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Osborne unveiling new conditions for long-term jobless Osborne announces fuel duty freeze and jobless plan
(35 minutes later)
The long-term unemployed will have to undertake work placements in return for their benefits, under tougher rules being unveiled by George Osborne. The long-term unemployed will have to undertake work placements in return for their benefits, under tougher rules unveiled by Chancellor George Osborne.
From April, people who are jobless after being on the work programme will face three options, including community work, or face losing benefits. Welfare must be "fair for those who need it and fair for those who pay for it", he told the Tory conference.
Mr Osborne is announcing the "tough love" approach at the Tory conference. Mr Osborne also announced that fuel duty would be frozen until 2015 to help people with the cost of living.
Labour said it was proof the coalition's main welfare-to-work scheme - set up two years ago - had failed. While the UK was on the right track, he warned people their family finances would not be "transformed overnight".
In his speech to the party conference in Manchester, the chancellor is expected to say that while the government will not "abandon" the long-term unemployed, no-one will be able to get something for nothing. The chancellor insisted the government's economic plan was working but was "far from complete" and turned his fire on Labour - accusing them of "declaring war on enterprise".
He described Labour's policy to freeze energy prices for 20 months as "phoney" and compared Ed Miliband's political philosophy to that of Karl Marx.
He said he was optimistic about the future, saying the "sun had started to rise above the hill" but much more needed to be done to raise living standards.
"There is no feeling at the conference of a task completed or a victory won," he said. "There can be no recovery for all if there is no recovery at all."
Cleaning up litterCleaning up litter
Those who have been out of work for a long time will have to work hard to find a job, he will say. He also pledged to continue to keep control of spending even after the economic recovery was secured to avoid repeating the mistakes of "deluded" predecessors who believed they had abolished boom and bust.
By running a budget surplus in the good times, he would "fix the roof while the sun was shining".
On welfare, Mr Osborne said that while the government would not "abandon" the long-term unemployed, no-one will be able to get something for nothing.
Those who have been out of work for a long time will have to work hard to find a job, he said.
Those who have not found work after two years on the existing work programme - where contractors are paid a fee to get people into a job - will face a new scheme called help-to-work.Those who have not found work after two years on the existing work programme - where contractors are paid a fee to get people into a job - will face a new scheme called help-to-work.
To still qualify for jobseeker's allowance they will have three options - work placements, such as cleaning up litter; daily visits to a job centre; or taking part in compulsory training, for example, to improve their literacy.To still qualify for jobseeker's allowance they will have three options - work placements, such as cleaning up litter; daily visits to a job centre; or taking part in compulsory training, for example, to improve their literacy.
People would have to remain on help-to-work until they found employment - unlike the current scheme which is limited to six months.People would have to remain on help-to-work until they found employment - unlike the current scheme which is limited to six months.
Those who breach the rules will lose four weeks' worth of benefits. Anyone who breaks the rules a second time faces losing three months' worth of benefits.Those who breach the rules will lose four weeks' worth of benefits. Anyone who breaks the rules a second time faces losing three months' worth of benefits.
Ahead of his speech Mr Osborne said: "We are saying there is no option of doing nothing for your benefits, no something for nothing any more. People are going to have to do things to get their dole and that is going to help them into work." 'Useful work'
"There needs to be a bit of tough love... to fix the problem of endemic worklessness." Mr Osborne told activists: "We are saying there is no option of doing nothing for your benefits, no something for nothing any more.
He added: "They will do useful work to put something back into their community; making meals for the elderly, clearing up litter, working for a local charity. "They will do useful work to put something back into their community; making meals for the elderly, clearing up litter, working for a local charity.
"Others will be made to attend the job centre every working day. And for those with underlying problems, like drug addiction and illiteracy, there will be an intensive regime of help. "Others will be made to attend the job centre every working day.
"No-one will be ignored or left without help. But no-one will get something for nothing." "And for those with underlying problems, like drug addiction and illiteracy, there will be an intensive regime of support. No-one will be ignored or left without help. But no-one will get something for nothing.
'Languish on dole' "A fair welfare system is fair for those who need it and fair for those who pay for it."
Shadow chief secretary to the Treasury, Rachel Reeves, said it had "taken three wasted years of rising long-term unemployment and a failed work programme to come up with this new scheme".Shadow chief secretary to the Treasury, Rachel Reeves, said it had "taken three wasted years of rising long-term unemployment and a failed work programme to come up with this new scheme".
"But this policy is not as ambitious as Labour's compulsory jobs guarantee, which would ensure there is a paid job for every young person out of work for over 12 months and every adult unemployed for more than two years," she added."But this policy is not as ambitious as Labour's compulsory jobs guarantee, which would ensure there is a paid job for every young person out of work for over 12 months and every adult unemployed for more than two years," she added.
A Department of Work and Pensions assessment of mandatory work activity - a similar compulsory work scheme introduced by ministers in 2011 - found it "had no impact on the likelihood of being employed".A Department of Work and Pensions assessment of mandatory work activity - a similar compulsory work scheme introduced by ministers in 2011 - found it "had no impact on the likelihood of being employed".
And on the work programme, DWP figures suggested one in 10 of those seen found a long-term job.And on the work programme, DWP figures suggested one in 10 of those seen found a long-term job.
"Both internationally and more recently in the UK, the experience has been these schemes really don't do much to help people get into sustained employment," said Jonathan Portes - a former chief economist at the department.
"The experience so far has been they cost quite a bit of money and don't deliver that much in the way of results."
'UKIP pact''UKIP pact'
In developments at the conference on Sunday:In developments at the conference on Sunday:
Meanwhile, the leader of the UK Independence Party has said it is open to local deals for its candidates to stand aside in seats with Eurosceptic MPs.Meanwhile, the leader of the UK Independence Party has said it is open to local deals for its candidates to stand aside in seats with Eurosceptic MPs.
Nigel Farage ruled out a formal electoral pact but suggested there could be agreements at constituency level between UKIP and candidates from different parties.Nigel Farage ruled out a formal electoral pact but suggested there could be agreements at constituency level between UKIP and candidates from different parties.
Writing in the Times, Mr Farage said: "If either they, or others like them, even Labour MPs, with their local associations, chose to propose running on a joint ticket then I would leave the local UKIP association to have those associations."Writing in the Times, Mr Farage said: "If either they, or others like them, even Labour MPs, with their local associations, chose to propose running on a joint ticket then I would leave the local UKIP association to have those associations."
A poll of Conservative councillors for BBC One's Sunday Politics had suggested nearly a quarter would support an electoral pact with UKIP at the next general election.A poll of Conservative councillors for BBC One's Sunday Politics had suggested nearly a quarter would support an electoral pact with UKIP at the next general election.
The conference continues until Wednesday when Mr Cameron will deliver his keynote speech.The conference continues until Wednesday when Mr Cameron will deliver his keynote speech.