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Citizens Advice response to the Welfare Reform Green Paper

21 July 2008

Citizens Advice Head of Welfare Policy Lizzie Iron said:

“We welcome the government’s commitment to providing personalised, flexible support and genuine opportunities for skills training to help people into work, but this must be matched by a commitment to investing the level of resources that will be required to deliver this intensive support.

“Most lone parents and people with disabilities want to work if they can, but they often face enormous barriers. Waving a big stick is not the answer. Much more needs to be done to tackle the barriers and increase incentives to work. Fundamental improvements are needed in the delivery of benefits and tax credits, in access to affordable, high quality childcare, and in ensuring basic rights at work are enforceable and employers offer the flexible working arrangements parents and people with disabilities need before going any further with compulsion.

“We need to see a fundamental shift in attitudes amongst employers to taking on people who have a disability or history of ill health. Research consistently shows that employers are still very reluctant to employ people with health problems, and Citizens Advice Bureaux see many people who are dismissed from work while they are off sick, simply on account of their illness.

“Financial incentives are important and we welcome the commitment to let parents on benefit to keep all the child maintenance received from the non-resident parent as a way to encourage maintenance to be paid. But we are disappointed that more has not been proposed to improve other financial incentives to work or to support people through the transition from benefits to work. Undertaking part time paid work or community work is a good way for people to keep in touch with the labour market and is good for communities.  Yet currently benefit rules mean that some benefit claimants cannot even work an hour without losing their benefits pound for pound.

“We are also disappointed that in the current economic climate little commitment has been given to ensure that people take up their full benefit and tax credit entitlement.  As much as £9.9 billion goes unclaimed every year - around half those people working who are entitled to housing benefit do not claim, and almost 80% of working people without children who are entitled to working tax credit do not claim it, often because they do not realise they are eligible for extra help. Ensuring people got their full in-work entitlement to housing benefit and tax credits would boost financial incentives to work.”

Notes to editors

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales see www.citizensadvice.org.uk
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality. For online advice and information see New windowwww.adviceguide.org.uk
  3. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 7.1 million problems from April 2010 to March 2011. For full 2010/2011 service statistics see: www.citizensadvice.org.uk/press_statistics
  4. Out of 22 national charities, the Citizens Advice service is ranked by the general public as being the most helpful, approachable, professional, informative, effective / cost effective, reputable and accountable. (nfpSynergy’s Brand Attributes survey, May 2010).
  5. Most Citizens Advice service staff are trained volunteers, working at around 3,300 service outlets across England and Wales.