More income support gives greater incentive to work

Thursday 10 April 2014

People on benefits who find full-time paid jobs will now get to keep even more of their wages and will be better off than if they stayed unemployed.

Changes to Income Support mean people who go back to work will get to keep 23% of their earnings, meaning they’ll be at least £61 a week better off. The Social Security Minister hopes the cash incentive will stop people giving up work for life on Income Support.

Senator Francis Le Gresley said: “We want to ensure that it always pays to take paid work. Income Support is designed to ensure that someone in work is always better off and the changes that I have introduced will make the difference even greater.

“In order to ensure that a jobseeker is better off if they take a job, we don’t reduce the amount of Income Support they receive by the total amount of their wages. This ensures that they benefit financially and are better off in work."

Senator Le Gresley says the change to Income Support is part of a wider initiative to get more local people into employment.

He said: “We also want to ensure that there is a greater disincentive for someone who gives up work simply because they think life on Income Support is a viable alternative.”