Welfare Reform Programme (Hansard, 16 March 2000)

§ The Attorney-General (Lord Williams of Mostyn)

Welfare reform is central to this Government's agenda of modernisation, and to its goals of tackling poverty and social exclusion. Today the Prime Minister is announcing plans for the next stage of welfare reform, which will radically change the way the Government provide support for people of working age. The aim is to accelerate the move from a welfare system that primarily provides passive support to one that provides active support to help people become more independent, based on work for those who can and security for those who cannot.

During 2001, a brand new, modern agency will be established with a clear focus on work. This will draw together the Employment Service and the parts of the Benefits Agency which support people of working age. It will deliver a single, integrated service to benefit claimants of working age and to employers. The agency will continue and develop the partnership approach to working with local authorities and the private and voluntary sectors which the Government have adopted in implementing its welfare to work policies.

Already the New Deal has helped around 260,000 people back into work. The national minimum wage and tax credits are helping work pay. And the ONE pilots are showing how, working together, the Benefits Agency and the Employment Service can provide a radically improved service to clients and employers alike. The new agency will have a new culture, and will be firmly focused on helping people to become independent. It will help further to embed a culture of rights and responsibilities within the welfare system. Personal advisers will steer clients towards work or training, help them claim the benefits they need, and provide additional support tailored to their needs. Help will be directed to those who genuinely need it, while fraud will be squeezed out of the system.

The agency will provide a proactive and responsive service to employers—helping people to find jobs and helping employers to fill their vacancies with the right people.

The agency will also help and support working age people who are out of the labour market for whatever reason. A single agency will provide a better and more responsive benefits service to all people of working age, tailored to individual needs and asking the question: what can we do to help you become independent? Fraud will be squeezed out of the system.

222WA

The agency will provide a single point of contact for all working age people to access the following benefits: Jobseeker's Allowance, Income Support, Incapacity Benefit, Severe Disablement Allowance, Maternity Allowance, Widow's Benefit, Industrial Injury Disablement Benefits and Invalid Care Allowance. The adminstration of the Social Fund is under review.

The new agency will be in the front line of the drive to modernise government. It will have the technology to provide the most up-to-date service to more than 10 million customers each year. Job vacancies, information about services and benefits and availability of child care will all be on hand at the press of a button. Located in high streets and town centres across the country this new service will represent the face of 21st century government. Over time, the new agency will produce efficiency savings compared to the current arrangements.

Design and development of the new agency will be carried out jointly by the Secretaries of State for Education and Employment and for Social Security. The Prime Minister is asking them to establish the agency as soon as possible in 2001 so that, alongside the new service for pensioners announced yesterday, it can start to deliver our vision of a modern welfare state and contribute to reducing poverty and expanding opportunity.