IDS to shift ‘immobile’ long-term unemployed
The coalition government will make it easier for Britain’s long-term unemployed to relocate to find work, Iain Duncan Smith has said.
The work and pensions secretary plans to reduce the risk associated with moving, especially housing-related problems, for those who are “trapped in estates”.
Mr Duncan Smith argued in an interview with the Sunday Telegraph newspaper that successive governments had helped created one of the most static workforces in the western world.
There are 5.5 million people of working age who are unemployed, he said, before suggesting they cannot “up sticks” because doing so means “you will have lost your right to your house”.
“The local council is going to tell you that you don’t have a right to a house there, the housing association is not going to give you one,” he explained.
“We have to look at how we get that portability, so that people can be more flexible, can look for work, can take the risk to do it.
“Sometimes you just need to be able to move to the work.”
Mr Duncan Smith suggested the coalition government could introduce regional tax reductions to reinvigorate certain areas.
But he insisted an “element of flexibility” was required. The proposed move, which could see shifting workers sent to the top of the housing list, could lead to clashes between the Department for Work and Pensions and local authorities.
Mr Duncan Smith told Sky News that marginal tax rates for some young people of 90% were regressive. He said the government would reform the system to make it worth the while of the jobless to re-enter the workplace.
Shadow work and pensions secretary Yvette Cooper jumped on his comments, claiming more families would face the highest rate of tax as a result of changes made in the emergency Budget.
“He said he wants to help unemployment hotspots but he’s cut thousands of jobs from them,” she said.
“He says he’s putting more into housing benefit and child tax credit, but in fact he’s cutting billions of pounds from both.
“Independent experts have verified that this Budget raises tax on the poorest and pushes up unemployment – calling it progressive is nothing more than PR.”
