A citizen's income: an end to means-testing

People on state benefits often find that they are financially worse off when they take a job - particularly if it's part-time. This discourages some of them from trying to find work, and can result in 'benefit dependency'.

On the other hand, many of those in demanding full-time jobs can resent being little better off than those who they do not see working at all. These twin problems, caused by our current tax and benefit system, result in the poverty trap.

When claimants start earning money, their whole earnings can be deducted from their benefits. It's as if they are facing a 100% tax rate. When they also take into account things such as the cost of travelling to and from work many people find that they are actually worse off having a job. Where is the sense in this? (cont)

The Green Party will address this problem by introducing a citizen's income. This is an unconditional payment made to each individual as a right of citizenship - like a tax credit paid to everyone whether they're working or not.

The introduction of a citizen's income will:

• Guarantee that everyone's basic needs are covered by a non means-tested weekly payment, as of right.

• Replace benefits such as job seeker's allowance, as well as replacing personal tax-free allowances with a payment which is worth much more.

• Ensure that anyone who takes paid work will be better off financially for doing so.

• Make working part-time an option for many people would prefer it, but who are currently discouraged from doing so.

• Put an end to demeaning benefits procedures and form filling.

• Act as a safety net to those considering self-employment, so that they have less to fear if their business isn't successful.