HC Deb 09 March 1998 vol 308 cc93-4W
Mrs. Ballard

To ask the Secretary of State for Social Security what provision her Department makes to help those entering work in the period between benefits payments ending and the first wage payment being received. [29161]

Mr. Keith Bradley

We believe that work is the best form of welfare for people of working age. We want to make it worthwhile for people to make the transition into work and ensure a fair return on extra earnings once they are in work. Research has shown that unemployed people are particularly concerned about possible income gaps between cessation of out-of-work benefits and the point at which first wages are received.

The benefit system provides some help towards overcoming this barrier to leaving benefit for work.

People who have been unemployed for six months or more may be eligible for the four week Housing Benefit and Council Tax Benefit extended payment scheme which will cover their rent or Council Tax for the first few weeks of work, by which time any in-work Housing Benefit or Council Tax Benefit they may be entitled to should be ready to begin.

Procedures are in place to enable the payment of other in-work benefits, such as Family Credit, to be made more quickly. The vast majority of claims for Family Credit from the newly employed are cleared within five working days.

People who have had part-time earnings or child maintenance taken into account in their Income Support or Jobseeker's Allowance can receive Back-to-Work or Child Maintenance Bonuses when they leave benefit for work. These provide tax-free lump sums at the point of transition from benefit to work and can help to bridge any income gaps.

In exceptional circumstances a Crisis Loan from the discretionary Social Fund can be awarded to help with living expenses in an emergency or as a consequence of a disaster. The Crisis Loan must be the only means of preventing serious risk or damage to the health or safety of the applicant, or a member of their family.

We intend to modernise the Welfare State so that it provides employment opportunity for all, rather than discouraging work and trapping people in poverty. With the help of the Taylor task force we are looking at options to reform the tax and benefit systems, so that they promote work incentives, help remove obstacles to returning to work, reduce poverty and welfare dependency and strengthen community and family life.