Benefit system ‘deters work’
Britain’s complicated benefits system can put claimants off returning to work, a report claims.
The study from three anti-poverty charities criticises “structural deficiencies” which it says are creating barriers for progress towards the government’s goals of full employment and eradicating child poverty by 2020.
Community Links, the Low Incomes Tax Reform Group (LITRG) and the Child Poverty Action Group (CPAG) say there is still “much to be done” to achieve the targets by ruling out existing “inconsistencies and contradictions”.
“The rate at which benefits are withdrawn when claimants move into or increase their hours of work, the loss of passported benefits and the complexity of the system have been highlighted as inhibiting the progress the government desires,” the report states.
It says the system is not sufficiently customer-focussed and says there is no overall strategic direction present within government.
“Doing nothing is not an option if child poverty is to end and the ambition of full employment achieved,” LITRG technical director Robin Williamson said.
“Government needs to take immediate action to address the immense interactions and so complexities inherent within the benefit, tax credit and tax systems.”
CPAG chief executive Kate Green cited the example of lost free school meals as proving “crucial” in dissuading some from taking up work.
“True work incentives cannot be achieved by single policies; there has to be a clear, coherent and holistic strategy across the entire tax/benefit system, and across all government departments,” she commented.
The Department for Work and Pensions did not issue a comment on the report prior to its publication.
