Nav more lucrative than work for some people

NAV South Western NorwayNAV,logo.Photo: Norway Today Media

For an increasing numbers of young people who get work assessment allowance, it is more lucrative to get their financial support from Nav than to work, according to a new report.

The agency has taken a closer look at those who receive work assessment allowance (AAP) and how many of those who return to work after receiving such support for a while, Dagsavisen.
Knowledge Director Yngvar Åsholt in Nav admits that the current AAP scheme may be too lucrative, especially for people who are between 18 and 30 years old.
– For young people with multiple problems who are not studying and are out of work, it’s more profitable to receive AAP than social assistance and money from taking part in one of the governmentfunded initatives, which both have a very low daily rate.
Over 148,000 people are currently receiving AAP. While the number of AAP recipients in the age groups 30-39 and 40-49 has decreased, the number of such recipients under 30 years of age has increased. These constitute one fifth of AAP recipients and now  Åsholt warns that the amount of money they receive this way may be reduced.
Nav proposes that the Ministry  reduce AAP from 148,000 per year to 120,000 for people under 25 years of age. It may also be necessary to break up the periods so that the support is not granted for one year at a time. The money they save from AAP-cuts are proposed being used for job training and closer monitoring.

Source: NTB scanpix / Norway Today