Reforming the welfare system  

At the DWP, we have been targeting three separate areas to transform our broken, outdated welfare system and encourage a self sufficient and confident attitude that will be so crucial in helping those on benefits take control of their lives after years of dependency. The first is to rebuild the benefits system so that work always pays; the second has been to introduce new back to work support; the third has been to tackle the spiralling costs of housing benefit. The toughest challenge is undoubtedly the first, and we launched a consultation paper on the main options, “21st Century Welfare”, at the end of July. At the centre of this paper are approaches that aim to get rid of the barriers people face when moving from out of work benefits to in-work tax credits. It is often not worthwhile, or only marginally so, to work and the system is so complex that it can be financially risky...