1.2 1. Benefits targetted
towards the most in need,
this became known as
1.3 3. An end to the poverty
trap by creating a greater
incentive of people to take
low paid employment rather
than life on benefits.
2 How did they reform social security??
2.1 Welfare to work programme and
system of tax credits.Welfare to work
incorporated the 'new deal' and was
based that it will be an incentive to
2.1.1 1998- job seekers.
Young people under 25 who
had been out of work for over 6
months would be offered
training and other health to
improve their chances of
securing employment. Those wh
didn't cooperate would have
reduction on benefits. Another
programme for over 25's for
unemployed over 2 years.
2.1.2 1998 Lone parents. who wanted to return to
work they would be entitled to more
advice and financial grants to
subsidise child care.
2.1.3 2000- Over 50's. found themselves
out of work for 6 months or
more offered help and revieve
higher benefit if cooperated.
2.1.4 2003 disabled. Offered opportunity to
gain employment, refusal to take part
would not result in reduction benefit.
3.1 Labour claimed helped
1.8m found work. 500,000
parents brought into work
force and 150,000
3.2 However, opposition disputed these figures
and argued that the increase in employment
was more to do with unprecedented growth
rather than the Labour gov.
4 Tax Credits were introduced in order to improve to
incentive to work as low paid workers wold be able to
receive a tax credit in order to ensure that their pay would
be more than they would previously have received in
benefits. The principle is that those who seek and find work
will be considerably better off than those who do not and the
system was also designed in order to reduce child and
4.1 1. Child tax credit was
made available for low
paid workers who are
parents or guardians of
4.2 2. Working family tax
credits are available
for low paid workers
and the credit is
greater for those
who have children
4.3 3. Pension credits
are available for
have no other
income apart from
their state benefit.
5 In 2008 changes were introduced in order to tighten up the benefit system,
introduction of sanctions for those who did not seek to find employment and
attend job centre regularly. Disabled people assessed so that only those
incapable of work would be offered unconditional benefit. Labour WAS radical
in their approach critics argue that the benefits system is too complex and too
reliant upon means testing, whilst those on the left argue that the system does
not redistribute income enough but neo-liberals argue that the system is too
generous to unemployed people.
6 FAILURES OF NEW LABOURS REFORM
6.1 Despite a lengthy period of low
unemployment, welfare spending
continued to grow. Yet the GB taxpayer
and benefit recipient get less from each
pound sent than almost anyone else in
Europe. These are the defining
characteristics of our welfare state; it is
expensive, inefficient, bureaucratic and
fails to deliver what it supposed to.
6.2 Spent more on education than on
benefits. Reliance on benefits
increased. 5% of men aged under 50
are classified ill or diasbled. 80% of
benefits, 64 bn a year is still paid out
on a backlack on a something for
6.3 Blair faced backlash from his own party
when he did tentatively propose a few
relatively unambitious changes.