Benefits hike 'is incentive to work'

More than a third of a millionhouseholds will gain an extra pounds 10 a week if they work at least 30 hours a week under changes to Family Credit and Disability Working Allowance which take effect today, writes Nicholas Timmins.

This is the biggest single increase in Family Credit ever, providing "a greater incentive to take up full-time work," said Roger Evans, the Parliamentary Secretary for Social Security.

Before the increase, a parent working 30 to 40 hours a week would receive little extra total income than someone working 16 hours because of the way the benefit is withdrawn and tax paid as income rises.

The extra cash will not count against housing and council tax benefit claims.