ABSTRACT

In the United Kingdom, the government's commitment to creating an 'active, modern welfare state', in which 'work is the best form of welfare' has lead to significant changes in social security provisions for people of working age. Out-of-work benefits have become more closely tied to work requirements, and new labour market programmes have been set up. 'Transitional' benefits have been introduced to help people make the move into work. In-work financial support has been greatly expanded in level and coverage, with delivery through the tax, rather than the social security, system. There are also new, or improved, in-work benefits to contribute to the costs of childcare and to provide financial support for short periods of employment leave when caring for children.