This makes so much sense, thanks for typing that out. I have seen it myself how some people in the UK see the benefits system as a career path - young mothers discussing how many children is the sweet spot for getting as much out of the system. I feel so sorry for these children.
The problem is that the way it’s setup it kinda has to be a career choice. Once you are in you are locked in and there’s no decent way you. The system actively punishes you for trying to improve your situation.
You know, everything is always a game of incentives. So if you want people to get off benefits you have to reward them for taking steps to do so. For example, a bad system couples benefits to income with hard thresholds. Imagine a system where you get €1000 in benefits each month, but if you earn any money these benefits are gone instantly. So if someone would take a mini job where they’d earn €500 per month, they’d instantly lose €500 by taking a job.
Thresholds in benefit systems are common, and the UK system has really hard thresholds.
As an alternative consider this system: For two Euros you earn, you lose €1 in benefits. So now someone who makes €500 in their minijob would still receive €750 in benefits, thus making €1250. They have a clear incentive to work, and every bit they earn improves their financial situation.
The way the UK system is setup for the most part is that you are either in the benefits system or you are not. If you want to get off benefits, you need to instantly score a decent full-time job.
That’s a difficult ask for someone who has no education, no network, no prior job experience and a CV that consists entirely of long-term unemployment.
People like that have the best chance to start with an easy, low-commitment minijob. So making sure that’s not an option for them all but guarantees that these people stay on benefits for life.
This makes so much sense, thanks for typing that out. I have seen it myself how some people in the UK see the benefits system as a career path - young mothers discussing how many children is the sweet spot for getting as much out of the system. I feel so sorry for these children.
The problem is that the way it’s setup it kinda has to be a career choice. Once you are in you are locked in and there’s no decent way you. The system actively punishes you for trying to improve your situation.
You know, everything is always a game of incentives. So if you want people to get off benefits you have to reward them for taking steps to do so. For example, a bad system couples benefits to income with hard thresholds. Imagine a system where you get €1000 in benefits each month, but if you earn any money these benefits are gone instantly. So if someone would take a mini job where they’d earn €500 per month, they’d instantly lose €500 by taking a job.
Thresholds in benefit systems are common, and the UK system has really hard thresholds.
As an alternative consider this system: For two Euros you earn, you lose €1 in benefits. So now someone who makes €500 in their minijob would still receive €750 in benefits, thus making €1250. They have a clear incentive to work, and every bit they earn improves their financial situation.
The way the UK system is setup for the most part is that you are either in the benefits system or you are not. If you want to get off benefits, you need to instantly score a decent full-time job.
That’s a difficult ask for someone who has no education, no network, no prior job experience and a CV that consists entirely of long-term unemployment.
People like that have the best chance to start with an easy, low-commitment minijob. So making sure that’s not an option for them all but guarantees that these people stay on benefits for life.