The problem is how to end austerity. The government cannot afford to spend anything extra to end austerity, the main costs are welfare and health. Democratic politicians cannot say anything about making people pay for health without risking their careers, cutting welfare at a broad stroke will inevitably penalize some of the truly deserving, and means testing would perhaps cost more in terms of more bureaucracy and time than it would ultimately save. It seems ineffable that  Public Sector employment in some areas is dependent on the provision of welfare, and the support of its recipients.
The provision of charity is the duty of the church it is not the underlying philosophy and ethics of the left-wing. Making zero-hour contracts will make people lose their jobs, if benefits were paid to people on zero-hour contracts to top up their wages on days when they were not working, this would benefit these workers psychologically as they would feel more secure, and also enable businesses to keep on hiring workers. It is a sad state of affairs when only immigrants will take these jobs, I was on a bus the other week and a social worker was talking to a young man who seemed prone to trouble, no business would want to employ this man if he was prone to bursts of anger, substance abuse, illiteracy (not stupidity), and opportunistic theft. I am certain that neither rehabilitation and discipline would not help cure this man of his poverty. Community service is used to punish criminals, it should be expanded to socialize the unemployed. This would probably cost more than it does at the moment to pay them benefits to stay in their homes, however would probably encourage people to take jobs in the private sector unless washing dishes, cleaning graffiti, cleaning up chewing gum sewing curtains, fixing pot-holes and collecting litter is fun. Making people work for free for their benefits in the private sector does not work because it replaces private sector jobs.
Free market micro-finance in the UK has spawned pay-day loan companies charging rates of interest the Mafia would be proud of. Would it not be better if the government could provide similar loans at a much lower rate of interest? This may even turn a profit in today's interest rate conditions and would be a good supplement a stimulant to Demand alongside a trillion pounds re-liquidizing the banks.
It seems unlikely that these dependents will establish legitimate businesses, they are dependent on being given employment. The sharp blade of Capitalism creates more money than the correctly criticized command economy, however a Factory opened in the the Glasgow slums making widgets employing the young delinquent gang members function is to promote social cohesion not make a profit