Withdrawing benefits: 'war on work shy' or 'matter of fairness'?

Jeremy Hunt to boost minimum wage while cracking down on claimants who refuse to look for work

Chancellor Jeremy Hunt at the Conservative Party conference in Manchester
Chancellor Jeremy Hunt will reveal the full details of the new benefits regime in his autumn financial statement in November
(Image credit: Hollie Adams/Bloomberg via Getty Images)

Jeremy Hunt has vowed to "make work pay" by boosting the minimum wage and cracking down on benefit claimants who refuse to look for a job.

Setting out a series of changes to the welfare system, the chancellor will use his speech at the Conservative Party conference in Manchester today to announce that the National Living Wage will rise to "at least" £11 an hour from next April, providing a pay rise to two million people. Hunt will also argue that the welfare safety net is "a social contract that depends on fairness to those in work alongside compassion to those who are not".

The government will review the way benefits sanctions work. "It is a fundamental matter of fairness," he is expected to say. "Those who won't even look for work do not deserve the same benefits as people trying hard to do the right thing."

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'More radical approach'

Hunt will use his keynote speech to "declare war on 100,000 work-shy benefit claimants", the Daily Mail reported. The full details of how the benefits regime will be made tougher are still being hammered out and will be unveiled in the chancellor's autumn statement next month. 

According to the Department for Work and Pensions (DWP), there are currently around 5.2 million Britons on out-of-work benefits – a figure that soared during the pandemic and has not yet returned to pre-2020 levels.

Few Conservatives will argue against tougher sanctions for benefits claimants but Hunt "could and should go far further", said Ross Clark in The Spectator

Clark suggested a "more radical approach" would be to abolish unemployment benefits altogether and instead offer anyone who wants it three days a week guaranteed work at the National Living Wage. The government's opponents would deride it as "US-style workfare", Clark argued, but "forcing people to turn up and do some work in return for their keep would ensure that they remain in the practice of employment".

Fair, financially responsible or politically motivated?

The measures are driven by spending pressures on the welfare budget, one Whitehall source suggested to The Guardian, and presented as reforms to get benefit claimants back into work. 

Indeed, some leading Tories are "keen to bring down the benefits bill, partly with a major drive to reduce the numbers of economically inactive, and also by encouraging more over 50s back into the workplace", added Politico's London Playbook.

Work and Pensions Secretary Mel Stride will also use his speech to conference today to unveil plans for a crackdown on "deadbeat dads" who refuse to make maintenance payments for their children.

The Conservatives are also trying to "create a dividing line with Labour" ahead of the general election, said The Times.

The focus on benefits has "echoes of the policy promoted by David Cameron and George Osborne", said The Telegraph. "Their framing of the Tories as being on the side of 'workers not shirkers' helped win the 2015 general election," said the paper.

Amid the clamour for tax cuts – not least from the former PM Liz Truss – the development minister, Andrew Mitchell, warned that this should not be done "on the backs of the poorest", said The Guardian.

"We need to be very clear that we have very properly protected throughout the last 13 years of Conservative government the most vulnerable by maintaining and in some cases increasing the value of their benefits" he said. "That's the right thing for any government to do in any civilised society."

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