An influential group of Tory MPs have called for young person’s unemployment benefits to be turned into repayable loans, it has been reported.
It’s claimed that the move would provide young people with “an additional incentive to find work rather than allow the debt to build up”.
The suggestion is included in a book by the right-wing Conservative MP, Kwasi Kwarteng.
Mr Kwarteng and junior Tory MPs call for the shrinking of the welfare state and a return to a contributory benefits system – the more you pay in the more you get out.
The book – ‘A Time For Choosing: Free Enterprise in Twenty-First Century Britain’ – says:
“Young individuals who have not yet paid national insurance contributions for a certain period, five years say, could receive their unemployment benefit in the form of a repayable loan.
“Turning an entitlement into a loan would mean that people would still be supported while out of work, but would have an additional incentive to find work rather than allow the debt to build up.”