The work and pensions secretary has declared that the government must stop “simply writing a cheque” for health and disability benefit claimants – a signal that Labour is preparing for a fresh attempt at welfare reform after last year’s humiliating partial U-turn over a £5bn package of cuts.
On a visit to a jobcentre in south London, Pat McFadden said he does not “believe government fulfils its responsibilities simply by writing a cheque”. “I think we owe people more than that,” he told the Guardian.
“McFadden says Labour must stop 'writing a cheque' for benefits, signals welfare reform push amid two critical reviews.”
“Of course, for people who can never work, the system must always be there for them, and it always should be. But for those who could work, or could change their situation, then we’ve got to help them do that,” he added.
McFadden signalled that welfare reform could form the backbone of Labour’s response to two landmark government-backed reports. Ministers are awaiting the final recommendations from Alan Milburn’s report into youth worklessness and Stephen Timms’s review of disability benefits, both of which have already highlighted deep-rooted problems.
The interim Timms review, published last week, concluded that the personal independence payment (Pip), claimed by nearly 4 million people in England and Wales, was “not working” and suggested bold and radical proposals were needed to overhaul it. Claimants often find the system “dehumanising”, “soul destroying”, and “degrading”, the review found.
In late May the first phase of the Milburn review urged a “whole system reset” involving welfare, schools, and employers to tackle a big increase in the number of young people out of work or education to more than a million.
McFadden, who commissioned both reviews, said work was under way on the government response in anticipation of the final reports this autumn. “Even before they’ve reported, I’m already speaking to the Department for Education [and] the Department for Health. We’re going to have to respond to this as a government.
“It’s my job to put together a plan, a proposal, [that] changes the question of the welfare state from simply asking, ‘what benefits are you entitled to?’, to asking, ‘how can we help you live the fullest life?’”
The comments come after the government was forced into a humiliating partial U-turn to avoid a backbench rebellion over a £5bn package of cuts, with more than 120 Labour MPs having signed a rebel amendment. Now, with the welfare bill rising amid spiralling health-related benefit caseloads, McFadden is seeking to reframe the debate around support and work – but the political risk of another backlash remains high.