Welfare reform

Work and pensions minister Iain Duncan Smith has drawn up plans to radically simplify the welfare system.

Ministers, looking to save money amid 25% departmental budget cuts, hope to introduce a system with less room for fraud and error.

They have also been looking for disincentives to stay on benefits and make sure people are better off with a wage.

Mr Duncan Smith hopes to combine tax credits and the benefits system so that a universal benefits rate can be implemented, decreasing as people find other forms of income.

The plans would also supplement a household's budget according to circumstances and need.

The work and pensions minister has not yet produced any figures to support his proposals.


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