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.

LocalGov Weekly Round Up image

LocalGov Weekly Round Up

A pivotal week for councils sees fresh devolution plans, new service pilots and key legal and political battles, writes LocalGov editor William Eichler.
SIGN UP
For your free daily news bulletin
Highways jobs

Client Resident Liaison Officer x3- Basildon Borough Council

Essex County Council
£18.5000 - £20.5000 per hour
Client Resident Liaison Officer x3- Basildon Borough Council Basildon, Essex £18.50 PAYE / £23.73 Umbrella per Hour Full-Time - 36.25 hours per week T England, Essex, Basildon
Recuriter: Essex County Council

Children and Young People with Disabilities Support Worker

Essex County Council
£25395.00 - £32131.00 per annum + + 26 Days Leave & Local Gov Pension
Children and Young People with Disabilities Support WorkerPermanent, Full Time£25,395 to £32,131 per annumLocation
Recuriter: Essex County Council

Family Worker (Link Role)

Essex County Council
£31931.00 - £36423.00 per annum + + 26 Days Leave & Local Gov Pension
Family Worker (Link Role)Permanent, Full Time£31,931 to £36,423 per annumLocation
Recuriter: Essex County Council

Family Worker (Link Role) - 12 month Fixed Term Contract

Essex County Council
£31931.00 - £36423.00 per annum + + 26 Days Leave & Local Gov Pension
Family Worker (Link Role)Fixed Term, Full Time£31,931 to £36,423 per annumLocation
Recuriter: Essex County Council

Recovery Worker Substance Misuse - Multi-Disciplinary Team

Essex County Council
£31931.0000 - £36423.0000 per annum
Please note that this position is being offered as a Fixed Term Contract / Secondment until March 2028.The TeamThe Multi-Disciplinary Team (MDT) comp England, Essex, Harlow
Recuriter: Essex County Council
Linkedin Banner