William Eichler 02 June 2023

Two-child benefit limit failure, study says

Two-child benefit limit failure, study says image
Image: N Crittenden / Shutterstock.com.

There is no evidence that capping child benefits increases employment, a new study has found.

The Government's two-child benefit limit, which restricts welfare payments to larger families, has failed to increase employment levels, researchers from the London School of Economics say.

The new paper, titled Making Work Pay? The labour market effects of capping child benefits in larger families, found instead that the policy was ‘counter-productive’ and pushed people ‘further away from the labour market.’

According to the researchers, the two-child limit fails to recognise why parents in larger low-income families prioritise caring responsibilities over work and it overlooks the challenges associated with seeking employment while caring for young children.

‘Labour market activity among larger families seem to be particularly “sticky” in response to reductions in benefits income, likely due to parents’ commitment to unpaid care, the scale of caregiving responsibilities and barriers to paid work,’ the paper says.

‘Our qualitative evidence also indicates that the effects of negative income shocks can render such policies counter-productive by pushing people further away from the labour market.’

Sign up here to receive our free daily news and jobs bulletin.

Skills Pipelines: What local government needs to know image

Skills Pipelines: What local government needs to know

Councils and mayors are to be handed a central role in developing skills pipelines for local industries, as the Government unveils what it calls a ‘fundamental change’ to the education system aimed at tackling youth unemployment. Here's what council leaders and officers need to know.
SIGN UP
For your free daily news bulletin
Highways jobs

Apprentice Highways Operative

Durham County Council
£15,434 per annum NMW in first year of apprenticeship
Earn. Learn. Qualify. Do you want to earn while you learn, with the chance of progression once you qualify? Do you want the opportunity to grow, deve Durham
Recuriter: Durham County Council

Residential Workers - Casual

Durham County Council
Grade 7 £30,024 - £33,699 pro rata to hours worked. Pay award pending.
Residential Workers - Casual Contract Opportunities are available across the County Durham Area We have opportunities available to join the casual p Durham
Recuriter: Durham County Council

Residential Workers

Durham County Council
Grade 7, £30,024 - £33,699 per annum. Pay award pending.
Residential Workers - Opportunities are available across the County Durham Area Salary
Recuriter: Durham County Council

Team Leaders

Durham County Council
Grade 8 £32,597 - £36,363 per annum (pay award pending)
Team Leaders – Opportunities are available across the County Durham Area   Salary
Recuriter: Durham County Council

Casual Tutor

London Borough of Richmond upon Thames and London Borough of Wandsworth
£35.75 per hour
Casual Tutor£35.7... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth
Linkedin Banner