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