Welfare reform was inevitable

THE issue with George Osborne’s speech on welfare reform was not the lack of gravitas in the Chancellor of the Exchequer’s delivery, but the timing of this intervention.

The economic arguments set out by Mr Osborne, often in terms of one syllable in the hope of reaching out to every benefit recipient on the receiving end of unpopular changes, were compelling.

Reform was inevitable – and long overdue. Britain spends in excess of £50bn a year in interest payments on the national debt – more than the proposed cost of the HS2 rail network. There were also instances, when the coalition came to power, when some families could claim £100,000 a year in housing benefit – a total disincentive to those concerned ever finding work and paying their way.

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Yet, given how welfare budget spiralled under Labour, the Government should have been spelling out this argument many months prior to the changes being implemented.

By waiting until after Labour and the Church of England combined to form a “coalition of the poor”, Mr Osborne gives the impression that the coalition is responding to events rather than setting the agenda.

This is regrettable, given that the vast majority of taxpayers concur with him when he says that welfare policy is “in desperate need” of “some common sense and control on costs”.

These same taxpayers also agree with this assertion: “The benefit system is broken; it penalises those who try to do the right thing; and the British people badly want it fixed. We agree – and those who don’t are on the wrong side of the British public.”

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Their attitude changes, however, when it is pointed out that these words were actually spoken by Mr Osborne – an illustration of the Chancellor’s diminished reputation.

With the coalition’s spending plans off course, despite the welcome progress on reducing the deficit, this is another salutary reminder to the Government that these necessary changes on benefits need to be implemented efficiently – and accompanied by a period of sustained economic growth. If not, there is a likelihood that Labour – the party which created this mess – will return to power at the next election. How ironic.