Source · Select Committees · Work and Pensions Committee
Recommendation 25
25
The evidence we have heard suggests that changes such as automation are unlikely to lead...
Recommendation
The evidence we have heard suggests that changes such as automation are unlikely to lead to mass unemployment. That does not mean that there will be no displacement at all, especially as job roles and requirements change, and it is vital that people who do find themselves out of work have access to a robust safety net. Some people DWP’s preparations for changes in the world of work 53 have argued that a Universal Basic Income could act not only as a safety net for the unemployed, but also provide people with underlying financial security should they decide to undertake training or start their own business. A Universal Basic Income would, however, be extremely expensive, and would not target support at people who need it most. Instead, it risks diverting resources away from the existing social security system and other vital public services. We are not convinced that it would be the right way forward for social security in the UK. Instead, we recommend that the Department should focus its efforts on ensuring that the value of benefit payments under the current system are sufficient to meet claimants’ basic needs. (Paragraph 140) 54 DWP’s preparations for changes in the world of work
Government Response
Not Addressed
HM Government
Not Addressed
The Government’s approach to welfare recognises the value and importance of work, making work pay and supporting people into work, while protecting the most vulnerable in society. This is an approach that is based on clear evidence that work offers families the best way out of poverty. The latest statistics (2019/20) show that full-time work substantially reduces the chances of poverty. The absolute poverty rate (before housing costs) of a child where both parents work full-time is only 3% compared to 42% where one or more parent in a couple is in part-time work. Children living in workless households were around 5 times more likely to be in absolute poverty in 2019/20 than those where all adults work (before housing costs).3 As Universal Credit supports the needs of claimants depending on their circumstances and pays more where claimant need is greater, it is an efficient and effective way of providing support.