The Government has recently published the Welfare Reform Bill, and the Bill is going through Parliament at the moment, and will become Law at some stage in the future. The idea behind reform to the Welfare system is to simplify the current system, and streamline the whole process. The Government argues that it can also save billions of pounds when the new system is setup as currently there are over 50 different Benefits, and the new system would combine them all in one.
However the main aim of the introduction of the Universal Credit is not only to save money administering the benefit system, but is key in the Governments plan in making work pay. In other words the main driving force is to get people back into work and off the benefits system. The Government argues that the current system encourages people to stay on benefits and does not provide enough motivation for people to get back into work after being on benefits.
The New universal Credit System is due to come into force in October 2013, and could take up to 4 years to migrate current benefit recipients onto it. The new system will replace the seperate benefits that people receive. People will receive one payment with different elements added to it.
The Government is also proposing to implement more severe penalties for those that refuse to work under the system. For example if a claimant refuses to work in any 12 month period, they could loose up to 3 months benefits payment. However if a claimant refuses a second job over the second 12 month period, they could loose their benefits for a further 6 months. If a third job is rejected by the claimant over the following year, the claimant could possibly loose the benefit for three years.
Disability Living Allowance is also due to be reformed. The Government wants to scrap the current system were people with certain Disabilities are automatically entitled to the benefit, and want to replace it with a system were by all claimants will have to under go regular assessments to see how the condition that they have effects their lives.