Purnell moots local welfare solutions

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James Purnell has outlined proposals to give local authorities more powers to tackle long-term unemployment in a radical overhaul of the welfare state.

The welfare reform green paper, published by the work and pensions secretary today (Monday), calls for a focus on local approaches to get people back into work.

Under the proposals incapacity benefits will be scrapped by 2013. Instead, there will be two working-age benefits – the Employment and Support Allowance, for those who have a medical condition that prevents them from working – and Jobseeker's Allowance for everyone who is able to work.

The long-term unemployed will be expected to participate in "work for benefits" schemes, such as taking part in community work or skills training. Drug users will also be required to seek treatment or forfeit their benefits.

The government said it wants a range of public and private sector providers to trial new approaches to help people back into work. 

Mr Purnell said in the report: "We are determined to devolve more power to the right level to improve employment and skills outcomes for individuals – in some cases this could be at the level of an individual local authority. In others, a strategic approach that reflects the wider labour market is needed at sub-regional level, for example, through multi-area agreements."