The Benefits of a Welfare State
UK benefit changes have pushed people into dead-end, low-paid jobs, says IFS
Tougher rules have boosted employment but jobs offer scant career progression and contribute little to tax revenue
The Institute for Fiscal Studies (IFS) said successive waves of welfare changes since the late 1990s had imposed more stringent conditions on those claiming jobless benefits and increased the incentives to find a job.Yet its research also found that many of the jobs found were part-time, low paid and had scant chance of career progression.
As a result, the thinktank found those encouraged to enter paid work had tended to remain on low pay, were paying little in tax and were often still entitled to in-work benefits.
“Policymakers would do well to look beyond the headline employment number when setting benefits policy, and consider how the system – and other parts of policy – can be shaped to promote longer-term career progression.”
According to the institute, a low earner with children in 1997 to 1998 on average had lost 50p in reduced benefits or higher taxes for every £1 earned when they moved into part-time work. Today that figure is 38p.
Source: http://fuelinjectedmoose.blogspot.com/2023/02/the-benefits-of-welfare-state.html
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