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Pathways to Work

Volume 485: debated on Wednesday 17 December 2008

To ask the Secretary of State for Work and Pensions what assessment he has made of the financial impact on Pathways to Work providers and their clients of the period between when a client first moves into employment and their first received earnings; and what plans he has to amend the rules regarding the cessation of benefit payments to individuals immediately upon entering employment. (243556)

[holding answer 15 December 2008]: We have a range of provisions in place to provide financial security for and reassurance to individuals who move from benefit into full-time employment. These include the job grant, mortgage interest run-on and housing and council tax benefit extended payments scheme. All are intended to help bridge the gap between benefit and receipt of first wages, to help individuals adjust to extra financial demands, and to remove any disincentive to claimants to take up employment. Help is available from the Adviser Discretion Fund to provide financial assistance at the point of transition into work, and a return to work credit is also available to ensure work pays once people move from benefit and start work.

We have no immediate plans to amend these rules but will keep them under consideration. No assessment has been made of any impact on Pathways to Work providers.