You are here: Home - Uncategorized -

Working while on benefit driven by poverty

0
Written by:
16/06/2006

People working and claiming benefit at the same time do so as a last resort because they are living in acute poverty, a new report has claimed.

The report from the Joseph Rowntree Foundation found that for people in low-paid informal work, “need not greed” was the reason they continued to claim benefit while working, as they needed to pay for food, heating or mounting debt.

The report said informal work was often a response to poverty or crisis such – as family breakdown. It showed how low benefit rates and low wages were the drivers for most informal work. In addition, the research highlights how childcare or health problems can act as barriers to formal work.

The report also cited a complicated and inefficient tax and benefit system as one of the main reasons that people resorted to informal low-paid work. It claimed that people often felt the system trapped them in a cycle of poverty with few financial incentives to work formally.

The report claimed people should be given more training and development to allow them to move into formal work. And it called for tax and benefit reforms to recognise why people worked informally.

Aaron Barbour, report author, said: “People in deprived areas are resorting to informal paid work because they are trying to support, feed and clothe their families. They are hard-working, ordinary people trying to survive day by day. The Government needs to understand and include the informal economy in all its strategies if it is to reach its employment, anti-poverty and regeneration targets.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Burglars cashing in using spare keys

Burglars are set to cash in on £750m from people leaving their keys lying around their homes, a leading insurer...

Close