- Benefit claimants who stop taking handouts are often thought to be working in the black economy
- Scheme expected to be rolled out nationwide after trial
By
James Chapman
Last updated at 10:33 PM on 4th January 2012
Half of those claiming unemployment benefits would prefer to lose their handouts than do a stint of unpaid work.
Figures show that 20 per cent of those ordered to take part in four-week community projects stop claiming immediately and another 30 per cent are stripped of their benefits when they fail to turn up.
Officials suspect many of those who stop claiming benefits are working in the black economy and would rather lose their welfare than give up their undeclared earnings.
Dole queue: But half wouldn’t work for free in a four-week community project trial scheme to help get people back to work
Government sources say the results of a trial scheme are so striking that ministers are preparing to roll it out nationwide in a programme hitting up to 50,000 unemployed.
Job Centre staff have been given the power to force anyone claiming out-of-work benefits to take part in ‘mandatory work activity’ – unpaid posts designed to get them used to working from nine to five.
Those who appear unwilling to look for work can be referred to the scheme at any stage, even on the first day of their claim.
The placements are typically with charities or involve some kind of community service, such as helping to maintain parks.
Those who refuse to take part, or agree but then fail to turn up, have their £67.50-a-week unemployment benefit stopped until they agree to do so.
Chris Grayling: Employment Minister will announce a major expansion of the trial scheme next month
A source close to the programme told the Mail that the results so far had been ‘extraordinary’.
‘This has started on a relatively small scale, to see how it would work, but nobody expected the results we are seeing,’ he said.
‘More than half of those people referred are coming off benefits. Around a fifth sign off straight away after being referred for mandatory work activity.
‘Another third simply don’t turn up, and then have their benefits stopped unless they are prepared to re-engage with the programme at a later date.
‘They have to spend a month working in a charity shop or with various voluntary organisations. The idea is that they have to get up, go out and come away with some sort of work ethic.
‘Instead, for the majority it is proving to be a push that gets them off benefits. What this demonstrates is that there is really a hardcore of claimants who have absolutely no intention of working come what may.’
Employment Minister Chris Grayling will announce a major expansion of the scheme next month.
It will cost around £5million because officials have to arrange work placements and monitor claimants’ attendance.
However, ministers believe it will produce big savings to Britain’s £100billion benefits bill in the long term.
The expanded scheme will focus particularly on the young amid concern that the number of young people not in employment, education or training – so-called Neets – has passed the one million mark.
Figures show that more than a fifth of 18 to 24-year-olds are Neets. One in seven 16 to 18-year-olds, more than 250,000 teenagers, is on the dole.
The Coalition plans a £1billion package designed to take thousands of youngsters off the dole.Employers are to be offered subsidies worth £2,275 a time to take on 160,000 youngsters who have been unemployed for more than six months.
The cash will effectively subsidise half of the cost of paying someone the youth minimum wage for six months.
Funding has also been released to pay for an extra 250,000 work experience places.
And employers will be offered ‘incentives’ of £1,500 a time to create an additional 20,000 apprenticeships.
Under the youth jobs initiative, unemployed youngsters will be required to sign a new ‘youth contract’ committing them to accept the offer of a job or work experience.
Those who refuse will have to go on to the mandatory work activity, or face losing their benefits.
The mandatory work scheme has been piloted at job centres all over the country.
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About time. Working ‘cash in hand’ whilst claiming benefits is so easy under the present lax system.
The cycle of idleness and spending time watching TV or wandering around with your mates while the rest of leave home early in the morning and don’t get home until 6.30 to work and pay for this must stop.
Get those who can work but choose not to out of their homes, I don’t care if they just sit in a field in the pouring rain for eight hours, no money, just breakfast at 7am, lunch at1pm and tea at 6pm. If they won’t do it voluntarily, then take them to a camp where they spend the week there, living in huts.
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What happens to those who do “the time” of one month’s mandatory “work”? Do they continue as normal and keep collecting their benefits without having to go get permanent employment?
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Why did it take so long?
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cash in hand!! Loadsa Money!!
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Disgusting!
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Common sense prevails!
Leave benefits for those that need them and stop the ‘Jeremy Kyle’ squad from claiming
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Surely there’s a partial solution buried in there somewhere?
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The consequences of these findings are quite frightening.
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