Title
Contents
Acknowledgements 6
The Authors 7
Abbreviations 8
Summary 9
Introduction 9
The effect of BWC on work incentives 9
BWC eligibility 10
Knowledge of BWC 10
Benefits of BWC 11
BWC processes 12
Other aspects of BWC 12
Lessons from the evaluation 13
1. Introduction 15
1.1 Overview of BWC 16
1.1.1 Eligibility for BWC 16
1.1.2 Existing in-work support 16
1.2 Calculating BWC entitlement and actual take up 17
2. The effect of BWC on work incentives 18
2.1 Introduction 18
2.2 Illustrative budget constraints 18
2.2.1 Jobseeker's Allowance claimants 19
2.2.2 Customers of other benefits 21
2.2.3 The effect of BWC on higher earners 22
2.2.4 The effect of BWC for those with a mortgage 23
2.3 The distribution of the potentially eligible population 24
2.4 Discussion 28
3. Qualitative evidence 29
3.1 Introduction 29
3.2 Eligibility for BWC 30
3.2.1 Earnings and hours sought 30
3.2.2 Jobcentre Plus practices affecting the types of jobs sought 32
3.2.3 Eligibility for other benefits and credits 39
3.2.4 Eligibility for BWC: Jobcentre Plus staff knowledge 40
3.3 Knowledge, experience and views on BWC 40
3.3.1 Overview of delivery 40
3.3.2 Provision of information on BWC 40
3.3.3 Customer knowledge of BWC 42
3.3.4 Administration of BWC 43
3.3.5 Effect on behaviour: claiming BWC and job search 44
3.3.6 BWC recipients' views of BWC 46
3.3.7 Non-BWC recipients' views of a short-term credit 47
4 Summary and conclusions 49
4.1 Summary of key points 49
4.1.1 BWC entitlement and its effect on work incentives 49
4.1.2 Knowledge of BWC 50
4.1.3 Benefits of BWC 51
4.1.4 BWC processes 51
4.1.5 Other aspects of BWC 52
4.2 Lessons from the evaluation 52
Appendix A - Calculating BWC 56
Table A.1 National distribution of IB durations, November 2008 57
Figure 2.1 Budget constraint for a 25-year-old single adult on JSA 20
Figure 2.2 Budget constraint for a 21-year-old single adult on JSA 20
Figure 2.3 Budget constraint for a 50-year-old single adult on JSA 21
Figure 2.4 Budget constraint for a 25-year-old single adult on IB 22
Figure 2.5 Budget constraint for a 25-year-old single adult on JSA, earning 10 an hour 23
Figure 2.6 Budget constraint for a 25-year-old single adult on JSA with a mortgage 24
Figure 2.7 Size of potential BWC population were head to work 16 hours a week 25
Figure 2.8 Size of potential BWC population were head to work 24 hours a week 26
Figure 2.9 Size of potential BWC population were head to work 30 hours a week 26
Figure 2.10 Size of potential BWC population were spouse to work 24 hours a week 27
Figure 2.11 Size of potential BWC population were spouse to work 30 hours a week 27