Osborne secretly plans £2.5bn cut to sickness benefit
Leaked document shows that the Chancellor wants to slash support for people too ill to work.
By Samira Shackle Published 12 September 2010 14:13
Leaked documents have shown that George Osborne is secretly planning to cut sickness benefits by £2.5bn.
The plan is detailed in a confidential letter from Osborne to the Work and Pensions Secretary, Iain Duncan Smith, which was seen by the Observer.
Written on 19 June (three days before the Emergency Budget) and also sent to David Cameron and Nick Clegg, the letter says:
Given the pressure on overall public spending in the coming period, we will need to continue developing further options to reform the benefits as part of the spending review process in order to deliver further savings, greater simplicity and stronger work incentives.
Reform to the employment support allowance is a particular priority and I am pleased that you, the prime minister and I have agreed to press ahead with reforms to the ESA as part of the spending review that will deliver net savings of at least £2.5bn by 2014-15.
The employment and support allowance (ESA) is the successor to incapacity benefits, and is paid to those who are unable to work because of disability or illness.
Duncan Smith is currently locked into negotiations with the Treasury over his proposed reform to the welfare system, which will require immediate investment in order to incentivise working in the long-term.
This revelation has done little to ease the tension. The Department for Work and Pensions insisted that nothing has been decided, stressing that "our reforms will ensure that the most vulnerable in our society are protected." Some within Duncan Smith's camp have even accused the Treasury of leaking the letter to force them into accepting the plan.
The proposed cuts are disturbing, but hardly surprising. Just last week, Osborne launched an astonishing attack on people who have made the "lifestyle choice" to be on benefits, announcing an extra £4bn cuts.
A government spokeswoman dismissed the leak, saying that the £2.5bn figure was "totally out of date", and that negotiations on ESA were ongoing. Possible changes could include means-testing recipients, and limiting the amount of time that people can spend on ESA.
The Institute for Fiscal Studies showed unequivocally last month that the Budget was regressive, and would disproportionately affect the very poorest in society. To this already punitive Budget, with its drastic cuts to housing benefits, add the extra reductions that Osborne announced last week and this latest news. You have a picture of an assault on the welfare state and a worrying propensity to go after the most vulnerable in society.
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80 comments
dylan,i might be wrong, but i guess you are a bit of a left wing troll,but at the end of the day dylan left wing trolls like you and your right wing troll counterparts have more in commen with your politacal idealogy than you think,why do i say that,well lets just look at the new coalition goverment,right wing trolls and left wing trolls united as one..
At my most cynical, I've sometimes wondered whether religious people (not just Catholics, this is not selective or discriminatory!) should be given sickness benefit due to their serious mental illness - the invisible imaginary friend who tells them what to do, what's right and wrong, what kind of person they can sleep with or marry... the amount of guilt that must build up, and the limitations it puts on their life choices, surely deserve some form of compensation (preferably paid for by treating churches and mosques as taxable rather than, bizarrely, as charities).
But actually, the religious seem to fare better on certain health outcomes (overall a more content and socially engaged life brings health benefits) so perhaps that's the compensation right there. I don't dislike the religious, even though I think they're entirely and dangerously wrong (compare this to neo-fascists, who I feel are wrong, but also dislike). I do however feel a paternalistic concern for their wellbeing, particularly since most of them were indoctrinated without choice as children. In terms of physical sickness, however, they do seem to reap the benefits and I wish them well for it.
I fear, however, that hoping for divine intervention to cure the sick or disabled, is a waste of time, and hence we must rely on human aid. The aid, unfortunately, that Mr Osborne seems strongly inclined to pull away...
Left is forward: That's a mighty cynical view. There are a fair number of people who don't have a life long subscription to their chosen religion. They dip in and out in the knowledge that it is their whenever they need it, I'm guessing many people have felt comforted by all that faith can offer at times when they have little else to turn to or believe in.
Religious faiths should be viewed quite separately and distinctly from the need to provide a decent welfare state.
broderick,
I appreciate your support of tom goodison but it doesn't matter whether you think people like him are being targeted or not. The fact is they are, people who are incapacitated, disabled and not fit for work are being passed as fit for work by a private assessment company with inadequate medical experience, knowledge and awareness of complex illnesses.
The scroungers may be weeded out eventually but what about the genuine claimants who are being tarnished with the same brush and weeded out in the process through an inadequate medical assessment not designed to assess illness - as you would expect - but designed in it's framework and remit to get people back to work on the basis of a form and a twenty minute face to face assessment by a non medically qualified person.
Tom isn't alone in his fear at what will happen to him.
Nick - I have a further caveat to add to your previous post:
Let's assume a person with mental health problems wants to get back into work and a prospective employer is prepared to overlook their disability and offer them a job.
Fast forward a couple of months when he/she will experience the same mental health problems that led to his/her leave the first time around.
Before finding work this hypothetical person's income was composed of Incapacity Benefit and Disability Living Allowance. Their Housing Benefit was also covered and they were exempt from paying Council Tax. Despite their mental fragility, they will no doubt have to go through the arduous form-filling process all over again.
Unfortunately this time around not all their claims are so successful and consequently they are left financially worse off, in spite of them having used their own initiative by seeking work in the first place.
Since this is your area of expertise Nick, does such a scenario sound plausible?
P.S. For a time I thought Abdul had regenerated like some intellectually bereft Time Lord, under the pseudonym 'Max'.
Having witnessed right-wing trolling on various message boards, I'm fascinated how they all manage to post in a uniform voice, even down to the memes they crowbar into their posts, e.g. "Nu-LieBore", "Gordon Broon", "waycist", etc.
Compare broderick's guise of an Upper-class twit to the musings of Reginald-Fah-fuck-wit - not too dissimilar are they?
i feel for you tom goodison,but the state are not targeting people like you and in fact the cuts being made in the long run will help out people like you and weed out all the blodgers and scroungers who have abused the system.dont worry tom we will look after good people like you.
stuart - If I happened to be a left-wing troll, would it not make more sense for me to visit The Spectator's website and attempt to be deliberately provocative in their Comments Section?
If you are unable ascertain that it's counterproductive to be a left-wing troll on a left-wing blog, then maybe it's time for you to revise your definition of trolling.
re: Nicky... Osbourne needs to return to the drawing board ? No need, IDS be doing it for him !
As we have 'discussed' before, a single, variable rate benefit be the answer (you thought otherwise)... it be the answer they have plumped for... 1 - 0 to moi ? !
dylan,one question for you and its needs answering.do you a left wing troll on a left wing blog as you call it think you are superior in your views and comments to the right wing trolls, and if you dont mind me asking, are you unemployed and if not what type of occupation or job do you do,nick is a lawyer who helps out the poor and vunerable in society,i was just wondering do you fall into that category,and yes before you ask i am one of these lazy dole scrounging gits on income support as many people in these blogs refer me as.
Mr Osborne seems to despise and hate the poor, the disabled. What is a person like this doing in government?
Its a Tory Coalition Govt; thats where you'd expect to find a person like Osborne.
Looks like Welfare Reform is going to be put on hold yet again (aka Frank Field) and drastic cuts made across the board. These savage cuts which are hitting the most vulnerable is equivalent to putting in a gastric band to reduce obesity, at a stroke. IDSwillbe hopping mad that his pet project is being ditched. He could even resign from the Govt in disgust.
This man's compassion knows no bounds, why doesn't he go all the way and take away their walking sticks, perhaps even advocate euthanasia for those who don't pass his idea of contribution to society. He must lay in his bed at night dreaming of his wretched billions, may he wake up one morning to a rude awakening that he's lost all power in his lower limbs, that being infinitely possible given the way it's all gone to his head!
I've posted elsewhere and explained in detail why this man is nothing short of a lunatic when it comes to welfare reform.
What is a person like this doing in government?
Being a Tory.
Surely what should determine whether a person is incapaciated or disabled is the severity of their condition, rather than how much they cost on a budget spreadsheet?
If anyone is incapable, it's Osborne & Co, boot them out and march them down to the Jobcentre and see how much they like being spat upon.
What is a person like this doing in government?
He was elected of course!
I'm sure by cutting benefits for those too ill to work and then telling them that they're only allowed to have it for a limited time will really help them.
I'm one of those unfortunate people who made the 'lifestyle choice' to come down with a genetic disease that has ruined my life.
I was just talking about this with my partner and we were worrying for a minute but then we decided that if we end up with no money for food we can always take rent money and then when we're about to be evicted we can always refuse to leave and then become homeless and steal (well until my medication runs out and I start dying) then I'll go to hospital long term while my partner continues stealing for food and hr can go to prison and get a degree and eat their food and have lodging. There's no point in really worrying about this be ause as long as we're still alive that's the point isn't it?
We'll just wait until he's out again and I get released from hospital (realistically a couple weeks to a month) and then we'll do it all again until the government realises that I need someone to look after me, (my partner) and we need money to live. It's not a lifestyle choice!
If I were able to work, I most certainly would not be sitting at home on £89 a week if I was working. (we'd have a lot more and I'd enjoy earning my £40k job again. Unfortunately, it won't happen until a 'cure' for genetic illnesses is developed.
Is he trying to kill off the disabled and sick?
stuart - I think you're confusing people who have genuine right-wing opinions and want to contribute with right-wing trolling. I have absolutely no problems with contributors like terrywhite - I may not agree with his views but I certainly don't consider myself superior to him when he is able to debate with such articulacy.
See this thread:
http://www.newstatesman.com/blogs/the-staggers/2010/09/voters-cuts-poll-...
One thing I like about online communities is that you're able to remain virtually anonymous and are judged solely on your thoughts and words. I hope you will respect that I retain that integrity and will therefore not be relaying any of my personal details, whether it be my age, profession or even my sex - Dylan is a unisex name after all.
If it helps, I personally am not one of the many people in these blogs who would ever refer to you as a "lazy dole scrounging git" - now, that is trolling.
I think we only need to look at Labours new medical to know who is to blame for this mess, not forgetting new Labour won the battle with the Tories, the Tories said they get 500,000 back to work, brown stated proudly we would get a million , the Tories said 1.5 and Labour proudly said we would get 2 million back to work.
The fact is the battle to win the hearts of the Tory voters was won by new Labour and Blair and brown.
One look at the new medical put in place by Labour should be enough to tell people the difference between new Labour and the Tories, well we have no difference.
before brown had his mental breakdown and moved away to hide in Scotland the bloke told us he would stop DLA for the most sick, he then back tracked to say he was only talking about those over retirement age.
So i think even suggesting that Labour playing a game of blame here is an under statement
Frankly Kaz the man doesn't care one iota, I'm sorry to say it but you are seen as dispensable. This is the coalition of no compassion, get them out!
Treborc. Labour may have introduced ESA as part of the welfare reform act 07, but this lot are using it to persecute, Labour have never advocated cuts of this magnitude. the principles of ESA are not all wrong, it's the mechanics which are being utilised to crucify. You cannot simply blame it all on Labour, it's this lot who are the enforcer now!
It's all very well shifting blame back to Labour, how come this lot have done nothing to change it?
Osborne says 'at least 2.5 billion'. I emphasise the words at least stuck in that sentence, it could be a lot more, 2.5 sounds like a minimum target
Absolutely, well said Lou!. This lot has made no attempt at all to look at how many are genuine claimants, leaving it to a privatised firm like ATOS is farcical. The last 13 years have become irrelevant; what matters is now. They should stop taking it out on genuinely disabled claimants. There is no way I will ever be grateful for the likes of Cameron and Clegg, they have to earn the respect of the voters before they can expect gratitude. No-one should be too quick to praise this lot, all we've heard of is their intent to act with destruction, what we need is to see is a little more construction.
I'm not usually a big fan of large scale industrial action but if this lot want to act like bullies of the State, they should expect a fight. Let them have it!
Lou. Do you think Osborne actually knows how much a billion is? Sad, I know but I was having a look at the DWP expenditure figures the other days and working out just how much all of these 'billions' actually translate into. He's just plucking figures out of the air with no regard to their impact.
Thanks Nick. I was thinking earlier on hearing George Osborne's defence of the welfare cuts and his assertion at the start of his defence that this is the legacy of Labour. They've been in office for nineteen weeks, almost five months and yet everything is still all down to labour. Labour aren't the ones coming out with these policies so it's time George and co started taking a little responsibility for their actions instead of repeating over and over again,the playground mantra of all bullies - 'it wasn't me Miss, it was him'
Hi Nick
How can a man with a limited experience of poverty and disability, if indeed any at all, who has only ever known excessive wealth. privilege and advantage have any comprehension.
Is it 2.5 million claim Incap? That's a £1000 pounds of cuts for every person equating to just under £20 a week. That's one example to illustrate 2.5 billion of savings on disability, it doesn't mean that's how it will be done.
We understand what that means in monetary and health terms to a claimant, Osborne doesn't have a clue - it's not relative to him and therefore is beyond his understanding
The TUC came out with an interesting graph today on how disproportionate these budget cuts were and who was paying most and to the likes of Osborne it would be loose change from his pockets.
The people who run the country are not representing the rest of us, how can we call ourselves a Democratic society when we are being run by Aristocrats who are completely empathatic to the people?
The actual payment received by a benefit under ESA is considerably less than someone receiving the earlier benefits of Incapacity and/or income support so there presumably was quite a saving there when it was brought in. Perhaps attacking sickness benefits will outrage a few more people than simply the 'undeserving poor' as more people may have experience or more easily imagine themselves in this position. With more people being forced into desparate situations I can't imagine there not being an increase in crime in this country. Roll on the revolution.
I believe that those who were changed from Incap to ESA where the payment on the latter would be less, had their rates at point of Incap lost frozen ( see disabilityalliance.org ) so therefore for the time being, the treasury saves nothing from them only new claimants going on to ESA
@lou@nick.,granted the cuts will be painfull,but it is a price worth paying to get the economy back on track.
Not really one for physical punishment; but it's high time the big society State bullies got a good caning; one whacking wallop for every billion on Osborne's wretched mind?
I'm not sure about what people are saying around you Lou, but all I'm hearing is absolute hatred of this coalition and all it stands for?
That's just rubbish Broderick, since when did putting people out of work and invoking untold misery with widespread discontent ever fuel an economy? This lot are recklessly derailing the economy, not keeping it on track at all.
Hi Lou,
Good to exchange views. God knows, the man is beyond all comprehension! I'll get back to you with some basic figures, they are a tad complicated! They are broken down and merged into different rates and areas. I can't see how Osborne can simply say 'Incapacity benefit' because he'd have to define whether it was contributory or just people that say claim Incapacity (not having paid enough contributions) to get their stamp, they would only receive Income Support. Plus a lot of claimants are now on ESA. There is also the question of how people get all kinds of premiums in with other benefits like HB/CTB and Income Support.
He talks about rapid deficit deduction as though this can be done overnight, yeh right! Just a few minor problems like changing laws, all the impact assessments and committees, then give it to the DWP and see how their age old computer system copes with issuing letters. It's a fiasco in waiting, even the DWP themselves just laugh at the man's ideas.
I firmly believe it will end up costing more in claimant error, not to mention appeals. We'll wait and see. I'd like to know where he gets his claimant count figures because the DWP have difficulty with that one, they seem to measure it in in monetary terms. I'd be curious to know where he gets it all from because the DWP's software doesn't track a lot of manual claims, just how much they're paid, so I'm told.
All I know is this lot has to go, they are becoming mighty dangerous in the way they just come up with figure after figure, the news these days may as well be called Gloom n Doom.
You are right Julia, ESA is less because most people are only getting the basic amount, they promised enhancements with 'support components' but only a very limited percentage get them. I also agree, it will lead to more crime. The difference being that this time I think people will be quite blase about it, they will just think if those at the top etc get away with it, why shouldn't everyone else? Plus there will be bugger all money to prosecute people, let alone put them through the Courts or punish them. It's probably where Cameron thinks his big volunteer gang will come from....a load of chained ex-cons on community service!
So Broderick, it's okay for the cuts to be painful? Presumably it's also okay for them to disproportionately affect the least well off in society too? Dress it up whatever way you want to broderick, but you can't polish a turd!
@Nick, I live in the North West and yes indeed, absolute hatred is all I'm hearing too and particularly from former Lib Dem supporters who feel they don't recognise their party at all since the election.
just look at the home page of the new statesman today,one anti catholic,anti pope hatefest.
Lou: Opposite poles then, am in a relatively 'affluent' area of the south west, but the discontent is the same down here.
This shower in charge should be holding thier heads in shame..where are the libdems the ones who wanted to be judged by the fairness of the cuts where are they? while this maniac puts the poor and most vunrable through the mincer?
If any this goes through in its current form the libdems should just merge and have done with it becuase they're be tories and nothing more.
the poor do not exist,nobody is starving or begging on the streets of surrey where i live the last time i looked,the gravy train is over for the feckless and a growing economy will produce more jobs for those who want to work including the sick and disabled who are to dependant living a life of hand me outs and benefits,the partys over and you better get used to it.
funny thing is, alot of left wing trolls have really slammed me for being unemployed and lazy and all that garbage,then again i was om iain dales blog arguing with right wing tory trolls debating the welfare system and i got about as equal amount of abuse from them when i mentioned i was on the dole,thats why i have nothing but contempt for the left and the right but it is nice to know what both sides think of the likes of me.
George Osborne is a good fellow!... I sincerely assure you, 'Mr Osborne [doesn't] despise and hate the poor, the disabled.'
I refer to Mr Alexander PM words of re-assurance on protecting the sick and poor on 'Sunday Live With Adam Boutlon.
Premature is the word for these alleged 'cuts'and that 'brainstorm july letter'! Nothing is written in stone!
It unfair to judge the new Coalition Government on 'cuts'they haven't even carried out! Lets wait until October the 29th!
Have a marvellous sunday!
@broderick,
There but for the grace of God go any of us. I hope life and leafy Surrey is kinder to you than you are to the less fortunate Broderick and that serious, incureable illness never darkens your door and destroys the life that you once had like it has Tom's and mine for that matter.
I know the party is over, but it's the party that was a working life, a social life and a life that was independent of state intervention not the kind of party you allude to. I didn't choose illness and incapacity, I didn't want to give up working, I didn't want to be too ill to work, I did not choose to be a claimant. I had no choice like many others do not have a choice.
Walk in someone else's shoes a while and then you might be a little more caring. a little less self absorbed and a lot more informed.
Oh what a surprise, the noble Reginald enters and give his support to slasher. Reginald, I suspect your in a minority. I'll not bother waiting, I've seen a lot of the draft statutory instruments being rushed through as we speak. I say old boy, hope the butler isn't on a bit of benny, you'll have to up his pay or make your own marmalade and toast, not forgetting tea in fine china.
your day will come on day broderprick you selfish tory ponce,i am struggling to hold my temper with you mate and believe me i would love to rip your balls off.but listen to this brodders carefully.one day you might be trapped in your mangled car which is leaking petrol waiting for the fire service to come and cut you out,but do you know what brodders there will bo no @@@@@@@@ fire engine to come because bloody cameron has made cuts to the fire service,listen brodders your wife might be pregnant waiting for a ambalance to take her to hospital to deliver a new brodders and do you know what no ambalance will come because the your nearest hospital is 40 miles because your local hospital has been shut down due to spending cuts,do you understand mate what i am saying,your karma will come one day you disgusting excuse for a human being.
It looks likes the union's fire is revving up with this lot, we're promised protests of a scale which will make the ones over the poll tax look like a walk in the park! Slasher and co had better put up the shutters.
Couldn't have put it better myself Lou and Stuart! What an excuse for a human being it is that frequents a not too humane household in terribly nice Surrey. Why do they spend their time on here?
It's frustrating to read comments that blanket every claimant of ESA or IB/IS as disabled and/or unfit for work, as it simply isn't the case. Generational dependency on benefit is a problem, whether it is acceptable to say so in liberal company or not.
I have dealt with many benefit claimants in a professional capacity and have a great deal of compassion for a significant proportion of them. However, there are many many people who simply could work, but believe they can't. A woman who works as an engraver but loses much of her vision may not work as an engraver any longer, but that does not mean there are no employment options left. It frustrates me that some correspondents feel it to be so black and white. One's own assessment of one's capability is not always the most accurate, especially if it is compounded by a culture of worklessness, as it is in the community in which I work. People have claimed benefits for 20 years for medical conditions that are absolutely manageable, and this is perhaps an unpalatable truth, but it is the reality. A review of the government medical assessments is critical as this system is broken, for sure. But the objective, to break benefit dependency, should be one that every compassionate person accepts.
There has to be a separation in discussion between people who have suffered illness, but can still work, and those who can't. Reactionary refusal to engage in a debate about tackling the culture of worklessness by dismissing any cuts as simply 'Tory cuts'is depressingly factionary and isn't engaging in the debate.
@ Nick,
I know one should ignore him but sometimes it's not so easy. By the way, what happened to Abdul?
Oh well back to the subject, do you think there is a battle really going on twixt Osborne and IDS over the cuts for welfare? Osborne seems to be making statements that should be coming from IDS as the secretary for state and today in Parliament Osborne answered tabled welfare cuts questions with no IDS present.
ehtch tee this is not no joking matter so that pratt broderprick deserves everything i fire at him,anyay i have calmed down so here is something very interesting i heard today on the radio tonight,i dont like the far left but something bob crow the leader of the rmt union said today made alot of sense,he said if everybody paid a extra penny on every text message you they sent that would pay for the majority of these spending cuts the tory,lib dum coalition of mass poverty intend,and even a leader economist backed up bob crow with that idea,well maybe bob crow is one to something here and would you be prepared to pay a extra 1p on your text messages,i dont mind.
Lou. I know, they do kind of get under your skin, don't they? I suspect he's a plastic Tory; there being a fair share on here. They get very heated when they see their party going down as quickly as this lot are.
Yes, I wondered about the dreaded Abdul, may be he got taken away or something, I have thought he may still be lurking using a different pseudonym?
I do think Osborne and IDS are at logger heads. I listened to IDS on QT before the summer recess and thought his views were actually quite compassionate, even constructive. I was quite surprised. Ultimately, some people have a conscience and even with the trappings of power they won't abandon their principles, I suspect IDS is not approving of this ruinous path? Ultimately, sooner or later someone will defect, we'll be able to make up our own mind as to why.
Kate: To be fair I've posted a great deal on this elsewhere and you will see from that how I don't just automatically defend every one's right to claim as incapacitated or disabled regardless of their perceived limiation. Nor, do I blame it soley on this coalition; i'm mindful that it was Labour (with a great deal of cross party agreement) who introuced the 07 WRA and ESA. There is a lot about ESA which I agree with. It's not a blanket condemnation of the need to reform but it is over how they are putting the message over. I've tried to engage in constructive debate over this; I too speak from experience in this field.
i am just bringing a conservative intellectual perspective a debate that the left seems not to understand,thats why we are in goverment sorting out the finances and you lot finished as a politacal force,i wont respond to stuart and ehtch tee but nick judging by your comments you sound more like a fiscal conservative than a socalist.must go i have a dinner party to attend toodle peep.
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