Part time workers ‘better off on benefits’

A change to the working tax credit system could see families better off with parents on benefits than actually working part time. At the moment low-paid workers only need to work 16 hours each week in order to claim working tax credits, but from April until next October at least, that limit will rise to 24 hours – meaning thousands of people could be up to £700-a-year better off on benefits rather than working. Labour MP Ann Coffey claimed the changes did not “make sense in policy terms” and Work and Pensions Secretary Iain Duncan Smith has admitted he hopes job centres can persuade low-paid parents to work extra hours to be eligible for handouts. He told MPs the changes will last until the universal credit is introduced in October next year which would make the average family £95 better off if parents decided to work. But shadow work and pensions secretary Liam Byrne said many couples will give up their jobs altogether. Our Employment team provides advice on the employment aspects of all major business decisions. For advice, contact a member of the team, call us on 08456 381381 or email employment@ibblaw.co.uk.