17/02/2011

PM's 'Universal Credit' Replaces Benefits

There's a major shake-up on the way for those on Benefits with a new, Universal Credit to replace what the coalition government has saids is a 'dizzying' array of benefits.

The changes will also see claimants who refuse three reasonable job offers losing out for up to three years.

Disability Living Allowance is to become 'sustainable' system with regular health checks and those deemed fit to work will lose benefits if they turn offers down.

Housing benefit will be restricted to cheapest 30% of homes in an area and a cap on total household benefits will be imposed - linked to average earnings.

PM David Cameron (pictured) today announced these changes as being the most ambitious shake-up to the welfare system since it began, promising to re-introduce a culture of responsibility that he said had been lost.

The Welfare Reform Bill will replace the complex array of benefits with a single Universal Credit, strip benefits from those who repeatedly turn down job offers and introduce new health check-ups for those who claim a disability stops them working.

Along with the Work and Pensions Secretary Iain Duncan Smith, the Prime Minister said: "Never again will work be the wrong financial choice. Never again will we waste opportunity."

David Cameron was speaking in London on Thursday morning and said they will help the vulnerable, but vowed to stop a culture of "dependancy" on benefits.

The Prime Minister is promising that people will always be better off in work than on the dole and that no family can get benefits in excess of £26,000 per annum.

(BMcC/GK)

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