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| Labour plans to give local councils a say in welfare spending | Labour plans to give local councils a say in welfare spending |
| (4 months later) | |
| Labour is exploring radical plans to give local councils and new regional bodies a central role in shaping the way billions of pounds of welfare funding is spent in order to bring down the benefits bill. | Labour is exploring radical plans to give local councils and new regional bodies a central role in shaping the way billions of pounds of welfare funding is spent in order to bring down the benefits bill. |
| Liam Byrne, the shadow work and pensions secretary, is looking at approaches in Canada and Germany where local authorities are much more closely involved in back-to-work programmes, regeneration funding and retraining, and saving billions in benefit payments in the process. | Liam Byrne, the shadow work and pensions secretary, is looking at approaches in Canada and Germany where local authorities are much more closely involved in back-to-work programmes, regeneration funding and retraining, and saving billions in benefit payments in the process. |
| Labour is under pressure to show how it can cut the benefit budget. It is insistent this cannot be done with salami slicing across the budget, but rather by looking at new solutions, such as localised welfare. | Labour is under pressure to show how it can cut the benefit budget. It is insistent this cannot be done with salami slicing across the budget, but rather by looking at new solutions, such as localised welfare. |
| It follows research by the Joseph Rowntree Foundation this week that showed attitudes to welfare were hardening especially among Labour supporters. The party is also examining the true long-term drivers of welfare spending rises, such as unemployment, an unregulated private rental sector driving up housing benefits, lack of new homes and an ageing society. | It follows research by the Joseph Rowntree Foundation this week that showed attitudes to welfare were hardening especially among Labour supporters. The party is also examining the true long-term drivers of welfare spending rises, such as unemployment, an unregulated private rental sector driving up housing benefits, lack of new homes and an ageing society. |
| Byrne is proposing a near co-commissioning model for the work programme in which the Department of Work and Pensions works with either local authorities or groups of local authorities in Local Enterprise Partnerships to decide how benefit money is spent. | Byrne is proposing a near co-commissioning model for the work programme in which the Department of Work and Pensions works with either local authorities or groups of local authorities in Local Enterprise Partnerships to decide how benefit money is spent. |
| He claims there is now innovative work underway in Glasgow, Wales, Newham and Liverpool to produce a more localised system of welfare delivery. The authorities are involved in offering retraining, regeneration funding, and back-to-work programmes, currently conducted by mainly private contractors on a payment by results model. | He claims there is now innovative work underway in Glasgow, Wales, Newham and Liverpool to produce a more localised system of welfare delivery. The authorities are involved in offering retraining, regeneration funding, and back-to-work programmes, currently conducted by mainly private contractors on a payment by results model. |
| He claims new figures show that more than half of Britain's unskilled workers have no job, and of the three-quarters of the UK's estates where unemployment is highest, unemployment is getting worse. On two-thirds of those estates, long-term unemployment is getting worse too. | He claims new figures show that more than half of Britain's unskilled workers have no job, and of the three-quarters of the UK's estates where unemployment is highest, unemployment is getting worse. On two-thirds of those estates, long-term unemployment is getting worse too. |
| Byrne said: "Our back to work system is hopelessly centralised. This is what the clear conclusion of Labour councils who are now leading the fight against youth unemployment. | Byrne said: "Our back to work system is hopelessly centralised. This is what the clear conclusion of Labour councils who are now leading the fight against youth unemployment. |
| "In Germany, a more localised approach has contributed to saving billions of euros in welfare payments by driving up the employment rate. Jobcentres work closely with surrounding schools and have deep roots in the local labour market which allows them to engage with employers far beyond the traditional low skill, low pay sectors." | "In Germany, a more localised approach has contributed to saving billions of euros in welfare payments by driving up the employment rate. Jobcentres work closely with surrounding schools and have deep roots in the local labour market which allows them to engage with employers far beyond the traditional low skill, low pay sectors." |
| Senior party officials insisted they would not be dropping their totemic target of abolishing child poverty by 2020 despite a fevered debate in the party as to whether it is affordable and realistic. | Senior party officials insisted they would not be dropping their totemic target of abolishing child poverty by 2020 despite a fevered debate in the party as to whether it is affordable and realistic. |
| There is an acknowledgement that a reliance on tax credits and boosting incomes has to be cut in favour of spending on affordable childcare, a more aggressive approach to low pay and, in two-parent families, trying to get both into work. | There is an acknowledgement that a reliance on tax credits and boosting incomes has to be cut in favour of spending on affordable childcare, a more aggressive approach to low pay and, in two-parent families, trying to get both into work. |
| In a recent article, Byrne and Jon Cruddas, the Labour policy chief, warned: "As the squeeze on public finances kicks in, the tax credit architecture has been partially dismantled, with relatively little public outcry. Indeed, the very language of child poverty is now arguably a barrier to progress rather than a call to action." | In a recent article, Byrne and Jon Cruddas, the Labour policy chief, warned: "As the squeeze on public finances kicks in, the tax credit architecture has been partially dismantled, with relatively little public outcry. Indeed, the very language of child poverty is now arguably a barrier to progress rather than a call to action." |
| The Guardian has also discovered that shadow cabinet members have been asked to see how the contributory principle could be applied in their policy areas, such as bus passes, or winter fuel allowance. | The Guardian has also discovered that shadow cabinet members have been asked to see how the contributory principle could be applied in their policy areas, such as bus passes, or winter fuel allowance. |
| Ed Balls, the shadow chancellor, will set out more of his thinking on spending and deficits ahead of the coalition spending review this summer, but he will hold back decisions until closer to the election. | Ed Balls, the shadow chancellor, will set out more of his thinking on spending and deficits ahead of the coalition spending review this summer, but he will hold back decisions until closer to the election. |
| The shadow transport team are examining whether or not the private sector intercity rail franchises should be taken from private sector hands when their contracts , expire and handed to a directly operated railway, alongside a merged Network Rail. The independent review into policing is likely to recommend the abolition of police and crime commissioners. | The shadow transport team are examining whether or not the private sector intercity rail franchises should be taken from private sector hands when their contracts , expire and handed to a directly operated railway, alongside a merged Network Rail. The independent review into policing is likely to recommend the abolition of police and crime commissioners. |
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