I've said before that I know people (friends' children) who don't want to work more hours as 'it will affect their UC'. They are young mothers at the start of their careers, but is that any different from doctors (or anyone on over £100k) going part time as the tax system works against them and they have maxed out their pensions though? I don't know, really.
There are many ways that it can pay not to work, but at the same time, there are many people who do work very hard and get little back - particularly the single and childless. Tax credits are responsible for a lot of this unfairness at the lower end of the financial scale, and tax scales and cut offs on things like child benefit and childcare allowances at the higher end.
The pension part of NI is paid if you don't work and have children, but not if you don't work and are childless. Child benefits are now going to disadvantage dual income families who are already paying two lots of tax between them, in order to benefit single earner families who only pay once. There is a cut-off for help with childcare, which costs those on high incomes a lot, despite their paying high rates of tax. Pension credit is paid if you don't have enough credits to get a full pension, even when you've had payments made for you when your children were at school, whilst those who did juggle children and work struggle without all the gateway benefits PC brings with it. Everyone benefits from things like education, health and infrastructure whether or not they pay tax, so what's the incentive if you aren't going to earn a lot, or you have reached the point where your earnings are so highly taxed that you make virtually nothing for working an extra day or two to take you to full time?
But what can we do about it? We can't take back education or have old people sleeping on the streets with no food because they have no pension. We could refuse healthcare to those without enough contributions, but who would want to live in a society like that?
I really think that we need to reconsider how best to restructure the way we exact taxes and deliver benefits of all types, particularly as AI is going to cut the number of people needed in the workforce. Currently the burden falls mainly on those who work, and it is galling for them to see those who don't get given the things that workers have to pay for, whether that is a pension, social care or whatever. At the same time, unless people in work are paid more than they would get if they didn't, I can't blame them for cutting their hours, whether they are consultants or cleaners.