Working age benefits

Presentation given at the IFS Green Budget launch, 6 February 2013

The Welfare Benefits Up-rating Bill proposes to cap the annual increases in most working-age benefits at 1% in cash terms in 2014-15 and 2015-16, in addition to the 1% cap on increases already confirmed for 2013-14. This observation examines the effects of this proposal on incomes and work incentives, and puts this in the broader context of trends during the recession and subsequent fiscal tightening

On Monday, Child Benefit will effectively become an income-related benefit for the first time. This observation reviews the key features of this new policy, highlights unaddressed issues regarding its operation in the long run, and considers how it will fit into the wider welfare system.

Last week marked the 70th anniversary of the Beveridge report. Today’s social security system bears almost no resemblance to the one he envisaged. His ambition for a system of social insurance in which benefits would be paid in return for contributions to those experiencing unemployment, sickness or old age did not prove robust to changes in the economy, in demography and in the labour market. Other benefits, especially means-tested benefits, have been layered on top of the original social insurance benefits to create a system which is too complex and, at times, incoherent.

Article published in the Independent 26 October 2012

In a ministerial statement last week the government announced a significant change to its policy to localise Council Tax Benefit (CTB) from next April. In this observation we ask why such a significant change has been announced to a policy two years after it was first announced, less than six months before councils will have to implement it and after many have already consulted on the structure of proposed schemes.

In his speech to the Conservative party conference today, the Chancellor of the Exchequer again stated an intention to reduce welfare expenditure by a further £10 billion per year by 2016–17. In this observation, IFS researchers analyse the suggested cuts.

Presentation given at the ESRI, Dublin, 27 September 2012

This paper was given at the EALE 2012 conference in Bonn.

Presentation to Yorkshire & Humber Local Government Finance Officers' Network in Wakefield