Department for Work and Pensions

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Policy


Welfare Reform

The Government is committed to building a strong, healthy and prosperous society, where everyone has the opportunity to make the most of their skills and potential.

When times are tough, it is more important than ever that we provide people with the extra help they need. We will not leave anyone behind as we face up to the global financial crisis. The Government is increasing the real help available to everyone claiming benefits during the economic downturn.

Our reforms promise greater support for people on benefits and a more flexible, personalised system to help them find sustainable employment. In return we expect people to take up this help, and work with us to help themselves.

“Building Britain’s Recovery: Achieving Full Employment", published on 15 December 2009, restates the Government’s response to the recession and signals the start of the programme to return to full employment.

The story so far

The Welfare Reform Programme will allow us to bring about the most radical reform of the welfare state for generations.

We have:

  • created Jobcentre Plus, a world leading welfare to work organisation
  • introduced innovative employment programmes such as the New Deals
  • improved incentives to work by providing greater support through the tax credit system and the introduction of the minimum wage
  • rolled-out Pathways to Work nationally for people on incapacity benefits
  • replaced incapacity benefits for new claimants with Employment and Support Allowance which focuses on what people can do, rather than what they can’t
  • introduced skills trials, and a stronger framework of rights and responsibilities for lone parents.

Welfare Reform Act 2009

The Welfare Reform Act, that became law on 12 November 2009, contains reforms to the welfare and benefit system to improve support and incentives for people to move from benefits into work.

The Act:

  • reforms the benefits system by abolishing Income Support and moving all claimants on to either Jobseeker's Allowance if they are well or Employment and Support Allowance if they are sick
  • aligns the contribution conditions between Employment and Support Allowance and Jobseeker’s Allowance
  • introduces a regime of benefit sanctions for non-attendance at Jobcentres
  • requires job search by partners of benefit claimants
  • abolishes Adult Dependency Increases in Carer’s Allowance and Maternity Allowance
  • introduces work-focused interviews for over-60s
  • requires work-related activity in return for receipt of Employment and Support Allowance
  • introduces a requirement for births to be registered jointly by both parents
  • provides additional powers for the enforcement of child maintenance arrears.

The Act builds on the proposals in the Welfare Reform Green Paper “No one written off: reforming welfare to reward responsibility” which the Government consulted on during the summer of 2008.