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Quid pro quo for those willing to work

Comment 6th July 2010

At present due to the benefit system -some passporting benefits if one is contemplating returning to work/should return to work are taken away to the disadvantage of the benefit claimant. Take single mothers for example, the cost of child care and loss of income support is greater than their new income –  Usually part-time wage and working tax credit so there is no reason to go back to work. This should be changed. A system where those on benefits will financially be the same should they start work should be introduced. This does not necessarily mean freezing benefits such as Child Tax Credit! It should be looked at from the other angle – i.e bolster the wages to initially meet current levels of benefits for a certain period. After this, in order to make the savings to the public purse, an incremental reduction to this top up should be considered as the new worker settles into work. Or alternative take away some mandatory/ generic expenses which people returning to work might incur. For example, pay something towards their travel expenses or child care for a certain period.

Why does this matter?

This idea is important because in these times of austerity, if we can get more people working again, the better it will be for Britains economy.


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