Welfare reform white paper 'threatens child poverty target'

In a speech in parliament today Pensions Secretary Iain Duncan Smith outlined the reforms, saying that £2.1bn had been set aside to bring in a universal credit to replace existing work related benefits.

Tough sanctions such as cutting benefits will also be brought in for those that refuse work and schemes to encourage the unemployed back to work.

Duncan Smith said: "This is a fair deal for the taxpayer and those who need our help."

Child Poverty Action Group (CPAG) chief executive Alison Garnham warned against focusing on cutting benefits red tape while "forgetting the real world in which jobs and affordable childcare are both in short supply, while employer discrimination and poverty pay remain major problems."

She also called for practical work incentives and criticised so-called workfare schemes being considered, whereby benefits are cut for those who refuse to carry out voluntary work schemes.

CPAG points out that a government report published two years ago called A Comparative Review of Workfare Programmes in the United States, Canada and Australia, found such schemes can limit time available to look for work and offer little practical training.

Garnham added: "If the government doesn’t back these plans with much better investment for well-evidenced programmes to get people the jobs they want, the promise that welfare reform will help decrease child poverty will turn to dust."

Unite was also critical of tough sanctions planned for those who refuse a job. Assistant general secretary for public services Gail Cartmail said: "The atmosphere being created is of a division between the 'deserving' and 'undeserving' poor."