Five principles for the welfare society

Today, the Prime Minister made an important speech about the Welfare State.  The essence of the speech was that any welfare society should focus providing a ladder of aspiration, rather than entrenching a dependency culture.

Here are five principles that should guide the reformers of the welfare state:

1.  The welfare state should always be there to help those in genuine need. No ifs, no buts.  It is the duty of a civilised society.

2.  'The Government' does not pay for welfare, taxpayers do.  There is no magic money tree.  The majority of those taxpayers are on lower earnings and pay for benefits out of their taxes. Therefore it is right that spending on benefits is fair and proportionate compared to those who are in work, who whilst not recipients of benefits may be on very low wages.

3.  Benefits should be given on a basis of 'something for something', not 'something for nothing'.  For example, there should be a requirement for those in benefit to be genuinely seeking work.  But, there needs to be the right incentives too.  So making work pay is crucial.  The new Universal Credit (UC), and raising the tax payment threshold for lower earners up to ten thousand pounds, will ensure that people will not face a poverty trap - i.e. be worse off if they are in work. The UC will allow them to keep some of their benefits, whilst in work.  Those on lower earnings they will pay much less tax ensuring that it is more financially viable to stay at home than to get into work.

4. There should be an end to benefits for the rich.  It is wrong that wealthy people can receive the winter  fuel allowance and the cold weather payment for example.  A better and fairer welfare society is one which maximises resources to poorer pensioners, rather than spreads benefits thinly and uniformly amongst rich and poor alike.  Why is it that those who oppose tax cuts for the wealthy, have no problem with those same wealthy individuals receiving the winter fuel allowance, or cold weather payments?  This is topsy-turvey welfarism.

5.  The Bill for the Welfare State needs to be reduced for the sake of economic growth.  One third of Public Spending is on the welfare state.  If this was just reduced to one quarter, that would mean billions of pounds lopped off our taxes.  Lower taxes equals more productivity:  more successful businesses, which would then be able to invest in jobs.

I was on BBC Radio 4 this evening about this issue. You can read part of the transcript HERE.

P.S.  You can read more on the BBC website. 

Dvaid Cameron's speech is on THIS webink.


by Robert Halfon MP - Working Hard for Harlow.