Benefits hinder regeneration work

A report by the All Party Urban Development Group suggests the benefits trap coupled with a lack of affordable housing makes it more difficult for residents to take up jobs and training opportunities.

The report follows an inquiry by the group into how to ensure local communities gain work on the back of regeneration schemes.

It states that the national welfare system causes problems because it restricts people on benefit to no more than 16 hours work a week – a ‘significant barrier to in-work training’.

‘The benefits trap is a national barrier to stronger local employment outcomes on the back of regeneration projects,’ the report states.

It argues that a lack of affordable housing, transport and childcare can mean ‘there is very little financial gain in taking up work, especially entry level positions, traineeships and apprenticeships’.

The group argues that councils could do more to help – for example by encouraging bus companies to link routes from deprived areas to newly regenerated city centres.

It states that many witnesses to the inquiry also thought problems could be overcome by introducing a transition period for those starting work. That would see individuals continue to receive benefits even though they had started a job.

Getting local people into jobs created by physical redevelopment should be a ‘core principle of any regeneration initiative’, it adds.