Friday, 1 August 2014

Benefit cuts have pushed more people into work, says Ben Broadbent

'Ben Broadbent says welfare reforms have encouraged people on benefits to rejoin the labour force
Benefit cuts have encouraged more people back into work, though demand for lower paid jobs has also pushed down wages, according to the deputy governor of the Bank of England.

Ben Broadbent said changes to welfare rules had encouraged more people to look for jobs.

''In certain areas of the labour market, particularly the lower-skilled end, there are things that are increasing the supply of labour," Mr Broadbent told Bloomberg. "I'm thinking of changes to welfare rules in particular that mean that people might be less inclined at the margin to want to stay in unemployment, or even to stay outside the labour force. It may encourage them to come back in."'

That's Ben Broadbent with some official news that a key government policy is working. Noticeably there's not been a word about this news on the BBC who never forgo an opportunity to explain how Iain Duncan Smith's policies cannot succeed. I wonder if the BBC are waiting for Labour's line to take.

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