Yes, you’re (still) better off working than on benefits
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New analysis shows that you’re still better off in low paid work than on benefits, but the financial advantages have shrunk for some.
By Chris Goulden
Three years ago I wrote a blog about this, and new analysis shows that you’re still better off in low paid work than on benefits, but the financial advantages have shrunk for some. The answer to this lies in improving take-home pay and reducing costs, not more cuts to out-of-work benefits.
A single person without children is better off in work than three years ago…
Let’s first look at Jake, a 25-year-old single man seeking work. Using data from the JRF Minimum Income Calculator, if he rents a modest one-roomed flat, he will receive each week:
- Jobseekers Allowance of £73.10
- Housing Benefit of £86.11 (enough to cover most but not all the £89.70 rent on his flat)
- Council Tax Support of £13.40 (enough to cover most but not all his £15.76 bill)
- leaving a total disposable income of £67.15.
That’s over £3 a week LESS in absolute terms than...
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