Government plans for a radical shake up of the benefits systems have been welcomed by recruiters.

Under the plans announced by work and pension secretary Iain Duncan Smith today, people who took jobs would always be better of than remaining on benefits. “We want to simplify the system to make it clear that work will always pay,” says Duncan Smith. 

Zoe Lloyd, associate director at environmental consultancy RSK Group, told Recruiter that she welcomed the proposals. “It does not make sense that it is currently more cost effective for some people to remain unemployed. 

“I think it will facilitate greater part-time working for lone parents, as there will be more flexibility in the hours they will be able to work, without it affecting their income levels. This will benefit employers who increasingly require more flexibility from their employees.”

However, Lloyd adds: “While on one hand, it is a positive measure for those individuals who want to, given the reduction in jobs available as a result of the current economic climate, will this measure really have the desired affect and get people back to work, if there are no jobs available? I suppose only time will tell.”

Simon Wright, director of catering and hospitality recruiter Ellis Mack, told Recruiter that generally the proposals would lead those who are out of work to be more motivated, and this would lead to them being more successful with recruiters and employers.

However, he added there was still a perception in catering and hospitality that the long-term unemployed were “a bit more of a risk”. Some of those who had been out of work for a long time — for example, for health reasons — would still need help from organisations such as The Shaw Trust, he said.

Welcoming the government’s plans, Tom Hadley, external relations director at the Recruitment & Employment Confederation, says: “The proposed changes should tackle some of the major barriers that those operating in the front line of the jobs market have been flagging up for years. Being able to see how much an individual has earned every week and pay benefits accordingly will speed up the process.

“This will encourage jobseekers to take on the kind of temporary assignments that can often lead to further opportunities. Of course, we will need to make sure that people can taper their benefits up — if they get less work that week — as well as down.”