Chancellor George Osborne has unveiled a controversial plan to extend the “work for benefits” scheme where the long-term unemployed would need to take up work placements in return for their benefits.
Osbrone told the Conservative Party Conference in Manchester that welfare must be:
“Fair for those who need it and fair for those who pay for it”
Osborne said that under the current rules, the unemployed were receiving something for nothing, and that this must end as the government continues its plans for austerity and looks towards running a budget surplus in the next parliament if the Tories win in 2015.
To qualify to keep receiving their unemployment benefit, the unemployed would need to take part in work placements or training, or make daily visits to the Job Centre to prove that they are trying to find work. Those receiving benefits would have to continue this scheme until they found work, extending the time-frame from the current six-months programmes.
Under tough new rules, those that did not fulfil these requirements would lose four weeks’ of benefits payments for the first offence, and three months’ of benefits if they break the rules again.
Osborne went on to insist that whilst the new rules may be tougher on the unemployed, no-one would be abandoned, saying:
“For those with underlying problems, like drug addiction and illiteracy, there will be an intensive regime of support. No-one will be ignored or left without help. But no-one will get something for nothing.”
Commentators have noted that whilst training and support are much needed for the unemployed, putting people into work placements means that the government are providing a free workforce to private companies, pushing down the value of workers, and subsidising the owners of the company.
