Reforming the benefits system
Although Blair’s announcement that the leaving age for compulsory education will be raised to 18 won’t appear to connect with the current benefits system, many 16 and 17 year olds will be affected. Currently, there is no form of Jobseekers Allowance for under 18’s (or Asylum Seekers or economic migrants, as such, who haven’t contributed to the National Insurance system) and they can only claim benefits for themselves if in education or training.
Currently, a 17 year old can, conceivably, get a job. But if the school leaving age is increased to 18, many young people who simply want work experience and not more examinations will be put in a difficult financial position. If they choose to have some experience of work they will most likely be paid much less than the minimum wage and will be unable to claim benefits if their parents are on a low income. Although this policy seems designed to encourage further education it will force those who don’t want to be educated into education and affect the finances of many poor families. It may also create a new underclass.
It would be much simpler if there was a kind of “Young Persons Allowance”, non-means tested, of around 65 pounds per week. This could begin as soon as an individual reaches the age of sixteen and could carry on up to 19 or 21, at which point Jobseeker’s Allowance would become available. This would allow young people to choose from part-time work, work experience, education or training without being made financially disadvantaged by their choices. Any paid work undertaken would only affect the amount of Housing Benefit a person would be eligible for.
The Young Persons Allowance could be incorporated into the Income Support system, with the same amount being available to all those, including Asylum Seekers, who are eligible for it. Similarly, the remit of Jobseeker’s Allowance would be increased to include students and volunteer and immigrant workers. The amount would also be increased to about 90-95 pounds per week. Adults on low incomes would be entitled to full Income Support and be able to earn up to £40 a week before £5 is deducted for every £5 earned.
Although Blair’s announcement that the leaving age for compulsory education will be raised to 18 won’t appear to connect with the current benefits system, many 16 and 17 year olds will be affected. Currently, there is no form of Jobseekers Allowance for under 18’s (or Asylum Seekers or economic migrants, as such, who haven’t contributed to the National Insurance system) and they can only claim benefits for themselves if in education or training.
Currently, a 17 year old can, conceivably, get a job. But if the school leaving age is increased to 18, many young people who simply want work experience and not more examinations will be put in a difficult financial position. If they choose to have some experience of work they will most likely be paid much less than the minimum wage and will be unable to claim benefits if their parents are on a low income. Although this policy seems designed to encourage further education it will force those who don’t want to be educated into education and affect the finances of many poor families. It may also create a new underclass.
It would be much simpler if there was a kind of “Young Persons Allowance”, non-means tested, of around 65 pounds per week. This could begin as soon as an individual reaches the age of sixteen and could carry on up to 19 or 21, at which point Jobseeker’s Allowance would become available. This would allow young people to choose from part-time work, work experience, education or training without being made financially disadvantaged by their choices. Any paid work undertaken would only affect the amount of Housing Benefit a person would be eligible for.
The Young Persons Allowance could be incorporated into the Income Support system, with the same amount being available to all those, including Asylum Seekers, who are eligible for it. Similarly, the remit of Jobseeker’s Allowance would be increased to include students and volunteer and immigrant workers. The amount would also be increased to about 90-95 pounds per week. Adults on low incomes would be entitled to full Income Support and be able to earn up to £40 a week before £5 is deducted for every £5 earned.
posted by Legal Smeagol at 8:53 AM
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