Welfare Reform Bill — Report (5th Day) (Continued)

Part of the debate – in the House of Lords at 8:45 pm on 23rd January 2012.

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Photo of Baroness Drake Baroness Drake Labour 8:45 pm, 23rd January 2012

The Bill sets the welfare rules for people who do not have a record of benefit dependency. In the national insurance contribution system, one is trying to design something that gives people a cushion. Sometimes it will be because they will be earning higher than the cap; on other occasions it is because of the nature of their accommodation. Either way, instead of having a cushion so that they can concentrate on getting back into work as quickly as possible, which it is clear most of them want to do, there is a danger that the immediate way in which the cap will operate means that they will have to take defensive measures to bring down their level of expenditure rather than putting all their efforts into finding a job.