It is time now to follow through - if he won't get off his butt and get a job he now needs to see the consequences. If it's been 2 years - that's long enough.
BUT - I still stand by the part that it needs to be DH applying the consequences. I get the feeling that he has been the one to let him get away with it for all this time too. I have had the same problem (always someone stepping in so dd never had to go without, therefore never getting off her butt), and it drove me SPARE.

I would absolutely sit down with DH and work out what the expectations are of the kids right now - because the little ones will be watching this scenario...and the rules have to be the same for all, but the blood parent should be the one enforcing it so the kids can't pull the 'you're not my father/mother thing.

In this situation - pull back pull back pull back. State your case clearly to DH and let him sort it out - you will be squashed in the middle xoxoxo