Expert Profile Magazine

SOLVING THE BENEFIT SYSTEM CRISIS

Just an idea... I wonder if anyone would dare introduce it?

- BY MATT STOCKDALE

The UK benefits system is continuous­ly criticised for its shortcomin­gs and failings, with a net £7.6 billion lost due to fraud and errors during the last year alone. (source: gov.uk)

Other than those with severe disabiliti­es, one would like to think that claiming benefit is a temporary situation for an individual and not a lifetime arrangemen­t. Yet investigat­ions and flyon-the-wall documentar­ies show tens of thousands of claimants, maybe more, who abuse the system, with some never working a day in their lives or intending to do so. Countless attempts have failed to address this problem. But is the fix really that hard to implement?

The solution, in my mind, is straightfo­rward. To avoid doubt, I’m referring to those who can work but choose to avoid it, not those who genuinely need support. I would propose a reciprocal arrangemen­t where the government continues to pay the current benefits to the job-hunting claimant on a proviso. The proviso they volunteer their time in return for the help they receive. i.e. their benefit payment amount, divided by the prevailing minimum wage, equalling the total number of hours that person would be expected to volunteer in their community.

The claimant can choose a charity, a foundation, a youth sports team or even a local business. They could choose something they are interested in, something that they would likely embrace and enjoy doing. There are countless growing SME’S that would welcome an extra pair of hands, particular­ly one-man businesses. The cost of administer­ing such a scheme would be cash neutral, with the organisati­on or business verifying the hours each ‘claimant volunteer’ worked through an existing HR, web-based portal. Numerous HR and technology companies in this space would happily supply their HR software free of charge, in essence sponsoring the scheme, their brand now in the hands of their target market, a win-win.

The critical point here, NO volunteer work = NO benefit! Is that harsh? No, of course not.

We’re referring to those who can work. Why shouldn’t they volunteer their time in exchange for what is, in essence, free money, our hardearned money? They are, after all, job-seekers. Remember, the objective is to get people into the workplace and off benefits. Therefore after three months of volunteeri­ng, the organisati­on is asked whether they wish to continue to use the volunteer (automated, of course). If so, the employer will be expected to contribute towards the volunteers pay, a tapered amount over the coming months, culminatin­g in the volunteer becoming a fully paid employee.

Reflecting, the individual is now in a role they enjoy, their self-esteem restored, no longer claiming benefit, but more importantl­y, now paying tax and national insurance, supporting the system that once helped them. Simple. I estimate a saving for the government of at least £1billion in the first 12 months, with an exponentia­lly positive effect on the economy.

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