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29 January 2007 - DWP extends review of welfare system

A review of the Industrial Injuries Disablement Benefit (IIDB) scheme was announced today by Jim Murphy, Minister for Employment and Welfare Reform.

IIDB provides compensation and benefits for people who are injured or made ill through work. The benefit was introduced in 1948 when 61% of jobs were in heavy industry. This has now halved, with 70% of today’s workforce in office and service occupations.

The review is part of the government’s commitment to help more people move off benefits and back into work. At present IIDB claimants do not automatically have access to support such as Pathways to Work, which helps people with health conditions to return to work, education or training.

Jim Murphy said:

“ The time is right to look at the kind of occupational injury scheme we need for the future. IIDB was introduced in 1948 to serve a specific purpose. The workforce and the labour market have changed radically since then, with a huge shift away from the heavy industries and women now forming half the workforce.

“We want your views on what this scheme should look like in the 21st century. We want healthy and safe workplaces. We want to ensure that no-one is left behind; that an injury at work should not mean someone is written off and consigned to a life on benefits. We want to make sure that the people who need the resources most, are those who receive them.”

The review will address questions such as what is the purpose of a ‘no-fault’ occupational injuries and diseases scheme; who should be covered by a new occupational injury scheme; and whether employers should do more to help reduce the risks of work related accidents and illness occurring.

Notes to editors

  1. The current IlDB scheme was introduced in 1948 and is state funded. The scheme provides non-contributory benefits for disablement where disability has arisen from an accident at work or as a result of an occupational disease. It is a ‘no-fault’ scheme; employees who are injured or made ill through work do not have to demonstrate that the employer was negligent.
  2. The consultation can be downloaded from www.dwp.gov.uk/consultations/2007/
  3. There are 350,000 people currently receiving IIDB/REA in the UK at a cost of £776m. Just over half of current claimants are working age (53%). About one in five claimants are women.
  4. Around 13,000 new claims are put into payment each year: 76% are from claimants of working age.

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