As it happened - the Pre-Budget Report and welfare to work
The Chancellor of the Exchequer just announced the Pre-Budget Report, and I've be updating this story with news and analysis as it comes in - feel free to add your own comments if you have any thoughts on what's going on.
You can watch the PBR live on No. 10's website here
Live commentary...
Alistair Darling talking of "avoiding a lost generation" through measures to tackle youth unemployment he'll go on to mention later. Investing in skills key to this.
Confident that "the UK economy is on the road to recovery...but this is not the time to be complacent".
LOTS of stats, and new measures announced to help unemployed...
- Tackling unemployment still a "top priority" for the government
- Have invested £3bn already to help people back into work and expanded JC+
- Unemployment has actually increased a lot less than independent analysts predicted
- Currently 1.6 million claimants, was 3 million between 1985-1992
- 3 million helped off benefits over the last year
- Short spell on unemployment not signalling a lifetime on benefits
More to come...
- Tackling youth unemployment - measure announced in budget promising every 18-24 year old out of work for 12 months work or training will now be brought forwards as a promise at 6 months
- September Guarantee - training or education place for every 16 and 17-year-old - will be available again for school-leavers in 2010
- Older workers will be equipped with the skills they need to get into and stay in work
- Targeted support crucial to help the largest number of people, and this will also cost the country less
- 2.5% increase in state pension
- Benefits linked to inflation will also see a rise, such as 1.5% in child benefit
- The minimum number of hours those over 65 need to work to receive Working Tax Credit is also to be reduced.
The Chancellor ended this section with a crucial statement promising that everyone in work will be financially better off through staying in work, than being on benefits. If this isn't initially the case, the government will provide money to ensure that it is, in the form of a "Better off in work credit".
An announcement that up to 10,000 undergraduates will be able to undertake apprenticeships in industry and the professions - more details to be announced in due course...
No windfall tax on banks, as doesn't want to stunt productivity. But there will be a one-off levy of 50% on bonuses above £25,000. The £500 million raised will go to helping the young back into work.
Cuts will have to be made to some budgets, and some programmes will have to go altogether..."necessary choices". But the government will keep frontline services whilst halving the deficit over 4 years.
Plan to phase in Pension Accounts as part of £5bn savings from 2012.
[George Osborne's response - you can't watch this on the No.10 website, but it's here live on the BBC News Channel.]
Not much so far on unemployment from Osborne, says the country needs a "long lasting plan to tackle unemployment". Doesn't think levy on bonuses will help.
Alistair Darling - now commenting on fact that Osborne barely mentioned unemployment, and didn't comment on measures to tackle unemployment just outlined.
[Coverage has moved again to here]
Vince Cable now on for the Lib Dems, and welcomes measures on jobs for young people. Constructive response to the PBR, but that seems all on jobs, skills and any other DWP announcements from all parties now (pretty much everyone has left the chamber!)
Latest
Thank you for joining us! I'll get some other useful links for you, and post them below too. Please do feel free to comment away on any of the measures announced today. We'll just have to wait and see how they work in practice, but good to see unemployment at the heart of the PBR.
Comments
Thanks Claire! It looks like the main welfare to work announcement is that Young Person's Guarantee has been moved forwards to 6 months on JSA. Is the DWP going to face budget cuts, or is it one of the 'ringfenced' departments?
The PM announced the scheme "Putting the Frontline First: smarter government" only yesterday, which involves a review of spending in government departments. He said that choices will be have to be made over spending, but internal streamlining will be needed to help maintain public services at their current high level. This will naturally include DWP as it's the frontline services, not departments that have been ringfenced.
Here's ERSA's response to the PBR:
"We welcome the guarantee that anyone in work will always be better off than they were on benefits.
We welcome the earlier guarantee of work or training for young people. To be of lasting benefit to all young people, especially those who would struggle most to compete for jobs, any temporary work will need to be combined with training as well as jobsearch and careers advice".
Roll out of "better off in work credit" to everyone on benefit is a big deal I think, there will be more detail in the DWP white paper I imagine.