Unemployed people are facing big reductions in jobseekers' allowance in a bid by the government to encourage them into work.
The Treasury says the allowance can act as a disincentive to take up employment and that current rates for single jobseekers are up to 38 per cent higher than the UK equivalent.
Social security staff and Job Centre advisors will be explaining the changes when people sign on over the next few weeks.
The changes include an incremental reduction in the personal allowance element for people who have been signing on for more than six months, up to a maximum of 40 per cent for those who have been on jobseekers' allowance for over a year. Unemployed people who don't have to pay housing costs will have this element of their benefit cut, while the amount of earnings a jobseeker can have before it affects their allowance has been cut from ?30 a week to ?10 a week.
Treasury member responsible for social security, Bill Henderson MHK said: '‘We have concluded that people who do not have housing costs – generally those who are living with family or friends – do not need the same level of support as those who are living independently and do have to pay housing costs, so we are introducing lower rates of JSA (jobseekers allowance) for such people.
'These are significant reductions so we are contacting everyone affected explaining what is happening and giving them notice that the changes come into effect from the beginning of November.'
He said there would be support for the long term unemployed: 'Job Centre advisors are interviewing every person who has been unemployed for nine months or more during September.
'We are trying to establish the reason for their continuing unemployment so that we can provide a more individually-focussed support service to help them overcome any specific barriers. Many of them will be in similar situations and can – to some extent- be grouped, but even a slight shift in how we encourage them may help them succeed where they have previously failed.'
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