Benefit rules that discourage work and study

The government has continuously highlighted the importance of civic responsibility and the value it places on civic participation in society. In addition, the government’s emphasis on the way ahead for working age claimants, whether sick, disabled, lone parents or others who are unemployed, is through getting back to work.

These public policy goals are, however, difficult to reconcile with the way the social security system treats part-time earnings and studying for certain benefits.

By way of illustration, a single person on Income Support or Income based Jobseekers Allowance can keep the first £5.00 of his or her earnings (less than one hour’s pay on the national minimum wage). A couple can keep £10.00 of any earnings while a lone parent or a person with a disability can keep £20.00 of his or her Income Support (less than four hours working on the national minimum wage). These disregards were last uprated in April 2001.

Further, in October 2006, when the national minimum wage was increased a number of carers who also worked part time lost their Carer’s Allowance as their increase in pay moved them above the statutory earnings limit until the earnings limit was increased the following April.

Rules limiting the amount of time a carer can study has forced some carers into choosing between receiving Carer’s Allowance or giving up their studies.

Meanwhile, the rigid rules on receiving Incapacity Benefit while participating as a panel member on a social security appeal tribunal has made it more difficult to recruit panel members with first hand experience of ill-health and disability. Rules covering earnings on Incapacity Benefit allow people on the benefit to act as local councillors without losing entitlement but not to become a mayor without placing entitlement in jeopardy.

Some small improvements have been made including an increase in the Carer’s Allowance disregard from October 2007 to prevent a recurrence of last year’s debacle for carers working part time. The permitted work rules have become more generous though they remain so complex that few claimants understand them or have the confidence to use them.

A recent seminar Benefit Barriers to Involvement: Finding Solutions raised the problems directly with the Department for Work and Pensions. Further, the review of the National Carers’ strategy provides an opportunity to address the barriers the social security system places in the path of carers who wish to retain links with the world of work or education.

Current arrangements are full of inflexible and, at times, mean-spirited rules. Recent improvements, although welcome, have been timid and half-hearted. If government is serious about helping many of the most disadvantaged to re-connect with civic society and the world of work, a radical overhaul and simplification of current benefit arrangements for part-time work is an essential starting point.

Les Allamby, Director, Law Centre (NI)