Agreed. (with Slacker, cross posting with Fly)
It is difficult for the young, inexperienced, etc. Chicken and egg situation with jobs, you get something but end up worse off because you lose benefits. If this scheme means a lot more people at the lower end won't pay any tax, I think thats a good idea.
You can have several mini-jobs as long as you stay below the threshold, so someone might have a part-time job doing something and also spend a couple of nights behind the bar, and pay no tax.
Of course, the best thing for the economy would be lots of full-time, highly paid, highly skilled jobs but thats unrealistic, and the fact remains there will always be people needing un-skilled work.