Families: Work Incentives

Baroness Lister of Burtersett Excerpts

Tuesday 27th October 2015 Lords Chamber

[Lord Freud]

The target to halve the disability employment gap implies that we need to find work for 1 million more people in this category. We are currently working pretty hard on the strategy for that. It was announced by the Secretary of State in August, and we are now consulting with the various interest groups to find out the optimal way of achieving it. One group that is particularly important is people with learning disabilities; they have had a tough time in the work market.

[Baroness Lister of Burtersett (Lab)]

The Minister acknowledged that work allowances have “come down” as if that was somehow an act of God. The fact is that the Government first froze them and are now abolishing them for non-disabled workless households and reducing them for most other households. Yet when the Welfare Reform Bill was going through this House, the Minister constantly told us that the new improved work allowances were absolutely key to making work pay. Will he explain why they have been cut back so drastically?

[Lord Freud]

As the noble Baroness will know, a reduction and a cost saving are going on in this part of the benefits system. We had to make a decision about how to structure that. We decided that the taper was critical because it moved people right the way down at 65%. We have maintained that level. We have taken it out and reduced the work allowances in other areas. In particular, in our experience, for singles the removal has meant that people move straight through the work allowance out of UC. We have tested people carefully and seen a significant, measurable increase in the amount of work that they do and in their earnings. The work allowance impact seems to be less in those areas.