CPAG warns on welfare reform plan
24.01.06

The Child Poverty Action Group (CPAG) has given a mixed reaction to the welfare reform Green Paper published today. Kate Green, Chief Executive of CPAG, said:

“While we welcome extra support and assistance to help more lone parents and disabled people into employment, it’s not an easy fix for those with high barriers to entering the jobs market.

“CPAG is extremely concerned that those who are unable to comply will find themselves on reduced benefits, at levels which put their children at an even greater risk of poverty. Cuts in benefits are not the right way forward for already disadvantaged families.

“For those who can work the roll-out of Pathways to Work must be adequately funded. We are pleased that the Government recognises the need to invest substantially to support people back to work. However, based on the cost of the pilots, CPAG estimates that the government will have to find at least £500 million to make their reforms work. The Secretary of State has so far promised £360 million, but we do not yet know where this is coming from.

“Increasing employment should help to fulfil the Government’s pledge to end child poverty, but Ministers must remember that work is not a guaranteed route out of poverty. Disabled people still face discrimination in the labour market and without the right training and support they will simply end up in poor quality, low paid jobs.

“Since there is a strong link between disability and poverty, we welcome the higher rate of benefit for those who will never be able to work but we are concerned about how a two-tier system will operate in practice. Complex decisions about what somebody is capable of doing must be made sensitively and honestly.”

CPAG will publish a formal response to the Green Paper and submit evidence to the Work & Pensions select committee’s inquiry into the proposed changes.

As part of the Disability Benefits Consortium CPAG is looking forward to working with the Government to ensure a balanced approach to welfare reform that will deliver genuine opportunities and positive outcomes for sick and disabled people.

For further information please contact:
Alex Belardinelli
CPAG Press Officer
Tel. 020 7812 5216 or 07816 909302
abelardinelli@cpag.org.uk