Tag Archives: Working Tax Credit

Someone I Met Recently

A couple of days ago, I needed to buy a new mouse for my laptop computer and also to ask advice on a technical issue. I decided to go to a PC World outlet about 15 miles from where I now live. The PC World store was outside a small town on the coast of Southern England. I was there by 0900 hrs, its opening time. A routine matter, of course, but I felt that I should blog, briefly, about it because it confirmed some of what I have been saying online for years.

There was only one other customer in the large hangar-like store at nine in the morning. I was greeted on going to the service desk by a youngish blonde woman who looked rather fed up. I feared that she would be surly or unhelpful. I could not have been more wrong.

The woman, who was not as young as she looked (she turned out to have a daughter aged 16; well, the police now also look young to me…) dealt with my technical question in a matter of seconds (completely correctly, it later transpired). She also directed me to the part of of the store which displayed “mice”. I chose one, brought it back and, the store now being empty, was told that I could pay for it there at the enquiries desk rather than going to a check-out. I did that.

It might be asked at this point why I am bothering to write about this? Well, I ended up having a chat with the blonde woman employee who had been so useful and helpful, and what she said was very concerning. I don’t know why she confided in me, whom she had only just met, except that people often do. They seem to divine that I can keep a secret, for one thing, though that does not apply in this case. I think that people also know that I want to help if I can.

The blonde woman worked full-time in the PC World store, but lived in a housing association property and received Housing Benefit to pay for the rent or part of the rent. That alone confirmed some of my expressed views over the years. Here she was, in a full-time job, and moreover one which actually required some skill and knowledge, which job she was doing really competently too (as I myself saw), yet was unable to pay her modest rent (after all, this was a housing association property) out of her pay!

Now this is just plain wrong. Here we have a large chain, part of a group (Dixons Carphone, formerly Dixons Group) which, in the financial year 2017-2018, made (pre-tax) profits of £382 million, yet is not paying its staff enough so that they can even pay their domestic rent! Instead, PC World relies on the State to stump up monies (Housing Benefit and also, perhaps, Working Tax Credit— I did not talk to the woman in such detail).

In other words, the profits of the employer are being bolstered by the State, meaning taxpayers (and including, at least via National Insurance and VAT etc, the employee herself in this case).

Previous visits to PC World had been far less satisfactory. That woman had made the difference, yet was struggling to survive. When will British businesses realize that they are only as good as their employees, at all levels?

There is something wrong about a system or society in which the pay received by an employee for full-time work is not enough to allow her even to pay her rent.

Further, I was told that, because the Housing Benefit was delayed by a few days, routinely, the woman had fallen into arrears and, though the arrears were always only in existence for a few days, the Housing Association had taken her to court at least once and, as a result, she had had to pay £100-something in court costs and also a financial impost of about the same to the Housing Association! This surely must be seen as unfair and unjust.

The woman also told me that her daughter was autistic (I do not know, of course, to what extent) and had been getting Disability Living Allowance (DLA) in respect of that. Recently, the daughter had reached the age of 16. As a result, she had been forced off DLA and forced to undertake a “test” for “Personal Independence Payment” or PIP [off-piste, someone must one day do a sketch on the vulgar cheesy names for such things: “Personal Independence Payment”, “Jobseeker’s Allowance”, “Job Centre” etc].

The daughter had, subsequently, been awarded nothing. So suddenly, this girl, long diagnosed as autistic, had now, despite the diagnosis and her previously accepted status, been cut off from State funds by reason only of a change in policy by government (Iain Dunce Duncan Smith and the jew “lord” Freud, Esther McVey, not to mention David Gauke and Chris Grayling etc).

I went away from that encounter at PC World thinking about how unjust and in fact how simply inefficient the system in the UK is, in that instead of a person being able to work and provide for herself and her daughter and/or get help from the State in a simple manner, she (a useful member of society at that) was being made anxious and being forced to jump through hoops in order to survive.

The present system is not efficient, is callous and unfair and is a complicated maze. Hopeless. Parliament is hopeless. “Democracy” (as we know it) is hopeless. The MPs and “peers” are hopeless. Business is not pulling its weight. The people are not only not being helped but are being impeded unnecessarily by the overall system in which they live and work.

Notes

https://en.wikipedia.org/wiki/PC_World_(retailer)

https://www.bbc.co.uk/news/business-44286924

The Revolution of the Robots and AI Means that Basic Income is Inevitable

I have been interested for several, indeed many, years in the socio-political effects of the AI/robot/computer revolution, which effects started to be felt as long ago as the 1960s, accelerated in the 1980s, but which still mushroom, and may be considered to be still in the youthful stage of development.

I happened to see an online article which was about 25 types of human work likely to be largely replaced by robots. Some were unsurprising, such as Data Entry Clerks and Bookkeepers, others less so (as a former barrister, I noticed “Lawyers” with interest!). I did not expect to see “Farmers” on the list, though in fact much agricultural work has already moved from human and animal labour to robotic or at least automated: sophisticated machines now already sow, harvest and process agricultural produce. Some of the most delicate tasks can still not be effectively automated without loss of quality, but that will probably change. The picking of grapes is done today as it has been since the dawn of recorded history– by hand. The best tea is also still picked by hand, though experiments have been made with automation: the Soviet tea industry tried it back in the 1970s (“on Georgia’s sun-dappled hills”, as Lermontov had it).

Looking ahead, one can see that many more jobs will be automated. Even now, that is leaving many either with no jobs, or with “McJobs”, minimum-wage bottom-of-barrel jobs. Increasingly, there will be discontent as those who have either no job or a job which does not cover even basic necessities become more numerous. At present, in the UK, those who have existed on poor pay have had that pay topped up via “tax credits” etc (and/or, now, the cretinous “Universal Credit” pipedream of Iain Dunce Duncan Smith), administered by a shambolic and punitive bureaucratic regime. That can and will be taken over by a Basic Income, paid without reference to whether the individual is trying to find work or better work.

The essence of the plan in respect of AI etc is that automation creates economic surplus. That surplus, at present, is today then distributed mostly to shareholders and higher executives, by means of dividends, pay and capital gains (eg via share options). That surplus or benefit should be shared out with the employees of the enterprise and with the people in general, via the mediation of the State. Not forgetting the need for an economic enterprise to have reserve funding for R&D etc.

Basic Income will give to all citizens at least a measure of the financial and life security currently enjoyed by only the wealthy, the “trustafarians” etc. It will enable those who want more than the basic minimum to work for that extra money, those who want to volunteer or do charitable work to do so and yet still subsist, those who want to think or write to create. As for those who only want to loaf, they do that under any system (including the present one) and at least Basic Income makes society quiescent.

The cost of Basic Income is high, but the cost of administering and paying out the present “welfare” system is hugely high too! Admin, snooping, interrogating, complex payment structures etc.

Taken to absurdity, one could envisage a society entirely dystopian, where no human workers are needed at all. The machines (etc) then produce goods and services which cannot be bought and paid for, because the humans have no work and therefore no pay and therefore no disposable income.

In such a scenario, either goods and services have to be given away free of charge to the humans unable to pay for them, or the humans need to be given money-value for which they have not directly worked. Basic Income.

The present society is already exhibiting a trend to work which pays little or nothing and a connected trend to an amelioration of the effects of that first trend (via State welfare, pensions, tax credits etc).

In the end, Basic Income is essential, because the robotics/AI revolution is loosening the nexus between work and pay.

Notes

https://vdare.com/posts/automation-farm-robot-picks-peppers

https://www.telegraph.co.uk/technology/2018/12/08/waitrose-first-supermarket-use-robots-farm-food/

https://www.plymouthherald.co.uk/news/plymouth-news/universal-credit-basic-income-california-2563380