or volunteer groups. |
| Improvements | Improvements |
| Such private provision would be part of a "multi-billion pound market", he added. | Such private provision would be part of a "multi-billion pound market", he added. |
| "More important than the financial figures though is the potential to transform hundreds of thousands of people's lives releasing them from deprivation and hopelessness. | "More important than the financial figures though is the potential to transform hundreds of thousands of people's lives releasing them from deprivation and hopelessness. |
| "And that in turn would lead to big improvements in the social fabric of our country." | "And that in turn would lead to big improvements in the social fabric of our country." |
| He said it was possible that in future lone parents - for whom "work is an escalator out of poverty" - could have to seek work when their children were younger than 12. | He said it was possible that in future lone parents - for whom "work is an escalator out of poverty" - could have to seek work when their children were younger than 12. |
| He did not specify how young that could be, but did say that many people envied the Swedish system where the equivalent age limit for children is three. | He did not specify how young that could be, but did say that many people envied the Swedish system where the equivalent age limit for children is three. |
| 'Well-equipped' Britain | 'Well-equipped' Britain |
| His report said that organisations running the schemes should be given cash incentives for keeping people off benefits. | His report said that organisations running the schemes should be given cash incentives for keeping people off benefits. |
| His report also called for consultation on a huge simplification of the benefits system, including possibly producing just one flat benefit rate for everyone of working age. | His report also called for consultation on a huge simplification of the benefits system, including possibly producing just one flat benefit rate for everyone of working age. |
| Chancellor Gordon Brown said the report was the start of welfare reforms "which I will champion". | Chancellor Gordon Brown said the report was the start of welfare reforms "which I will champion". |
| He said: "It's through all these measures... that we will achieve our aspiration of not just 80% employment, but a Britain that is well-equipped to meet the economic challenges of the twenty-first century." | He said: "It's through all these measures... that we will achieve our aspiration of not just 80% employment, but a Britain that is well-equipped to meet the economic challenges of the twenty-first century." |
| The Liberal Democrats said the use of the voluntary and private sector to help more people back into employment was welcome, "but this must be properly financed, and include provisions to help those with serious problems such as low skills or mental health problems". | The Liberal Democrats said the use of the voluntary and private sector to help more people back into employment was welcome, "but this must be properly financed, and include provisions to help those with serious problems such as low skills or mental health problems". |
| Officials representing tens of thousands of JobCentre Plus workers said they feared compulsory redundancies amongst staff who currently deal with welfare-to-work programmes. | Officials representing tens of thousands of JobCentre Plus workers said they feared compulsory redundancies amongst staff who currently deal with welfare-to-work programmes. |
| HAVE YOUR SAY All the current system does is reward those who want something for nothing. Jon Butler, UK Send us your comments | HAVE YOUR SAY All the current system does is reward those who want something for nothing. Jon Butler, UK Send us your comments |
| Chris Pond, director of the group One Parent Families, told the BBC he thought forcing single parents into work was a bad idea. | Chris Pond, director of the group One Parent Families, told the BBC he thought forcing single parents into work was a bad idea. |
| "It would be a real mistake to start cajoling lone parents, even those with older children, into jobs when it's just not right for them," he said. | "It would be a real mistake to start cajoling lone parents, even those with older children, into jobs when it's just not right for them," he said. |
| "Most lone parents with older children are already working. About 70% already have a job. Those who are not working very often have good reasons for not doing so." | "Most lone parents with older children are already working. About 70% already have a job. Those who are not working very often have good reasons for not doing so." |
| Kate Green, chief executive of the Child Poverty Action Group, said policies should not just be about getting people jobs, but getting them the right sort of jobs. | Kate Green, chief executive of the Child Poverty Action Group, said policies should not just be about getting people jobs, but getting them the right sort of jobs. |
| "Around half of children who are poor are in families where there is at least one adult in paid work, so I think it's very important to make sure that, if we're talking about more parents going out to work, that really it is the kind of work that can enable them properly to provide for their kids." | "Around half of children who are poor are in families where there is at least one adult in paid work, so I think it's very important to make sure that, if we're talking about more parents going out to work, that really it is the kind of work that can enable them properly to provide for their kids." |