BBC News | UK POLITICS | Work and welfare agencies to merge

BBC News Online: UK Politics

Thursday, 16 March, 2000, 21:03 GMT

Work and welfare agencies to merge

Prime Minister Tony Blair has announced that the Benefits Agency and the Employment Service are to merge, in a move designed to improve the service offered to those looking for work.

The creation of the new "modern agency" sometime next year was hailed by Mr Blair as part of the government's drive to shake up the welfare system.

The prime minister, announcing the move in a Commons written reply, said job seekers would receive an improved service.

Responsibilities of the new agency
Jobseekers allowance
Income support
Incapacity benefit
Severe disablement allowance
Maternity benefit
Widow's benefit
Industrial injury disablement benefits
Invalid care allowance.

But he could not say how much money would be saved or how many jobs might be lost.

Mr Blair said: "During 2001 a brand new, modern agency will be established with a clear focus on work.

"This will draw together the Employment Service and the parts of the Benefits Agency which support people of working age.

"It will deliver a single, integrated service to benefit claimants of working age and to employers."

'Improved service'

Mr Blair said that 12 pilot projects had shown that combining the efforts of the Benefits Agency and the Employment Service provided "a radically improved service".

The new agency would have the technology to provide an up-to-date service to more than 10 million customers every year, said Mr Blair.

"Job vacancies, information about services and benefits and availability of child care will all be on hand at the press of a button," said the prime minister.

"Located in high streets and town centres across the country this new service will represent the face of 21st century government."

There would be efficiency savings "over time".

Social Security Secretary Alistair Darling said the government was moving away from having a "passive" welfare system to an "active" one capable of responding to more flexible work patterns.

And Employment Secretary David Blunkett said the government wanted to ensure there was "one door to knock on" for people of working age.

The union representing civil servants employed by the agencies, the Public and Commercial Services Union, gave a "cautious welcome" to the news.

Spokesman Mike King said: "We want any staff savings put into improving services.

"And we will be demanding detailed negotiations on the consequences for our members."

Shadow social security spokesman David Willetts said: "What is Alistair Darling for?

"Pensions are on their way to a separate ministry. The chancellor has taken over the working families tax credit. National insurance contributions have gone to the Treasury.

"Today the prime minister announces that a separate agency is going to take responsibility for all working age adults away from the DSS. All that's left for Alistair Darling to do is turn off the lights as he leaves the building."

Related to this story:
Jobless to get free mobile phones (29 Feb 00 | UK Politics)
Take jobs, Brown tells unemployed (28 Feb 00 | Business)
The battle over welfare reform (02 Nov 99 | UK Politics)
Concern over 'workshy' crackdown (17 Sep 99 | UK Politics)