Earlier quoted context omitted.
> Poverty can also be a trap because... Actually there is contrary evidence. A study was carried out on the streets of London where they gave larger sums of cash no-strings-attached, and it showed that people in general took that money and used it to set themselves up in a job. One started a gardening business, for instance [0]. The idea that work is what people need is very Victorian, and reminds me of the tread-mil…
> If I can find a single days work I lose all of it. I can't speak to social programs outside of the US, but here, most of our programs (SNAP, Section-8, unemployment benefits) are on a sliding scale. This allows for benefits to somewhat decrease as earnings increase. That said, I anecdotally have noticed a couple things: 1. Many low income people actually aspire to be accepted into these programs, especially Section…
I was out of work for a few weeks during the recession. It took a month to receive any housing benefit and two weeks to get unemployment by which time I was behind on my rent. I took the first job I could find at a little over minimum (with best intentions) and applied for working tax credits which were sorted a few weeks later. The tax credits were back-dated to when I started earning so now I had 'earned too much' in a prior period to have claimed housing benefit and I got a bill to pay it all back. Then because I had claimed a benefit I was not entitled to I was pulled in for an interview under-caution for benefit fraud! I was read my rights and they put two tapes in a machine just like in the films and started questioning me. We got to the end of the first tape before they accepted that their chronology was rather unfair.
So yes UK benefits are a severe poverty trap
I have a relation who was manager of a number of low waged workers and none of them would take extra hours for fear of upsetting their tax credits. Something about 16 hours a week, but I don't know whether it was a time or a wage limit. Imagine a society incentivising people not to work?