(2) in which circumstances repeat Better Off Calculations are offered; and if he will make a statement;
(3) whether Better Off Calculations take into account income from tax credits and benefits in the second year of employment; and if he will make a statement;
(4) what advice is provided to individuals along with the outcome of their Better Off Calculation; and if he will make a statement;
(5) which unit of his Department is responsible for Better Off Calculation policy.
The administration of Jobcentre Plus is a matter for the chief executive of Jobcentre Plus, Lesley Strathie. I have asked her to provide the hon. Member with the information requested.
Letter from Lesley Strathie, dated 30 January 2008:
The Secretary of State has asked me to reply to your questions asking which Jobcentre Plus offices offer Better Off Calculations; in which circumstances repeat Better Off Calculations are offered; whether Better Off Calculations take into account income from tax credits and benefits in the second year of employment; what advice is provided to individuals along with the outcome of their Better Off Calculation and which unit of his Department is responsible for Better Off Calculation policy. This is something, which falls within the responsibilities delegated to me as Chief Executive of Jobcentre Plus.
All Jobcentre Plus offices offer Better Off Calculations. Additionally, a stand-alone version of the calculator, known as Personal Benefit Advice, is distributed on request to external organisations, such as the Citizen’s Advice Bureau, which enables them to offer Better Off Calculations to their customers.
Personal Advisers consider offering a Better Off Calculation during all interviews with the customer and one is performed whenever it is appropriate to do so throughout the life of the customer’s claim. Guidance is available to Personal Advisers about the minimum expectations of when it is appropriate to offer a calculation to each individual customer group. For example, for lone parents calculations are expected to be reviewed at each interview in order to ensure the information is current. Equally, the customer can request a calculation at any time.
During the interview, the Personal Adviser records a ‘snapshot’ of the current circumstances, based on personal and financial information provided by the customer and compares this with their potential income if they were to get a job at a particular wage. This ‘snapshot’ takes into account any benefits or tax credits that are in payment to the customer and includes information on entitlement to both Housing Benefit and Council Tax Benefit. The customer also gets an indication of their in work Housing Benefit, Council Tax Benefit and tax credit entitlement when considering employment opportunities. BOC has the facility to conduct and hold two calculations (usually one on benefit and one in employment); the results are then used to produce an individual ‘better off’ amount.
Additional functionality has been developed, which will enable Personal Advisers to also provide a comparison of circumstances in the second year of employment. Jobcentre Plus will be able to provide this additional service each year to customers who receive a calculation in the period between the announcement of the revised tax bands in the Chancellor’s Pre Budget Report and the end of the current tax year. As soon as HM Revenue and Customs confirm the revised tax bands for 2008/2009, this new enhancement will be made available to Personal Advisers.
The Better Off Calculator provides written information for the customer including advice about other in-work benefits, including Housing & Council Tax Benefits, Job Grant, Free School Meals, which helps the customer to make an informed decision about entering work.
Within the Department for Work and Pensions, Jobcentre Plus has responsibility for Better Off Calculations Policy.
I hope this is helpful.