UK government to overhaul benefits system

Iain Duncan Smith, the work and pensions secretary, has this week announced major plans to revamp the UK benefits system and simplify what has become a very complicated process. Under pressure to introduce £11 billion of cost savings from the work and pensions budget, there is a need to ensure that the benefits system does not alienate potential workers from moving away from the benefit system.

In the past there have been many situations whereby it was more lucrative to stay on the benefit system than take part-time or full-time work. As many people have families to feed you cannot blame them for preferring to remain on the benefits system, and bring in more money in, rather than moving into the employment market only to be penalised. So far the government has been fairly shy in coming forward with details of the changes, i.e. no calculations have been released, but it seems almost inevitable that changes are afoot and many benefits will be "rolled into one payment".

Whatever the UK government decides to do with the UK benefits system there will be friction and there will be controversy. However, this is a system which has grown out of control and does need to be realigned.