The DWP hopes that the consultation could reform tax credits and benefits by:
- Supplementing monthly household earnings through credit payments reflecting circumstances (including children, housing and disability).
- Combining elements of the current income-related benefits and Tax Credit systems.
- Bringing out-of-work and in-work support together in a far simpler system.
The consultation refers to introducing 'a Single Unified Taper' for benefits, and in essence this is designed to ensure that people can, 'enter work by a consistent, reasonable, rate of withdrawal of benefits as earnings increase...' A 'tapered' approach.
The overall message is to incentivise people back to work, reducing what IDS calls a 'benefits culture', and a press release can be found here.
On a much lighter note, Vicki Howe found an amusing blog about Mr Duncan Smith's proposals, which describes his ideas as 'the political equivalent of asking "wouldn’t be good if we all had ponies?" ' Why? Because there is apparently no mention of how much all this will cost...