Welfare to Work

– Working-age ‘welfare’: who gets it, why, and what it costs

In order to help inform the debate on public spending cuts the Joseph Rowntree Foundation recently published a report which highlights and examines the five predominant benefits that compose, or add to, the income of the five million out-of-work working-age adults.  These include – Jobseeker’s Allowance (JSA), Income Support (IS), Employment and Support Allowance (ESA), Incapacity Benefit (IB) and Disability Living Allowance (DLA).

Key findings from the report indicate that:

  • Of the approximately five million out-of-work, working-age adults currently receiving an income replacement benefit, about 50 per cent do so because of disability or ill-health (ESA or IB/IS), 30 per cent because of unemployment (JSA) and 20 per cent by virtue of being either a lone parent or a carer (IS).
  • After allowing for inflation, JSA and IS of £65.45 a week are worth what they were in 1997. £65.45 is equivalent to just 41 per cent of the Minimum Income Standard for a single working-age adult.
  • There are particular concerns that the health needs of mental health service users are not being taken fully into account under the new eligibility conditions.
  • The extension of ESA to existing claimants of incapacity benefits from autumn 2010 onwards strongly risks causing distress while doing little to increase employment.
  • Major reforms have been made to working-age benefits since October 2008, for lone parents and especially for those who are disabled or ill.  There is no doubt that these reforms have tightened the conditions for eligibility: what is unclear is by how much

This paper also analyses the geography of the claims; the life styles of those claiming disability and illness benefits; and gives consideration to what these benefits are worth and how much they cost the taxpayer.

Read it here

http://www.jrf.org.uk/sites/files/jrf/working-age-welfare.pdf

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