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Increase the Earnings Disregard
04 Dec 2009
Today saw the launch of our latest campaign to increase the earnings disregard for people on Jobseekers Allowance from £5 to £50. You can read about it on BBC News.
Summary
People on Jobseekers Allowance (JSA) face a £5 cap (or ‘earnings disregard’) on the amount they can keep each week when they get any kind of paid work. Above this amount, benefits are deducted at the same rate as earnings, which means claimants who take on part time or occasional work are often little better off. Our grassroots experience shows that this low cap on earnings often removes the incentive to take the first step back into work and can push people into illegal cash-in-hand jobs. The £5 cap should be raised immediately to £50 a week, to support people to get back into work and off benefits.
I got my plumbing qualifications this year, and want to set up my own plumbing business. At the moment I only get a few hours work a week. I can’t tell the Jobcentre because I would lose all the money, and I need it to buy equipment. I hate defrauding the system. Hopefully by the New Year I will have enough clients to be able to come off benefits and set up full time, but until then I don’t have a choice.
George (not his real name) is 37 and has been in and out of work for many years
To find out more, please download the campaign briefing and read/hear the coverage from the media launch
To get involved, sign the petition, or contact us if you'd to support the campaign further.
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