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@Shoosh
Just Evil, don't think you can lay this at one political party, started by one and carried through by others.
The thing is, that all these 3rd party workfare companies (A4E etc) who get bonuses for getting people off benefits might now be tempted to create their own 'zero contract jobs' to earn cash. Most of these people will still be receive benefits from the government but under the the tax credit system, not as jobseekers, so the figures are manipulated.
Then once they've got their bonus for keeping them off jobseekers for a certain number of months, they get rid, and go through the cycle again.
I know of at least one provider who gave a friend part time employment for 7 months, then made them redundant. 6 months was the qualifying period for the bonus, and the bonus worked out more than the salary as the person had been on ESA.
The system stinks. Nothing about job creation or upskilling, all about demonising those, the majority of which through no fault of their own, who find themselves unemployed for the first time in their lives.