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Duncan Smith told benefit reforms must save £10 billion
The Treasury has told work and pensions secretary Iain Duncan Smith he must find £5 of savings for every £1 he spends simplifying the benefits system, according to reports in the Financial Times.
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The Treasury has told work and pensions secretary Iain Duncan Smith he must find £5 of savings for every £1 he spends simplifying the benefits system, according to reports in the Financial Times.
The government is told him to find £10 billion over the next four years. In order to make the required cuts the FT said Duncan Smith (pictured) is urging Tory MPs to drop pledges to protect universal benefits for pensioners and parents – such as £2.7 billion of winter fuel payments.
The aim of the benefits reform is to end the poverty trap and make part-time work financially beneficial. The short-term impact of the simplification will create long-term savings, believes Duncan Smith.
According to the FT the required savings have caused tensions between Duncan Smith and chancellor George Osborne, who said in a letter than simplification plans should cost not more than £2.5 billion to £3 billion and identify £10 billion of savings.
One Whitehall source told the newspaper said the rules laid down by Osborne had caused a ‘blazing, shouting, grade-A row’.
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8 comments so far. Why not have your say?
Grumpy Old Man
Aug 17, 2010 at 09:51
IDS is between a rock and a hard place methinks.Unless his reforms are given a chance, it will be more of the same for ever and a day and nothing will change within the 'benefits culture' world.
report thisMartin Drew
Aug 17, 2010 at 10:15
There clearly has to be root and branch reform of the whole benefits system, and the complexities of the current system means that I suspect it is almost impossible to see quite what knock on effects changes will have. That a simplified system will almost certainly mean that it will need far fewer staff to administer is one reason why it may well be resisted by the Civil Service who hate to see staff cuts.
These changes need a very brave government. I think IDS may be brave but George Osborne at the Treasury may think it is too risky.
report thisHotrod
Aug 17, 2010 at 12:28
Since when did the treasury have the authority to tell ministers what they can and cannot do? I have been living under the impression that the treasury can only act as advisors. As I understand it if I.D.S. decides not to take their advice, he will only be answerable to George Osborne and David Cameron. The treasury will have to like it or lump it.
That said, I think I.D.S. is a pretty level headed guy and he has done a lot of research on the task he has been given. Give the man a break. I'm sure he can and will make the efficiencies which are neccessary.
I'm a pensioner in receipt of winter fuel allowance. It makes a significant difference to my income, however I realise that it is paid regardless of employment status. I think it should be withdrawn from people over the age of 60 who are still working.
We have all read the astonishing reports in the national press of benefits exploitation. It would understandable if these were isolated cases, but there not, it's a nationwide culture which has spiralled out of control. We need someone like Vladimir Putin. When he first took office we were sneering at Russia's failed socialist ideals. He got tough with the Oligarchs, and suppressed the socialist spongers. He earned the respect of the world. Now we are the laughing stock.
report thisjingoistic
Aug 17, 2010 at 14:11
Dead easy withdraw all benefits now
report thisPeter Lawless
Aug 17, 2010 at 18:58
Tax evasion ? Oh sorry wrong department. Which department is that one ? What do you mean, there isn't one for that ?
report thisGodfrey Billy
Aug 17, 2010 at 23:20
Too much concentration on benefits cut, I am sure tax evasion will bring back as much to the country as benefit cuts, but can't touch or the tories will loose most of their rich supporters. Look at the new appointment P Green to look at efficiency. In support of HotRod, anyone working at 60 and over should not get the winter allowance, only given to those who have completely retired but not before 65.
report thisAnonymous 1 needed this 'off the record'
Aug 18, 2010 at 14:51
Tax is paid on money which has been earned.....evasion can can be countered. Benefits are merely those workers taxes being shelled out to non-contributers whom the government deem worthy....like that family of Somalis living in the mansion in Knightsbridge or the British family with 12 kids. I'm sure some of the previous commentators and the government would like to take more. Tax evasion dept!! Talk about the tail wagging the dog.
Save waste first.
report thisjohn brace
Aug 18, 2010 at 19:54
We pensioners have all enjoyed the winter fuel payments - [ours were passed on to our chidren who are still working - and struggling] We didn't ask for them and most don't need them.
Bus passes should also be withdrawn for below pension age.
Its just a shame that some will always come up smelling of roses, like the ones mentioned by Anoymous1. If everyone pulled their weight we wouldn't need such stringent cuts
Oh - and stop going to war at the drop of a hat!
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