§ Harry CohenTo ask the Secretary of State for Work and Pensions what plans he has to ensure that those who enter work(a) do not experience delays in obtaining the benefits to which they are entitled and (b) are not financially penalised in the time before they receive their first full wage payments. [89290]
§ Malcolm WicksMaking the move from benefit into employment can be worrying. In recognition of this we have developed a package of financial help designed to provide real support for people making this transition and give them confidence that they can take up work.
To bridge the gap between leaving benefit and receiving a salary we introduced the Job Grant in April 2001. The Job Grant can provide a one-off tax-free payment of £100 for people aged 25 and over moving into full-time work. We have recently announced our intention to extend and improve the Job Grant to include lone parents and people claiming incapacity benefits. For Lone Parents, this will replace the Lone Parent Run-On that currently provides continued benefit payments for lone parents for the first two weeks after moving from benefits into work.
To assist people with their housing costs we have Housing Benefit and Council Tax Benefit Extended Payments which can provide Housing Benefit and Council Tax Benefit at their pre-work rate for the first four weeks after moving from Income Support/Jobseekers Allowance into work. We have recently 982W announced plans to extend this scheme to include people claiming Incapacity Benefit. People may also be able to continue getting help with mortgage interest payments in the first four weeks of employment through Mortgage Interest Run-On.
The Adviser Discretion Fund, which was introduced in July 2001, gives New Deal personal advisers direct access to funds to remove immediate barriers to employment and help people move quickly into work. Advisers can award up to £300 per eligible client for purchase of anything that will help them obtain a job or, if already offered a job, to accept that offer. The Adviser Discretion Fund is currently only available to New Deal participants though we have recently announced plans to extend its availability to everyone who has been claiming a benefit for six months or more.
Our New Tax credits provide a secure stream of income for families with children, which will be of particular importance during the transition from benefits to work.
This package of measures and the improvements announced in the pre-Budget Report, reduces the risk of people having to return to benefits due to financial difficulties when starting work.