Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

Labour’s Job Plans, Concerns After Some Serious Thought.

with 16 comments

“Shadow Chancellor Ed Balls unveiled the scheme, saying that there would be pension tax relief cuts to raise the £1bn to pay for the initiative, which would help just under 130,000 people.

Plans would involve the government subsidising companies to take on staff from those enrolled in the scheme for six month periods, which would help claimants find permanent work or fall back on jobseeker’s benefits.

Initially the scheme would be for the long-term unemployed but, if it proved a success, would then be extended for those out of work for a year.

Mr Balls said in a statement, “A One Nation approach to welfare reform means government has a responsibility to help people into work and support those who cannot.

“But those who can work must be required to take up jobs or lose benefits as a result – no ifs nor buts. Britain needs real welfare reform that it tough, fair and that works.” “From here.

Now we have consistently demanded real jobs for the unemployed. *

Indeed it is one of our demands.

But as Chris Dillow says,

You can rely on the Labour party to live down to its reputation as a party of capitalism.

Its “compulsory  jobs guarantee” does so in two ways.

First, the fact that it will be compulsory for the long-term unemployed to take up the jobs panders to a mistaken “divide and rule” rhetoric that distinguishes between skivers and strivers. As Neil says, the party is – yet again – “running scared of the Daily Mail”.

Secondly, the policy will, as Liam Byrne says, “provide subsidy” to private sector employers to hire the long-term unemployed.Labour will, in effect, give taxpayers’ money to Tesco so it can employ more shelf-stackers.

And herein lies the economic problem with the scheme. At the margin, employers will prefer to hire a subsidized long-term unemployed person rather than an unsubsidized short-term unemployed one. In this sense, Labour’s plan improves job prospects for the long-term unemployed, at the expense of the short-term unemployed, and has a deadweight cost of paying companies to do what they would have done anyway*.

Labour’s plan thus falls far short of more sensible “employer of last resort”-style policies to combat unemployment. It accepts capitalism as it is, and fails to confront the fact that capitalism is unable to provide work for all.

We could not agree more.

The plans also avoid a number of other issues.

  • Will it be the existing set of companies running the ‘Work Programme’ who decide on the fate of the out-of-work required to take  up these jobs?
  • What exactly be these posts?
  • What guarantees will the unemployed have if their work turns out to exploitative and they want to complain?
  • How  will labour change the Universal credit scheme will is already going to condemn many low-paid workers to deeper and and deeper poverty?
  • What will happen to those who refuse to take up a job? Starve in the streets?

The scheme is one step in the right direction – talking our real work,.

We have to remember that the Liberal-Tory Coalition want the long-term unemployed to work for free, to the benefit of private companies and, oops, the ‘social sector’.

But there is a step in the wrong direction  putting the unemployed again at the mercy of the ‘Unemployment Business.”

* These are the demands of Ipswich Unemployed Action (from ‘About’ section above).

  • Raise our Benefits to a living level.
  • We want the minimum wage for any ‘voluntary’ work they make us do.
  • There should be an independent appeal and monitoring system – open to all – for anyone on the Work Programme,
  • We want real training, not the sham courses we have now.
  • No to Workfare.
  • Above all we want to be treated as human beings – not things the DWP, Providers, and Government Ministers can claim rights over. We should have rights, and we want them now!
  • We want real jobs, not endless ‘job-searching’.
  • And now, we want the Work Programme  closed down!

Written by Andrew Coates

January 14, 2013 at 4:56 pm

16 Responses

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  1. I agree 100% The daily hate (Mail) is only showing the bad side of the unemployed (and everyone else for that matter) They are leading decent people to believe that every singe unemployed person is a scrounger and sub human that is not worthy of having any rights!. I wish I could do something to tell the mass public the truth (like this site) Yes get full time dole dossers off their ass but No do not punish everyone with slavery and the removal of human rights. People I talk to really honestly have no idea what is going on behind the scenes. I may set up a web site exclusively tell the country exactly what is REALLY going on.


    January 14, 2013 at 6:12 pm

  2. Phil, you could start by looking at the sham Work Programme. It’s widely suspected that the organisations involved (we all know who they are by now) is NOT to find people employment, but are target driven to get as many people as they can sanctioned. For this obnoxious behaviour they are paid a fee by the DWP. And as a result the Government can claim unemployment is down. Or should I say that not as many people are not signing on as the previous 3 months etc, etc. Because after all once on the Work Programme – your counted as being employed! Unbelievable – yet true! And guess what, there is approximately 1 million on the programme. By who and where have you heard that figure banded around quite a lot lately?

    A. Ellis

    January 14, 2013 at 7:22 pm

  3. I have been unemployed since I left school apart from one day’s work as a dishwasher in a local pub which the job centre got for me. I was put on David Blunkett’s moronic so-called New Deal and all that entailed was a glorified job club which was further away from where I live. I left after that as I couldn’t stand being harrased and blamed for my unemployment. When, oh when, are both Tory and Labour going to realise what the real problem is in this country is ie a total lack of demand for labour in our economy. THAT has to be sorted-out first and ONLY THEN can appropriate, well-designed and well-financed employment programmes be put into effect. Anything is is pandering to Daily Moron-reading bigots and WiILL NOT solve this country’s dire unemployment crisis.


    January 14, 2013 at 9:37 pm

  4. Labour’s “jobs guarantee” is just Mandatory Work Activity by another name! Same old, same old!


    January 14, 2013 at 11:34 pm

    • Just for once can’t any of you just WAKE UP AND SMELL THE COFFEE!. I am unemployed and claiming JSA/HB/CTB etc. I accept that these benefits are NOT for LIVING FREE as some of you seem to think they are. I accept that in order to remain entitled to these benefits, then certain specific requirements will be made of me. These requirements are proof that you are agreeing to and abide your JOBSEEKERS AGREEMENT. Remember that grey bit of paper you were given when you first made your claim. It stipulates what you will do to find work. Judging by some of these posts it seems that you have forgotten what you signed. As with employment…Break your contract and you get sacked {or sued} On benefits break your contract with the DWP/JCP, thats’s your jobseekers agreement by the way. The only option is sanctions. So get real and stop moaning

      james middlesex

      January 15, 2013 at 9:27 am

      • In relation to the above, ”Ask not what your country can do for you Ask what can you do for your country” With thanks to the late J.F.Kennedy! ”Duty Honor Country” With thanks to the late General Douglas Mc Arthur

        james middlesex

        January 15, 2013 at 11:20 am

      • We are not Americans, and we do not have an American threadbare welfare system.

        We ahve rights as claimants, and these are not the rights of the state and private companies over us.

        I suggest you watch the film that was on BBC 4 last night, The House I Live in, before you begin citing the US,

        “Storyville: As America remains embroiled in overseas conflict, a less visible war is taking place at home, costing countless lives, destroying families and inflicting untold damage on future generations of Americans. For over forty years, the War on Drugs has accounted for 45 million arrests, made America the world’s largest jailer and damaged poor communities at home and abroad. Yet for all that, drugs are more available today than ever before.

        Filmed in more than twenty states, this film captures a definitive and heart-wrenching portrait of individuals at all levels of America’s War on Drugs. From the dealer to the grieving mother, the narcotics officer to the senator, the inmate to the federal judge, the film offers a penetrating look inside America’s longest war, revealing its profound human rights implications.

        While recognising the seriousness of drug abuse as a matter of public health, the film investigates the tragic errors and shortcomings that have instead treated it as a matter for law enforcement, creating a vast political and economic machine that feeds largely on America’s poor, especially minority communities. Yet beyond simple misguided policy, the film investigates how political and economic corruption have fuelled the war for forty years, despite persistent evidence of its moral, economic and practical failures.

        Ultimately, the documentary seeks, through compassionate inquiry, to promote public awareness of the history and contemporary mechanics of this human rights crisis and to begin a national conversation about its reform.

        Andrew Coates

        January 15, 2013 at 12:46 pm

      • Too right, James, I have been claiming JSA/HB/CTB for the past 40 years and really feel that the jobcentre are far too soft with us. It is a f*ucking good kick up the a*rse we need. We should be MADE to WORK for NOWT and if we don’t like it then tough – we can always sign-off. It is the hard-working taxpayer I feel sorry for when I cash my giro. And this is coming from someone of JSA.

        Genuine Jobseeker

        January 16, 2013 at 8:59 pm

      • ;0)


        January 17, 2013 at 3:43 pm

  5. All countries have their problems, including this one. That still does not entitle ANYBODY to expect too live for free. You can change things through a democratic system. It is called voting. I see Mr Moderator you have changed my ativar. Don’t like the truth do you

    james middlesex.

    January 15, 2013 at 2:38 pm

    • I don’t think anybody here expects to live for free. Quite the opposite in fact. The single thing that would help the unemployedthe most (particularly those who have unemployed the longest) is many more real jobs they can apply for. It is the lack of demand for labour in this country that has caused the problem and untill that problem is sorted-out this dire situation will never improve. When I was on the so-called ‘New Deal’ under Labour all that I got was to be sent-on a pathetic glorified job club. That didn’t help at all. What I needed was a real job placement in a real company even if it was for only a few weeks as I would have had something to put in a CV then. IDS’s inane idea to get everyone who is unemployed to work for free in Tesco’s just WON’T CUT IT.


      January 15, 2013 at 5:05 pm

      • You are quite right Steven,people want a real job with a real wage,or genuine training and placements ( not the money laundering excuse of the Work Programme) that will lead to genuine paid employment.


        January 15, 2013 at 5:14 pm

  6. You are not telling the truth,including the fact that you are on JSA.


    January 15, 2013 at 2:47 pm

    • See My Post No 5 Yes I am and I accept that I will have too do something. I have said in my post I am on benefit

      james middlesex.

      January 15, 2013 at 2:52 pm

      • I am quite capable of reading and from reading that very post it is quite clear you are not on JSA. Saying and actually being on JSA are two very different things.This site does get people like you from time to time, claiming things but with their own agendas or just trolls who get an almost sexual thrill from trying to get a rise from people.But as soon as they put finger to keyboard they always quite obvious and transparent,as will be the next reply to this that you make.And it us who should be waking up and smelling the coffee? .


        January 15, 2013 at 3:29 pm

  7. deja vu, anyone?

    “Shadow Chancellor Ed Balls unveiled the scheme, saying that there would be pension tax relief cuts to raise the £1bn to pay for the initiative, which would help just under 130,000 people.

    Plans would involve the government subsidising companies to take on staff from those enrolled in the scheme for six month periods, which would help claimants find permanent work or fall back on jobseeker’s benefits.

    Initially the scheme would be for the long-term unemployed but, if it proved a success, would then be extended for those out of work for a year.

    Heard it all before… textbook stuff…

    Future Jobs Fund, perhaps?

    Universal Jobmatch

    January 15, 2013 at 8:29 pm

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