Why the Tories should know privatising Job Centres won’t work

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Parked on the dole: Closing Job Centres and handing responsibility for finding work to private companies would condemn thousands – if not hundreds of thousands – of people to a life on benefits (if they don’t get sanctioned and starve).

It’s incredible that allies of George Osborne are backing proposals to shut down all Job Centres and let private companies fill the void.

The proposal to let the private sector find work for Britain’s unemployed is actually being considered for inclusion in the Conservative Party’s election manifesto for 2015, according to the Huffington Post.

It quotes a ‘senior Tory’ who told The Sun: “Introducing competition into the job search market is a natural Conservative thing to do.”

This means Conservatives are naturally unimaginative, if not altogether stupid.

Have they already forgotten the lessons learnt from the way work programme provider companies treated jobseekers that were sent their way – as Vox Political reported last year?

The process is known as “creaming and parking”.

Work programme providers knew that – because they get paid on the basis of the results they achieve – they needed to concentrate on the jobseekers who were more likely to find work quickly. These people were “creamed” off and fast-tracked into work, thereby creating profit for the companies.

And the others? Those who need more time and investment? They were “parked” – left without help, to languish in the benefit system for months and years on end – in a situation that Work and Pensions Secretary Iain Duncan Smith has said many times that he wanted to reverse.

In fact, his policies have perpetuated the problem.

And now George Osborne wants to spread this practice to all jobseekers, across the country.

It’s time the voting public woke up to what the Conservative Party is, and “parked” it in the history books where it belongs.

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Osborne promising full employment – is this an April Fool?

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accommodation, April Fool, average, boss, cap, community work, Conservative, CV, divide, dunce, electricity, employment, encouragement, food, gas, George Osborne, harassment, heat, help, identity theft, job, light, living wage, mortgage, myth, national insurance, park, pay, proportion, rent, rule, safety net, sex, silly, social security, tax, Tories, Tory, underclass, Universal Credit, Universal Jobmatch, wage, water, welfare, working class

Bottom of the class: If you believe George Osborne’s talk about jobs and benefits, you must have been educated at one of Michael Gove’s ‘free schools’. [Image: Gaianeconomics]

The answer has to be in the affirmative. Conservatives can’t promise full employment because it simply isn’t part of their philosophy.

As this blog has stated many times, Tories need a discontented underclass fermenting away beneath the lowest-paid members of the working class, in order to create the level of fear necessary to keep wages down.

The argument is that a person will not ask for a pay rise if they know their boss will turn around and say, “There are hundreds out there who will work for less than you – pick up your cards on the way out!”

For a more easy-access disproval of Osborne’s claim, we only have to look a little further into his speech – from the part where he said: “For it’s no good creating jobs – if we’re also paying people to stay on welfare.”

Hang on! When did our great Social Security system change from being a safety net to help get people back into work to “paying people to stay on welfare”?

Oh yes, that’s right – when we had an unelected Conservative government foisted on us. Tories pay people to stay on welfare because they need that fermenting underclass. The aim is always not to pay enough (as you will see).

The next few lines contain unfounded claims and opinions. See for yourself:

“We inherited a welfare system that didn’t work.” According to whom?

“There was not enough help for those looking for a job – people were just parked on benefits.” But there isn’t enough help now. Come to that, there aren’t enough jobs. Where are all the jobs, George?

“Frankly, there was not enough pressure to get a job – some people could just sign on and get almost as much money staying at home as going out to work.” How many people, George? Five? Six? You make it seem as though more than a million jobseekers were sitting at home and drawing as much money in social security as at work. That would be a lie, George.

“That’s not fair to them – because they get trapped in poverty and their aspirations are squashed.” Whereas Conservative policy means what? Oh yes – they get trapped in poverty and their aspirations are squashed.

“It’s certainly not fair to taxpayers like you, who get up, go out to work, pay your taxes and pay for those benefits.” Tory divide-and-rule. You are different to them, because you have a job. If you are low-paid, it is because they are sucking down your tax money to pay for their extravagant lifestyles (I think we’ve all quite thoroughly killed that particular myth, haven’t we? It doesn’t exist outside the Tory political mind).

“Next Monday is when we do more to encourage people without jobs to find them… Benefits will only go up by 1 per cent – so they don’t go up faster than most people’s pay rises, as used to be the case.” This means people on benefits will start to become much worse-off than they are already. Jobseekers’ allowance used to be pegged at around one-sixth of average pay but will now drop to a far lower proportion, because the Tories lied to you when they said benefit rises were far greater than pay rises. One per cent of Jobseekers’ Allowance at a weekly rate of £71 is 70p; one per cent of the average weekly wage in April 2013, which was £517 per week, is £5.17. You see the difference? Oh, and one more thing: Where are all the jobs, George?

“When I took this job, some people were getting huge payouts – receiving £50,000, £60,000 even up to £100,000 in benefits. More than most people could get by working.” How many people, George? Five? Six? One, perhaps?

“So we’ve capped benefits, so that a family out of work can’t get more in benefits than the average working family.” I’m not actually opposed to ensuring that people on benefits can’t take home more than people in work. However, while accurate, this line is disingenuous. George has ensured that a family out of work takes home at least £5,000 less, per year, than an average working family because of the way he and his Tory friends rigged the system. He’s lying to you.

“And we are bringing in a new Universal Credit to make sure work always pays.” He means “pays more than benefits”. He doesn’t mean “pays a living wage”. Spot the difference?

Now here comes some more oppression, based on a really big lie.

“From this month we’re also making big changes to how people go about claiming benefits. We all understand that some people need more help than others to find work.” What work? Where are all the jobs, George?

“So starting this month we’ll make half of all people on unemployment benefits sign on every week – and people who stay on benefits for a long time will have to go to the job centre every day so they can get constant help and encouragement.” Help and encouragement, is it, George? Have you witnessed the kind of “help and encouragement” they get at the job centre? DWP employees should face harassment charges for the disgraceful way they treat their fellow citizens.

“We’re going to require people to look for work for a week first before they get their unemployment benefit. From now on the deal is this: look for work first; then claim the dole. Not the other way around.” Why? In order to drive people into grinding poverty as early as possible? Forcing people to wait until they claim means they could be without money for food, accommodation and utilities for up to a month, while the system processes them. This is not fair. It is cruel and demeaning – especially when Tory George knows there’s no work to be had.

“When people turn up at the job centre they’ll be expected to have a CV ready and to have started looking on our new jobs website.” This is the Universal Jobmatch website that is habitually used by criminals for identity theft, or to offer jobs in the sex industry. It’s so bad that the government itself is planning to ditch it when the contract with its provider runs out in two years’ time. Why would anybody in their right mind use that?

And now here’s the clincher:

“We will ask many of the long term unemployed to do community work in return for their benefits – whether it is making meals for the elderly, clearing up litter, or working for a local charity.”

In other words, they will ensure that fewer jobs are available by making jobseekers do the work for nothing. Brilliant idea, George – you are wrecking our economy.

“All of this is bringing back the principles that our welfare state was originally based on – something for something, not something for nothing.” A lie, couched in truth. The Welfare State is based on the principle that people on hard times were able to take advantage of benefits because, when in work, they paid into the system via taxes and National Insurance. That’s the “something for something”. It is not based on the idea that jobseekers have to take jobs off the market by doing them for free. That’s just plain silly.

In fact, George, you are just plain silly.

So, returning to the question in our headline, it’s clear to see the answer.

If anyone here is an April Fool, it’s George Osborne.

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Work Programme providers’ plea is an insult to everyone they have mishandled

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The truth about the Work Programme: The BBC’s piece of ‘managed’ news was among the most despicable distortions to have blemished our TV screens.

It isn’t very often one can say a news report was shocking – not because of the subject matter, but because of the way it was reported.

That was the situation tonight with the BBC’s item in which Work Programme providers complained that they need more money to “help” the most challenging jobseekers into work.

This group, of course, being benefit claimants in the work-related activity group of Employment and Support Allowance.

This group being the most consistently abused and neglected element of the new underclass created by the Conservative-led Coalition government, demonised and hated by the right-wing press, often attacked in the street (to judge from first-hand accounts), many of whom have been driven to suicide or death caused by their conditions, which have been worsened by the unacceptable (and to most people reading this, inconceivable) amount of stress the DWP, Atos (the private company assessing their fitness for work) and the private Work Programme providers have put them through.

This group who have been sent on so-called “back to work training” with Work Programme providers, consisting of minimal and elementary exercises that are an insult to the intelligence, rather than an aid to employment. Does anyone remember the exercise in which people are asked to draw a pig? Apparently the direction it faces indicates whether you’re the kind of person who faces their challenges head-on, or someone who takes a more circumspect attitude (so, nothing to do with whether you think a side view is more interesting, then).

This group, being cynically exploited by Work Programme provider organisations in a blatant bid to screw money out of the taxpayer, despite having done the bare minimum to “help” people back into work.

This group, consisting mostly – if not entirely – of people who belong in the support group of Employment and Support Allowance but were placed among those who should be able to go back to work within a year because the Atos Work Capability assessors are under orders to place no more than 12 or 13 per cent of everyone they see into the support group. Oh, you don’t believe me? Ask yourself why, when the fraud rate for disability benefits is 0.4 per cent, the percentage of people being told they are lying and are fit for work is 70 per cent, to which a further 17-18 per cent can be added who are deemed likely to be fit for work with this so-called training from the WPPs.

This is why the Work Programme companies can’t get these people into jobs: They are too ill to work.

But we’re getting ahead of ourselves. This isn’t about the facts. This is about ‘managing’ the news, to present the public with a cosy story to make Work Programme providers look nice and friendly. They’re not failing because of any lack of will on their part (the BBC story tells us); they’re failing because the government isn’t making them rich enough!

Let’s take this BBC story apart. We’ll use the article on the corporation’s website.

First factual claim: “Of those who have been on the scheme for at least a year, a third have begun a job, figures seen by the BBC show.” This may be true. Unfortunately, statistics tend also to show that these jobs do not last long and the individuals in them end up back on the Work Programme within a few weeks or months. The DWP’s own mark of success is a person keeping a job for six months or more. That’s not exactly permanent by anybody’s standards.

Second factual claim: “In the most challenging group – who claim Employment and Support Allowance (ESA) – only 10 per cent have found work”. This may also be true. Readers will recall the fuss over government lies that 900,000 people had signed off ESA rather than take the Work Capability Assessment, that were proven to be the normal “churn” of claimants signing off for perfectly ordinary reasons such as finding a job they could do, even though sick/disabled, or getting better. ESA is not a lifetime benefit!

So with this figure – totalling around 1.7 per cent of the total number of claimants over a 12-month period – it is entirely likely that some will have found a job they can do, or got better, after taking the assessment. The figures for fraud aren’t touched by this possibility, as there is no reason to believe a fraudulent claimant would be put in the WRAG.

In other words, the 90 per cent of WRAG members left on the Work Programme are, most likely, those who belong in the support group, who are unlikely to find lasting employment because (let’s repeat it): They are too ill to work.

Work Programme providers have their own representative organisation called the Employment Related Services Association, or ERSA. This organisation claimed that the Work Programme cannot “fix” the “complex” health and skills requirements of ESA claimants on its own, but needed to tap into “skills and health budgets”. This is fascinating, because the Work Programme is supposed to be specifically designed to meet the needs of its users. We know it doesn’t, because it has been running since 2011 and we have first-hand accounts to the contrary from people who have been on it, but that was the claim.

ERSA figures “suggest around a quarter of ESA jobseekers have been unemployed for at least 11 years”. This seems likely – they belong in the support group, not the WRAG, and are unable to work.

“The DWP says it recognises the ‘particular barriers facing many of the hardest to help’. Hang on! Wasn’t the DWP under heavy fire only weeks ago because work programme providers were ‘parking’ the most difficult claimants – admitting there was no way to get them into jobs? And that, after the Secretary of State, no less, Iain Dunderhead Smith, went on the BBC’s Question Time and railed about people who had been “parked” on benefits for decades at a time, making it clear in no uncertain terms that he was going to get them off benefits, come Hell or high water?

This is the same story, but now the providers have got the begging bowl out. They’re already paid millions (don’t believe the payment-by-results claim) but they want more money.

Have they forgotten the aim is to save the taxpayers’ cash?

I thought George Osborne’s Mansion House speech would be the most infuriating thing I’d hear this evening.

I was wrong.