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Two million 'wrongly get benefit' | Two million 'wrongly get benefit' |
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Fewer than a third of the 2.7 million or so people claiming incapacity benefit are legitimate claimants, a government welfare adviser has said. | Fewer than a third of the 2.7 million or so people claiming incapacity benefit are legitimate claimants, a government welfare adviser has said. |
David Freud, an investment banker, said up to 185,000 claimants work illegally while on the benefit. | David Freud, an investment banker, said up to 185,000 claimants work illegally while on the benefit. |
He told the Daily Telegraph it was "ludicrous" medical checks were carried out by a claimant's own GP. | |
The Department for Work and Pensions said the number claiming incapacity benefits was at its lowest since 2000. | |
"But we agree with David Freud that there are many more people who could and should be supported to move off benefits and into work," a spokesman added. | |
"We are implementing his review and have already committed to replacing Incapacity Benefit and introducing a new medical test that places the emphasis on what work a person can do, rather than what they can't." | |
Mr Freud published a report on welfare last year which was highly influential on reforms outlined by new Work and Pensions Secretary James Purnell this week. | |
Proper support | |
Shadow work and pensions secretary Chris Grayling said every claimant should have an independent medical check. | |
"Those fit to work should have their Incapacity Benefit withdrawn immediately and those with the potential to work should get proper support to help them back into employment," he added. | |
Liberal Democrat spokesman Danny Alexander said: "Millions of people on Incapacity Benefit want to work and would be doing so today if the government had put the right support in place." | |
Mr Freud, who said the system was "a recipe for getting people on to IB" has recommended private firms be paid "bounties" to get claimants off incapacity benefit and into jobs. | |
He said there was a "classic conflict of interest" with GPs carrying out claimants' medical checks, saying: "They're frightened of legal action." | |
Meanwhile, compared with unemployment benefit, incapacity claimants received more money and were not "hassled". | |
"The system we have at the moment sends 2.64 million people into a form of economic house arrest and encourages them to stay at home and watch daytime TV. We're doing nothing for these people," he told the paper. | "The system we have at the moment sends 2.64 million people into a form of economic house arrest and encourages them to stay at home and watch daytime TV. We're doing nothing for these people," he told the paper. |
'Conflict of interest' | |
HAVE YOUR SAYMaking it harder to claim will put people off leaving the benefit once on it, something our gormless leaders fail to understand.James Smith, WatfordSend us your comments | HAVE YOUR SAYMaking it harder to claim will put people off leaving the benefit once on it, something our gormless leaders fail to understand.James Smith, WatfordSend us your comments |
Since the 1980s, there have been claims that successive governments have allowed the IB roll to grow in order to keep down the more politically sensitive count of the unemployed. | Since the 1980s, there have been claims that successive governments have allowed the IB roll to grow in order to keep down the more politically sensitive count of the unemployed. |
"When the whole rot started in the 1980s we had 700,000 (claimants). I suspect that's much closer to the real figure than the one we have now," Mr Freud said. | "When the whole rot started in the 1980s we had 700,000 (claimants). I suspect that's much closer to the real figure than the one we have now," Mr Freud said. |
Recent figures showed that more than 500,000 young people under 35 are now claiming incapacity benefit. About 40% of recipients are claiming for mental health problems, some 250,000 because of stress-related illness, while others cite alcoholism, obesity or eating disorders. | Recent figures showed that more than 500,000 young people under 35 are now claiming incapacity benefit. About 40% of recipients are claiming for mental health problems, some 250,000 because of stress-related illness, while others cite alcoholism, obesity or eating disorders. |
Mr Freud said a new system, with private firms and voluntary organisations paid by results in getting claimants into lasting jobs and those who refuse to co-operate having benefits docked, could be in place within five years. | Mr Freud said a new system, with private firms and voluntary organisations paid by results in getting claimants into lasting jobs and those who refuse to co-operate having benefits docked, could be in place within five years. |
He told the paper it would be "economically rational" to pay as much as £62,000 to a company which managed to place an incapacity benefit claimant in a job which lasted three years or more. | He told the paper it would be "economically rational" to pay as much as £62,000 to a company which managed to place an incapacity benefit claimant in a job which lasted three years or more. |
Incapacity benefit costs the Treasury about £12bn a year. | Incapacity benefit costs the Treasury about £12bn a year. |