Benefits disincentivise employment

Mark Littlewood speaks to Radio 5

Responding to Lord Freud’s comments regarding the welfare state, Mark Littlewood told BBC Radio 5 Live that his assertions were broadly true. By accident or by design, the welfare and benefits system in this country disincentivises people to find work.

Mark Littlewood argued that by getting a job at the bottom end of the income scale and suffering the loss of benefits and earnings via tax that accompanies employment, it is possible that you could make less money than simply remaining on benefits. There is a lack of incentives for those on welfare to find work, especially given the tough labour market and struggling economy, Mark Littlewood said.

Whilst Mark Littlewood said that you cannot generalise the welfare state, the current benefits available often promote idleness and there should be less red tape surrounding the creation of small businesses.

Listen to the interview here. Segment starts at 1.40:25.

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