21 January 2010 – Publication of Report 637: The Better off in Work Credit: incentives and experiences
A report published by the Department for Work and Pensions (DWP) today presents findings from quantitative modelling using the Departmental Policy Simulation Model and interviews with Jobcentre Plus advisers and DWP customers about the Better off in Work Credit pilot.
The pilot began in October 2008 Jobcentre Plus and ran for a year throughout the Yorkshire and Humber District. The Credit was payable for 26 weeks and available to customers who had claimed Employment Support Allowance, Incapacity Benefit, Income Support, Jobseeker’s Allowance (JSA) or Severe Disablement Allowance for 26 weeks. It assured that recipients received an in-work income of at least £25 a week more than they got from their out-of-work benefits.
The main findings were:
- Because of the availability of other in work payments the numbers of customers likely to be eligible for the Better off in Work Credit, as piloted, was small. The main group of people it was likely to help were a small number of JSA claimants under 50 and those with mortgages.
- Even with the low numbers receiving Better off in Work Credit, it might still have beneficial effects for example raising expectations of work or intensifying and widening jobsearch.
- Customers who did receive the credit found it beneficial particularly in the early stages of employment and in helping to cover transition costs. Customers also found the claims process simple.
- There was a low level of awareness of the credit in the districts despite efforts by Jobcentre Plus to advertise it widely. Advisers said they only raised it with those customers they felt would be eligible. The high volume of other information that customers receive was a possible awareness factor.
- The credit raised issues about customer confusion as to what benefits and credits they may be eligible to receive when in work.
- Customers appeared to take account of the various costs of working when considering their income in work and the lack of inclusion of such costs may make some customers sceptical about the Better off in Work Credit.
Notes to Editors:
- The report will be published on 21 January 2010.
- The research involved interviews with 127 customers and 54 personal advisers.
- The research was conducted by the National Institute of Economic and Social Research.
- In Building Britain’s Recovery: Achieving Full Employment, published on 15 December 2009, the Department announced that it intended to build on the lessons in the pilot from October 2010 as the first steps towards a national roll out from January 2011.
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