Definition
- Out-of-work benefits
- Out-of-work benefits are paid under rules already in law to people who lose their jobs, so spending on them rises with unemployment and falls as people find work.
Example
Can you think of an example of out-of-work benefits?
In a recession a million more people claim Universal Credit as they lose their jobs. The payments put income back into households, and nobody had to vote for the extra spending.
Test yourself
Can you name the three main automatic stabilisers?