§ 44. Mr. Brazierasked the Secretary of State for Social Services how the introduction of the social security reforms will help to alleviate the unemployment and poverty traps.
§ Mr. ScottOne of the main aims of the reforms is to improve work incentives. The introduction next April of family credit, which is expected to help over twice as many low-income working families as family income supplement, and the closer alignment of help for people in and out of work, are expected to alleviate the unemployment trap. In addition, assessing income-related benefits on net, rather than gross, income eliminates the possibility that in-work income-related benefits reduce net spending power when earnings rise. This eliminates one of the worst features of the poverty trap.