Morning:
13°c
An awesome and ridiculous film that leaves you thrilled beyond the point of your natural endurance
London faces a wave of bus and Tube strikes that could cause chaos for millions of passengers as unions walkout over pay and conditions
More...
Millions of benefits claimants who get jobs are back on dole in six months
Last updated at 00:07am on 29.02.08
Work and Pensions Secretary, James Purnell: Private firms are to be given incentives to get the jobless back to work
The findings will fuel concern that the Government's flagship back-to-work programmes have become little more than an expensive "revolving door", with hundreds of thousands going straight back on to benefits.
They came as the Conservatives claimed the Government had admitted that nine out of ten claimants of its new incapacity benefit would actually be able to work.
Parliamentary answers showed ministers expect 90 per cent of those who will claim employment and support allowance to be capable of some "work-focused activity".
Controversy over the figures threatened to overshadow an announcement by Work and Pensions Secretary James Purnell today that private firms are to be given incentives to get the jobless back to work.
Mr Purnell will say that contractors will be rewarded for getting them into jobs that last at least six months, possibly increasing to 18 months.
"I will set high expectations, with payment on results," he will add.
But Opposition MPs said it was the 29th time the Government had announced the same package of welfare measures since Gordon Brown became Prime Minister last summer.
The scale of the challenge facing ministers is underlined by today's report from the Commons public accounts committee, which found that more than two-thirds of the 2.4million Jobseeker's Allowance claims made each year are repeat claims.
While some turnover is a natural feature of the labour market, around 40 per cent of those moving from Jobseeker's Allowance into work will end up back on the benefit within six months, it said.
Conservative MP Edward Leigh, who chairs the crossparty committee, said: "Far too many people bounce back and forth between short-term employment and being on benefits.
"It becomes extremely difficult for individuals in this situation to find the enduring jobs which can raise them and their families out of poverty.
"Those most likely to be in this position tend to have the lowest skills and the jobs they move into tend to be the least likely to provide any training. Improving their skills will increase their chances of securing jobs that last."
Tory work and pensions spokesman Chris Grayling said the Government's claims to be getting tough on welfare were further undermined by the admission that as many as 90 per cent of claimants of the new incapacity benefit could work.
Labour's welfare adviser, David Freud, has said previously that nearly 2million of the existing 2.6million claimants could go back to a job.
But a Parliamentary answer gave the first indication of the proportion of new claimants ministers estimate could do so.
The new employment and support allowance will replace incapacity benefit for new claimants in October.
Claimants will be divided into two groups. Those exempt from "work focused activity" will receive the support element, worth more than the current top-rate benefit.
Those who are deemed capable of work will get less and move on to the employment element, where they will be required to take part in back-to-work schemes.
Of 567,000 people Labour expects to make a claim for ESA in 2008/2009, 510,000 are expected to claim the employment part of the allowance and only 56,700 the support allowance. Existing incapacity benefits claimants will continue to receive this benefit.
Mr Grayling said: "Gordon Brown and his ministers keep making welfare announcements which are clearly designed to suggest that they are stealing Conservative clothes and getting tough on welfare.
"But every time, when you actually read the small print, you discover that there's very little new in these announcements, and that they aren't getting to grips with the real problem.
"That's why these figures on incapacity benefit are so shocking. They clearly know there is a problem - but aren't doing anything about it."
A spokesman for Mr Purnell said the Tories had "completely misunderstood" the point of the new allowance.
"We want to get 1.5million people off incapacity benefits by 2015 and that is precisely the reason why everyone coming onto the new benefit will be assessed on what work they can do," she added.
Reader views (19)
What about the statistics on the other 6 out of 10 unemployed?
As nothing has been said about this lot are we to read into this that New Labour's policies are a resounding success?
Where are all these new jobs coming from anyway? Are they all for shelf-stackers at Tescos, Sainsburys and Morrisons?
- Fraser, Telford Park
No contributions - no benefits! it is very simple. Child Benefit should be only payable to claimants over 21, and only for the first child. Where the parents are married, the benefit should be replaced by a tax allowance that rewards both marriage and work, with a higher tax allowance - maybe £8000 extra, which equates to £1600 tax saving - or £133@ month, as against the £108 benefit currently. Unemployment or job seekers benefit should be on a sliding scale based on contributions - 3 years = 100%, 2 years 75%, etc down to 1 year or under at 50%. It should only be payable for a maximum of 6 months, with removal if no job that is offered is taken up. No benefits at all to illegal immigrants, overstayers or non-contributors to the National Insurance pot. GP & Hospital appointments free as long as proof of National Insurance Number is provided. There are loads of simple measures to reward work and family, and penalise illegal or fraudulent claims, but nuliebour are just to scared of the lefty liberal backlash to do anything!
- Gary Parker, Amersham
Simple reason you get more on the dole then in job when you work you pay for everything while on the dole everything is on the silver plate and you still get paid for so called casual jobs.
- B.G, London
When unemployment benefits claimants have learned to live on a generous benefit they become unemployable. I certainly wouldn't want to pay them. I'd rather pay somebody that wanted to work.
- Frank, England
This is Nu Labour we are talking about. What else would you expect?
- Frederick, London UK
Yes yes, think the unthinkable 11 years ago, sack the person that did, and now publicise the unthinkable with no timeline or commitment. Time for a change - I think so. All spin, no substance - double public spening, 60% in increase in output, stuff private pensions, increase out liability on public sector pensions, open the borders, fill the prisons but no new ones, no money for anything sensible but £100bn - yes billion for Northern Rock. Shambles!
- Andy, Surrey
I saw a flock of Pink Elephants the other day!
- George, Hempstead
Anyone claiming long term benefits should be put to work in the local community, if we're going to pay your benefits then you can work for us.
- Frank Lee, Sutton
"Millions of benefit claimants will be forced back to work in the biggest shake-up of the welfare state for 60 years, ministers will announce today."- It'll never happen under NuLabour, there are too many of their votes at stake.
- Keith Lonsdale, Doncaster
Go David Freud! Power to you and it is about time.
- Coco A., NY, USA
I think most of us will believe it, when we see it
- Neil Grinsell, london
Yeah, Yeah! I believe this when I get proof its actually happened!
- Sue, Orpington, Kent
They should not give benefits for anyone between the ages of 16-24 and no child benefit for mothers under 18. This would prevent people from leaving school or further education and walking straight into the benefits culture for the rest of their lives. It would also give young people a choice, keep going to school or find a job. Then we would not have the need for cheap overseas workers, who then in turn claim benefits. By the age of 24 you should have at least contributed something to the tax pot for any subsequent claim. This would also mean that young people would earn money and ultimately move out from parental homes providing adequate rotation of the housing market.
- Andy T, London
I wish Purnell would stop putting on the smug grin on his face.
- Tom, St. Albans
Where on earth are all these jobs. You cannot create any more "non-jobs"
- Grim Reaper, London
I will believe this when I see it. How many times have we heard this before? I'm sure there will be a backlash from certain groups and the proposals will be either watered down or dropped, only to be re-announced some time in the future.
They've been in power now for almost 11 years. If it hasn't happened by now, I can't see it happening. I wait to be surprised.
- Tom, Wickford, Essex.
Stop automatically giving money to every immigrant that comes into the country. They have no right to it whatsoever and neither do their families still living in their country of origin - NO PROOF OF JOB TO COME TO - NO ENTRY. It is that simple.
- Minime, South East England
Amazing. They do this but they will let asylum seekers come over here and give them everything that they want.
- Steven Patrick M, London, UK
Whilst I am in some agreement with this, i.e. clamping down on people claiming when they are fit enough to work, I do hope it is not about picking on genuinely ill/disabled people who really cannot work.
It might be better to start saving money by not paying immigrants benefits?
- Sally.Brooks, london uk
