Labour peer Richard Walker urges welfare reforms to boost employment at Budget
Lord Richard Walker, Iceland’s chairman and a Labour peer, has urged the Government to overhaul welfare in this week’s Budget, arguing that it should help people move into work and make employment pay. The former cost of living adviser says people who can work should not be left on benefits, while stressing that those unable to work must be protected.
Walker proposes cash rewards for people who leave long-term benefits and remain in a job, incentives for employers who hire them, and tax relief for firms employing younger workers. He also wants lower corporation tax for small businesses and entrepreneurs. The Government is not expected to announce major welfare reforms in the Budget: reports on youth unemployment and disability benefits are due next month, with proposals expected next year.
In short
- Richard Walker wants welfare changes to encourage sustained employment.
- He proposes cash rewards and employer incentives.
- Major reform proposals are expected next year.
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The case for
Supporters of Walker’s proposals could argue that benefits should provide security while helping people who are able to work find and keep jobs. Rewards for sustained employment and incentives for employers may ease the transition from long-term benefits, while tax relief for firms hiring younger workers could widen opportunities and support economic growth.
The case against
Critics could argue that benefit receipt often reflects barriers such as ill health, caring responsibilities or a shortage of suitable jobs, so financial incentives may have little effect unless those barriers are addressed. They may also question whether employer subsidies and tax cuts create lasting jobs or mainly reward hiring that would have happened anyway, and stress that reform must protect people who cannot work.
Explained simply
Welfare benefits are payments and support for people who are out of work, have a low income or cannot work because of illness or disability. Governments set the rules for who can receive them, and how they interact with wages and taxes when someone takes a job.
Richard Walker is the chairman of supermarket chain Iceland and a member of the House of Lords, where he sits as a Labour peer. His proposals focus on helping people who can work find and stay in jobs, while keeping support for those who cannot work.
The debate matters because benefit rules can affect people’s incomes and employers’ decisions to hire, while public spending on welfare is also a matter for the Government. Changes could therefore have consequences for jobseekers, businesses and taxpayers.
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Originally published by Daily Mail as “‘I joined the Labour Party, not the benefits party’: Government’s former ‘cost of living tsar’ demands welfare overhaul at this week’s Budget”.