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| Benefits system 'too complicated' | Benefits system 'too complicated' |
| (about 4 hours later) | |
| The benefits system is too complicated and there are too many incentives for claimants to stay on benefits long term, a think-tank has said. | |
| The Institute for Public Policy Research (IPPR), which has close links to the government, says benefits should be streamlined into a single allowance. | The Institute for Public Policy Research (IPPR), which has close links to the government, says benefits should be streamlined into a single allowance. |
| Setting up a flat-rate system could cost up to £1bn but the IPPR says it would save money in the long term. | Setting up a flat-rate system could cost up to £1bn but the IPPR says it would save money in the long term. |
| Ministers are due to publish proposals for reforming benefits next week. | Ministers are due to publish proposals for reforming benefits next week. |
| In its report the IPPR called on the government to scrap jobseeker's allowance, incapacity benefit, income support and carer's allowance. | In its report the IPPR called on the government to scrap jobseeker's allowance, incapacity benefit, income support and carer's allowance. |
| Flat-rate allowance | Flat-rate allowance |
| It said the complexity of the existing system caused difficulties for both claimants and officials. | It said the complexity of the existing system caused difficulties for both claimants and officials. |
| It also said there are significant financial incentives for people to move onto long-term benefits like income support which gives them more money than jobseeker's allowance. | It also said there are significant financial incentives for people to move onto long-term benefits like income support which gives them more money than jobseeker's allowance. |
| Under its proposals, the present array of benefits would be replaced by one, flat-rate allowance. | Under its proposals, the present array of benefits would be replaced by one, flat-rate allowance. |
| Instead of being labelled "disabled", "lone parent" or "unemployed", a claimant's entitlement would be based on their out-of-work status. | Instead of being labelled "disabled", "lone parent" or "unemployed", a claimant's entitlement would be based on their out-of-work status. |
| The benefits system Peter Hain has inherited is too complex to be effective Kate Stanley, IPPR | The benefits system Peter Hain has inherited is too complex to be effective Kate Stanley, IPPR |
| Individual circumstances would still determine their package of support and the benefit would come with conditions, the report said. | Individual circumstances would still determine their package of support and the benefit would come with conditions, the report said. |
| The proposed system would guarantee anybody of working age out of a job would get a basic income for 12 weeks, without a medical assessment or means test. | The proposed system would guarantee anybody of working age out of a job would get a basic income for 12 weeks, without a medical assessment or means test. |
| After 12 weeks - by which time most jobseeker's allowance claimants have moved off benefits - the IPPR proposes a means-test. | After 12 weeks - by which time most jobseeker's allowance claimants have moved off benefits - the IPPR proposes a means-test. |
| Kate Stanley, head of social policy at the IPPR, said: "The benefits system Peter Hain has inherited is too complex to be effective." | Kate Stanley, head of social policy at the IPPR, said: "The benefits system Peter Hain has inherited is too complex to be effective." |
| She added the proposed system would allow people to start the process of getting back into work more quickly. | She added the proposed system would allow people to start the process of getting back into work more quickly. |
| New Work and Pensions Secretary Peter Hain is expected to announce welfare reforms next week. | New Work and Pensions Secretary Peter Hain is expected to announce welfare reforms next week. |