Speaking in east London, Duncan Smith established his plans for welfare reform in the 21st Century Welfare white paper, published today. Options in the paper include combining elements of the current income-related benefits and tax credit systems, bringing out-of-work and in-work support together in a single system, and supplementing monthly household earnings through credit payments reflecting circumstances such as children, housing and disability.
The government claims the system will provide more incentive to work as benefits will be withdrawn more slowly alongside gaining employment. It will also be a simpler system, said Duncan Smith, which will allow for less error and fraud, which cost the taxpayer £5bn last year.
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