Scottish Secretary Michael Moore said the Government’s welfare reforms will help Scots back into work. He said it would be fairer and ‘ensure that work always pays’. Mr Moore said it will address the problem of people becoming trapped on benefits because of the financial disincentives to take up work.
The Universal Credit White Paper was published today. It is the most radical overhaul of the benefits system in a generation and simplifies the main welfare benefits into one single system.
Another main feature of the reforms is to stop people who take up work losing out financially. In some cases people can lose up to 90% of earnings through paying tax and the removal of benefits. Under the new plans, as earnings rise, the Universal Credit will be withdrawn at a constant rate of around 65p for every pound of net earning.
Michael Moore said:
“Too many Scots have been out of work for too long. Most people who are out of a job want to get back to work, and this government will help them do that.
“These are radical changes to make the welfare system fairer and easier to understand.
“We will provide proper support for those who can’t work, help to get those who can work into work, and ensure that work always pays.
“People mustn’t be penalised financially for taking up jobs and trying to support their families. It can’t be right that someone finds themselves out of pocket by taking up a job. That is deeply unfair, and we will put a stop to it.
“It’s also right that steps are taken to ensure people can’t simply opt out of the process of finding a job.
“A proper welfare system is fair to those who need it and fair to those who pay for it: that is the system this government is creating.”