A million people could be taken off incapacity benefit and forced back to work as part of a Government overhaul of the welfare system.
Tony Blair will join Work and Pensions Secretary John Hutton in publishing the controversial and much-delayed proposals to cut the annual £12.6bn bill. They will say "perverse incentives" are encouraging one million claimants to stay on the dole and out of work.
The benefit is also to be renamed amid fears the term "incapacity" makes it seem those on it have no hope of working again.
Doctors may be offered financial incentives to encourage them to sign off less people long-term sick and encourage them back to employment instead.
The plans will provide another test of the Prime Minister's ability to get crucial reforms past his own backbenchers.
Means testing, time limiting eligibility for benefits and making payments in training vouchers rather than cash are all "tough" measures which have faced heavy criticism.
Under the "something for something" regime, those on incapacity benefit will be given more help to return to work but face payment cuts if they do not take advantage of it.
Incapacity benefit is currently paid at a rate of £57.65 a week for new claimants. In many cases that rises to £68.20 after six months and £76.45 after a year.
Under the Government's plans, benefits will be docked by as much as £10.93 a week for refusing to attend a work interview and £21.86 for a second refusal.
The "perverse incentives" identified include the fact that the benefit becomes more valuable over time and can be cut if claimants do take on training or voluntary work.
The TUC has accepted the "clear" need for reform but has warned that claimants should not be presumed to be cheats or "coerced" into getting work.
Source - http://uk.news.yahoo.com/24012006/14...its-shake.html
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