Cabinet Office Minister Pat McFadden has delivered an update
Millions on sickness and disability benefits have been put on notice by the DWP that the government cannot base its policies on simply handing out cash.
Secretary of State Pat McFadden used a visit to a jobcentre in south London to signal that ministers are gearing up for a fresh assault on the welfare bill, insisting the state “owes people more” than a monthly payment. His remarks, reported by the Guardian, were delivered as Whitehall braces for two reports into the benefits system, will fuel fears among campaigners that another wave of cuts and tightened eligibility rules is on the way.
Mr McFadden made clear he did not believe the Government fulfilled its duty by simply cutting a cheque, though he stressed those genuinely unable to ever work would still be supported. For everyone else, he said, ministers had a responsibility to help them change their circumstances.
Significantly, he said: “”I don’t believe government fulfils its responsibilities simply by writing a cheque.”
The comments come as officials await the final findings of two landmark reviews commissioned by Mr McFadden himself: Alan Milburn’s inquiry into youth worklessness and Sir Stephen Timms’ probe into disability benefits.
The interim verdict from the Timms review, published only last week, delivered a damning assessment of Personal Independence Payment (PIP) – claimed by almost four million people across England and Wales – branding the system as failing and in need of radical surgery.
Meanwhile the Milburn review, whose first phase landed in May, called for a “whole system reset” spanning welfare, schools and employers after the number of young people left without jobs or education ballooned past one million.
Mr McFadden revealed that work on the Government’s formal response was already under way behind the scenes, months before either review reports in full this autumn, with talks already taking place with the Department for Education and health officials.
He said his task now was to draw up a plan that reframed the entire purpose of the benefits system – shifting the question away from what claimants are entitled to, and towards how the state can help them build a fuller life. It comes after Labour’s welfare reform agenda descended into chaos earlier this year, when a backbench revolt forced ministers into a humiliating partial retreat over planned cuts worth billions.
The Treasury remains under severe strain, with the health and disability benefits bill spiralling even as defence spending demands grow, piling further pressure on the party to find savings.
The intervention lands just days before Andy Burnham is expected to take over as Prime Minister, with speculation rife over who will fill the top jobs in his new Cabinet. Some Labour MPs have floated Mr McFadden himself as a potential Chancellor, seen by some as a steadier alternative to Ed Miliband amid nerves in the financial markets. Others in the party are demanding a bolder, more radical approach as Labour continues to languish in the polls with an election drawing closer.
Despite the speculation, Mr McFadden insisted his focus remained on his current brief – and suggested welfare reform would remain central to Mr Burnham’s agenda too, describing it as “an agenda for all seasons”.
Separately, the Department for Work and Pensions confirmed that 100,000 people on the highest tier of health-related benefits are now being supported through the Pathways to Work scheme, designed to help claimants build the confidence to re-enter the jobs market without penalty for doing so.
Speaking to work coaches and claimants who had been through the scheme, Mr McFadden argued it proved the case for investing in support rather than simply signing people off. He said claimants who had previously been “written off” had often ended up feeling isolated and unwell as a result – and that better backing, not benefit cheques alone, was the way to turn that around.
