To ask the Secretary of State for Work and Pensions (1) if he will introduce a system of short- term loans for those on low incomes when they change jobs; [129856](2) what research his Department has conducted on the disincentives caused to those on low incomes when they change jobs; [129857](3) pursuant to his answer of 15 July 2003,
Official Report, column 245W, on employment assistance, whether similar incentives are available for those in low paying jobs seeking a move to a similar position. [131175]
This Department has not conducted research into disincentives caused to low income households when people change jobs. We are, however, committed to making work pay for all those who are able to work, and to supporting households, including low-income households, in sustaining employment.
Most people moving from one job to another will be able to manage until they receive payment from their new job, as wages are paid in arrears. For those in receipt of Working Tax Credit, continuity of payment will be maintained when people move from one job to another, as long as the gap between jobs is no more than seven days. The new Working Tax Credit has been extended to people aged 25 and over without children. If people receive the Child Tax Credit, this continues to be paid direct to the main carer throughout any changes in employment. People in low paid employment may also be entitled to Housing Benefit and Council Tax Benefit.
People who are unable to manage whilst waiting for payment of wages, leading to a serious risk to their or their family's health or safety, may be able to get an interest free Crisis Loan. Repayment of a Crisis Loan does not start until the period of crisis is over and the
New Deal for Young People
| ||||||
Spend (£ million)
| ||||||
1997–98
| 1998–99
| 1999–2000
| 2000–01
| 2001–02
| 2002–03
| |
| Subsidies to employers | — | 19 | 27 | 16 | 14 | 14 |
| Payments to external providers | 112 | 98 | 174 | 214 | 159 | 166 |
| Payments to participants | — | 45 | 81 | 63 | 46 | 69 |
| Departmental administrative costs | 31 | 98 | 88 | 119 | 89 | 90 |
New Deal 25 Plus
| ||||||
Spend (£ million)
| ||||||
1997–95
| 1998–99
| 1999–2000
| 2000–01
| 2001–02
| 2002–03
| |
| Subsidies to employers | 0 | 5 | 42 | 14 | 12 | 13 |
| Payments to external providers | 0 | 12 | 28 | 24 | 99 | 123 |
| Payments to participants | 0 | 0 | 2 | 5 | 28 | 45 |
| Departmental administrative costs | 0 | 17 | 26 | 18 | 73 | 73 |
New Deal 50 Plus
| ||||||
Spend (£ million)
| ||||||
1997–98
| 1998–99
| 1999–2000
| 2000–01
| 2001–02
| 2002–03
| |
| Subsidies to employers | 0 | 0 | 0 | 0 | 0 | 0 |
| Payments to external providers | 0 | 0 | 0 | 2 | 2 | 2 |
| Payments to participants | 0 | 0 | 1 | 43 | 80 | 99 |
| Departmental administrative costs | 0 | 0 | 2 | 11 | 5 | 5 |
New Deal for Lone Parents
| ||||||
Spend (£ million)
| ||||||
1997–98
| 1998–99
| 1999–2000
| 2000–01
| 2001–02
| 2002–03
| |
| Subsidies to employers | 0 | 0 | 0 | 0 | 0 | 0 |
| Payments to external providers | 0 | 0 | 2 | 3 | 1 | 4 |
| Payments to participants | 0 | 1 | 9 | 12 | 8 | 15 |
| Departmental administrative costs | 0 | 17 | 27 | 29 | 37 | 61 |
New Deal for Disabled People
| ||||||
Spend (£ million)
| ||||||
1997–98
| 1998–99
| 1999–2000
| 2000–01
| 2001–02
| 2002–03
| |
| Subsidies to employers | 0 | 0 | 0 | 0 | 0 | 0 |
| Payments to external providers | 0 | 0 | 15 | 6 | 1 | 14 |
| Payments to participants | 0 | 0 | 0 | 0 | 3 | 0 |
| Departmental administrative costs | 0 | 1 | 7 | 7 | 6 | 12 |
rate of repayment takes account of a person's income and other commitments to avoid hardship.