Solution:
Raise the archaic and out-of-date allowance a benefit claimant is allowed to earn before benefits are affected, fro £5-00 a week to a quid-pro-quo deal where every £2-00 earned results in £1-00 deducted fro JSA (housing benefit and hence home security, is not affected). Available to job-seekers who are prepared to take part-time low paid work , less than 20 hours a week.

Why is this idea important?

This affects:

The long-term unemployment and benefit dependent households struggle to break free of the benefits trap.

 

Reasons:

Benefits to government and state

 

  • Allows private sector to taka on the responsibility of ‘work for benefits’ but frees government from costly and inefficient work placement schemes.
  • The offer remains optional and so does not affect civil liberties.
  • Treasury can claw back 50% of the claimants earnings through gradual benefit reduction and the more claimants who take up the offer, the more it improves government image.
  • Lowest income households (and benefit dependent households) will benefit most from a cost-effective policy. It will raise living standards for the least well-off by having positive effects on reducing child poverty, alleviating fuels cost rises and reduce debts.
  • Reduces state dependency on migrant workers.
  • Costs the state nothing to implement.

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