This coming year, the UK Government is predicted to spend £111bn on welfare. Only pensions (£129.3bn) and the NHS (£123.8bn) are estimated to receive a higher sum of public funds.
Similarly, the UK Economy is almost flat-lining once more, interest rates are fixed at 0.5% and there is to be yet another round of money printing which will only benefit the banks. Businesses are failing nationwide, unemployment is constantly rising, the young are starved of work experience due to the collapsing economy, the minimum wage and the over-riding emphasis on memorising for examinations, as opposed to truly learning in our schools.
Whilst scrapping the minimum wage, reforming the way both our education system works and how we judge a successful school, and scrapping regulations and taxes that destroy the natural British entrepreneurial spirit are all options that I wholeheartedly subscribe to, what if there was a way to boost the economy, get people off benefits and into work, and save £111bn this coming financial year?
For a while I’ve tinkered with this idea, and I want to outline first and foremost – I do not claim this to be perfect, nor do I claim to have factored in all costs and the administration required.
Imagine, if you will, a large factory. Within this factory, several hundred people are working hard, on a 9-5 basis. They work safely in the knowledge that their family are cared for, their children are in school, and they have no real financial difficulties. They have access to work-based training, career advisors, and have a contract in place that allows them to leave the place of employment at any time.
Now factor in that they live ‘on-site’. Their family lives with them in a clean, safe flat, they have their 3 meals a day, they may have access to various leisure facilities, a library, a fitness room, a swimming pool. Education is provided through a ‘free school’ set up by businesses, where work experience is also offered.
My idea is that rather than people living on welfare, people who are made redundant, or who are out of work, are able to work, for bed and board, for businesses.
This is the ‘workfare scheme’ with the volume turned up to 11.
Businesses would be able to operate in the UK at a much more flexible level; employee costs would fall, businesses would be able to expand, the UK would be able to export much more, and the economy would grow.
BUT WAIT! I hear those on the left cry, surely this would simply mean a race to £0.00 salaries! Who would be able to buy things? The economy would wither and die!
Not quite. Firstly, not all businesses could adopt this model. I can hardly envisage high street shops following this, nor can I see hospitals, newspapers, architects, and the general non-manufacturing/textile industry being able to have either the room or reason to adopt this model.
Similarly, I anticipated outrage at the likelihood of those comparing this to a sweatshop. Again, not quite. Here, you would have competition. People and their families would be free to compare differing ‘welfare’ providers. It would be in the businesses interests to provide high quality living and working environments. Indeed, if you imagine the current scenario on the minimum wage: a factory employing 100 people, all on the minimum wage, must pay approximately £1.5m pa on staffing costs. That outlay for one year could adapt or expand the workplace to suit this model, and then costs per annum would plummet.
I don’t profess to be the saviour of the welfare state and UK enterprise. What I simply offer is an idea for debate and to recognise that our net debt is over £1 trillion, and that everyone in work’s equal share of this totals £35,000.