§ Mr. CousinsTo ask the Secretary of State for Work and Pensions what the evidential basis was for his decision not to increase the earnings disregards for jobseeker's allowance; when this disregard was last increased; and what it would be worth if it had been uprated. [83242]
§ Malcolm WicksOur policies are giving everybody who can work the opportunity to do so, and providing security for those who are unable to work. We have introduced the national minimum wage, working families tax credit and, from April 2003, the new tax credits to ensure that people are better off in work than on benefits.
Any decision on increasing the earnings disregard for jobseeker's allowance is a question of fine judgment. We need to balance the benefits of encouraging people into part-time work and maintaining contact with the labour market, against any possible disincentives to full-time work. If the earnings disregard is set too high, then the gap between in-work income and out-of-work benefits becomes so narrow as to discourage people from taking up full-time work.
We keep the earnings disregard under review, but there is no set mechanism or formula for increasing it. There is, therefore, no basis on which to calculate an uprated value. We have, however, targeted extra help where it is most needed. For example, for lone parents and certain disabled people the earnings disregard was increased from £15 to £20 from April 2001.