Under Duncan Smith,the Department for Work and Pensions (DWP) rolled out Universal Credit and a new Work Programme,as well as implemented a real terms cut in benefits and increased the number of benefit eligibility tests being carried out. During his time as Work and Pensions Secretary,the DWP was criticised for rises in food poverty and people being forced to use foodbanks and he himself was criticised for breaking the Code of Practice for Official Statistics.
Views
Outlining the scale of unemployment following the financial crisis of 2007–2008 and previous Labour government,Duncan Smith said almost five million people were on unemployment benefits,1.4 million of whom had been receiving support for nine or more of the last 10 years. In addition,1.4 million under-25s were neither working nor in full-time education. He said;"This picture is set against a backdrop of 13 years of continuously increasing expenditure,which has outstripped inflation...Worse than the growing expense though,is the fact that the money is not even making the impact we want it to...A system that was originally designed to support the poorest in society is now trapping them in the very condition it was supposed to alleviate."[1]
Pension age
In June 2010,Duncan Smith said the government would encourage people to work for longer by making it illegal for companies to force staff to give up work at 65,and by bringing forward the planned rises in the age for claiming the state pension. Duncan Smith told The Daily Telegraph pension reforms were intended to "reinvigorate retirement". "People are living longer and healthier lives than ever,and the last thing we want is to lose their skills and experience from the workplace due to an arbitrary age limit," he said. "Now is absolutely the right time to live up to our responsibility to reform our outdated pension system and to take action where the previous government failed to do so. If Britain is to have a stable,affordable pension system,people need to work longer,but we will reward their hard work with a decent state pension that will enable them to enjoy quality of life in their retirement."[2]
In July 2010, Duncan Smith announced a far more radical series of reforms intended to simplify the benefits and tax credits scheme into a single payment to be known as Universal Credit. A major aim of welfare reform was to ensure that low earners would always be better off in employment. "After years of piecemeal reform the current welfare system is complex and unfair," said Duncan Smith, citing examples of people under the existing system who would see very little incremental income from increasing their working hours due to withdrawal of other benefits.[3] Outlining the scheme in more detail in November 2010, Duncan Smith promised "targeted work activity for those who need to get used to the habits of work" and sanctions, including the possible removal of benefits for up to three years for those who refused to work. He said welfare reform would benefit all those who "play by the rules" and ensure "work always pays more" by easing the rate at which benefits are withdrawn as income rises.[4]
The next phase of welfare reform announced by Duncan Smith in late 2011 required benefits claimants with part-time incomes below a certain threshold to search for additional work or risk losing access to their benefits. "We are already requiring people on out of work benefits to do more to prepare for and look for work," he said. "Now we are looking to change the rules for those who are in-work and claiming benefits, so that once they have overcome their barriers and got into work, in time they can reduce their dependency or come off benefits altogether."[5] He said that benefits were not a route out of child poverty but hundreds of thousands of children could be lifted out of child poverty if one of their parents were to work at least a 35-hour week at the national minimum wage.[6]
Duncan Smith argued a proposed £26,000-a-year benefits cap would not lead to a rise in homelessness or child poverty. "The reality is that with £26,000 a year, it’s very difficult to believe that families will be plunged into poverty – children or adults," he told BBC Radio 4's Today programme. "Capping at average earnings of £35,000 before tax and £26,000 after, actually means that we are going to work with families make sure that they will find a way out."[7] but added there would need to be "discretionary measures".[7] Duncan Smith led the government's legislation in the House of Commons in January 2013 to cap most benefit increases at 1%, a real terms cut.[8] In April 2013, he said he could live on £53 per week as Work and Pensions Secretary, after a benefits claimant told the BBC he had £53 per week after housing costs.[9]
In September 2013, Duncan Smith's department cancelled a week of "celebrations" to mark the impact of enhanced benefit sanctions. General secretary of the Public and Commercial Services Union (PCS) Mark Serwotka commented: "It is distasteful in the extreme and grossly offensive that the DWP would even consider talking about celebrating cutting people's benefits."[10] In the same month, the department was subject to an "excoriating" National Audit Office report, in which it was accused of having "weak management, ineffective control and poor governance; a fortress mentality, a "good news" reporting culture, a lack of transparency, inadequate financial control, and ineffective oversight" as well as wasting £34 million on inadequate computer systems.[11]
The Department for Work and Pensions had said that 1 million people would be placed on the new Universal Credit benefits system by April 2014, yet by October 2014 only 15,000 were assigned to UC. Duncan Smith said that a final delivery date would not be set for this, declaring "Arbitrary dates and deadlines are the enemy of secure delivery."[12] In 2014, it was reported that his department was employing debt collectors to retrieve overpaid benefits, the overpayment purely down to calculation mistakes by HMRC.[13]
In June 2011, Duncan Smith announced earlier welfare-to-work programs would be replaced with a single Work Programme, which included incentives for private sector service providers to help the unemployed find long term employment.[14] Further developments included the requirement for some long term recipients of Job Seekers Allowance to undertake unpaid full-time work placements with private companies. After the "workfare" element of this programmed was successfully challenged in the courts, Duncan Smith sought to re-establish the legality of the scheme through emergency and retrospective legislation. Legal experts were said to be "outraged" that the bill applied retrospectively, breaking a key standard of British law.[15] In 2014, the High Court ruled the retrospective nature of the legislation interfered with the "right to a fair trial" under Article 6 of the European Convention on Human Rights.[16]
Winter fuel payments
In April 2013, Duncan Smith called for wealthier people to voluntarily return winter fuel payments, given to all pensioners regardless of wealth, to help reduce the strain on public finances.[17] This suggestion prompted media comment, with some wealthier pensioners stating they had already tried to return their payments, for this same reason, but had this offer refused by the government because there was no mechanism in place to receive returned payments.[18]
Use of statistics
In July 2013, Duncan Smith was found by Andrew Dilnot, then Head of the UK Statistics Authority, to have broken their Code of Practice for Official Statistics for his and the DWP's use of figures in support of government policies.[19][20] Dilnot also stated, following an earlier complaint about the handling of statistics by Duncan Smith's department, he had previously been told, "that senior DWP officials had reiterated to their staff the seriousness of their obligations under the Code of Practice and that departmental procedures would be reviewed".[21]
Duncan Smith's defended his department, saying: "You cannot absolutely prove those two things are connected – you cannot disprove what I said. I believe this to be right."[22] This led Jonathan Portes, director of the National Institute of Economic and Social Research and former chief economist at the Cabinet Office, to accuse the Conservative Party of going beyond spin and the normal political practice of cherry picking of figures to the act of actually "making things up" with respect to the impact of government policy on employment and other matters.[23]
On World Food Day in October 2013, foodbank provider The Trussell Trust called for an inquiry to investigate the trebling in numbers of people using their foodbanks in the past year and the rise in UK hunger and food poverty which they described as reaching "scandalous" levels.[24]Oxfam commented: "These figures lay bare the shocking scale of destitution, hardship and hunger in the UK. It is completely unacceptable that in the seventh wealthiest nation on the planet, the number of people turning to foodbanks has tripled."[24] According to the BBC, the number of people given three days food by the Trussell Trust increased from 40,000 in 2009–10 to 913,000 by 2013–14.[25] A letter signed by 27 bishops earlier in 2014 blamed "cutbacks and failures in the benefits system" for driving people to foodbanks.[25]
Disability benefits policy
The Guardian reported Duncan Smith's department announced on the 2012 United Nations' International Day of Persons with Disabilities forced work for disabled people who received welfare benefits, in order to "Improve disabled people's chances of getting work by mandatory employment". From this United Nations appointed day onwards, people with disabilities and illnesses ranging from cancer to paralysis to mental health would be forced by the UK government to work for free or else they could risk being stripped of up to 70% of their welfare benefits.[26]
In September 2013, leaked documents showed that Duncan Smith was looking at "how to make it harder for sick and disabled people to claim benefits". Duncan Smith was advised that it would be illegal to introduce secondary legislation, which does not require parliament's approval, in order to give job centre staff more powers to make those who were claiming Employment and Support Allowance undertake more tests to prove that they were making a serious effort to come off benefits and find a job. The powers being discussed also included "forcing sick and disabled people to take up offers of work." DWP staff would also have the power to strip claimants with serious, but time-limited health conditions, of benefits if they refuse the offer of work.[10]
In June 2015, a judge ruled that there had been a "breach of duty on the part of the secretary of state to act without unreasonable delay in determination of the claimant's claims for PIP," the replacement for Disability Living Allowance. One of the claimants, an ME sufferer with visual impairment was twice required to travel to attend an assessment, a request which the judge described as irrational.[27]
On 3 July 2015, a group of over "70 leading Catholics" wrote to Duncan Smith asking him to rewrite his policies to make them more in line with Catholic and Christian values. The writers stated that whilst they believed he wanted to improve lives, they believed his policies were having the opposite effect and they asked him to rethink and abandon further damaging cuts.[28]
In August 2015, he was criticised after the DWP admitted publishing fake testimonies of claimants enjoying their benefits cuts.[29] Later the same month, publication of statistics showed 2,380 people died in a 3-year period shortly after a work capability assessment declared them fit for work[30] leading Jeremy Corbyn to call for Duncan Smith's resignation.[31] At his party's conference in October 2015, Duncan Smith said in a speech about the sick and disabled "we won't lift you out of poverty by simply transferring taxpayers' money to you. With our help, you'll work your way out of poverty," and criticised the current system which he said "makes doctors ask a simplistic question: are you too sick to work at all? If the answer is yes, they’re signed off work – perhaps for ever."[32]
Party relationship
In the September 2012 Cabinet reshuffle, Duncan Smith was offered the job as Secretary of State for Justice replacing Kenneth Clarke, but declined, and remained in his post at the DWP.[33] Duncan Smith dismissed allegations in Matthew d'Ancona's 2013 book In It Together that Chancellor George Osborne had referred to him as "not clever enough", which were also denied by Osborne. Duncan Smith said that similar claims had been made of Winston Churchill and Margaret Thatcher.[34]
Ministerial resignation
On 18 March 2016, Duncan Smith unexpectedly resigned from David Cameron's Cabinet. He stated he was unable to accept the government's planned cuts to disability benefits.[35] He broadened this position, in a following interview on The Andrew Marr Show, launching an attack on the "government's austerity programme for balancing the books on the backs of the poor and vulnerable", describing this as divisive and "deeply unfair", and adding: "It is in danger of drifting in a direction that divides society rather than unites it."[36] Duncan Smith had opposed Cameron over the 2016 EU membership referendum but sources close to Duncan Smith said his resignation was not about Europe.[37]Nadine Dorries MP tweeted Duncan Smith had sought her out and "personally begged" her to vote for the planned cuts.[38]
Sir George Iain Duncan Smith, often referred to by his initials IDS, is a British politician who served as Leader of the Conservative Party and Leader of the Opposition from 2001 to 2003. He was Secretary of State for Work and Pensions from 2010 to 2016. He has been Member of Parliament (MP) for Chingford and Woodford Green, formerly Chingford, since 1992.
The welfare state of the United Kingdom began to evolve in the 1900s and early 1910s, and comprises expenditures by the government of the United Kingdom of Great Britain and Northern Ireland intended to improve health, education, employment and social security. The British system has been classified as a liberal welfare state system.
The Department for Work and Pensions (DWP) is a ministerial department of the Government of the United Kingdom. It is responsible for welfare, pensions and child maintenance policy. As the UK's biggest public service department it administers the State Pension and a range of working age, disability and ill health benefits to around 20 million claimants and customers. It is the second largest governmental department in terms of employees, and the largest in terms of expenditure (£187bn).
Jobseeker's Allowance (JSA) is an unemployment benefit paid by the Government of the United Kingdom to people who are unemployed and actively seeking work. It is part of the social security benefits system and is intended to cover living expenses while the claimant is out of work.
Stephen Crabb is a British politician who has served as the Member of Parliament (MP) for Preseli Pembrokeshire since 2005 and Chairman of the Welsh Affairs Select Committee since 2020. A member of the Welsh Conservatives, he served as Secretary of State for Work and Pensions from March to July 2016 under Prime Minister David Cameron. Crabb had previously been appointed a government whip, Parliamentary Under-Secretary of State for Wales (2012–2014) and Secretary of State for Wales (2014–2016) under Cameron.
Housing Benefit is a means-tested social security benefit in the United Kingdom that is intended to help meet housing costs for rented accommodation. It is the second biggest item in the Department for Work and Pensions' budget after the state pension, totalling £23.8 billion in 2013–14.
Employment and Support Allowance (ESA) is a United Kingdom welfare payment for adults younger than the State Pension age who are having difficulty finding work because of their long-term medical condition or a disability. It is a basic income-replacement benefit paid in lieu of wages. It is currently being phased out and replaced with Universal Credit for claimants on low incomes, although the contribution-based element remains available.
Incapacity Benefit was a British social security benefit that was paid to people facing extra barriers to work because of their long-term illness or their disability. It replaced Invalidity Benefit in 1995. The government began to phase out Incapacity Benefit in 2008 by making it unavailable to new claimants, and later moved almost all the remaining long-term recipients onto Employment and Support Allowance.
David Anthony Freud, Baron Freud, is a British politician, life peer, and former investment banker who served as Minister for Welfare Reform from 2010 to 2016. Before he joined the Conservative Party, he was vice-chairman of investment banking at UBS and a government adviser on welfare reform.
Universal Credit is a United Kingdom social security payment. It is means-tested and is replacing and combining six benefits, for working-age households with a low income: income-related Employment and Support Allowance, income-based Jobseeker's Allowance, and Income Support; Child Tax Credit and Working Tax Credit; and Housing Benefit. An award of UC is made up of different elements, which become payable to the claimant if relevant criteria apply: a standard allowance for singles or couples, child elements and disabled child elements for children in the household, housing cost element, childcare costs element, as well as elements for being a carer or having an illness or disability and therefore having limited capability to work.
The Work Programme (WP) was a UK government welfare-to-work programme introduced in Great Britain in June 2011. It was the flagship welfare-to-work scheme of the 2010–2015 UK coalition government. Under the Work Programme the task of getting the long-term unemployed into work was outsourced to a range of public sector, private sector and third sector organisations. The scheme replaced a range of schemes which existed under previous New Labour governments including Employment Zones, New Deal, Flexible New Deal and the now abolished Future Jobs Fund scheme which aimed to tackle youth unemployment. Despite being the flagship welfare-to-work scheme of the Conservative-led coalition government, and then the incumbent Conservative government from May 2015, the DWP announced, in November 2015, that it was replacing the Work Programme and Work Choice with a new Work and Health Programme for the longer-term unemployed and those with health conditions. The DWP also announced that it would not be renewing Mandatory Work Activity and Help to Work which included Community Work Placements.
Personal Independence Payment is a welfare benefit in the United Kingdom that is intended to help working age adults with the extra costs of living with a health condition or a disability. It is avaliable in England, Wales and Northern Ireland but not in Scotland where Adult Disabled Payment(ADP) is claimed instead where it also replaces DLA in Scotland also
The Welfare Reform Act 2012 is an Act of Parliament in the United Kingdom which makes changes to the rules concerning a number of benefits offered within the British social security system. It was enacted by the Parliament of the United Kingdom on 8 March 2012.
Universal Jobmatch was a British website for finding job vacancies. The site was developed in a collaboration between the Department for Work and Pensions and Monster.
The Jobseekers Act 2013 is an emergency Act of Parliament of the United Kingdom introduced to the House of Commons in March 2013. It retrospectively changed the law to make past actions of the government which the courts had found unlawful to be lawful. As of July 2014, the Act has been found to contravene Article 6 of the European Convention on Human Rights.
Disabled People Against Cuts (DPAC) is an organisation based in the United Kingdom for disabled people and allies to campaign against the impact of government spending cuts on the lives of disabled people. Formed on 3 October 2010 DPAC promotes full human rights and equality for all disabled people, and operates from the Social Model of Disability.
The bedroom tax is a United Kingdom welfare policy whereby tenants living in public housing with rooms deemed "spare" experience a reduction in Housing Benefit, resulting in them being obliged to fund this reduction from their incomes or to face rent arrears and potential eviction by their landlord. The policy was introduced as part of the Welfare Reform Act 2012 passed during the Premiership of David Cameron. Bedroom tax is the most commonly used term for the policy, especially by critics of the changes who argue that they amount to a tax because of the lack of social housing for affected tenants to downsize to. The bedroom tax is also referred to as the under-occupancy penalty, under occupation penalty, under-occupancy charge,under-occupation charge or size criteria.
Paul Litchfield CBE FRCP FFOM is a British physician who was Chief Medical Officer for BT Group plc from 2001 to 2018. He reviewed the Work Capability Assessment run by Atos for the Department for Work and Pensions in 2013 and 2014 and he is an advisor to the UK government on the relationship between mental ill-health, absence from work and the take up of out-of-work sickness benefits.
The benefit cap is a UK welfare policy that limits the amount in state benefits that an individual household can claim per year. It was introduced by the Cameron–Clegg coalition government in 2013 as part of the coalition government's wide-reaching welfare reform agenda which included the introduction of Universal Credit and reforms of housing benefit and disability benefits. The government cited wide public support for the measure, despite it being highly controversial. The benefit cap primarily affects families with children, high rents, or both.
Criticism of the Work Capability Assessment, used by the Department for Work and Pensions in the United Kingdom, to assess and reassess claimants of Employment and Support Allowance or enhanced rate Universal Credit, has been wide-ranging, from the procedure itself, to the financial cost of using both Atos and Maximus to assess claimants. Other criticisms discuss the level of deaths, suicides and high overturn rates at tribunals that the WCA has caused.
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