§ Mr. Paul MarsdenTo ask the Secretary of State for Work and Pensions what benefits and subsidies may be lost by the unemployed upon starting employment. [83173]
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§ Mr. Nicholas BrownWe are taking a single approach to work and benefits to make work pay, make work possible and to support those who cannot work.
The national minimum wage together with our reforms of the tax and benefit system are helping to ensure that work pays at all levels of the labour market, and particularly for people on low incomes. Building on the success of the working families tax credit and the disabled person's tax credit, we will introduce the working tax credit from April 2003, extending in-work support to workers without children or disabilities.
We have also recently announced an improved package of financial measures to help people make the transition into work. From October 2004, we will be introducing a new job grant to help people moving into a job after at least six months on benefit. Single people and couples without children will receive £100. A higher rate grant of £250 will be paid to lone parents and to couples with children. This improved job grant will make a real difference in helping tide families over until their first wages are received.
On starting full-time employment a person ceases to be entitled to jobseeker's allowance or income support. There are a number of other benefits and subsidies available to people claiming income-based jobseeker's allowance or income support. These may be affected by a person's increased income on starting work or the person may lose entitlement to them. They include: housing benefit, council tax benefit, certain social fund grants and loans, free NHS prescriptions, eye tests and dental treatment, free school meals, and milk tokens.
Housing benefit and council tax benefit remain available to provide in-work support to help people meet their rent or council tax and are designed to guarantee that a person is better off in work than out of work. In addition, the NHS low income scheme ensures that working people on low incomes can continue to receive help towards the cost of most NHS services.