Conservatives propose 'work tests' in bid to cut incapacity benefits bill

Oct 5 2009 by Jonathan Walker, Birmingham Post

Thousands of Birmingham residents on incapacity benefit could have their payments cut under a Conservative government, if tests find they are able to work.

Tories will today publish plans to require everyone receiving the benefit to undergo a “work test” within three years of an election.

If it is found that they are capable of working, they will be moved onto Jobseeker’s Allowance instead.

It will mean they receive £64.30 a week, the Jobseeker’s Allowance payment for claimants aged 25 or older, instead of £89.90 a week, the basic rate for long-term Incapacity Benefit.

The cash saved will be used to fund the Conservatives’ ambitious plans to get more people into work by providing personalised training and jobhunting advice.

Across the country, Conservatives hope to raise £600 million by cutting the number of incapacity claimants.

A pilot scheme conducted by the Labour Government found that one in five incapacity benefit claimants were found to be ineligible for the benefit once they were tested. The policy was never adopted on a national scale because its author, former Work and Pensions Secretary James Purnell, resigned from Gordon Brown’s Cabinet.

In Ladywood, 6,800 people are on incapacity benefit or similar benefits.

Another 6,400 are on the benefit in Sparkbrook & Small Heath along with 5,600 in Erdington, along with 4,800 in Hodge Hill, 4,600 in Perry Barr, 4,200 in Northfield, 4,200 in Edgbaston, 4,100 in Selly Oak, 3,900 in Hall Green, 3,400 in Yardley and 2,300 in Sutton Coldfield. Across the city, more than 50,000 people claim the benefit.

It means 10,000 could be moved onto Jobseeker’s Allowance if the Conservatives win power.