The government is still in denial over welfare traps

Economist Richard Tol writes that the latest debate on welfare traps shows the government still trying to deny reality.

31st August, 2013
Richard Tol: 'The fastest way to improve the public finances is to shift people from the dole to work, paying taxes rather than receiving benefits.'

The Citizens Information Board found a number of welfare traps last week. Some people have a higher income on benefits than in work. The Department of Social Protection promptly denied that it discourages people to find work - even though the troika had earlier raised the same point. Unfortunately, parts of the government would rather hide than solve problems.

Last year, there was a debate on how many households face a welfare trap. One finding...

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