Skip to main content

Better Off in Work Credit

Volume 506: debated on Monday 22 February 2010

To ask the Secretary of State for Work and Pensions when she expects the Better off in Work Credit to be available; what the monetary value will be of the weekly amount of credit provided; by what mechanisms payment of a claim will be triggered; how many people she estimates will be eligible for that credit; and if she will make a statement. (308337)

We will be implementing the enhanced Better off in Work Credit in one region from October 2010 as the first step towards a national roll-out. We expect the credit to be available nationally from January 2011. The Better off in Work Credit will ensure that everyone who has been unemployed for 26 weeks or more will have at least £40 a week more income on moving into work. The amount of the credit will vary from customer to customer and will be dependent on a comparison of the income an individual receives in work against the income they received from out of work benefits.

During the Better off in Work Credit pilot that ran in Yorkshire and the Humber, customers made their applications at their local jobcentre in consultation with Jobcentre Plus staff. We will review this process to determine the most effective means of taking applications taking account of the lessons learned from the pilot before we roll out the next phase.

Of those who move from benefits to work in each year, the vast majority are already better off in work. We expect only a small minority—up to around 100,000 a year to qualify for the enhanced Better off in Work Credit.