August 18, 2009

Escaping the Poverty Trap: How to help people on benefits into work

There are 5.8 million people on benefits in Britain. This year, the welfare bill will be £81 billion. If the people who have recently started claiming social security and are struggling to find work do not get jobs soon, the personal and social costs of the rise in unemployment will be catastrophic.

The report recommends reducing the expected rises in benefits over the next few years, tapering away the Family element of the Child Tax Credit and Child Benefit at 39% once the Child Element has been exhausted and raising the earnings disregard for all means-tested benefits to £92.80.


Lawrence Kay

Research Fellow - Economics Unit, 2008-2010

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