Is this likely to act as a disincentive for people offered a short-term contract (note that there is a monthly £100 de minimis rule)? This proposal will affect the poorest sector of society who are more vulnerable to the peaks and troughs of temporary employment. The new approach to past earnings is a significant disincentive to work in areas of rural poverty where summer holiday jobs are the only employment opportunities for many people in places such as Pembrokeshire or other tourist areas in Wales. Certain rural employment is seasonal and again this acts as a disincentive for many to work in the seasonal rural economy which will in turn encourage greater reliance on temporary migrant labour from abroad. In Gwynedd, for example, many people earn a living by fishing, agricultural work, and tourism and there are months of the year where there is simply no work available for them. Feedback from our members also suggests that many young people accommodated in supported housing schemes take up short-term contract work and could possibly view the new approach to past earnings as a disincentive but take up the work anyway as they could face sanctions. Once the short-term contract finishes they could find themselves in financial difficulties whilst surplus income is applied. This could also have an impact on rent arrears and their ability to sustain a tenancy. These are relatively low paid occupations where, in theory, UC should make their lives much easier. However, the surplus earnings rule might make this type of work unviable as what they might earn, for example, by working in a hotel for 2 weeks over Christmas and the New Year would not increase their overall family income. It would therefore not incentivise them to work.
Is this likely to act as a disincentive for people offered a short-term contract (note that there is a monthly £100 de minimis rule)? This proposal will affect the poorest sector of society who are more vulnerable to the peaks and troughs of temporary employment. The new approach to past earnings is a significant disincentive to work in areas of rural poverty where summer holiday jobs are the only employment opportunities for many people in places such as Pembrokeshire or other tourist areas in Wales. Certain rural employment is seasonal and again this acts as a disincentive for many to work in the seasonal rural economy which will in turn encourage greater reliance on temporary migrant labour from abroad. In Gwynedd, for example, many people earn a living by fishing, agricultural work, and tourism and there are months of the year where there is simply no work available for them. Feedback from our members also suggests that many young people accommodated in supported housing schemes take up short-term contract work and could possibly view the new approach to past earnings as a disincentive but take up the work anyway as they could face sanctions. Once the short-term contract finishes they could find themselves in financial difficulties whilst surplus income is applied. This could also have an impact on rent arrears and their ability to sustain a tenancy. These are relatively low paid occupations where, in theory, UC should make their lives much easier. However, the surplus earnings rule might make this type of work unviable as what they might earn, for example, by working in a hotel for 2 weeks over Christmas and the New Year would not increase their overall family income. It would therefore not incentivise them to work.