Reblogged from The Void:
Labour’s workfare plus a sandwich scheme is no better than the Tory’s current workfare and is every bit as badly thought out.
Labour’s Compulsory Jobs Guarantee takes the worst elements of almost
all previous welfare-to-work style schemes and has rolled them all into
one giant and hugely expensive fuck up. Possibly hundreds of thousands
of people are to be forced to work in part-time temporary jobs with
wages pegged at the minimum wage or face their benefits will be stopped.
Many people in these compulsory jobs may find themselves worse off
then someone on current Tory workfare schemes. The jobs will only be
for 25 hours a week, meaning those over 21 will receive just £156.70
under current rates. For the vast majority of claimants, who have rent
to pay, this is likely to leave them between £20-30 a week better off
than being on the dole. The problem is that going to work everyday
costs money. In London the cheapest weekly travelcard costs over £30 a
week. Those on workfare at present have travel expenses met by the
placement providers or welfare-to-work companies who run the schemes.
If travel expenses are not met for participants on the Jobs Guarantee,
then many people will find themselves worse off than those currently on
Tory workfare. If these costs are met then the Jobs Guarantee will cost
a lot more than the £5 billion that Ed Balls is claiming.
The problems do not end there. Since those on the Future Jobs Fund
will no longer be classed as unemployed – handily for the Government –
they may also lose eligibility for Council Tax Support. This is Iain
Duncan Smith’s bungled scheme which replaced Council Tax Benefit,
handing control over to local authorities to help the poorest pay local
taxes. The predictable result has been a postcode lottery and as the Public Accounts Committee today reported,
has made many people in work worse off than they would be on benefits.
This will apply to many in Compulsory Jobs, who may no longer be
eligible for Council Tax Support due to being officially employed. This
could also cut the incomes of people on the scheme to around the same
weekly pittance as those forced to undertake unpaid work by the Tories.
Just like on the New Deal – Tony Blair’s bodged plan to cure youth
unemployment - those in a compulsory job will also face mandatory
training for 10 hours a week. It is unclear how this will work in
practice, although a Labour Press Release seems to suggest this will merely mean employers are handed £500 on top of their free workers
to provide this training. It seems likely that people with Compulsory
Jobs will find themselves working these ten hours without wages under
the guise of it being ‘work experience’. This will mean participants on
the scheme working five hours a week more than those on current
workfare.
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