Hutton Will Face Many Tough Challenges - Laws

1.30.00pm GMT Wed 2nd Nov 2005

David Laws MP, Liberal Democrat Shadow Work and Pensions Secretary

David Laws MP, Liberal Democrat Shadow Work and Pensions Secretary, commenting on the appointment of John Hutton as the new Secretary of State for Work and Pensions, said: "John Hutton has got a lot of work to do in a very short period of time. The risk is that the pace of welfare reform will slow even further from the non-existent progress made under David Blunkett.

"Mr Hutton will have to grapple with reform of the Child Support Agency, the new Green Paper on Welfare Reform, and the massive issue of the future of UK Pensions, all within his first month in office.

"His biggest challenge in the short-term may be to face down pressure from 10 Downing Street for draconian reform of incapacity benefits, such as time limiting the benefit or paying part of the benefit in vouchers.

"Over the longer term, Mr Hutton needs to be able to show that he can persuade the Chancellor of the need for a radical overhaul of Britain's complex means-tested muddle of a pensions system. Mr Hutton will find it difficult to push Mr Brown to deliver the long overdue pension reforms.

"The risk is that this instability at the top of Government will delay much needed reform, while there must be doubts as to whether Mr Hutton has the political clout to face down Gordon Brown on long-overdue pension reforms."