Business and in-work benefits: perspectives and priorities

In the UK alone, millions of individuals receive in-work benefits (IWBs), and these form a substantial part of total government spending. Previous research has given attention to the costs and delivery of IWBs, but relatively little is known about business perspectives on IWBs and how policymakers perceive business’ relationship with IWBs, which form the subject of this thesis. The thesis also seeks to understand how this important policy area affects business priorities and what this means for their collectively expressed views.

These issues are investigated through a review of literature from the social sciences, and original research analysing material from Hansard, business responses to relevant government consultations, and the Confederation of British Industry archives. Each covers a different combination of actors, document types, and periods, enabling a study of the developing understandings of the relationship between business and in-work benefits.

IWBs are government subsidies to people who are in current work, or their dependents; where being in current employment is a qualifying criterion for the benefit or an element of it. They tend to be viewed primarily as social welfare benefits that are aimed at workers, but they also operate as important corporate welfare benefits. This fact tends to be absent from mainstream debate and is often downplayed or ignored by business. A deeper and more detailed exploration of this area reveals some recognition of the corporate welfare dimensions of in-work benefits. Benefits and disbenefits to both individuals and business are recognised by Parliamentarians and by business. Some business organisations put significant effort into influencing IWB policy, with success in the area of administrative costs.

This research expands the literature in the field, and provides lessons for policymakers in ensuring businesses are aware of the benefits they receive from IWBs.