To Update and Simplify the Benefits System

The problems with the benefits system include:

• Filled with traps – the benefits trap is well documented with housing costs being one of the highest hurdles.
• Too complex – unless you have a professionally trained adviser to help you navigate and work the system, then it is likely you will not claim all that you are entitled to - in 2005-06 between £5.7 billion and £9.3 billion of benefits went unclaimed
• Changed too often – constant tinkering to changing the benefit rules has lead to a very complex and contradictory system.
• Outdated – it doesn’t respond to sessional, part time and temporary work, only a 35 hour week.
• Mean – why are so many benefits paid out below the poverty line?
• Administratively burdensome – for the individual and the staff. Application forms are unnecessarily long and complicated (Job Seekers Allowance is 44 pages).

The Community Allowance would enable the benefits system to be simplified:

• The participant’s benefits status would be ‘frozen’ and protected for a year, enabling the participant to be stress free about a minimum level of income so they can concentrate on gaining skills, knowledge and experience through work to help them to progress off benefits

• Job Centre Plus would not have to deal with unnecessary paperwork while participants are on the Community Allowance, eradicating the work that currently exists for Job Centre Plus staff when a claimant declares part time, short term or sessional work

• Housing Benefit and Council Tax Benefit would also be protected for a year, eradicating the work that currently exists for Local Authority staff when a claimant declares part time, short term or sessional work