guardian
ISSA 2010.08.05
Guardian 2010.07.30
Iain Duncan Smith reveals radical benefits planWork and pensions secretary claims lack of incentives in system has resulted in 'institutionalised' idleness
Iain Duncan Smith, the work and pensions secretary, today unveiled radical proposals to reform the UK's "antiquated" benefits system, which he described as being on the verge of collapse.
Duncan Smith told a conference in east London that a lack of incentives in the system had resulted in pockets of "institutionalised" idleness, with "dramatic amounts" of money wasted due to the complex process in place, which costs £3.5bn to administer. A further £5bn is lost in fraud or errors, he said.
His consultation paper, entitled
21st Century Welfare, outlines a series of options to make work pay as part of plans to "revolutionise" the existing system by unifying the disparate elements that form the benefits structure and rectifying the "illogical" position of benefits paying more than work.