Change in allowance gives incentive to work

| April 7, 2014 | 0 Comments

Changes to Income Support mean that anyone on benefits moving into a full time paid job will now be at least £61 a week better off than if they were to stay unemployed.

The improvements that take effect today (Monday 7 April) mean that the financial incentive to find and stay in work is at its strongest since the introduction of Income Support.

The Social Security Minister, 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.”

The amount of wages claimants can keep (known as the disregard) has today increased from 20% to 23%, increasing the amount they would be better off in a full time job from at least £53 to £61 per week, and often by more.

“Today’s change to Income Support is part of a wider initiative to move Jersey residents who are Entitled to Work into employment,” Senator Le Gresley said. “Through the Back to Work programme we will help them to get the support they need to find work and will also make working financially rewarding. 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.”

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