I was listening to a programme on Radio 5
this morning
called 5 Live Investigates, and they were looking at unemployment
figures. In
particular they had evidence that welfare to work advisers had been
telling
people who were unemployed to become self-employed. There is nothing
wrong with that, provided that the client is suitable
for the proposed employment, and they are enthusiastic enough about
self-employment to at least have a chance of making a go of it. It is
much better for the individual to have employment, as it brings
responsibility and self-esteem. It also helps the unemployment
figures and gives the welfare to work companies their big bonus.
My attention turned to writing a blog when I heard Kirsty
McHugh, a representative of work force providers because she was surprised by
the possibility that advice could be given which allowed jobless people to
become self-employed even if they could not earn a living. I did not know this, but Kirsty should, that
it is possible to receive more benefits through working tax credits than it is
through unemployment benefit. I do understand how people try to turn any system
to their advantage. I do understand how those who benefit would keep quiet and
mostly I understand how the work force
providers could give this advice because they get paid a considerable sum - and
Kirsty would definitely know this. I also understand how tax payers can be cheated.
Kirsty
seemed to think that it was only possible for the self-employed
to be successful (stay self-employed for over six months and give the
bonus to
the provider) if they were hard working. How could it be otherwise?
Kirsty was
challenged again but did not answer the question as to whether people
were being given an incentive to sign off and become self-employed even
though they were not doing enough work to earn a living. She did
highlight the benefits of self-employment
and told us that we don't give enough advice to help the unemployed to
work for themselves. She
did say that it was wrong to give bad advice and there could be a
'training
need'. I think this is newspeak for more companies earning more bonuses.
Kirsty
doesn't believe that there are people who become inappropriately
self-employed for six months on these programmes. Well it makes sense to
me so
why can't she see it? On further questioning Kirsty said that these huge
bonuses
aren't that big. Well they must amount to something. Kirsty also said
that fraud was wrong. She hadn't heard the start of the programme and
she
couldn't comment on the possibility of fraud except to deny it
happening.
However if there is any evidence at all then those individuals should go
back
to their provider and tell them that they have been given inappropriate
advice.
Yes, that should work if the plan is to conceal any fraud.
There is a problem if a loophole is being systematically exploited, and advisers are told to give bad advice as a matter of policy. That would need strong and decisive action against the service providers. Do the workforce providers need another spokesperson?
There is a problem if a loophole is being systematically exploited, and advisers are told to give bad advice as a matter of policy. That would need strong and decisive action against the service providers. Do the workforce providers need another spokesperson?
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