IDS: Benefits Reforms 'Make Part-Time Jobs Attractive'

The Work and Pensions Secretary Iain Duncan Smith said pilot schemes of the Government’s new universal credit suggested claimants are increasingly moving into seasonal, short-term or part-time work. Employers have long found people on benefits unwilling to accept such jobs, since they risk losing tax credits, housing benefit or other handouts for positions that may not be secure, and turned to foreign workers. But Mr Duncan Smith said universal credit, which guarantees that claimants are always better off working, even part-time, was creating a new market in ‘mini-jobs’ for the British unemployed. Read more on the Daily Mail website.

DWP: Housing Benefit Will Be Sanctioned

Part-time workers judged to be doing too little to find full-time work face having their benefit for housing costs sanctioned by the government for the first time under universal credit. Under the present system housing benefit is paid direct to landlords and sanctions can only be applied to out-of-work benefits. Landlords have been lobbying the government to exempt the housing element of the single payment from sanctions in all circumstances. However, the DWP has confirmed that under universal credit, where a tenant is working less than 35 hours a week at minimum wage and is not eligible for JSA or ESA, the housing element can be sanctioned instead. Read more on Inside Housing.

Failure of Universal Credit Would Leave Us with the Worst of Both Worlds

The principles behind Universal Credit need defending – otherwise we risk being left with the worst of both worlds.  While UC strengthens work incentives for some, other groups are not so well off in all circumstances. Families with children would hit a ceiling where, despite working more hours, steep withdrawal of benefits leads to a flat-lining or even a decline in disposable income after childcare costs. In some cases, families would be worse off working full-time than part-time. Many of the design and implementation issues can be solved. But, despite the often-sound principles behind UC, to make a real difference it needs to be linked to industrial and labour market policy to address the barriers that prevent some people from moving out of benefits and into work. This includes the prevalence of low low-paid, insecure jobs, a lack of affordable childcare, insufficient skills and discrimination against some groups in the labour market. Joining up UC to these other vital areas of policy would help it to succeed and encourage the support that it needs from across government. Read more on the Joseph Rowntree Foundation website.

Bedroom Tax Could Be a 'Perverse Disincentive to Work,'

The government's controversial bedroom tax could discourage people from working, a group of MPs have been warned. Speaking to a select committee of MPs, a housing association chief executive warned that people in part-time work are punished disproportionately by the policy and many could be better off unemployed.  Those only receiving partial housing benefit because they are in part-time work are penalised the same amount as those who receive housing benefit that covers their full rent amount. The bedroom tax could therefore be a "perverse disincentive to work," said Carol Matthews.  Read more on the Guardian website.