Government plans for the Unemployed

There have been a number of reports in the media this week about proposals to be introduced by the Government and set out in a White Paper on Welfare Reform in relation to the unemployed.

The proposals are that where a jobseeker would benefit from experiencing the 'habits and routine' of working life, they will be told to take up "mandatory work activity" of at least 30 hours a week for a four week period.  If they refuse or fail to complete the programme their Jobseeker's Allowance could be stopped for at least three months.  The placements with charities, voluntary organisations and companies are expected to be organised by providers under contract to the Department of Work and Pensions.

Citizens Advice has a number of concerns about these proposals particularly given the current economic climate.  Citizens Advice has a substantial body of evidence from clients who do not receive even their most basic statutory employment rights at work.  The organisation fears that the unemployed in this  situation could potentially be used by "suspect" employers as free labour.  This could have implications for existing staff who could lose their job and could also undermine the minimum wage.

Citizens Advice has concerns about whether this proposal will actually help the long-term unemployed.  Many people who have been out of work for long periods of time will need considerable help and support and many may require training to be able to take up a job placement.  Given announcements about spending cuts across the public sector questions of who is going to be able to provide the support that these people will need to undertake work activity and who will manage the process will need to be answered?

Questions must also be asked about what happens at the end of the work placement.  Citizens Advice doubts that in the current economic climate with widespread cuts and redundancies that any jobs will become available for the unemployed to fill at the end of their placement. 

This proposal will undoubtedly involve some degree of administration and bureaucracy.  Add to that issues about the resulting expenses which may come with taking up a placement, for example, travel expenses and daily subsistence and this could add significantly to the expense of this proposal.  

Given these issues Citizens Advice is doubtful whether it will in effect enable more people to make the move from benefits to work.