PM welcomes welfare reform report

5 March 2007

Tony Blair wants more private, voluntary and charity involvement in helping people to get off benefits and return to work.

He said further welfare reforms were needed if Britain was to afford its benefits system in the future - in particular if pensions are returned to their earnings-linked status.

At the launch the Reducing Dependency, Increasing Opportunity report Mr Blair said that in return for the state providing "wraparound" childcare from 8am to 6pm from 2010, "we need an even greater effort from people on benefit to get back into work".

The recommendations in investment banker David Freud's report include a "rebalancing" of rights and responsibilities in the welfare system - matching increased support with greater obligations on claimants to look for work.

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He suggests making greater use of private and voluntary sector resources and expertise so that harder-to-help benefit claimants receive more employment support.

There should also be greater rewards for organisations that are successful in helping claimants find and stay in work.

Appearing at the launch of the report with the PM were Work and Pensions Secretary John Hutton and Chancellor Gordon Brown.

Mr Hutton said there were 2.5m more people in work since 1997 and 900,000 fewer on benefits but "we must go further".