Charlie Weston: Eliminating welfare poverty trap easier said than done
SOCIAL welfare rates were controversially cut in the last two Budgets -- but they are still so generous that many low to middle-income families would be better off on welfare.
Such is the range and generosity of payments made to unemployed families, in particular, that it can pay to stay out of the workforce.
The new Government promises to tackle this welfare trap. The Programme for Government talks about eliminating what it calls poverty traps -- the situation where taking a job, or a promotion for extra income, means you lose benefits so you are worse off in work.