Socialist Resistance

An archive of socialistresistance.org, 2002–2022

Welfare reforms - Claimants braced for the worst

Socialist Resistance no31  |  page 5

This is scanned newsprint, not web text. The original PDFs carried no text layer at all, so every word here was read off the page by OCR. Expect dropped opening letters, run-together words and wrong characters. There was no contents page to cut the paper up by, so the articles were found from the size of their headlines: a headline may carry its kicker, and where an article ran beside a boxed panel a few lines of the neighbour can appear. The scanned issue is the authority; this text is here so the words can be found at all.

their blinkered vision has so far kept from view.

The FT figures show hospital schemes worth £5.2 billion have been built or are under construction under PFI, while publicly-funded schemes add up to less than £600m. "Approved"

Another £6.2 billion worth of alC currently under negotiation, while schemes worth £S.9 billion have been "approved in principle" but not yet begun the lengthy PFI process.

In other words if the current plans all go ahead, public funding could account for less than 4 per cent of new hospital investment.

Real prudence from the Chancellor would have meant an inversion of the current pattern, with all mainstream funding for new hospitals coming at lower interest rates from the Treasury, rather than private borrowing that lines the pockets of bankers and shareholders, and leaves future generations to foot the bill. Susan Moore Claimants are likely to be under attack when the government's proposals on welfare reform are finally published - even if the assault may be less brutal than initially predicted.

The green paper on welfare retorm, originally planned for October, is now expected at the end of January. John Hutton, the new work and pensions secretary, promised that the government was nol aboul

embark "a agenda" where incapacity benefit was concerned.

And rumour has it that the reforms contained within the green paper may indeed be less radical than first planned because New Labour fear risking major conflicts over reform of education, health and welfare benefits at the same time. (65 Labour MPs rebelled against proposed changes to incapacity benefit in 1999.)

Nevertheless claimants are bracing themselves for the worst.

2.7 million people claim incapacity benefit at an annual cost of £12 billion and the numbers have quadrupled over the last 30 years.

This particularly because the Tories used the benefit and its predecessor, invalidity benefit, as a way of massaging unemployment figures in the 1980s. Tony Blair's stated aim is to reduce the numbers claiming by a million.

Incapacity benefit is currently pala at a rate ol £57.65 a week for new claimants and usually rises to £68.20 after six months and to £76.45 after a year.

At the lowest rate it is only £1.45 more than Jobseekers Allowance. The green paper is expected to propose only the one rate in future and -surprise surprise - not the highest.

But the core of the propos als will be presented as a carrot and stick with tougher rules for eligibility or hurdles which people will have to jump to remain on the benefit.

They will face medical interviews with government-appointed doctors (working to their own productivity targets to cut numbers) and measures to "help" them DaCK into work.

While of course some people on the benefit welcome support to re-enter the labour market for many, particular those suffering from less visible disabilities and/or those who have been out of work for a long time, this is in fact a second stick.

Trade unions need to be gearing up to analyse the proposals when they emerge.

Whatever the detail, the likely effect will be increase poverty and humiliation for a section of working class people.