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Over a quarter of people who leave benefits and enter work are back on to Jobseeker’s Allowance within 13 weeks, and 40 per cent return to benefits within six months

South Norfolk MP Richard Bacon has called on the Department for Work and Pensions (DWP) to break the cycle of jobseekers moving from benefits to employment and back again, as a new report finds that over half a billion pounds could be saved if repeat claimants of Jobseekers Allowance spend more time at work and halve the amount of time they spend on benefits. Mr Bacon, a member of the Commons public accounts committee, was speaking as the National Audit Office (NAO) published its report into how the government supports people to stay in work.

The report finds that over a quarter of people who leave benefits and enter work are back on to Jobseeker’s Allowance within 13 weeks, and 40 per cent return to benefits within six months. The NAO estimates that if repeat claimants spend more time at work and halve the amount of time they spend on benefits, it would save the taxpayer £520 million per year.

Mr Bacon said today: “Although millions of jobseekers are finding work, it is worrying that so many Jobseekers Allowance claimants are back on benefits within six months of finding a job. If the savings identified by the NAO are to be realised, the DWP must identify those most at risk of an early exit from the job market. They can then work out how to help these people stay in work and break the cycle of jobseekers moving on and off benefits”.

14 November 2007

See also:
NAO REPORT: Supporting people to stay in work and advance
PARLIAMENT: Training can break the benefits cycle, says MP
PARLIAMENT: MP calls for clearer benefit leaflets - Jan '06
PARLIAMENT: MP calls for clearer benefit leaflets - Jan '07

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