Sadly alot of people in my opinion as an employer will keep the money (which
would no doubt be just about enough to survive on) and do a few cash in hand
jobs. The cost of breaking poeple out of this rut as an employer is enormous.
For example, you are not just competing with the state as a wage/benifit
provider, but you are also having to offer to cover their extensive benifits +
their undeclared income + a little bit more to make it worth their while.
The only choice as an employer for this segmant of people is to join in the
fraud and pay people cash - so the problem goes on.
So of us are not prepared to get involved in this.
Give people on benifits a tax free status so you can pay them gross whilst
keeping their benifits and on a gradual basis wind down the tax advantage (say
over a year) to both the employer and employee. Likewise wind down the benifit
advantage. This way, people being gently moved off benifits and introduced to
the tax system have a insentive to come to work and employers will highly
price people on benifits.
Also, the former benifit taker would have a very substantial boost to their
income in the first few months of their new employment to carry them through
the first few months of them earning income on a monthly basis which is
another large disincentive for people to come off benifits and into work.
I hope my ramblings are of some use.
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