Welfare Reform on the Web (January 2006): Social security - UK

Brown’s baby bond scheme attacked as expensive flop

G. Jones
Daily Telegraph, December 2nd 2005, p.12

Nearly one million families have failed to invest the £250 Child Trust Fund vouchers issued by government to all children born on or after September 1st 2002.  If parents fail to invest their voucher within a year of issue, the money is automatically paid into a stakeholder child trust account of the government’s choosing.  The scheme has been condemned as a waste of public money by the Liberal Democrats.

CSA spends £12m to recover £8m from absent parents.

G. Jones
Daily Telegraph, December 2nd 2005, p.12

Pressure on Tony Blair to reform or abolish the Child Support Agency increased with the revelation that the unit was costing more to run than it recovered from absent parents.  The agency retrieved £8 million but cost £12 million to operate in 2004.  The Department for Work and Pensions pointed out that the figure of £8 million accounted for money retrieved from initial contact with the parent and did not include future payments.

Sick and disabled ‘must work for benefits’

A. Grice
Independent, December 27th, 2005, p.6

Most sick and disabled people will have to seek work to receive maximum state benefits under welfare reforms. 2.7 million people on incapacity benefit will have to earn the right to it by taking advantage of expanded help to find work, training and rehabilitation.