Not the whole story: But it seems unemployed people claiming they are self-employed may still be part of it. [Image: Ros Asquith in The Guardian]
It seems a surge in the number of people who say they are self-employed is not (solely) due to a DWP wheeze that gets people off the unemployment statistics after all.
Instead, Flip Chart Fairy Taleswarns that a lot of people are staying in self-employment rather than becoming employees again or retiring.
This suggests that either they have not been able to reach their target in terms of pensions, or there are no jobs available for people of their particular expertise or experience. The latter seems likely to Yr Obdt Srvt, who is currently trying to make Vox Political a workable concern in order to make a buck or two.
FCFT warns that “this is old-timers seeing their business shrink, rather than newbies trying to find their feet, under-charging and messing things up”.
The figures also show an increase in the number of self-employed tax credit claimants, lending credence to Vox Political‘s long-held belief that Job Centre Plus advisors have been telling jobseekers to pretend they are self-employed in order to get them off the books – let’s not write off that idea too quickly.
And a steady rise in non-VAT-paying businesses not only tells us “a lot of low-profit and low-turnover businesses are hanging on in there, or a lot more of them have become low-profit and low-turnover businesses since 2008”, it tells us that George Osborne will have a nasty surprise in January, when their tax returns come in.
If they are not paying VAT, they are not clearing the earnings threshold that would make such payments necessary. This mitigates against their earnings having increased significantly since the disasters of 2008-2012, when self-employed earnings fell by £8 billion.
So it seems our dancing Chancellor (see yesterday’s post) will find that either the music stops or the tune will change significantly…
Less ‘Gold’ by Spandau Ballet; more ‘I Don’t Need This Pressure On’.
Esther McVile: The employment minister, who claims adamantly that changes to housing benefit do not constitute a ‘bedroom tax’, is pictured complaining about a so-called ‘tunnel tax’ in her own constituency in a blatant display of double standards.
New rules coming into force at the end of the month mean jobseekers will have to do more to find work – even though there are currently five of them for every job available – the Department for Work and Pensions has announced.
Simply ‘signing-on’ for benefits will be a thing of the past under the draconian and repressive new rules.
Employment Minister and double-standards queen Esther McVey has hailed the new rules as undermining the range of support available, which helps diminish aspects of the social security system so that it no longer protects anybody from being left impoverished – in this case by making sure people cannot start claiming Jobseeker’s Allowance (JSA) by just signing-on without first humbling themselves before the Tory-led government.
She said: “With the economy growing, unemployment falling and record numbers of people in work, now is the time to start expecting more of shirkers if they want to claim benefits. It’s only right that we should push people who are unemployed into such a depth of poverty that even ‘in-work’ poverty is a step-up.
“This is about taking support away from people and undermining the range of support available to them so they can hit rock bottom faster. In return, we will give people as much harassment as possible, to make them stop scrounging or face sanctions, because we know from employers that we have to break people’s spirit before they’ll work for a really low wage.”
To prepare for their first interview with a Jobcentre Plus adviser, people looking for work will be told they will not even be able to sign as unemployed until they have prepared a CV, set up an email address – even though they might not have a computer on which to use it – and registering with the government’s discredited jobs website Universal Jobmatch, which will expose them to identity thieves and exploiters looking for sex workers. This change will make it possible to exploit people as soon as they start their JSA claim.
People who don’t tow the line will receive more harassment from their Jobcentre Plus adviser – weekly rather than fortnightly – to ensure they can be cleared off the books via sanctions if it proves impossible to push them into poverty work.
All new JSA claimants will also now have a quarterly review with their adviser, who will try to find a reason to impose sanctions and get them off the books.
These new measures are being introduced as figures show the number of people claiming Jobseeker’s Allowance fell by over 363,000 on the year, the largest annual fall since 1998. This shows that the system of sanctions, putting people on Workfare to hide the fact that they are unemployed, and asking them to pretend that they are self-employed in order to fraudulently claim tax credits instead, is working.
The government is committed to sanctions and the vast majority of people are bullied off JSA quickly – more than 75 per cent of people end their claim within six months. Every working day Jobcentre Plus advisers shout at 98,000 interviews jobseekers and there are a range of ploys available to push them off the system. These include:
• Hiding them on the Work Programme
• Referring them for ‘training’ by companies that provide the minimum help available, take the money and run
• Putting people on pointless ‘work experience’ that won’t lead to a job but will clear them off the claimant count
• Fooling people with ‘incentives’ that mean nothing
• Getting people to pretend they are self-employed.
Vox Political wants to see more honesty in government press releases
… but we need YOUR help to keep up the pressure.
This independent blog’s only funding comes from readers’ contributions. Without YOUR help, we cannot keep going. You can make a one-off donation here:
Alternatively, you can buy the first Vox Political book, Strong Words and Hard Times in either print or eBook format here:
Columnist Jill Filipovic hit the nail on the head when she wrote: “I can already hear your objections: ‘But the area under my boobs doesn’t stink!’ or ‘What kind of marketing genius not only came up with the term “swoob,” but actually thought half the world’s population might be dumb enough to buy into it?’ or simply, ‘This is a dumb product aimed at inventing an insecurity and then claiming to cure it.’
“You would be correct on all three points.
“In fact, inventing problems with women’s bodies and then offering a cure – if you pay up – is the primary purpose of the multi-billion dollar beauty industry.”
The simple fact is that you don’t really need to worry about smells down there – a good old soapy flannel will cure any such problems.
That’s not the point, though. The aim is to get you thinking about it and devoting your energy to it, rather than to other matters.
Now let’s translate that to politics.
We already know that all the scaremongering about Romanian and Bulgarian immigrants storming the country from January 1 was a crock. That bastion of good statistics, The Now Show, told us last week that the total number of Bulgarian immigrants in the last couple of weeks was “around two dozen so far”, according to their ambassador. In the first three months after our borders were opened to Croatians, 174 turned up.
Yet the government wanted you to believe they would flood our immigration service in their millions, “taking benefits and yet simultaneously also taking all the jobs”.
My use of language such as “storming” and “flood” is not accidental. By far the more serious threat to the UK in the early days of 2014 was the weather – and, guess what, not only was the government unprepared for the ferocity of the storms that swept our islands, the Coalition was in fact in the process of cutting funding for flood defence.
This would have gone unnoticed if the weather had behaved itself, because we would all have been distracted by the single Romanian immigrant who was ensnared by Keith Vaz in a ring of TV cameras at Heathrow Airport.
Now the Tories are telling us that our take-home pay is finally on the rise for all but the top 10 per cent of earners, with the rest of us seeing our wages rise by at least 2.5 per cent.
The government made its claims (up) by taking into account only cuts to income tax and national insurance, using data leading up to April last year, according to the BBC News website.
“The data used … takes no account of the large benefit cuts introduced by the coalition, such as the real-terms cut in child benefit, the uprating of benefits in line with CPI inflation rather than RPI, and the cuts to tax credits,” writes the Statesman‘s George Eaton.”
He also pointed out that other major cuts such as the bedroom tax, the benefit cap, and the 10 per cent cut in council tax support were introduced after April 2013 and were not included in the Coalition figures.
Once all tax and benefit changes are taken into account, the Institute for Fiscal Studies has shown that almost all families are worse off – and the Coalition also appears to have forgotten the five million low-paid workers who don’t earn enough to benefit from the increase in the personal allowance.
Skills and enterprise minister Matthew Hancock compounded the mistake in an exchange on Twitter with Jonathan Portes, director of the National Institute of Economic and Social Research (NIESR). Asked why his analysis “ignores more than four million people in work (the self-employed)”, Mr Hancock tweeted: “Analysis based on ONS ASHE survey of household earnings data”.
Wrong – as Mr Portes was quick to show: “Don’t you know the difference between household and individual earnings?”
Apparently not. ASHE (Annual Survey of Hours and Earnings) is a survey of employed individuals using their National Insurance numbers – not of households or the self-employed.
So the Coalition – and particularly the Tories – were trying to make us all feel good about the amount we earn.
That’s the distraction. What are we supposed to be ignoring?
Or is it the growing threat of a rise in interest rates, which may be triggered when official unemployment figures – which have been fiddled by increased sanctions on jobseekers, rigged reassessments of benefit claimants, a new scheme to increase the number of people and time spent on Workfare, and the fake economic upturn created by George Osborne’s housing bubble – drop to seven per cent?
It seems possible that the government – especially the Tory part of it – would want to keep people from considering the implications of an interest rate rise that is based on false figures.
As Vox Political commenter Jonathan Wilson wrote yesterday: “If the BOE bases its decisions on incorrect manipulated data that presents a false ‘good news’ analysis then potentially it could do something based on it that would have catastrophic consequences.
“For example if its unemployment rate test is reached, and wages were going up by X per cent against a Y per cent inflation rate which predicted that an interest rate rise of Z per cent would have no general effect and not impact on house prices nor significantly increase repossessions (when X per cent is over-inflated by the top 1 per cent of earners, Y per cent is unrealistically low due to, say, the 50 quid green reduction and/or shops massively discounting to inflate purchases/turnover and not profit) and when it does, instead of tapping on the breaks lightly it slams the gears into reverse while still traveling forward… repossessions go up hugely, house prices suffer a major downward re-evaluation (due to tens of thousands of repossessions hitting the auction rooms) debt rates hit the roof, people stop buying white goods and make do with last year’s iPad/phone/tv/sofa, major retail goes tits up, Amazon goes to the wall, the delivery market and post collapses… etc etc.
“And all because the government fiddled the figures.”
Perhaps Mr Cameron doesn’t want us thinking about that when we could be deodorising our breasts instead.
Show your support for Vox Political! The site needs YOUR help to continue. You can make a one-off donation here:
Alternatively, you can buy the first Vox Political book, Strong Words and Hard Times in either print or eBook format here:
The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.