"A report published by Citizens UK recently noted that:
An estimated 5.24 million people in the UK are employed on less than the living wage. Many low-waged workers are in receipt of benefits and tax credits, policy tools used to top up their incomes [and are] criticised in popular media and policy circles.
The calculation of the public subsidy is a new way to think about low pay. In effect it is low paying employers who are subsidised by state payments to their employees without which they would be unable to meet their basic needs and continue to work for low wages.
In other words this is nothing more than corporate welfare on a grand scale which costs the tax payer a gigantic £11bn a year. To put this into context benefit fraud is £1bn. Companies, in effect, have no incentive at all to pay decent wages when they know for certain that the State will (for now) pick up the tab through benefit payments."
Is this benefit fraud by employers? Like you say, Farnorth, there do not appear to be as many benefit fraudsters as suggested. Does the DWP defraud people by not telling them about all the benefit unclaimed?