Sharpest rise in unemployment for two years

How realistic are the measures proposed by the government to tackle unemployment?

The number of people out of work rose by 80,000 this week - the sharpest rise in two years.

The jobless total now stands at a whopping 2.51m, with under 25 year-olds the age group worst affected as school leavers and graduates struggle to find work.

So what’s the government doing about all this? Of course, the recent well-publicized welfare system shakeup has one clear intention – to get those who should be at work back into gainful employment. For those already working hard and paying their taxes this is a very welcome step, but how realistic is it that the measures put in place by the government will bear fruit? 

There are no jobs!

A popular cry by some of those out of work, perpetuated by certain newspapers, is that there are no jobs out there; they have all been ‘taken by immigrants’, making it impossible for honest, hardworking British citizens to find employment.

Trying to find the truth behind the question of whether immigrants are really responsible for the problems in the UK’s job market is like trying to find a needle in a haystack. Newspapers consistently run contradictory stories based on a range of ‘statistics’ and their own political leanings, and politicians are at loggerheads as they mould immigration and unemployment figures to suit their arguments. The Department of Work and Pensions, however, has stated that UK citizens are suffering high levels of unemployment because of ‘issues around basic employability skills, incentives and motivation’.

Whatever the reason, there is no doubt that finding a suitable job can be difficult, and the Jobcentre is not always the best place to go (as my previous article Beware of the Jobcentre reveals). But there are jobs out there. How to survive unemployment gives helpful tips on how to re-enter the job market, such as sorting out your CV, polishing your skills and fine tuning your interview technique.  

How is the system ‘encouraging’ people back to work?

An estimated 2.6 billion people who previously claimed Incapacity Benefit are being re-assessed, with a view to getting more people back into work. This benefit has been replaced by Employment and Support Allowance (ESA), which is given to those who ‘pass’ a Work Capacity Assessment. The controversial assessment determines who is and who isn’t sick enough to work. Those who do not fulfil the strict criteria will not be given ESA, but will be forced onto Jobseekers Allowance (JSA).

Claimants of JSA may have their benefit reduced or stopped for up to 26 weeks if they do not take up valid employment opportunities or demonstrate that they actively looking for work. You can also have your benefit reduced if you left your last job voluntarily (making yourself ‘deliberately unemployed’) or if you were dismissed for misconduct.

Are these steps working?

Whilst this shake-up will definitely cut the UK’s welfare bill, there is concern that it is targeting some of the most vulnerable people in our society. Yes, there are a proportion of people who pretend to be ‘on the sick’ – we’ve all seen TV footage of the man playing a vigorous round of golf when he was supposed to be wheelchair bound - but there are many who need, and are entitled to, the benefit who may not get it due to the blanket approach of the Work Capacity Assessment.

Mental health charities are concerned that the needs of those with mental health problems will not be met under the new system and people who are genuinely sick will be declared fit to work.  It’s not just those suffering from mental health conditions, which can sometimes be difficult to diagnose, who are bearing the brunt of the shake-up. Some more ‘obviously’ sick people are suffering too. Macmillan Cancer Support has reported cases of terminally ill cancer patients, and people undergoing chemotherapy, being threatened with cuts to their benefits if they do not attend the ‘back to work’ interviews required.

My own experiences as a Citizens Advice Bureau adviser back up these findings. Poor administration by Jobcentre Plus and medical staff at the Department of Work and Pensions who carry out the assessments have been causes of concern. People are not being treated as individuals, and many who are seriously ill feel as if they are on a ‘conveyor belt’ as they are processed through the system.

Tax credits for those on low incomes

For those who are fit to work, finding a job that pays a liveable wage can be a challenge. The Jobcentre Plus website advertises a large proportion of jobs that ‘Meet the National Minimum Wage Requirement’, but living on such a wage, especially with a family to support, is difficult.

There is a system of support in place for those who are in work but who are on low incomes. If you work 16 hours or less a week you could claim Income Support or Jobseeker’s Allowance. You must declare if you are living with a partner, and if he/she is working 24 hours a week or more you will not be eligible for these benefits. If this is the case, your partner may be able to claim Working Tax Credit instead. You may also be entitled to Housing Benefit or Council Tax Benefit, and if you have children you can claim Child Tax Credit (as well as Child Benefit – at least until 2013 depending on your level of income!)

If you are working over 16 hours a week then Working Tax Credit is an option. (As above, you may also be entitled to some Housing Benefit, Council Tax Benefit and child related tax credits and benefits.) The system for the amount of Working Tax Credit you could claim is extremely complicated but you can get a rough idea as to whether you might qualify by filling in this questionnaire on the Direct.gov website.

To make a claim either visit Jobcentre Plus or you download a Form TC600 (along with helpful guidance notes)to. If you are having problems with your application, make an appointment with your local Citizens Advice Bureau.  Not only can they assist you with your claim, they can assess your likely entitlement to other benefits.

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