The first pilot project started yesterday in Ashton under Lyme, Greater Manchester. It will transform welfare and simplify the system. After months of opposition even Liam Byrne, the shadow welfare minister accepted that Ian Duncan Smith's reforms were correct and indicated his party now backed the introduction of the new universal credit syste.
The new system is designed to ensure it always pays for people on benefits to go back to work or accept extra hours. Labour, as usual, voted against the scheme when it was debated by Parliament last year. But yesterday Mr Byrne said the universal credit system was a ‘fine idea’, albeit one with some details still to be ironed out.
Shadow employment minister Stephen Timms also said the scheme was a ‘sensible’ idea which would ‘potentially simplify’ the benefits system.
The fundamental point is that people should be encouraged back in to work not trapped in a situation where they earn more on benefits than they could do if they tried to work.
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