The Unemployment Timebomb At The Heart Of Universal Credit

Johnny Void here skewers IDS’ claim that the government’s welfare-to-work reforms have created a new, entrepreneurial Britain. He suggests that the real reasons people are becoming self-employed is to make some money due to a fall in income from welfare payments, such as unemployment benefit and the state pensions, or because many jobs require their employees to declare themselves as self-employed as part of avoiding the laws governing minimum wages and employment conditions. What is really shocking about all this is how much the average income for the self-employed has fallen, and how they will ineligible for receiving Universal Credit when it comes out because most of the self-employed are earning less than the minimum wage. Yup – this shows just how screwed and perverse the Tory’s concept of welfare actually is. The self-employed won’t be eligible for state assistance to relieve their poverty, because they’re too poor. So much for the Tories being the party of small business, then.

the void

self-employed-earnings-graph Iain Duncan Smith’s response this week to soaring low paid self-employment shows he remains as clueless as ever about what is really going on in the jobs market.

According to IDS, figures showing that the number of self-employed workers has jumped by 600,000 is a sign of “entrepreneurial spirit” and proves that his bungled and reckless policies are working. What is really going on is very different and lays the foundation for an unemployment time bomb at the heart of Universal Credit.

Some of the rise in self-employment is almost certainly down to falling living standards.  People who have taken early retirement are  setting up small businesses in an effort to pay soaring bills, along with so-called mumpreneurs – parents forced out of the workplace due to huge childcare costs and shit wages. The rise of the internet has also allowed some of those who are unemployed to generate a…

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One Response to “The Unemployment Timebomb At The Heart Of Universal Credit”

  1. Jeffrey Davies Says:

    when all the slaves have been sanctioned who stack their shelves for them one wonders
    Universal Credit don’t make me laugh ALL THOSE working will be called into their local jcp asked whot are you doing to get off benefits you see they also have become social scroungers even working on those low wages rtu ids welcomes you to hell

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