Party gets warning from Blair on reforms

The British Prime Minister, sweeping aside warnings that he was entering a political minefield, told Labour Party colleagues …

The British Prime Minister, sweeping aside warnings that he was entering a political minefield, told Labour Party colleagues yesterday Britain's welfare state was out of date and must be reformed.

Mr Tony Blair bluntly told a meeting of party activists in the English midlands that keeping the status quo in the 50-year-old welfare system was "not an option".

But he promised that "all those in genuine need" would always be helped and supported.

The prime minister castigated the failures of the present system but gave no clues to how his government would approach reform, apart from stressing the goal of getting as many people as possible off benefits and into work.

READ MORE

He said fraud in the £95 billion annual welfare bill was estimated at £4 billion a year.

His speech was described by aides as the start of a campaign across the country to persuade worried Labour activists and nervous benefits claimants that the current welfare system had to change.

"Government is harder. That is when the tough decisions start," he said. Pension reform could take up to 15 years before results would be seen. Even in other areas, change would take several years.

The key decisions on welfare reform will be taken by a sevenmember government committee, chaired by Mr Blair, that will meet for the first time next week. A green paper will be published next month and some initial tax changes could be unveiled in the annual budget on March 17th.

The party would have to rebut "endless wild speculation" about its plans. "The government will listen. But do not be in any doubt of my determination to see this through," he said.