Labour Policy Watch: Benefits

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Benefits
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	Under the Tories, the benefits bill rose because more people were out of work or on wages below benefit levels, and because the system involved expensive means-testing and checking that claimants were genuine. Benefit levels were low, however, and they were removed altogether for 16 and 17 year olds, while invalidity benefits and sick pay were reduced and unemployment benefit paid for a year was replaced by job-seekers allowance paid for 6 months. One-off grants, which helped the poor through crises, were replaced by loans from a social fund.
	Labour policy was:
	1	To reduce the benefits bill by cutting unemployment rather than cutting benefits
	2	To retain universal benefits and minimise means-testing
	3	To restore benefits to 16 and 17 year olds
	4	To restore a years benefits to the unemployed
	5	To make job schemes for the unemployed voluntary, paid at the rate for the job and carrying employee status
	6	To restore grants for crisis situations
	In fact under New Labour:
	1	Unemployment has fallen, but the benefit bill has also been cut through eligibility changes, e.g. for single parents and some disabled people
	2	Means-testing has been further extended, e.g. across disability benefits
	3	Those from poor families still in full-time education are eligible for education maintenance allowance (and others?)
	4	The unemployed still get 6 months job-seekers allowance
	5	Job schemes have none of these features and are essentially "workfare"
	6	The social fund is still a loan system, its total amount has been capped and loans are automatically refused if a previous loan is not fully repaid
	In addition:
		New Labour continued the Tories' legal action against the EU's anti-poverty programme
		Tax credits have replaced some benefits and significantly raised incomes for those who pay tax and claim the credits
		Backdating of underpaid benefits has been reduced from 52 to 4 weeks
		Child trust funds will pay out to all at age 18
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