Making up the numbers: Thousands more disabled people are becoming self-employed, contributing to a huge boost in the number of private businesses – or are they?

Someone in the Coalition government needs to watch what they’re saying – otherwise people all over the UK might come to unintended conclusions.

Take a look at this: “Over 2,000 more disabled people got the support they needed to get or keep their job, compared with this time last year, official figures released today (22 October 2013) show” – according to a Department for Work and Pensions press release.

It goes on to say that the number of people receiving support under the Access to Work programme between April and June this year increased by 10 per cent on the same period last year, to 22,760. Access to Work “provides financial help towards the extra costs faced by disabled people at work, such as support workers, specialist aids and equipment and travel to work support”.

Apparently the new stats show the highest level of new claims since 2007 – 10,390; and more people with mental health conditions than ever before have taken advantage of Access to Work.

The press release also states that young disabled people can now get Access to Work support while on Youth Contract work experience, a Supported Internship or Traineeship; and businesses with 49 employees or less no longer have to pay a contribution towards the extra costs faced by disabled people in work. It seems they used to have to pay up to £2,300 per employee who uses the fund.

Now look at this: According to a press release from the Department for Business, Innovation and Skills, the number of private sector businesses in the UK increased by 102,000 between the beginning of 2012 and the same time in 2013.

There are now 4.9 million private businesses in the UK, with those employing fewer than 50 employees comprising nearly half of the total.

Some might think this is brilliant; that the DWP and BIS are achieving their aims of boosting private-sector business and finding work within those businesses for disabled people.

But dig a little deeper and a more sinister pattern emerges.

Doesn’t this scenario seem odd to anybody who read, earlier this year, that the DWP was having deep difficulty finding work for disabled people from the ESA work-related activity group?

Or, indeed, to anybody who read the BBC’s report that work advisors were pushing the jobless into self-employment?

Isn’t it more likely that the DWP and Work Programme providers, faced with an influx of disabled people into the programme from the ESA WRAG at the end of last year, encouraged them to set up as self-employed with their own businesses in order to get them off the claimant books?

Does it not, then, seem likely that a large proportion of the 22,760 getting help from Access to Work were offered it as part of a self-employment package that also, we are told, includes start-up money (that admittedly tapers away over time) and tax credits. The attraction for WP providers is that they would earn a commission for every claimant they clear off the books in this way.

So it seems likely that a large proportion of the 22,760 may now be self-employed in name alone and that these fake firms are included in the 102,000 new businesses lauded by BIS.

Is it not logical, therefore, to conclude that these are not government schemes, but government scams – designed to hoodwink the general public into thinking that the economy is improving far more than in reality, and that the government is succeeding in its aim to bring down unemployment?

The reference to jobs for people with mental health problems would be particularly useful for a government that has just appealed against the result of a judicial review that found its practices discriminate against this sector of society.

Some might say that this conclusion is crazy. Why would the government want to release information that directly indicates underhanded behaviour on its part?

The answer is, of course, that it would not. This government wants to convince an undecided electorate that it knows what it is doing and that the country’s future is safe in its hands. But its right hand doesn’t seem to know what its left is doing – with regard to press releases, at the very least.

And let’s not forget that, since the Coalition came into office, 52,701 firms have been declared insolvent and 379,968 individuals. Around 80 per cent of new self-employed businesses go to the wall within three years.

Therefore we can say that, in trying to prove that it is competent, the Coalition government has in fact proved the exact opposite.

So someone really needs to watch what they’re saying – if they don’t want people all over the UK to come to unintended conclusions!

AFTERTHOUGHT: The BIS press release adds that the government’s ‘Plan for Growth’, published with the 2011 budget, included an aim to create “the most competitive tax system in the G20”. By “competitive” the Treasury meant the system had to be more attractive to businesses that aim to keep as much of their profits away from the tax man as possible. It is a commitment to turn Britain into a tax haven and the VP post earlier this week shows that the government has been successful in this aim. What a shame that it also means the Coalition government will totally fail to meet its main policy commitment and reason for existing in the first place: It can’t cut the national deficit if the biggest businesses that operate here aren’t paying their taxes.