Something for the Nats to consider: a benefit ceiling

Who would have guessed?   You pay people less free money, and some are finally motivated to go get a job.

The new cap on benefits payments for the unemployed has forced thousands of people to find work instead of living off the state, new research will reveal this week.

Four detailed studies from the Department for Work and Pensions (DWP) will deliver the most comprehensive evidence so far that the benefits cap is encouraging people to move off welfare and into jobs.

The households that have lost the most in benefits payments since the cap was introduced in April 2013 are the most likely to have begun working for a living, the research concludes.

Claimants who saw their benefits cut by £200 a week or more were three times as likely to have found work after a year as households whose benefits were not affected, the findings suggest.

Iain Duncan Smith, the Work and Pensions Secretary, said the evidence showed the Conservatives were right to plan to cut the benefits cap further.

I think there is a kind of symmetry to increasing the minimum wage at the same time as decreasing (or capping) the unemployment benefit, don’t you?   It just seems… fair.

More than 30 per cent of claimants whose benefits were reduced by £200 per week or more had found jobs.

The DWP said more than 50,000 households have had their benefits capped since April 2013. Some 12,000 of these are no longer affected by the cap because they have found work or are no longer claiming housing benefit.

The policy caps the amount claimants aged from 16 to 64 can receive in housing benefit, jobseekers’ allowance, incapacity benefit, and child benefit, among other benefits.

Before the cap was introduced, fewer than 300 of the highest claiming families received more than £9 million in benefits each year.

One of the studies concluded that claimants whose benefits are cut by the cap are 41 per cent more likely to go into work than those who receive just below the maximum amount in benefits.

Almost four in 10 people affected by the cap – 38 per cent – told researchers that they were doing more to look for work as a result of the policy.

It’s just common sense.  If you pay people to lie around, they’ll lie around.   And this will free up some money for Paula to target towards those who need a hand up, not a hand out.

One interviewee told the researchers: “It gave me the shock of my lives. But it’s given me the kick I need. I can see what the gentleman was saying, why should we pay for your lifestyle?

 

– The Telegraph


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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

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