Benefits system streamlining urged

The Institute of Public Policy Research (IPPR) said the present system discourages people from getting a job and lumps individuals into "crude categories".

The think-tank called on new Work and Pensions Secretary Peter Hain to scrap jobseeker's allowance, incapacity benefit, income support and carer's allowance. Under its proposals, the plethora of entitlements would be replaced by just one, flat-rate benefit which would be more transparent.

Instead of being labelled "disabled", "lone parent" or "unemployed", claimants' entitlement would be based on their out-of-work status.

Their individual circumstances would still determine their package of support, however, and the benefit would come with conditions.

The ideas, set out in a new report, came as Mr Hain is expected to set out welfare reforms within weeks.

The report said that the complexity of the existing system caused difficulties for both claimants and officials.

Kate Stanley, head of social policy at the IPPR, said: "The benefits system Peter Hain has inherited is too complex to be effective."

The proposed benefit would guarantee anybody of working age who is out of a job would get a basic income for 12 weeks, without the requirement of a medical assessment or means test.

Only after 12 weeks - by which time most jobseeker's allowance claimants have moved off benefits - would there be a means-test, ensuring that resources are targeted more effectively.