Ed Miliband has today outlined his vision for the future of the welfare reforms.
This includes localising the responsibility of getting people back to work, and giving council the ability to negotiate rents for housing benefit tenants.
The leader of the Labour party announces the party's proposals for the welfare reform, and how they will ensure welfare is not a substitute for good employment.
His main proposals were for councils to have power to negotiate rents for housing benefit tenants, and would give them cash back on the savings to put into house building.
Miliband also wants councils to have a larger role in getting people back in to work.
Four areas he focused on of Labour plans for reform were:
We must change our economy, so that welfare is not a substitute for good employment and decent jobs.
Rewarding Work and Tackling Low Pay
For every young man and woman who has been out of work for more than a year, we would say to every business in the country, we will pay the wages for 25 hours a week, on at least the minimum wage.
Fully funded by a tax on bankers' bonuses. The business would provide the training of at least 10 hours a week.
And because it is a compulsory jobs guarantee, young people will have an obligation to take a job after a year or lose their benefits.'And we will do the same for everyone over 25 unemployed for more than two years.
Localising Control to Councils and Communities
‘Devolving power and resources to local communities so there can be advice and support suitable for the individual who is looking for work and tailored to the particular needs of businesses in the area.'
Investing in the Future to Cut Housing Benefit Bill
Any attempt to control housing benefit costs which fails to build more homes is destined to fail. We will need every local authority in Britain to be part of this effort.
At the moment, we expect individual families to negotiate with their landlords. In these circumstances, it is almost inevitable that tenants end up paying over the odds. And so does the taxpayer, in the housing benefit bill.
A Labour government would seek a radical devolution to local authorities.
This is the way we can start to bring about the shift from benefits to building. Bringing the housing benefit bill down for the long-term too.
Some of the other proposals he has included are scraping winter fuel allowance for pensioners, maintaining the current Government's cap on child benefit for families on more than £50,000, and a three-year structural pay cap on social security spending to keep the welfare bill in check.