Conservative Conference 2010: Duncan Smith unveils plans for a 'universal credit' benefits system
Neil Puffett
Tuesday, October 5, 2010
Work and Pensions Secretary Iain Duncan Smith has outlined plans to introduce a "universal credit" as part of a wide-ranging shake-up of the benefits system.
Speaking at the Conservative Party conference in Birmingham, Duncan Smith said the government would replace the complex system of multiple benefits with a single tax credit, a move he said would be better for families with children.
During his speech Duncan-Smith said strong, stable families, good schools, and streets free of drugs allowing children to grow up safely are among the key pathways out of poverty.
A universal benefit will, he said, restore fairness and simplicity. He criticised the current benefits system for making it more financially beneficial for parents to live apart rather than together, and disincentivising work
"This is the biggest reform of welfare in a generation," he said. "We will change this broken system to help those at the bottom-end make a new start and change their lives through work."
Details of exactly how the universal credit will work have yet to be released.
The announcement follows proposals revealed yesterday by Chancellor George Osborne, which will see the total amount of state benefits a family can claim capped at around £26,000 a year, so that it is not more lucrative to claim benefits than go to work. Meanwhile, child benefit will be axed for those earning around £44,000 a year.
Pensions minister Maria Miller, a former shadow children’s minister, has said changes to the welfare system will form part of a long-term plan to end child poverty.