People on state benefits often find that they are worse off when they take a job – particularly if it’s part-time.This discourages some of them from trying to find work, and can resultin benefit-dependency. Many of those in demanding full-time jobs canresent being little better off than those who they do not see working at all.
These twin problems, caused by our current tax and benefit system, result in the poverty trap.When claimants start earning money, their whole earnings can bededucted from their benefits. It’s as if they are facing a 100% taxrate. When they also take into account things such as the cost oftravelling to and from work many people find that they are actuallyworse off having a job.
Our Aims
The Green Party would address this problem by introducing a Citizen’s Income.This is an unconditional payment made to each individual as a right ofcitizenship – like a tax credit paid to everyone whether they're working or not.
The Green Party would introduce a Citizen’s Income that would:
- Guarantee that everyone’s basic needs are covered by a non means-tested weekly payment, as of right.
- Replace benefits such as Job Seeker’s Allowance, as well as replacing personal tax-free allowances with a payment which is worth much more.
- Ensure that anyone who takes paid work will be better off for doing so.
- Make working part-time an option for many people who would prefer it, but who are currently discouraged from it.
- Put an end to demeaning benefits procedures.
- Act as a safety-net to those considering self-employment, so that they have less to fear if their business isn’t successful.
Addressing Your Concerns
Quite the reverse. Even under the present system, with not enough jobs everywhereto go round, those who don’t have paid jobs have to rely on statebenefits. Too much of the cost of supporting them currentlyfalls on lower-paid workers, who find themselves not much better offthan the unemployed. The Citizen’s Income will distribute this costmore fairly and reduce the existing heavy but disguised tax rates onthe low-paid. A Citizen’s Income would initially be introduced at no less than the present level of Job Seeker’s Allowance for adults,with an increased amount for pensioners (to replace state pensions) anda lower rate for children. There would be additional amounts for thosewith special needs, making sure that nobody would receive less inbenefits than they are currently allowed. For those in work this wouldhave a similar effect to more than doubling the tax-free allowance. Citizen's income would be paid for by an increase in the basic rate of income tax.For most people this would be more than offset by the Citizen's Income.Those on low/moderate incomes will gain by the change. Some top earnerswould be worse off. Allowing for Citizen's Income, the net total amounttaken by the Government in income tax will not increase. People choose to work for many reasons, not least to increase their standard of living.It’s the present system that encourages people not to work, oftenclawing back most of the earnings of claimants who find jobs. With no Benefits Agency to hound them, people can be more choosy about the work they do. Having a guaranteed safety net, they will be less likely to settle for low wages in unpleasant jobs. Saving the planet is down to all of us, but we cannot expect people still stuck in the poverty trap to think of it as a priority. Creating a fairer society and saving the planet go hand-in-hand.
Learn More
Related Sections in the Manifesto for a Sustainable Society:
Economy
Housing
Social Welfare
Workers' Rights and Employment
