Letter - Scandal of jobs firms

With unemployment at its highest rate since 1996, the government's response to the problem is a scandal.

This week we have seen an eighth arrest for fraud at a company receiving a contract to administer the workfare policy, a blatant way of circumventing minimum wage legislation by offering companies ultra-cheap labour.

On the same day, the public accounts committee expressed concern that at least £1 billion had been wasted by the government in payments to friends in the private sector, getting at least £400 to assess each unemployed candidate for work placement – including a £50 "management fee".

The committee claims that without the programme many of these would have found jobs or else will remain on benefits.

It estimates payments to deal with people who don't even benefit could amount to as much as £40 for every household in Britain.

When we need a government that will make reducing unemployment, once again we see a government whose priorities are feathering the nests of corporate chums rather than taking meaningful action to help the poorest in society.

We need real investment to reduce unemployment and the financial burden it entails. We also need to raise revenue by cracking down on tax havens and other methods of tax evasion and avoidance; impose a permanent special tax on bankers' bonuses; harmonise capital gains tax with income tax, and increasing the main rate of corporation tax for big businesses, while reducing the small firms rate to help small businesses prosper.

We need to stop these scandalous payments to private companies who administer worthless policies.

Steve Parker, Secretary, Shrewsbury & North Shropshire Green Party