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Earnings limit 'hits' jobseekers Earnings limit 'hits' jobseekers
(about 3 hours later)
The weekly amount unemployed people can earn from part-time work without losing benefits should be raised to £50, a group of charities and unions has said.The weekly amount unemployed people can earn from part-time work without losing benefits should be raised to £50, a group of charities and unions has said.
The Need Not Greed coalition says the £5 cap on Jobseekers Allowance claims discourages the building of a career.The Need Not Greed coalition says the £5 cap on Jobseekers Allowance claims discourages the building of a career.
It says the limit - in place since the 1980s - pushes many people on benefits to take undeclared cash-in-hand work.It says the limit - in place since the 1980s - pushes many people on benefits to take undeclared cash-in-hand work.
The Department for Work and Pensions says it is investing £5bn on grants and training to help people back to work.The Department for Work and Pensions says it is investing £5bn on grants and training to help people back to work.
It added that by not declaring earnings money intended for the most vulnerable people was being given to "benefit thieves". It added that by not declaring earnings, money intended for the most vulnerable people was being given to "benefit thieves".
System an 'obstacle' Need Not Greed's members include Oxfam, End Child Poverty, the TUC and east London charity Community Links.
Need not Greed's members include Oxfam, End Child Poverty, the TUC and east London charity Community Links.
Its campaign argues that allowing jobseekers to keep more money from short-term or part-time work would held them build up a CV as they look for permanent employment.Its campaign argues that allowing jobseekers to keep more money from short-term or part-time work would held them build up a CV as they look for permanent employment.
One unnamed trained plumber, from the south coast, told BBC Radio 5 live that he is forced to do short-term work cash-in-hand, which he does not declare, because he can not survive without the full Jobseekers Allowance. 'Labelled criminal'
He said the current system is an "obstacle" to formally starting up his own business. One unnamed trained plumber, from the south coast, told BBC Radio 5 live that he was doing short-term, cash-in-hand work, which he does not declare, because he could not survive without the full Jobseekers Allowance.
"I'd much rather be legitimate but there's no system in place for me to make the transition from being unemployed to going into full-time work," he said. He said the current system was an "obstacle" to formally starting up his own business.
"I charge an hourly rate of £15 so just getting a few hours a week I can't afford to declare it," he said.
"Most of the money I earn is going straight back into the business so I'm forced into not being able to work and being labelled as a criminal.
"I'm building up a client base - hopefully in the New Year I will be legitimate and sign on but as things stand I can't afford to sign off.
"The Jobseekers Allowance is basically all my disposable income. Once you've paid phone, electricity and gas bills you don't have much left, a minimal amount for food."
The latest figures from the Office for National Statistics show UK unemployment totalled 2.46 million in September.The latest figures from the Office for National Statistics show UK unemployment totalled 2.46 million in September.