Eighty per cent of benefits are distributed without any responsibility on claimants to look for employment, a report out today claims.
Reforming welfare, published by think-tank Reform, says that a decade after the government pledged to turn benefits from a “hand out” to a “hand up” £64bn is given to people without any obligation to find work.
Based on a year-long study, the report adds that over 70 per cent of claimants remain on benefits for more than a year.
It recommends outsourcing welfare provision to the voluntary and private sector, in a model similar to that in Australia and America.
Director of Reform Andrew Haldenby said: “The need for reform is so urgent that the government should give welfare reform a prominent position in next year’s comprehensive spending review.”
• Over 71 per cent remain on benefits for longer than a year
• The system is too complicated – in 2005/2006 there were 51 different benefits
• Government spending has not prevented poverty from worsening in parts of the UK – above all Wales, Scotland, the north east and Yorkshire and Humber
• Remove the lowest paid workers from tax
• Simplify the system
• Improve the design of benefit structures