MANY people are trapped in unemployment, low pay and the black economy because of perverse features of the social welfare system, according to the Irish National Organisation of, the Unemployed.
"A number of these traps arise because of the sudden and complete withdrawal of out of work payments when people get a job," said Mr Harry Marsden of the INOU, as the organisation presented its pre Budget submission to the Minister for Social Welfare.
Instead of withdrawing welfare suddenly it should be reduced in stages as the recipient's other income goes up, he said. A substantial number of so called fraudsters would be as well off or better off if they declared their earnings and availed instead of an in work benefit such as the family income supplement or the back to work allowance.
"This experience highlights the need for high quality, reliable and independent welfare to work advice which the public can trust," he said.
The INOU is seeking an increase of 9 per cent in long term unemployment assistance, 12 per cent in short term assistance and 17 per cent in PRSI based benefits.