Work-for-free programme to be expanded.

[chem1st]

Thousands more unemployed people will be forced to work for free or lose their benefits under controversial plans to be announced by the work and pensions secretary, Iain Duncan Smith, as the government is warned its drive to get people back into work appears to be floundering.

 

The scheme, under which the jobless are obliged to accept an unpaid work placement for a month to keep their benefits, will be "significantly extended" within the next two weeks, according to Whitehall sources.

 

The government believes forcing people to work or lose their benefits is inculcating a work habit in the 10,000 people currently on the programme and will be effective for others.

 

Ministers are also looking at rolling out a national trial under which the unemployed must work for up to six months for free to avoid their benefits being docked.

 

The idea being, that work sets you free?

 

The number of people claiming housing benefit has also shot past the five million mark for the first time, with more than 90% of new claimants since the 2010 general election being those in low-paid, part-time work.

 

The reality being that it doesn't and increasing amounts of workers are being forced to claim housing benefit to keep up with high housing costs (which in turn are kept high by housing benefit).

 

The irony being, that the effective marginal tax rates are so high that there is little difference in income for some workers vs benefits. And thus some workers are already working for their benefits. They work, and have no increase in spending power.

 

It would appear to me we have a problem.

 

The problem is people are working practically for free. (They are no better off for working).

 

The bigger problem is the government's reaction, they are trying to increase the amount of people working for free.