I can't remember where I saw the estimate, but something like 35% of people claiming unemployment benefit have a cash income from work they do 'on the side'. The trouble is that facts like that would appear to get swept under the carpet whenever there's talk of modifying the tax or benefits system, so there's no real official incentive to make the sort of changes which are needed.
The raising of tax thresholds is a start for people who work but who are on low incomes, but I think they need to go up to at least £15k, perhaps even higher, to make it really worthwhile, but of course that's not really possible at the moment with our finances in such a mess. Another major step forward would be the introduction of a mandatory work programme for people who've been unemployed for a given period of time. The time period could be automatically adjusted to allow for changes in economic conditions; the more jobs there are available, the shorter the time that people will receive benefits before they either have to joint the work programme or lose their benefits altogether.


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What we need more than anything until there can be long term changes in the whole benefits structure is a form of workfare introduced, whereby people who are unemployed can both feel at least they're doing something and earning a bit of self-respect by working, and realise that they're no longer going to get an extended something for nothing from the government.

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