I've had numerous experiences with the Job Centre over the years. Before I say anything else, I think it's fair to say that there are some really good people who work there and they do genuinely care about people. I've had some really fantastic advisers who actually listen and do their best to help.
There are also some nasty people who shouldn't ever be in a public-facing role. I had one adviser offer to call me if she though a suitable position appeared on the job boards. She did indeed call one day, but it was for a job that specified a certain qualification and I was well under-qualified. I asked her to post the details out and I'd consider it, but she then assumed that I was actually going to apply and I ended up with a sanction because I didn't. It would have been a total waste of my time and the employer's time if I had been invited to interview. That episode ended up with me being unable to afford my rent and I had to move back into my mum's place, in an area where there were far fewer jobs around!
Regarding third-party contractors which are brought in to help, they're simply not flexible enough to be able to deal with people who are reasonably qualified. I once had to attend some course where we were treated like idiots. The people behind these companies don't care about anything other than the "outcome fee".
I've mentioned this previously, but I think that Blair's Labour government had it just about right with its "New Deal". It wasn't a perfect scheme by any means, but it treated people like human beings and addressed basic issues such as ensuring that people had something smart to wear for an interview. It also took into account that any work or voluntary training placements weren't necessarily forever and put you back on the same level of support once they came to an end. With New Deal, participants received a bit extra over and above the standard JobSeekers' Allowance. It worked for me at the time and although i only had a short-term job as a result, my confidence was such that I was able to go out and get another job soon afterwards.
This current shower seems to want to carry on with the Tory stick approach, rather than offering carrots. Some people just need a bit of a confidence boost to help find work; you don't boost anyone's confidence by threatening to put them in a worse situation than the one they're already in.
I know someone who (just out of Russel Group uni with a reasonable scientific degree) who was told, when they said that they wanted to do a job which was more than just minimum wage, "oh I don't think you'll be able to do that", only to then need help to do something on the computer from the same person a few moments later.
Unsurprisingly, the individual wasn't impressed.
It shouldn't be that we force people into crap jobs just to get them off benefits, it would be far more useful if the system was flexible enough to allow people to retain their safety net. Likewise with self employment: if someone comes and fancies a career as a YouTube content creator, then it should be perfectly possible for them to retain their benefits and to receive some financial assistance to buy what they need. They could have specialist advisors who could assess whether they're actually on the right track or not, and I don't think it's unreasonable to finance them for a year to see if they can make it work.
That's a reasonable suggestion.
Another possible option (which socialist parties like Labour, at least historical Labour, could suggest) is a universal basic income (UBI). That way everyone gets it, it doesn't matter if you're working or not, and so you cut all the costs associated with applications, all the complications of seeking out fraud, etc.
Whilst you may want to increase the value for those of over retirement age, for other things you could save a load of red tape. For example, other than employers offering more for maternity/paternity pay to retain staff there wouldn't be a need for the government to ensure that people were paid from a given date to a given date.
Yes you'd have to raise taxes, however if the extra taxes ment that someone on (say) £35,000 to £50,000 was where there was no additional benefit from the receiving the UBI and then it started to increase the amount of tax paid again after that point, then the cost of the scheme would be fairly limited.
It would mean that any work anyone did would lose them more in benefits than they earned, likewise it would be unlikely that there would be much if any tax free allowance and so even someone did a tiny account of work they would be paying taxes.
You could have 2 tax rates, based on a UBI of £10,000 a year these could be (income above UBI):
50% on earnings from £0 to £35,000
20% in earnings from £35,000 to £55,000 and then
55% for everything earned above £55,000
The reason for picking £10,000, is that this is effectively the rate of maternity pay if it was paid for a year (which is not), but other amounts could be used which would alter 50% rates of tax.
This would have the added bonus that people may strive to earn over £35,000 as they'd see their take home pay increase significantly compared to extra earning up to that point (even though they would actually be paying more taxes from earning more, although not more taxes than someone earning that amount currently), however there also wouldn't be the fear of being taxed more for those earning over £55, 000 as it would be the same rate of tax as at the lower earning band.
Those earning over £50,000 to £55,000 would be a little better off (up to £1,000) before taxes started to erode this back down again until after £65,000 when people would start being taxed a bit more.
People who needed to retire early could do so if they could live on that much money or at least it could be more affordable to reduce the amount of work which they did due to having poor health. Especially if they were needing to do so only (say) 18 months before state retirement age.
Yes you'd still have the issue of cash in hand work, however that's always going to be an issue. Having said that, with the savings from admin from the benefits system some of that money could be set to work investigating to find people doing so.