HC Deb 30 July 1997 vol 299 cc371-2W
Mr. Pond

To ask the Secretary of State for Social Security what evidence she has obtained of work disincentives for people on income support seeking(a) part-time work and (b) full-time work topped-up by family credit; and if she will make a statement. [8198]

Mr. Keith Bradley

A number of studies have been carried out, both by the Department of Social Security and by research organisations, which have looked at possible disincentives to work, for example, studies into the effects of the unemployment and poverty traps. We have studied the findings carefully. The circumstances of lone parents seeking work, for example, were explored in the Department's research "Moving off Income Support:Barriers and Bridges", published last year and this helped develop our proposals for a new deal for lone parents. The report established that a significant obstacle for lone parents moving in to work was the cost of child care and we are addressing this with our national child care strategy and with the recently announced enhancements to the child care disregard, which are the first steps in our programme of helping parents to have access to affordable, good-quality child care if they are to balance work and family life successfully. The new deal for lone parents will be important in our continuing evaluation of barriers to work. We want to make it worth while for people to make the transition into work and ensure a fair return on extra earnings once they are in work. We believe work is the best form of welfare for people of working age.

Modernising the social security system is a key priority of the Government and Martin Taylor, chief executive of Barclays plc, has been appointed to spearhead a Whitehall task force on tax and benefits. The task force will deliver the Government's pledge to streamline and modernise the system to fulfil the objectives of promoting work incentives, reducing poverty and welfare dependency, and strengthening community and family life.