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| Social recovery 'matching economy', Iain Duncan Smith to say. | |
| (about 2 hours later) | |
| The government is matching economic recovery with social recovery, Iain Duncan Smith is due to say in a speech. | |
| Changes to the benefits system have had a key role in getting people back into work and ending the culture of welfare dependency, the Work and Pensions will say. | |
| It comes as the Policy Exchange think tank says the benefit cap should be lowered for people living outside London and the South East. | It comes as the Policy Exchange think tank says the benefit cap should be lowered for people living outside London and the South East. |
| Labour said the "reforms are in chaos". | Labour said the "reforms are in chaos". |
| Culture change | Culture change |
| Mr Duncan Smith is expected to say that the policies of the last Labour government saw whole sections of society left on the sidelines and whole communities marked by widespread unemployment. | Mr Duncan Smith is expected to say that the policies of the last Labour government saw whole sections of society left on the sidelines and whole communities marked by widespread unemployment. |
| "The number of households where nobody had ever worked doubled - and the welfare bill rose by twice as much as average earnings," he will say. | "The number of households where nobody had ever worked doubled - and the welfare bill rose by twice as much as average earnings," he will say. |
| "More than half of the rise in employment that we saw was accounted for by foreign nationals. And not just in London - three-quarters of Eastern European migrants in employment live outside London. | "More than half of the rise in employment that we saw was accounted for by foreign nationals. And not just in London - three-quarters of Eastern European migrants in employment live outside London. |
| "Immigration into the UK has been a supply and demand issue. Businesses needed the labour and because of the way our benefit system was constructed, too few of the economically inactive took the jobs on offer." | "Immigration into the UK has been a supply and demand issue. Businesses needed the labour and because of the way our benefit system was constructed, too few of the economically inactive took the jobs on offer." |
| Mr Duncan Smith will also say in his speech that when the Conservatives and Liberal Democrats took office in a coalition government in 2010, almost five million people were on out-of-work benefits. | Mr Duncan Smith will also say in his speech that when the Conservatives and Liberal Democrats took office in a coalition government in 2010, almost five million people were on out-of-work benefits. |
| "It was clear to me that in large part this situation was the product of a dysfunctional welfare system that often trapped those it was supposed to help in cycles of worklessness and dependency. | "It was clear to me that in large part this situation was the product of a dysfunctional welfare system that often trapped those it was supposed to help in cycles of worklessness and dependency. |
| "My one aim as work and pensions secretary has been to change this culture - and everything we have done, every programme we have introduced, has been about supporting everyone who is able to into work." | "My one aim as work and pensions secretary has been to change this culture - and everything we have done, every programme we have introduced, has been about supporting everyone who is able to into work." |
| Reform 'chaos' | Reform 'chaos' |
| And Mr Duncan Smith says the scale of change instigated by the government has been "enormous" and the policies being delivered are "changing our country for the better". | And Mr Duncan Smith says the scale of change instigated by the government has been "enormous" and the policies being delivered are "changing our country for the better". |
| "Fixing society at the same time as the economy, matching a firm economic settlement to a firm social settlement, and in so doing putting this country on a path to a more productive, more dynamic, and ultimately a more contented, future." | "Fixing society at the same time as the economy, matching a firm economic settlement to a firm social settlement, and in so doing putting this country on a path to a more productive, more dynamic, and ultimately a more contented, future." |
| But Ms Reeves, Labour's shadow work and pensions secretary, said: "David Cameron's government has failed to control social security spending and is set to overspend on welfare by a staggering £13bn. | But Ms Reeves, Labour's shadow work and pensions secretary, said: "David Cameron's government has failed to control social security spending and is set to overspend on welfare by a staggering £13bn. |
| "Under Iain Duncan Smith housing benefit spending is rising, not falling. | "Under Iain Duncan Smith housing benefit spending is rising, not falling. |
| "The number of working people claiming housing benefit is set to double between 2010 - 2018 costing every British household £488. | "The number of working people claiming housing benefit is set to double between 2010 - 2018 costing every British household £488. |
| "The government's flagship welfare reforms are in chaos. Millions of taxpayers money has been wasted on the £12.8bn Universal Credit which less than 7,000 people are claiming." | "The government's flagship welfare reforms are in chaos. Millions of taxpayers money has been wasted on the £12.8bn Universal Credit which less than 7,000 people are claiming." |
| Cuts proposed | Cuts proposed |
| Meanwhile, the Policy Exchange has written a report suggesting a reduction of the current benefit cap of £26,000 a year by 10% for people living outside London and the South East, to reflect different income and housing costs across the UK. | Meanwhile, the Policy Exchange has written a report suggesting a reduction of the current benefit cap of £26,000 a year by 10% for people living outside London and the South East, to reflect different income and housing costs across the UK. |
| It also estimates that £1bn could be saved by paying child benefit for only four children and progressively reducing payments after the first child. | It also estimates that £1bn could be saved by paying child benefit for only four children and progressively reducing payments after the first child. |
| Chancellor George Osborne has suggested that annual welfare savings of £12bn need to be found to avoid further cuts to departmental budgets. | Chancellor George Osborne has suggested that annual welfare savings of £12bn need to be found to avoid further cuts to departmental budgets. |
| A spokeswoman for the work and pensions secretary denied he was considering the options set out by the Policy Exchange report. | A spokeswoman for the work and pensions secretary denied he was considering the options set out by the Policy Exchange report. |