Cameron’s crackdown on immigrant benefits is just another grubby con

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andy burnham, benefit, claim, Coalition, con, Conservative, crackdown, David Cameron, Democrat, hoodwink, immigrant, immigration, Labour, Lib Dem, Liberal, migrant, Mike Sivier, mikesivier, months, National Health Service, NHS, politics, privatisation, privatise, restrict, sale, sell-off, six, speech, three, Tories, Tory, unemployment, Vox Political, work

[Picture: I Am Incorrigible blog – http://imincorrigible.wordpress.com/2013/09/15/evidence-not-ideology-benefit-tourism-the-problem-only-fruitloops-and-tories-can-see/ – which agrees that benefit tourism is a non issue and distraction from the UK’s real problems.]

The UK is to cut the amount of time EU migrants without realistic job prospects can claim benefits from six to three months, according to David Cameron – who seems desperate to take attention away from Andy Burnham’s speech today on the Coalition’s unwanted privatisation of the National Health Service.

According to the BBC, Cameron said the “magnetic pull” of UK benefits needed addressing to attract people for the right reasons.

But the announcement seems to be deliberately confusing.

It seems this restriction will only apply to people born abroad who have had a job in this country and then lost it. They are the only migrant group currently allowed to claim JSA for six months before the benefit is cut off “unless they [have] very clear job prospects”, as Cameron put it in the BBC article.

EU migrants who were claiming benefits in their own countries must fill in an E303 form in order to receive benefits at the destination country – which are issued at the same rates as in their country of origin for a total of three months only. Failure to find employment in that time means the loss of the benefit or a return to the country of origin.

The BBC article is vague about this; it’s as if Auntie – and Cameron – are trying to hoodwink you (shurely shome mishtake? – Ed) into thinking he is restricting benefits for people who come here looking for work, which is something he cannot do.

Perhaps Cameron is trying to avoid the embarrassment created by his last attempt to claim he was doing something about immigration; he announced five proposals, one of which related to all employers (quadrupling fines for those that do not pay the minimum wage), while the other four were already part of the law of this land.

That little Con was exposed very quickly, on this blog and others.

Note also that he is still trying to say people are coming here from abroad in order to claim our benefits.

That is a lie.

From Vox Political‘s article last year: “UK citizens are a greater drain on the state than immigrants from Europe. Between 1995 and 2011 EEA immigrants paid in 4 per cent more than they took out, whereas native-born Brits only paid in 93 per cent of what they received. Between 2001 and 2011 recent EEA immigrants contributed 34 per cent more than they took out, a net contribution of £22bn.”

Considering the timing of this announcement, it seems likely that Cameron wanted something to take attention away from Andy Burnham’s speech on the Coalition’s dirty little backroom deals to privatise more of the NHS, reported on this blog earlier today.

He must be scraping the bottom of the barrel.

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Why the Tories should know privatising Job Centres won’t work

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benefit, benefits, close, companies, company, competition, Conservative, CReAM, Department, DWP, George Osborne, Iain Duncan Smith, job, Job Centre, Mike Sivier, mikesivier, park, Pensions, people, politics, private, privatise, search, sector, social security, Tories, Tory, unemployment, Vox Political, welfare, work

Parked on the dole: Closing Job Centres and handing responsibility for finding work to private companies would condemn thousands – if not hundreds of thousands – of people to a life on benefits (if they don’t get sanctioned and starve).

It’s incredible that allies of George Osborne are backing proposals to shut down all Job Centres and let private companies fill the void.

The proposal to let the private sector find work for Britain’s unemployed is actually being considered for inclusion in the Conservative Party’s election manifesto for 2015, according to the Huffington Post.

It quotes a ‘senior Tory’ who told The Sun: “Introducing competition into the job search market is a natural Conservative thing to do.”

This means Conservatives are naturally unimaginative, if not altogether stupid.

Have they already forgotten the lessons learnt from the way work programme provider companies treated jobseekers that were sent their way – as Vox Political reported last year?

The process is known as “creaming and parking”.

Work programme providers knew that – because they get paid on the basis of the results they achieve – they needed to concentrate on the jobseekers who were more likely to find work quickly. These people were “creamed” off and fast-tracked into work, thereby creating profit for the companies.

And the others? Those who need more time and investment? They were “parked” – left without help, to languish in the benefit system for months and years on end – in a situation that Work and Pensions Secretary Iain Duncan Smith has said many times that he wanted to reverse.

In fact, his policies have perpetuated the problem.

And now George Osborne wants to spread this practice to all jobseekers, across the country.

It’s time the voting public woke up to what the Conservative Party is, and “parked” it in the history books where it belongs.

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More smears from the Mail against UN official who is trying to help the poor

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Adolf Hitler, bedroom tax, benefit, benefit cap, big lie, Brazil, breach, Coalition, Conservative, Council of Europe, Council Tax Benefit, Cultural Rights, cut, Daily Mail, Democrat, Department, DWP, economic, extreme poverty, genocidal, genocide, homicidal, homicide, housing, housing benefit, human rights, Iain Duncan Smith, international covenant, Lib Dem, Liberal, Maria Magdalena Sepulveda Carmona, Mike Sivier, mikesivier, obligation, Olivier De Schutter, Pensions, policies, policy, poor, Raquel Rolnik, right to food, shanty town, social, social security, special rapporteur, Tories, Tory, treaty, UK, un, united nations, Vox Political, welfare, work, World Cup

The victim: Raquel Rolnik, the United Nations’ expert Special Rapporteur on Housing is once again the victim of a baseless Daily Mail smear piece.

Yet again, the Daily Heil has been using the tactics of its best friend Adolf Hitler - the ‘Big Lie’ – to attack a United Nations official whose job is to point out that Coalition government policies are harming the innocent poor.

The Flail‘s tone was Nurembergian – and almost entirely fact-free - as it denounced ‘Brazil Nut’ Raquel Rolnik for imaginary crimes against Iain Duncan Smith’s benefit cuts - the homicidal, if not genocidal, measures that are driving hundreds of thousands of people into destitution and despair.

You see, the Fail is fine with destitution and despair for the poor – its readers are all rich middle- or upper-class housewives who pass their days spending their husbands’ vast fortunes (this is not entirely true, but is exactly the sort of generalisation you can expect from that paper. If you are a Mail reader, it isn’t such fun when you’re the victim, is it?) and gossiping.

The news story is that a group of United Nations poverty ambassadors has written a 22-page letter pointing out that cuts to social security benefits introduced by Iain Duncan Smith and enforced by his Department for Work and Pensions on behalf of the Coalition government may constitute a breach of the UK’s international treaty obligations to the poor.

The letter is new but its factual information is not, having been confirmed by the Council of Europe.

The letter states: “The package of austerity measures enacted could amount to retrogressive measures prohibited under the International Covenant on Economic, Social and Cultural Rights, ratified in 1974.”

Among the benefit changes it highlights are alterations to housing benefit, council tax benefit, working age benefits and the bedroom tax and the benefits cap – which everybody agrees would be a good idea if it had been limited to a reasonable amount, rather than one at which the Conservative-led Coalition could throw people into hardship.

The Mail‘s report pays little attention to the facts, lavishing far more space on Mrs Rolnik herself. It said she had been nicknamed the ‘Brazil Nut’, which she had – by the Daily Mail; and went on to attempt to cast doubt on her authority as special rapporteur on housing and those of fellow UN ambassadors Maria Magdalena Sepulveda Carmona, special rapporteur on extreme poverty; and Olivier De Schutter, the special rapporteur on the right to food.

These are experts in their field who have been engaged by the United Nations – a higher-ranking legal authority than the UK – to investigate government policies, but that’s not good enough for the Mail.

It prefers to get its opinions from tupenny-ha’penny Tory thinktanks.

So it casts doubt. The letter is from ‘ambassadors’ and follows an ‘investigation’, according to the Mail, because putting those words in that way casts doubt upon their validity.

Mrs Rolnik was brought up as a Marxist, the Mail states – as if that has anything to do with her findings. And the report claims she should leave the UK alone and concentrate on problems in her own country, where millions of people live in shanty towns – even though the writer, ‘Jason Groves’, should know perfectly well that her job involves just that.

He clearly doesn’t want you to see her comments on housing in Brazil, prior to the football World Cup which is being held there at the moment: “We expected that the champion of many football cups would use this opportunity to show the world it is also a champion of the right to housing, in particular for people living in poverty, but the information I have received shows otherwise.”

She had received allegations of evictions without due process or in breach of international human rights standards, cases in which residents and citizens had not been consulted and were barred from to participation in decisions that had a grave impact on their standard of living. Concerns had also been expressed about very low compensation that might lead to the creation of new “informal settlements” (shanty towns) with inadequate living conditions or greater rates of homelessness.

“Authorities should avoid at all costs any negative impacts on then human rights of the individuals and communities, especially the most vulnerable… [and] should ensure that their actions, and those of third parties involved in the organization of the events, contribute to the creation of a stable housing market and have a long term positive impact in the residents of the cities where events take place.”

So critics who think she has ignored issues in her home country are wrong.

That’s a bit of a blow to the Mail‘s credibility, isn’t it?

The measures criticised by Mrs Rolnik and her colleagues were brought in “to tackle the huge budget deficit left by Labour”, according to the Mail. Again, this is wrong. The Coalition government has made no real effort to tackle the budget deficit which was necessitated when Labour saved our banking system, the threat having been created by Tory-supporting bankers whose greed put their firms into overwhelming debt. Look at the annual deficit for the last financial year; it is still well above £100 billion. If you agree that the cuts were to bring the deficit down, you have swallowed a lie.

Iain Duncan Smith, the man this blog describes as ‘RTU’ (standing for ‘Returned To Unit’ in tribute to his failed Army career) is reportedly furious at this intervention from the United Nations, which has a duty to intervene if governments of member countries descend into criminality, as has happened with the UK (here’s just one example).

Vox Political has reported extensively on this matter and his arguments carry about as much weight as his retrospective Jobseekers (Back to Work Schemes) Act. Take a look at Mrs Rolnik’s report on housing in the UK and the research that supported what she said and then ask yourself if Mr …Smith has got a leg to stand on.

According to the Mail, he said: “They talk down our country, criticising the action we’ve taken to get control of the public finances and create a fairer more prosperous Britain. They simply do not have a clue – and we will not be taking lessons from a group of unelected commentators who can’t get their facts straight.”

“Unelected” and “Can’t get their facts straight” are both criticisms that could be applied with more accuracy to Mr …Smith and his government.

In fact.

Additional: Here’s some more information about Iain Duncan Smith playing fast and loose with statistics, just in today.

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High Court throws out Duncan Smith’s “flawed and tawdry” retrospective workfare law

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allowance, appeal, benefit, Cait Reilly, compensation, Court of Appeal, criminal, Department, Disability Living Allowance, dismiss, DLA, DWP, employment, ESA, european convention, government, High Court, human rights, Iain Duncan Smith, IB, illegal, Incapacity, Jobseeker's Allowance, Jobseekers (Back to Work Schemes) Act 2013, judicial review, loophole, Mandatory Work Activity, national interest, Pensions, Personal Independence Payment, PIP, Poundland, retroactive, retrospective, sanction, support, Supreme Court, trial, Vox Political, work, Work Programme, Workfare

Criminal: Iain Duncan Smith has made the UK government into a criminal regime, illegally victimising its most vulnerable citizens.

Iain Duncan Smith took an metaphorical slap in the face from the High Court today when Mrs Justice Lang said his retroactive law to refuse docked payments to jobseekers was not legal.

The Jobseekers (Back to Work Schemes) Act 2013 was rushed onto the statute books after the DWP discovered the rules under which it had docked Jobseekers’ Allowance from 228,000 people, who had refused to take part in Workfare schemes, were illegal.

The ruling does not mean that everyone who was penalised for refusing to take part, or for leaving the scheme once they had started it and realised what it was, may claim back the JSA that had been withdrawn from them.

But anyone who appealed against a benefit sanction on the basis of the previous decision will be entitled to win their appeals and be repaid the withheld benefits – as Vox Political advised at the time. That payout could be as high as £130 million.

The judge said retrospective application of the 2013 law conflicted with the European Convention on Human Rights and “interfered with the right to a fair trial” of all those affected.

(This is, of course, one reason why the government wants to repeal the Human Rights Act – your human rights obstruct ministers’ ability to abuse you.)

This is the latest twist in a legal challenge brought by Cait Reilly, a graduate who fell foul of the scheme, in 2012. She demanded a judicial review on the grounds that being forced to give up voluntary work in a museum (she wanted to be a museum curator) to stack shelves in Poundland breached her human rights.

Poundland no longer takes part in mandatory work activity schemes run by the UK government.

Her challenge succeeded when the Court of Appeal ruled that she had not been properly notified about the scheme. This meant that the government was guilty of criminal acts in removing benefit from Ms Reilly and hundreds of thousands of others.

In response, the Coalition passed an Act that retrospectively legalised its actions – but claimants argued that this was unfair and demanded their compensation.

In the meantime, Iain Duncan Smith’s own appeal was heard – and dismissed - by the Supreme Court.

And after the Act was passed, it became clear that the Coalition had known since 2011 that the policies it was enforcing do more harm than good and are not in the national interest.

Mrs Justice Lang said today (July 4) that “the absence of any consultation with representative organisations” as well as the lack of scrutiny by Parliamentary committees had led to “misconceptions about the legal justification for the retrospective legislation”.

The 2013 Act introduced a new “draconian provision, unique to this cohort of claimants” which was “not explained or justified” by the government in Parliament “at the time”.

Mrs Justice Lang rejected the Secretary of State’s assertion that flaws in the 2011 Regulations were simply “a technicality or a loophole”, that the 2013 Act sought to give effect to Parliament’s ‘original intention’ or that repayments to benefits claimants would be “an undeserved windfall”.

She also recognised that it would be “unjust to categorise the claimants in the Cait Reilly case as claimants “who have not engaged with attempts made by the state to return them to work”, as asserted by the Department for Work and Pensions.

“This case is another massive blow to this Government’s flawed and tawdry attempts to make poor people on benefits work for companies, who already make massive profits, for free,” said solicitor Phil Shiner of Public Interest Lawyers, who appeared for the unemployed.

“Last year the Supreme Court told Iain Duncan Smith and the Coalition government that the scheme was unlawful. In this case the High Court has now told the Government that the attempt to introduce retrospective legislation, after the DWP had lost in the Court of Appeal, is unlawful and a breach of the Human Rights Act and is a further disgraceful example of how far this Government is prepared to go to flout our constitution and the rule of law. [bolding mine]

“I call on the DWP to ensure that the £130 million of benefits unlawfully withheld from the poorest section of our society is now repaid.”

So there it is, in black and white. Iain Duncan Smith has made the Coalition government a criminal organisation, guilty of 228,000 human rights violations.

This is a serious matter; some of these people may have been put in serious financial hardship as a result of the Coalition’s actions. One hopes very much that nobody died but if they did, those fatalities should be added to the many thousands who have passed away as a result of Iain Duncan Smith’s homicidal regime for claimants of incapacity benefits.

Let us not forget, also, that we remain at the mercy of these tyrants. Iain Duncan Smith has announced he intends to waste yet more taxpayers’ money on another appeal. In the meantime, a DWP spokeswoman said the legislation remained “in force” and the government would not be compensating anyone pending the outcome of its appeal.

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Public money is being thrown away on government-contracted scroungers

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A4E, accountancy, accountant, allowance, avoid, backbencher, bedroom tax, benefit, Big Four, business, cap, Coalition, company, Conservative, contract, council tax, Deloitte, Department, DWP, employment, Ernst & Young, ESA, EU, european union, feckless, firm, food bank, foreign, G4S, government, idle, immigrant, immigration, in-work, incentive, Ingeus, KPMG, lazy, lie, Maximus, Mike Sivier, mikesivier, minister, mislead, parasite, payout, Pensions, people, politics, PricewaterhouseCoopers, private, provider, reassessment, sanction, scrounger, skiver, social security, support, tax, taxpayer, Tories, Tory, Treasury, unemployment, unum, uprating cap, Vox Political, welfare, welfare to work, work, Work Programme, work-related activity, Workfare, Working Links, zero hours contract

It turns out that some people really do get to lie around all day, doing nothing apart from watching the money rolling in.

Bloody scroungers.

I’m sorry to swear – and you know I’m not usually rude – but these Work Programme provider companies really get my goat.

The revelation that companies such as Ingeus, A4e and Working Links were getting undeserved ‘incentive’ money (see also the BBC’s article), rather than being paid by results as has been claimed loudly and repeatedly by Tory ministers and backbenchers, is nothing new to Vox Political – we first pointed out the problem in November 2012, more than 18 months ago.

You see, not only has this been going on ever since the Coalition government established welfare-to-work in its current form –

Not only have government ministers and backbenchers been lying to you about the payouts given to the profit-driven privately-owned provider companies –

Not only have these companies been sucking down on your hard-earned taxpayer cash as though they had done something to earn it –

But the people they were supposed to be helping – people who have been forced into ever-greater poverty by the benefit uprating cap, arbitrary and unfair benefit sanctions, the bedroom tax, the £26,000 cap on benefits for families, the imposition of council tax on even the poorest households (in England at least), the stress of continual reassessment (if they are ESA claimants in the work-related activity group), the humiliation of having to visit food banks and who knows what else…

The people who are desperate to get any kind of paying job, despite the fact that zero-hours contracts could make them worse-off than unemployment, due to the effect on in-work benefits, despite the fact that those in-work benefits are also being squeezed hard, and despite the fact that there are at least five jobseekers for every job that becomes available…

These are the people that government ministers, backbenchers and the right-wing press keep victimising with their endless attacks on “skivers”, “scroungers”, the “feckless”, the “idle” and the “lazy”!

If I was unemployed and my MP had been caught slagging me off while praising these good-for-nothing so-called work programme ‘providers’, I would make it my business to bring them before the public, lock them into some medieval stocks and pelt them with rotten vegetables. Public humiliation is the least they should get for this continual insult to common decency.

But wait! There’s more.

It turns out that, not only are these work programme providers a bunch of lazy good-for-nothing parasites, but many of them are also a bunch of foreigners who’ve come to the UK to take our jobs!

Ingeus is Australian. G4S is part-Danish. Maximus is American.

It seems that all the politically-fuelled and media-driven anger against immigration into the UK from the rest of the European Union and beyond may be designed to distract us all from the fact that foreign firms are immigrating here to take government jobs that should be yours, and to steal your tax money.

Nobody can say they’ve earned it, after all.

But let us not be unfair. It would be wrong to concentrate on welfare-to-work providers when all of government is riddled with foreign interlopers.

Look at the Treasury, where the ‘Big Four’ accountancy firms have been re-writing tax law to suit their tax-avoiding corporate clients for the last few years. They are Deloitte (American), PriceWaterhouseCoopers (part-American), Ernst & Young (part-American) and KPMG (Dutch).

And then there is the huge, criminal, foreign firm that has been advising the Department for Work and Pensions on ways to privatise the welfare state since the mid-1990s – a firm so controversial that there is currently a moratorium on the mention of its name in the national mainstream media. It is an American insurance giant called Unum.

The best that can be said of these five corporations is that – at least to the best of our knowledge – they do work for a living.

… In their own interest – not yours.

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Cumulative effect of welfare reform revealed – deprived areas hit much harder than the rich

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allowance, austerity, BBC, business, Centre, close, commission, communities, community, cost, cumulative impact assessment, David Cameron, demonstration, deprivation, deprived, disability, Disability Living Allowance, disability news service, disabled, DLA, DNS, economic, EHRC, employment, equalities, ESA, esther mcvey, financial loss, human rights, IB, Incapacity, Landman Economics, mark hoban, Mike Penning, National Institute, NIESR, Personal Independence Payment, PIP, Reform, Regional Economic, report, Revenue, rich, Sheffield Hallam University, shop, Social Research, social security, spending, support, tax, transparent, travel, viability, welfare

Deprived parts of Glasgow were worst-affected by ‘welfare reform’ according to The Courier [Image: thecourier.co.uk].

The headline should not come as a surprise – of course changes that cut benefits for the poor are going to harm them more than rich people.

But do you remember David Cameron’s claim that his government would be the most transparent ever?

Isn’t it interesting, then, that the independent Equalities and Human Rights Commission (EHRC) has found a way to compile information on the effects of tax, social security and other spending changes on disabled people, after the government repeatedly claimed it could not be done?

It seems Mr Cameron has something to hide, after all.

We already have a taste of what we can expect, courtesy of our friends in Scotland, who commissioned the Centre for Regional Economic and Social Research at Sheffield Hallam University to study the relationship between deprivation and financial loss caused by “welfare reform”.

The study shows that more than £1.6 billion a year will be removed from the Scottish economy, with the biggest losses based in changes to incapacity benefits. The Scottish average loss, per adult of working age, is £460 per year (compared with a British average of £470) but the hardest hit area was impoverished Glasgow Carlton, where adults lost an average of £880 per year.

In affluent St Andrews, the average hit was just £180 per year.

Of course, the cumulative effect will hit the poorest communities much harder – with an average of £460 being taken out of these communities it is not only households that will struggle to make ends meet; as families make cutbacks, local shops and businesses will lose revenue and viability. If they close, then residents will have to travel further for groceries and to find work, meaning extra travel costs will remove even more much-needed cash from their budget.

For a nationwide picture, the EHRC commissioned the National Institute of Economic and Social Research (NIESR) and the consultancy Landman Economics to develop a way of assessing the cumulative impact of “welfare reform”.

The report will be published in the summer, but Landman Economics has already told Disability News Service that the work was “not actually that difficult”.

Why, then have Mark Hoban, Esther McVey and Mike Penning, the current minister for the disabled, all claimed that a cumulative assessment is impossible?

Some might say they have a vested interest in keeping the public ignorant of the true devastation being wreaked on Britain’s most vulnerable people by Coalition austerity policies that will ultimately harm everybody except the very rich.

Some might say this is why the BBC – under the influence of a Conservative chairman – failed to report a mass demonstration against austerity by at least 50,000 people that started on its very doorstep.

Misguided conspiracy theorists, all!

Or are they?

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Labour is following the same plan as England’s football team – to failure

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advisor, Amazon, Apple, benefit, boss, business, child, children, Conservative, Ed Miliband, England, executive, fail, food bank, football, Google, hard on benefits, in-work, income, inequality, Institute, IPPR, Labour, living wage, Mike Sivier, mikesivier, mistake, neoliberal, opportunity, people, photo, policies, policy, politics, poverty, public, Research, schoolboy, scrounger, shareholder, social security, special, tax, The Sun, Vox Political, welfare

Mock sympathy: This is the sort of treatment Ed Miliband can expect from David Cameron if he keeps following policies that are created by the Tory media rather than the needs of the British people.

Labour could be heading for defeat next year, after it set out new policies that have the same chance of success as England’s plan for the 2014 World Cup.

The party put its weight behind a report by the Institute of Public Policy Research (IPPR) that left the public cold. If Labour does not change direction, it seems likely the party will not win the votes it needs to get into office next year – unless its rivals make serious mistakes.

It is a situation almost exactly like that of the England football team.

All right, it’s not a perfect parallel. England got into this fix because it was outplayed by teams with ambitious and flamboyant star players – Balotelli for Italy and Suarez for Uruguay. Labour doesn’t have that problem as the closest equivalent in politics is Nigel Farage.

But, like England, Labour seems unable to defend itself against even rudimentary attacks – partly because leaders have painted themselves into a corner (marked ‘pro-austerity’) and partly because they simply refuse to use the logical arguments. Does anybody remember what a relief it was when, after years of silence in response to Tory claims that Labour caused the financial collapse, Peter Hain finally told Owen Paterson, on the BBC’s Any Questions, “It was the banks that destroyed the economy, not the Labour government – it was the international banking system!”

And where is Mr Hain now? He’s retiring at the next election. The only Labour player who was man enough to fend off this blatantly unreasonable Tory attack and he’s being taken off the field.

Meanwhile, Labour’s leaders continue to make schoolboy mistakes that create the opportunity for the other side to score. Ed Miliband’s publicity-seeking pose with The Sun was a spectacular example; yesterday’s IPPR report was a more subtle one.

The lack of ambition is staggering; it seems that, after four years, the Miliband camp still hasn’t understood that copying Tory austerity will scare voters away. Committing to Tory-imposed constraints that require any new idea to be covered by a cut or a tax increase will just increase the exodus – Labour needs to be ambitious.

Everybody knows now that austerity is nonsense. It’s an excuse to drive money into the hands of those who have too much of it already. After four years of it, we are told that this government is on course to put five million British children in poverty by 2020. Food bank use is at its highest ever. The number of people claiming in-work benefits is at its highest ever because employers refuse to pay a living wage and expect the taxpayer to subsidise them instead; by the time of the 2015 election, working families will be around £2,000 per year worse off than they were in 2010.

You are worse-off under the Tory Coalition. You are worse-off under austerity.

Meanwhile, business bosses and shareholders have been having a spectacularly good time, with incomes skyrocketing. There’s no austerity for the One Per Cent!

Indeed, income inequality has increased hugely to place the UK seventh on the international table, behind the USA (fourth) and Chile (first) – and we all know that Tory neoliberals are huge fans of the systems in those two countries.

What are the wealthy doing with all the money they have parasitised from the rest of us?

Well, they’re not using it to pay their taxes, that’s for sure!

One of the main plans put forward in Labour’s IPPR report was to save money by means-testing benefits for 100,000 young people – saving £65 million. That’s a pittance compared to the £600 million in taxes that is being withheld by Google, Amazon and Apple, according to an infographic that’s currently doing the rounds.

Labour is very quiet about that – copying the Tory attitude of diverting people with stories about welfare abuses because Miliband’s know-nothing advisors think being “hard on benefits” is popular with the public, who don’t like “scroungers”.

They’re not intelligent enough to understand that this attitude has been carefully nurtured in the public consciousness by a right-wing, Tory-controlled media. It has nothing to do with reality, in which only a tiny minority of people are in fact defrauding the taxpayer out of benefit money. Lord Fraud – sorry, Freud – was taken to task for this only days ago.

It seems that – like England’s football team – the Labour Party has been off chasing a fantasy. Austerity and the persecution of people on benefits (most of whom are entirely deserving of them, plus massive amounts of compensation for the despicable way they have been treated for the past few years) are Conservative-created blind alleys. In politics, you don’t oppose anybody by copying them.

If Labour concentrated on the real causes of Britain’s problems, the party might have a hope of success.

Otherwise, like the England team, Labour will have to be content with hoping that the Tories make a big mistake.

And, like the England team, they are most likely to learn that this is not good enough.

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Assembly member lives on benefits to experience the effects of ‘welfare reform’

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The day job: Rebecca Evans AM in the more familiar environment of the Assembly debating chamber [Image: ITV].

I wanted to share this with you because, as a constituent and a member of the Labour Party, I’m quite proud of Mid and West Wales Labour AM Rebecca Evans, who spent a week living on an amount equivalent to Jobseekers’ Allowance and discussing ‘welfare reform’ with people who deal with its effects on a day-to-day basis, to find out what it is like.

She wrote an article about her experience for Wales Online which I am taking the liberty of excerpting here. Over to you, Rebecca:

With the average household in Wales expected to lose 4.1 per cent of their income due to policy changes, support is vital for those living on the poverty line.

Although people are understandably cynical when politicians attempt to live life on the breadline, I wanted to raise awareness of the challenges facing welfare claimants and gain a better understanding of how well understood the changes are.

Living off £72.40 for one week, I did not expect to truly experience the day-to-day life of people who rely on welfare support. I was aware that when Monday came around I would step back into my normal routine. But I wanted to experience at least some of the challenges and difficult decisions facing many thousands of people every day.

The Your Benefits are Changing money advice team calculated that the average weekly expenditure for someone living off Jobseeker’s Allowance in my home area of Carmarthenshire leaves just £13.58 for food and essentials once transport costs, utilities, the TV licence, phone bills and the bedroom tax have been paid – which equates to less than £2 a day.

On this income, any trip to the supermarket becomes a stressful task as every single penny matters.

When speaking with job seekers, food bank volunteers, YBAC money advisors and housing association staff and tenants during the week, the message was the same: people are struggling and many have had their lives irrevocably damaged by welfare policies.

The Bedroom Tax has had a serious impact on thousands of people across Wales, and the shortage of suitable housing has only enhanced poverty levels. Brought in as part of the Welfare Reform Act… the policy is estimated to have affected 36,000 tenants in the social housing sector, including 3,500 disabled households. As a direct result… housing association tenants accrued £1.1 million in arrears during the first six months.

Housing associations are rightly concerned that a move to monthly payments will prove incredibly challenging for those on low incomes, leading to an increase in the number of people that turn to emergency food supplies.

A YBAC money advisor told me food poverty levels can be worse for people who live on housing estates because they may only have one shop within walking distance, and that shop may have limited discounts. Food prices have risen by 12 per cent since 2007, so it is no surprise 900,000 people across the UK have turned to food banks in the past year… but the fact that we need food banks in 21st never ceases to be shocking.

The families I met during my week on benefits rely on second hand clothes and goods, and rarely buy anything new – let alone any kind of treats. They try to put aside £20 a week, but unexpected emergencies leave them unable to save.

A YBAC money advisor told me that around a quarter of people seeking advice are actually in work, and that the majority of children in poverty live in a household where one adult works. One mum with a young baby told me that her husband is on a zero-hour contract, meaning that the family can’t plan financially with any certainty.

This smashes the myth that welfare reform is all about supporting the unemployed back to work.

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How do we wrestle fairness from a rigged economic system?

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The problem in a nutshell – and this cartoon was drawn in 1972! [Image: Alan Hardman]

It’s terrific when an article makes you think.

Why Capitalism needs unemployment, by Cheltenham & Gloucester Against Cuts, tells us that unemployment is used as a weapon against the workers – with the threat of it used to force pay cuts on employees, while we are told to fear inflation if unemployment falls.

So fatcat company bosses win either way, it seems.

The article commented on Margaret Thatcher’s ideological mentor, Milton Friedman, who “understood that low levels of unemployment give confidence to workers, who can fight for better pay and conditions. When they’re successful, the profit margins of capitalists are reduced, causing them to put their prices up in response“.

We know this happens; we have seen it many times. Some may argue that it is different from cases in which shortages of particular commodities push up their prices and the prices of products that are made from them – but, with fuel prices as the only notable exception, have you ever seen prices drop after these shortages end?

The system is rigged to ensure that working people stay poor, either through pay cuts during high unemployment or inflation in low unemployment; meanwhile the employers and shareholders ensure that they stay rich, by sharing out extra profits gained by keeping pay low or by putting up prices.

What do they do with this money?

The answer, it seems, is nothing. They bank it in offshore tax havens and leave it there. This is why, we are told, Britain’s richest citizens have more than £20 trillion banked offshore at the moment.

That’s more than £20,000,000,000,000! Enough to pay off this country’s national debt 18,000 times over and still have plenty to spare. Enough to solve the problems of the world, forever. It is, in fact, more money than we can comfortably imagine.

It is doing nothing.

Faced with this knowledge, there can only be one logical question: Why?

Why rig the system so that ever-larger sums of money pour into these offshore accounts, if nothing is to be done with it? Where is the sense in that?

The only logical answer appears to relate to its effect on workers: Keeping the profits of their work away from the workforce means they are kept in misery and servitude to the ruling classes – the parasitical board members and shareholders.

There are knock-on effects. Taxpayers are hit twice – not only are they forced to grapple with ever-more-hostile pay offers, but their taxes pay for in-work benefits that subsidise corporate-imposed pay levels; they support people who have been forced into unemployment unnecessarily and the silly make-work schemes that are forced on those people by the Department for Work and Pensions, under threat of sanction.

It’s a protection racket. There should be a law against it. And this begs the next question: Why isn’t there a law against it? How can this corrupt system be dismantled and what should replace it?

That’s a very good question, because the other cosh being held over our collective heads is the possibility that firms will move abroad if new laws in this country threaten their massive profits. This is where an international agreement between nations or groups of nations would be very useful, if it was carried out in the right way – a Transatlantic, or Trans-pacific, Trade and Investment Partnership, perhaps.

And what do we see? Plans for such agreements have been put together and they do the exact opposite of what they should – tying the workers into ever-worsening conditions. This is why the TTIP, currently being pushed on the European Union, must be rejected – and why bosses will do anything to ensure it succeeds.

This is the situation. It seems clear that nothing will change it for the better until somebody has the courage to stand up to these manipulators (who were probably schoolyard bullies back in the day) and say enough is enough; change is coming – do what you will.

Tax evasion and avoidance is already a huge issue here in the UK; perhaps we need to make a criminal offence of manipulating the economy – with prison sentences for bosses who put their prices up purely to retain high profit margins when their salaries are already dozens of times higher than those of their workers.

But what else is needed? How can such a mechanism be brought in without scaring off business? Or should we let them go, and put something fairer in their place? Ban them from trading in the UK unless they conform to the new model?

These are ideas that need exploration – by many people, not just a few.

What do you think should happen?

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Cameron’s comedy turn won’t make anybody happy

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David Cameron should be very happy that UKIP is around to make him look acceptable.

We can’t ever say he’ll look good, but in contrast to the ‘Farage wave’, the spectacle of UKIP being thrown out of the venue where it was supposed to be launching its European election campaign, and the never-ending queue of candidates who are desperate to embarrass themselves publicly – what’s the latest one? “Women should be made to wear skirts because they’re a turn-on for men”? Ye gods… – it’s easy to think that the Conservatives are mild, or at least rational.

They’re not.

But Cameron was keen to project an image of competence at the Conservatives’ campaign launch for the local council elections. This is strange because, with his record of achievement, the things he was saying seem more like stand-up comedy than serious statements of ability.

Try this, about the European Union: “I have a track record of delivery – and believe me, whatever it takes, I will deliver this in-out referendum.” A track record of delivery? Well, yes. He delivered a top-down reorganisation of the NHS that nobody wanted, leading to an inrush of private health companies into the NHS – that nobody wanted. He has delivered the lowest amount of house-building, per year, since records began. He has delivered a withered economic ‘recovery’ that arrived three years later than if he had continued with the plan of the previous, Labour, government. He has delivered all the benefits of that ‘recovery’ to the extremely rich, rather than sharing it equally with the people responsible for it. And he has delivered a new high in employment, with no economic benefit to the country, that has left workers on wages that are so low they are going into debt.

He delivered the bedroom tax.

He delivered a massive increase in the National Debt.

He delivered millions of people into poverty and food bank dependence.

Ha ha ha. Very funny, Mr Cameron.

He told us, “People said I would never veto a European treaty. In 2011 that’s exactly what I did.” Well, yes. But the rest of Europe just went right ahead and carried on without you. You marginalised Britain as a member of the EU and made us a laughing-stock in the eyes of the world.

Ha ha ha. Very funny, Mr Cameron.

“We came through the great recession together; we are building the great British revival together,” he said. But he can’t say that to the many thousands of people who used to be claiming sickness and disability benefits but aren’t anymore because they are all dead. They didn’t come through the great recession. Cameron cut off their means of survival, forcing them into situations in which their health was allowed to worsen until their conditions overwhelmed them, or their situation induced such huge bouts of depression that they took their own lives.

Ha h- no. That’s not funny, Mr Cameron.

“The job is not done. If you want to finish the job we have started, back the party with a plan,” he said. Well, no. The Conservative plan (such as it is) will destroy your employment rights, scrap the welfare state, maintain a huge underclass of unemployed people to use as fodder for work-for-your-benefit schemes (a contradiction in terms if ever there was one) to circumvent the minimum wage, and to claim credit for successes that aren’t theirs.

There is only one reason to support the Conservative Party in this – or any other election.

That is if there is only one other political party on the ballot paper – and that party is UKIP.

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