‘The most vulnerable could be at risk in government welfare
reforms’, says Unite
30 July 2010
The most vulnerable in society must not lose out in the new
proposed welfare reform package announced by the government today
(Friday, 30 July), Unite, the largest union in the country, has
warned.
Unite said that the proposals unveiled by the work and pensions
secretary, Iain Duncan Smith merited consideration, but it had
serious concerns how these plans would work given the enormous job
losses that will flow from this autumn’s comprehensive spending
review.
Unite assistant general secretary for public services, Gail
Cartmail, said: ”Iain Duncan Smith is arguing that his reforms will
encourage people back to work, yet at the same time the government
is scrapping the Future Jobs Fund which would have provided 80,000
jobs for young people.
”Costing for the reforms is not being announced today. The
government estimates it will cost £3 billion to set up the new
universal benefit, while former Labour minister Angela Eagle has
said that the Department for Work and Pensions during the last
government costed the outline proposals at £7 billion.
”Either way for the government to afford to do this will
inevitably mean that other benefits not directly related to the
unemployed will have to be cut, given the hardline message coming
from George Osborne at the Treasury.
”The other point to be made is where the jobs are coming from.
Most economic forecasts are indicating that UK growth in the next
two years is likely, at best, to remain low and that means the
likelihood of new jobs being created without the impetus of state
spending is negligible.
”Add to that the encouragement for people to work longer and you
have a cocktail of measures which do not mix well and leave a sour
taste in the mouths of the most vulnerable.
”This government said it wanted to be fair and reduce
inequality. One swift and effective way would be to increase the
national minimum wage to a living wage, as recommended by professor
Hill in the National Equality Panel's landmark report earlier this
year.
”Also, some of the lowest paid women work for local councils and
in schools, but they have been stuck on a pay freeze with inflation
running at 5 per cent and increased VAT due to kick in next
January. Another quick win for Iain Duncan Smith in tackling the
problem that blights Britain - the working poor - would be to
insist that councils lift the pay freeze.”
ENDS
Notes to news editors
For further information, please ring Shaun Noble, Unite
communications officer, on 07768 693 940. Gail Cartmail can be
contacted on 07768 931 305
Unite’s policy on the provision of welfare is:
‘Conference believes that the welfare state provides an
essential safety net for many working class people – particularly
at times of illness, unemployment, in retirement, or during
disability. Workers did not cause the current economic crisis, and
we absolutely reject the notion that workers should be made to pay
for it. We therefore condemn the current attacks on the welfare
state, and the deep cuts that will almost certainly follow the
general election. Healthcare, public housing, education, the state
pension and the benefits system are all essential components of a
welfare state that meets the needs of our members and their
families.’
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