Press Story

Jobseekers who have paid-in through National Insurance contributions should be reward with a higher rate of Jobseekers Allowance and access to support for mortgage interest, according to the final report of the 'Condition of Britain' project by the think tank IPPR, published today.

The 270 page report, with 28 costed recommendations, is the culmination of an 18 month long project considering a wide range of Britain's social policy challenges. The report argues for three major welfare reforms:

A higher rate of JSA and access to support for mortgage interest for those who have paid into the system with an independent National Insurance Fund to restore the link between contributions and entitlements.
A youth allowance for 18-21-year-olds in education or looking for work, rather than access to out-of-work benefits and a youth guarantee for 18-21-year-olds, with access to education, training or help to find work, and compulsory work experience after six months.
Reforms to reduce the housing benefit bill by devolving capital budgets to towns and cities and allowing councils to retain and reinvest a share of savings they make by shifting from 'benefits to bricks'.

These reforms would be underpinned by a new reconstituted National Insurance Fund – reporting to Parliament - with institutional and financial independence from government and a responsibility to ensure that contribution rates are sufficient to pay for benefit entitlements over the long-term.

The new IPPR report offers a comprehensive survey of British society after the crash, and to charts a new course for social policy. It argues for three core 'pillars' to underpin an attempt to pursue 'active equality' in Britain:

Devolving power, resources and responsibility to people and places – so that we can focus on tackling the problems that matter to us
Fostering contribution across society – so that we all meet our obligations to help ourselves and others
Strengthening shared institutions – so that we have opportunities to work together to address our shared problems

The policy recommendations in the report are:

Families - raising children and nurturing relationships

A month off for fathers when their child is born, paid at least the minimum wage, plus paid time off for fathers to attend antenatal appointments
A guaranteed full-time, year-round affordable childcare place for all 1-4-year-olds, including a free 15 hour entitlement for all 2-4-year-olds
All staff working with two-year-olds to hold at least a level 3 child development qualification, and 30 per cent to hold an early years degree
Child benefit to rise with prices for under fives but frozen for older children
A separate work allowance for second earners in universal credit
A lifetime entitlement to one course of couples counselling for all adults and an end to marriage notice fees

Young people - enabling secure transitions into adulthood

A youth allowance for 18-21-year-olds in education or looking for work, rather than out-of-work benefits
A youth guarantee for 18-21-year-olds, with access to education, training or help to find work, and compulsory work experience after six months
Half of young people aged 16 or 17 taking part in National Citizen Service by 2020
Young adults (18-20) brought under the remit of youth offending teams, rather than adult probation services

Working life - promoting work and rewarding contribution:

An independent National Insurance Fund to restore the link between contributions and entitlements
A higher rate of JSA and access to support for mortgage interest for those who have paid into the system
A Work Programme focused on the long-term unemployed and people recovering from a health condition
A locally-led 'New Start' supported employment programme for people with a long-term health condition or disability
Sick pay recovery for small firms hiring people from ESA, plus greater back-to-work engagement during sickness absence
An independent Affordable Credit Trust to endow local affordable lenders as alternatives to high-cost payday lenders

Housing - mobilising local leadership to build more homes:

New powers for towns and cities to bring forward land for development
Financial incentives for councils to reduce housing benefit spending by meeting affordable housing needs more efficiently
New powers for councils to set the level of housing benefit in the private rented sector
Control over housing capital budgets for combined authorities who want to shift from 'benefits to bricks'
In time, enabling combined authorities to take control of all housing spending in their area, with responsibility for meeting affordable housing needs

Crime and exclusion - putting people and places in control:

An entitlement to 'restorative justice' to give a voice to victims of crime and antisocial behaviour
Neighbourhood justice panels in every area to mobilise local volunteers to help tackle low-level crime and antisocial behaviour
A new locally-led 'Troubled Lives' programme to address the root causes of deep social exclusion

Older people - living well together in an ageing society:

A right to adjustments in working arrangements for people providing a significant amount of unpaid care
An entitlement to means-tested support for older people with 'moderate' care needs
An independent review to consider how the national insurance system could protect people from high care costs in old age
Backing for older people who want to establish a 'neighbourhood network' in their local area to help tackle loneliness and isolation

Nick Pearce, IPPR Director, said:

"We need new strategies for social renewal in Britain for the tough economic times we live in. These must be based on a decentralisation of power over major areas of policy out of Whitehall, a rebuilding of reciprocity and the contributory principle in the welfare state, and investment in shared institutions, like the NHS and Children's Centres, rather than spending channelled through tax reliefs or credits. Our proposals are fully costed and paid for through spending switches and tax reforms. They chart a path towards a stronger, more socially equal Britain in the 2020s."

Notes to Editors

IPPR's new report – The Condition of Britain: strategies for social renewal – will be available from 10:30am on Thursday 19 June from: http://www.ippr.org/publications/the-condition-of-britain-strategies-for-social-renewal

Contacts

Sofie Jenkinson, 07981023031, s.jenkinson@ippr.org

Richard Darlington, 07525 481 602, r.darlington@ippr.org