Dynamic Benefits

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part i  Increase the rewards for entering work, especially for those on low earnings and low hours.  Reduce in-work poverty.  Increase the incentives for low-earners to earn more, by reducing the highest benefit withdrawal rates they face.  Reduce the cliff-edge effect of withdrawal from passported benefits.  Eliminate the hours rules in the benefits system, to reduce the thresholds and barriers to progression in work.  Make child-care support more accessible, especially for those working fewer than 16 hours  Create a supply-side reform for child-care. Increase fairness and equity. Those with low or no earnings should be treated more equitably, with fewer unfair situations such as the couple-penalty.  Reduce the penalty against working couples, especially low-earning couples.  Reconnect the second adult in a couple with job support and strengthen conditionality around out-of-work benefits. Support positive behaviour. We want the system to support the positive behaviours that protect against long-term poverty, such as savings, greater home-ownership, and avoidance of the incapacity trap where possible.  Reduce the mortgage penalty for low-earning households.  Over time, the savings penalty should become less stringent.  Those with reduced benefits because of capital should still stay connected to the job market.  Reduce the incentives to move to IB, and recognise the work capacity of claimants, rather than their incapacity.  Those receiving benefits on the basis of incapacity should still have the same financial incentives to work as all others. Reduce benefit dependency. The welfare state should be a personalised, efficient service that works to protect and empower the poorest and most vulnerable people. All too often, claimants are faced with a dehumanised bureaucracy. We want the system to be simple and empowering in its interactions with benefit recipients, thereby reducing the level of benefit dependency.

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