""You could create back-to-work bonds which create a financial incentive for employment agencies to get people back into work. "They have to foot the entire bill of getting that person but to work, but in exchange they then get the person's income tax for, say, the next 10 years. "So the great advantage of this is it costs the state absolutely nothing, in fact it is a saving because they're no longer paying universal credit and so on.""
""However, the organisation would then get to keep their income tax for a period of 10 years, providing a financial incentive both for staying in work, and for that person to earn as much as possible. According to the Office for National Statistics there are an estimated 1.67 million people unemployed in Britain, with a further nine million economically inactive.""
""Despite forgoing income tax for a period of time, such an initiative would not cost the government, because those taking part would no longer be in receipt of benefits such as universal credit and aren't currently paying income tax in any case. Dr Milburn was the latest guest on Let's Talk Social Value, a podcast hosted by leading social value agency Samtaler to debate a range of social and economic issues.""
A proposed back-to-work scheme would have employment agencies provide agreed cash per unemployed person and cover all costs to return that individual to work. In return, the agency would retain the worker's income tax for a set period (suggested ten years), creating financial incentives for job retention and higher earnings. The plan targets an estimated 1.67 million unemployed people and a further nine million economically inactive individuals, with around 25% long-term unemployed. The scheme claims to save the treasury by ending benefit payments like universal credit and not adding net tax costs.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]