Report reveals 'welfare traps' discouraging people from jobs

A new report launched by the Citizens Information Board claims people are becoming victims of a string of "welfare traps" which are incentivising people not to work.

The research has found large numbers of those in receipt of welfare payments are not taking up work because they don't want to miss out on certain benefits.

The CIB said the so-called traps are holding back efforts to kick start the labour market.

Charlie Weston, Personal Finance Editor with the Irish Independent, said the report found that people felt it wasn't worth their while giving up benefits.

Mr Weston said: "The big one is rent supplement. If you're on social welfare, your rent can be paid.

"In Dublin you could get close to €1,000 a month and in Donegal €400 a month, but you lose that if you work more than 30 hours a week, so there's a massive disincentive there for anyone to pick up a job.

"It's not a case of scroungers here, this is people acting rationally."