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Low Incomes

Volume 410: debated on Monday 18 August 2003

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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 employers1927161414
Payments to external providers

112

98174214159166
Payments to participants4581634669
Departmental administrative costs3198881198990

New Deal 25 Plus

Spend (£ million)

1997–95

1998–99

1999–2000

2000–01

2001–02

2002–03

Subsidies to employers0542141213
Payments to external providers012282499123
Payments to participants00252845
Departmental administrative costs01726187373

New Deal 50 Plus

Spend (£ million)

1997–98

1998–99

1999–2000

2000–01

2001–02

2002–03

Subsidies to employers000000
Payments to external providers000222
Payments to participants001438099
Departmental administrative costs0021155

New Deal for Lone Parents

Spend (£ million)

1997–98

1998–99

1999–2000

2000–01

2001–02

2002–03

Subsidies to employers000000
Payments to external providers002314
Payments to participants01912815
Departmental administrative costs01727293761

New Deal for Disabled People

Spend (£ million)

1997–98

1998–99

1999–2000

2000–01

2001–02

2002–03

Subsidies to employers000000
Payments to external providers00156114
Payments to participants000030
Departmental administrative costs0177612

rate of repayment takes account of a person's income and other commitments to avoid hardship.