• Work and Pensions Secretary is examining how a 'welfare card' to limit how handouts are spent could work in practice
  • Government launches website to find work for jobless while they sleep
  • Labour vows to oppose 1% cap on benefits rises

By Matt Chorley, Mailonline Political Editor

PUBLISHED: 11:17 EST, 20 December 2012 | UPDATED: 11:35 EST, 20 December 2012


Work and Pensions Iain Duncan Smith said he was looking at how a 'welfare card' would work in practice

Work and Pensions Iain Duncan Smith said he was looking at how a 'welfare card' would work in practice

Benefits claimants would be banned from using state handouts to buy beer and alcohol under plans being actively considered by the government.

Work and Pensions Secretary Iain Duncan Smith today admitted he was 'looking at this process' to see how a welfare card, which can only be used to buy certain items, would work in practice.

It comes as ministers published legislation to cap rises in benefits at one per cent for each of the next three years, setting the scene for a battle with the Labour party which has argued for bigger rises through to 2015.

The cap is expected to eventually save 3.7billion, but Labour says it is an attack on hard working families.

But Mr Duncan Smith signalled his determination to get tough with people who receive benefits as he unveiled a new jobs website which would force the workless to explain why they were refusing employment.

And he backed the idea of benefits being added to a pre-pay card which can only be used for certain purchases.

He said: 'I've been looking at this process to figure out whether it's feasible, how would it work, how does it match with legal obligations, so we've already been examining this.

'I genuinely think there are some areas where we might want to think about.'

He added that one cause of concern was drug addicts using benefits to feed a habit.

'You know, somebody who has a history of real drug addiction, giving people cash sometimes can actually lead to further problems,' he told BBC Radio 4.

It follows a move in the Commons by a backbench Tory MP to change the law to introduce a welfare card.

Alec Shelbrooke said he wanted to stop state money being used for non-essential, desirable and often damaging (NEDDs) products like alcohol, cigarettes, paid-for TV channels and gambling.

Today the government launched a new website - Universal Jobmatch – aimed at quickly matching the unemployed to vacancies.

Mr Duncan Smith said: 'Your CV will do the work for you, even when you are sleeping, and notify you that a suitable job has become available.'

He said jobseekers would no longer have to use touch-screens in jobcentres, or wait for a print-out of jobs which had probably already been taken up.

'If you choose not to take a job that matches you, then the adviser will look at your reasons, and if the adviser thinks "actually, these are pretty specious reasons", he may call you in and say "I think you really need to be applying for these jobs".'

Mr Duncan Smith is prepared for a political battle with Labour over the Welfare Benefits Up-rating Bill, which was published today.

Chancellor George Osborne claimed in the Commons the one per cent cap was to ensure fairness for those who go to work while their neighbours have their curtains drawn.

But Liam Byrne, Labour's shadow work and pensions secretary, said: 'The Strivers' Tax Bill is a naked attack on hard working families to pay the price for this government's economic failure.

'I want to bring down the welfare bill. But they way we do that is with jobs. Labour will not support a Bill that does nothing to create a single new job yet punishes those who work.'

The comments below have not been moderated.

OUTRAGEOUS!! Get the Tories OUT OF POWER! - xXDanielleXx, London, United Kingdom, 20/12/2012 18:46 Coalition government you thick chav, means not just Tories in charge. Voting Labour is all these people are good for

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Benefit spongers should get the bare minimum of food and clothing delivered to them. If they want luxuries like the rest of us they can't get jobs! Sick of paying for the work shy to watch Jeremy Kyle on their 50 inch telly paid for by the drained tax payer.

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Next get rid of MOTABILITY cars where the disabled get cars most WORKING people can only dream of - Get us out, Lincoln, 20/12/2012 18:01...........Again misinformation and propaganda. A mobility car is paid for out of the benefit. People give up the cash for a car which is a standard cheap car. People then upgrade using their own money. So you think a disabled child or adult should crawl everywhere? Do not worry PIP will see many disabled killed off.

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This absurd direction would cause a crimewave of the likes we have never seen. Expecting people to stare at the wall all day with absolutely no let-out is beyond belief naive. IDS must realize (or I hope he does) that there are sectors of our community that are now completely unemployable due to ageism or the areas they live in. As usual, the more elderly will just suffer, but I promise IDS that the young hoodies will be out with a vengeance to get their fixes no matter how they get it; mugging, burglary, violent crime, scams and so on.

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Sick of seeing tattooed chavs buying lottery scratch cards and having Sky TV.

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This wo.t work, I own a small shop that sells food and essential items, and if someone was to come into me and try to pay for there shopping using a card given to them from the goverment I would say no thanks. My shop like most other small shops I know don't take card payments, this is another tax for small business, because its only the big shops that tax cards not the small shops. This goverment is doing everything in its power for the rich to get richer and the poor to get poorer. Can't wait for the next election, ill make sure everyone who uses my shop votes for labour.

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All good words but when are you actually going to do something? Of course benefits should be restricted to basic needs only. It needs to be fool proof and it needs to be implemented. And before all the bleeding hearts start ranting YES, should I find myself out of work and on benefits I wouldn't expect anything more than what's being proposed. - bfc1887, Fylde, 20/12/2012 17:10 You sir are a liar.

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An expenses card for Politicans would be the first step. They are the Law amongst themselves! AND IT MY TAX you are spending!

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Great news - bring it on!

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A welfare card is a good idea. I know a drug addict, with 6 kids, a couple of whom have some disability due to the mother taking drugs while pregnant, which she gets extra money for. She gets a lot of money a week, but after 2 or 3 days has spent it mostly on drugs and alcohol. A card would give her kids food for the full week instead of a few days.

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