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Government’s ‘troubled families’ programme is failing; we knew it would

16 Monday Jun 2014

Posted by Mike Sivier in Children, Conservative Party, Crime, Education, Employment, People, Politics, UK

≈ 16 Comments

Tags

2011, authorities, authority, benefit, betray, big, broken, business, Coalition, commodities, commodity, company, Conservative, corporation, council, crime, criminal, David Cameron, disposable, drug, employment, exploit, firm, FOI, Freedom of Information, government, Hilary Benn, Interest, job, local, Louise Casey, Mike Sivier, mikesivier, money, MP, people, politics, power, private, privilege, re-balance, responsibility, rich, riot, school, social security, society, summer, Tories, Tory, troubled families, truant, unemployment, unequal, Vox Political, wealth, welfare, work, Work Programme


[Image: historyextra.com]

[Image: historyextra.com]

Remember back in April last year, when Vox Political said the Coalition government’s plan to stop children in ‘troubled’ families from playing truant, while finding work for the adults and stopping both from committing crime, was doomed to failure?

If you don’t, it’s not surprising (our readership back then was around a quarter of its current level) – and you haven’t missed much, because the scheme is back in the news as it is (again, unsurprisingly) failing.

The VP article pointed out that the government had been fiddling the figures in its bid to make it seem that 120,000 such families exist in the UK; in fact, “the number came from Labour research on disadvantaged families with multiple and complex needs, rather than families that caused problems,” according to ‘trouble families tsar’ Louise Casey at the time.

The article pointed out that local councils, offered a £4,000 bonus for each ‘troubled’ family they identified and helped (for want of a better word) were shoehorning families into the scheme – whether they qualified or not – just to make up the numbers.

It was doomed from the start.

So today we have figures obtained by Labour’s Hilary Benn, showing that around 106,500 families have been identified for the scheme (according to averages worked out from councils that responded to a Freedom of Information request). Of these, only around 35,500 were engaged by the scheme, which then failed in three-quarters of cases (around 26,600 families).

That leaves 8,878 families who actually came back to the straight-and-narrow – less than one-thirteenth of the target figure.

A success rate this low could have been achieved if the government had done nothing.

(That seems to be a running theme with the Coalition. What else does it remind us of? Ah, yes… The Work Programme. In this context it is extremely interesting that Mr Benn said the biggest obstruction to the scheme was the Work Programme’s failure “to deliver jobs to the poorest people in society”.)

According to The Guardian, “Data from 133 councils out of the 152 participating in the scheme found that almost one in seven families that had been “turned around” were either still on drugs, had children missing from school or involved in criminal acts.

“Another 60 per cent of households deemed to have been successfully helped by the scheme in March still had adults on unemployment benefits after leaving the programme.”

Bearing in mind the £4,000 ‘carrot’ that was waved in front of councils as encouragement for them to take part, you’ll enjoy the revelation that each local authority claimed to have found an average of 812 troubled families – 20 per cent more than central government had estimated.

Again, this is hardly surprising. Government-imposed council tax freezes have starved local authorities of money and £4,000, multiplied by 812, brings an average of £3,250,000 into each local authority that they would not, otherwise, have had.

So much for David Cameron’s plan to “heal the scars of the broken society”.

The Guardian also tells us that the ‘troubled families’ programme was launched by Cameron as a Big Society (remember that?) response to the riots of summer 2011.

In fact it doesn’t matter what the Coalition government does – or, indeed, what Labour plans to do if that party comes into office in 2015; schemes that are imposed on people from above will never succeed.

The problem is that the United Kingdom has become an increasingly unequal society, with money and privilege bled out of the majority of the population (who do most of the work for it) and into the hands of a very small number who have power and – it seems – no responsibility at all.

The vast majority of us are seen as disposable commodities by these exploiters – whose number includes a large proportion of MPs with interests in private business; they use us to make their huge profits and then throw us into unemployment.

Is it any wonder that such betrayal breeds families that turn away from the system and take to crime instead?

When David Cameron slithered into Downing Street he said he wanted to “re-balance” society. In fact, he over-balanced it even more in favour of privilege and wealth.

Now we need a proper re-balancing of society. The only way to solve the problem of ‘troubled families’ – a problem said to cost us £9 billion every year, by the way – is for people to be born into a society where everybody is valued and receives a fair (in the dictionary sense of the term, rather than the Conservative Party definition) reward for their contribution.

That will mean a fundamental shift in attitudes that should be taught to everybody from the cradle upwards.

You won’t get it under the Conservatives or any other right-wing government because they are exploiters by definition.

Will you get it under Labour?

Possibly. But a lot of right-wing Blairite dead wood will have to be cleared out first, and Hilary Benn is not the man his father was.

Follow me on Twitter: @MidWalesMike

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How national cuts are crippling local services

06 Thursday Feb 2014

Posted by Mike Sivier in Benefits, Cost of living, Economy, Employment, Health, Housing, Immigration, Justice, Law, People, Politics, Poverty, Powys, Public services, UK

≈ 10 Comments

Tags

AEG, Aggregate External Grant, austerity, authority, benefit, CAB, Chancellor, change.org, Citizens Advice Bureau, Coalition, Conservative, consult, council, county, cut, debt, deficit, Democrat, employment, Exchequer, George Osborne, government, health, housing, Lib Dem, Liberal, local, Mike Sivier, mikesivier, national, National Health Service, NHS, people, petition, politics, Powys, public, puppet, subsidy, survey, Tories, Tory, unfair dismiss, Vox Political, Westminster


140206crippling

How many more underhanded ways can our underhanded Coalition government find to sneak crippling damage to public services in by the back door?

A particularly vile method has just been uncovered here in my own county of Powys, involving the collusion of councillors who are supposed to be independent (but you will see that their political colours are more blue than anything else).

The Coalition government has cut back its Aggregate External Grant to local authorities for next year – its subsidy to councils – by many millions of pounds. This means that councils need to cut huge sums of money from their budgets if they are to balance their books. In Powys, the total that must go is £20 million – around one-eleventh of the total budget.

The council launched a public consultation, asking residents for their views on which services should be cut and giving (in the broadest possible terms) examples of areas that could be changed. The total amount to be saved if constituents agreed to all the cuts was £16 million, with the rest to be taken from reserves – so there was no way to balance the books without making all the cuts listed in the document.

Hardly anybody was made aware of the survey in advance, and many have complained that they only found out about it after it had ended.

One of the “possible” cuts listed was to the Citizens Advice Bureau in Powys. The consultation document said all funding to advice services (£93,500 to the CAB, £36,500 to independent centres) would be cut, with alternative funding found from other budgets. This proved untrue.

As a trustee of the Powys CAB, I was told this week that the county council has no other budget that could be used, and that the intention is to cut the money no matter what the public consultation shows.

This means citizens advice services in Powys would be wiped out from the beginning of April.

You might think that’s not the end of the world. After all, who takes advantage of the services provided by this charity anyway – a few people with benefit problems and a few more who are in debt?

Wrong! Thousands of people go to Citizens Advice every year – and the numbers are increasing exponentially because of Tory and Liberal Democrat “savings” that were inflicted without consideration of the true cost on real people in our communities.

Not only will those seeking help with benefit entitlement and debt have nowhere to go, but those seeking advice because they are unemployed, have been unfairly dismissed, have housing concerns and the full range of advice that CAB provides through its proven quality advice will also have to struggle on their own.

There is a proven benefit to individuals’ health through the provision of advice; that’s why advice in Powys is provided through a number of GP surgeries. But that too will end, putting a greater burden on the National Health Service here in Wales (which is already under attack from the Tories in Westminster).

CAB brings millions of pounds into the county through ensuring benefit entitlement; there is also a considerable sum gained through renegotiated debts – the total comes to more than £11 million per year. This money benefits everyone in the Powys economy as it has been shown that it is generally spent locally – so there is a fiscal multiplier that can be added to it, meaning the total boost to the Powys economy could be as much as £20 million.

That’s the same amount as the county council wants to take out of the economy by cutting its budget. The total loss may therefore be said to be almost £40 million, just because a cut of less than £100,000 has been included in the council’s plans – 1/200 of the total amount of cuts.

If there is a similar knock-on effect attached to all the other cuts, the effect will be devastating.

You may think that it would be easy to seek advice elsewhere, but the nearest alternative bureaux are around 100 miles from the centre of Powys, in any direction – and they are already overburdened with their own clients.

You might think that councillors should be able to provide the necessary advice (especially considering they want to cut off the current source). Could you provide the kind of specialist expertise necessary to deal with difficult legal issues? No? Then you should not expect your councillors to manage it – they are lay people like yourself; they don’t have any training in these matters.

A petition has been launched to stop the county council from withdrawing its funding. If you are a Powys resident, I strongly urge you to sign it and ask your friends to sign as well. If you can’t be bothered, just ask yourself who will help you when the Coalition turns the screw again and you are the victim of its attack.

If you are not a Powys resident, consider this to be a warning. Is your own council planning to cut services? Will it launch a public consultation on what will go? And will that be as much a sham as the survey in Powys seems to have been?

Here’s the link: http://www.change.org/en-GB/petitions/powys-county-council-do-not-withdraw-any-grant-funding-to-powys-citizens-advice-bureau?share_id=annKPtMTpV&utm_campaign=signature_receipt&utm_medium=email&utm_source=share_petition

Above all, remember: This would not be happening if not for the Coalition government’s crippling programme of austerity-driven cuts which have had almost no effect in reducing the national deficit, even though we are told that is what it is for.

With its AEG, the government controls councils’ spending. Your local authorities are being used as puppets by the Westminster government, who can then wash their hands of the whole affair by saying the decisions were made elsewhere. And for what?

The deficit has dropped by a total of seven billion pounds – from £118 billion to £111 billion – in the time George Osborne has been Chancellor of the Exchequer.

You are suffering all the pain for absolutely no gain at all.

Why are you putting up with it?

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Manifestly inadequate again: Coalition cuts support for discretionary housing payments

31 Friday Jan 2014

Posted by Mike Sivier in Bedroom Tax, Benefits, Conservative Party, Cost of living, Housing, People, Politics, Poverty, Tax, UK

≈ 8 Comments

Tags

authorities, authority, BBC, bedroom tax, benefit, benefit cap, benefits, Coalition, Conservative, council, Council of Europe, Democrat, Department, DHP, discretionary housing payment, DWP, family, general election, government, housing benefit, Incapacity, income, Lib Dem, Liberal, local, local housing allowance, manifestly inadequate, Media, Mike Sivier, mikesivier, one per cent uprating, pension, Pensions, people, politics, social security, Tories, Tory, unemployment, Vox Political, welfare, work


Bedroom tax victim: Stephanie Bottrill, the woman who committed suicide after the Bedroom Tax - imposed on her in error - left her without enough money to make ends meet.

Bedroom tax victim: Stephanie Bottrill, the woman who committed suicide after the Bedroom Tax – imposed on her in error – left her without enough money to make ends meet.

The spin doctors at the Department for Work and Pensions are working hard to make a decision to cut funding for discretionary housing payments, by claiming it “builds on the £180 million funding this year”. What a crock.

A cut is a cut. There will be less money available to people in financial trouble as a result of government decisions to cut housing benefit (the Bedroom Tax) or other state benefits (the one per cent uprating, the benefit cap, local housing allowances… pick a benefit and it will probably have been slashed).

The announcement was made yesterday (Thursday), and councils have until Monday (February 3) to bid for top-up funds if they need to provide extra support. How nice of the Conservative ministers at the DWP to put a weekend in the middle of the time councils must use to work out what they need! Hopefully, councils already have the figures ready but, if not, it’s clear that the government wants to make the process as difficult as possible – for councils and for people who need help.

So councils will get £165 million in place of the £180 million they had last year – an amount that, itself, was attacked as far too little by councillors at the time. It was, as the Council of Europe has described the government’s supply of other benefits including pensions, unemployment benefit and incapacity benefit, “manifestly inadequate”.

But let’s get back to the spin. The DWP press release states that local authorities are getting the money “to provide extra help for claimants as they move through the government’s welfare reforms”. This avoids the fact that people would not need “extra help” if the government had not imposed these regressive changes in the first place. And they’re not “reforms”. Reform takes us forward. These are just cuts.

“The reforms [cuts] are a key part of the government’s long-term economic plans [cuts] to deliver a strong economy [based, as we know, on a debt-fuelled housing bubble centred on the southeast of England alone] that delivers for people who want to work hard [for extremely low pay] and play by the rules [that are made up by Coalition ministers as they go along].

Work and Pensions Minister Esther McVey said: “Capping benefits is returning fairness to the welfare system and reform of the spare room subsidy is absolutely necessary to make a better use of our social housing when over 300,000 are living in overcrowded homes in Britain and around 1.7 million are on social housing waiting lists in England alone.”

The phrase “capping benefits is returning fairness to the welfare system” is inaccurate as the cap is set too low. The government claimed an average family income is £26,000, but in fact it is slightly more than £31,000. The reason the cap was set at the lower figure is that, at the more appropriate amount, hardly anybody would be affected; the system was fair before the Coalition interfered. Also, the UK has social security, not welfare.

The phrase “reform of the spare room subsidy” is redundant, of course. She meant: “Our arbitrary choice to cut housing benefit – illegally, in many thousands of cases“. In fact, let’s edit out “spare room subsidy” from the rest of our analysis and call it what it is.

She continued: “We are ensuring all working age tenants are treated equally – as claimants receiving housing benefit in private sector already receive support for the number of bedrooms they need and not for spare rooms.” Is that so? How many private sector tenants have been hit by their own bedroom tax in the same way? Is there not a difference in income between private renters and those in social housing? Where are the figures to support this claim?

According to the press release, an advertising campaign was launched in the local papers this week, “to ensure claimants affected by the [Bedroom Tax] are fully aware of the support available to them from Discretionary Housing Payments, home swapping services or to get into work”. I just checked my own local papers…. No. Nothing.

The press release ends with a couple of long-demolished assertions. Neither of these are factually accurate:

“The removal of the [Bedroom Tax] means all working age housing benefit claimants in both social and private rental sectors receive support for the number of bedrooms they need – but not spare rooms.” Wrong. It removes support on an entirely arbitrary basis, according to whether an assessor decides a tenant has a spare bedroom – without reference to any definition of the word “bedroom”. Now, a judge in an Upper Tribunal case has determined that a “bedroom” must be one furnished with a bed and/or used for sleep. In addition, the use of the word “all” for affected housing benefit claimants is inaccurate because those who were in their current accommodation and receiving the benefit before 1996 are exempt from the Bedroom Tax. Many thousands were billed in error and at least one person is known to have committed suicide because of that mistake. That unnecessary death is one of many for which the Coalition government, and the DWP in particular, is responsible.

The other false assertion – that “the benefit cap means claimants no longer receive more in benefits than average household earnings” – has already been dismissed elsewhere in this article.

Keep your wits about you.

The government will continue pumping out this kind of disinformation in support of its ever-more repressive policies – remember, this announcement states that it is cutting the money available for discretionary housing payments (DHPs) – and the right-wing-controlled mass media, including the BBC, will keep on mindlessly repeating it until the general election at least.

That is why sites like Vox Political need to keep reinforcing the facts as they become clear – and why you need to spread those facts, any way you can.

Don’t let them win this battle with lies.

Vox Political opposes the Bedroom Tax.
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Divisions in Coalition as MPs demand independent inquiry on poverty

14 Tuesday Jan 2014

Posted by Mike Sivier in Bedroom Tax, Benefits, Children, Cost of living, Democracy, Economy, Employment, European Union, Food Banks, Health, Housing, People, Politics, Poverty, Public services, Tax, UK, Workfare

≈ 60 Comments

Tags

absolute, allowance, austerity, authorities, authority, avoid, bank, bed, bedroom tax, benefit cap, breakfast, capital gains, Chancellor, child, children, Coalition, commission, Conservative, council tax, cut, Daily Mail, David Nuttal, David Taylor-Robinson, David TC Davies, debt, deficit, delay, Democrat, Department, dependency, destitute, domestic, DWP, eastern, economy, electricity, employment, ESA, EU, Europe, european union, evade, evasion, export, families, family, food bank, gas, George Osborne, Gordon Brown, growth, health, homeless, housing benefit, Iain Duncan Smith, immigration, income, industry, infrastructure, inquiry, interview, investment, Jacob Rees-Mogg, Jeremy LeFroy, job, Jobseekers, John Hemming, John Major, joseph rowntree foundation, JSA, Labour, Lib Dem, Liberal, local, malnutrition, Margaret Thatcher, Michael Meacher, minimum wage, mistake, payment, Pensions, poverty, public, Red Cross, regulation, retired, Ronnie Campbell, rule, sanction, Sir Peter Bottomley, social security, spending, Steve Rotheram, Sunday Times, support, tax, Tony Blair, Tories, Tory, Trussell Trust, utility, violence, welfare, work, Work Programme, Workfare, workless


130617childpoverty

Calls for a ‘commission of inquiry’ into the impact of the government’s changes to social security entitlements on poverty have won overwhelming support from Parliament.

The motion by Labour’s Michael Meacher was passed with a massive majority of 123 votes; only two people – David Nuttall and Jacob Rees-Mogg – voted against it.

The debate enjoyed cross-party support, having been secured by Mr Meacher with Sir Peter Bottomley (Conservative) and John Hemming (Liberal Democrat).

Introducing the motion, Mr Meacher said: “It is clear that something terrible is happening across the face of Britain. We are seeing the return of absolute poverty, which has not existed in this country since the Victorian age more than a century ago. Absolute poverty is when people do not have the money to pay for even their most basic needs.”

He said the evidence was all around:

  • There are at least 345 food banks and, according to the Trussell Trust, emergency food aid was given to 350,000 households for at least three days in the last year.
  • The Red Cross is setting up centres to help the destitute, just as it does in developing countries.
  • Even in prosperous areas like London, more than a quarter of the population is living in poverty.
  • According to the Joseph Rowntree Foundation, for the first time, the number of people in working families who are living in poverty, at 6.7 million, is greater than the number of people in workless and retired families who are living in poverty, at 6.3 million.
  • Child poverty will rise from 2.5 million to 3.2 million during this Parliament, around 24 per cent of children in the UK. By 2020, if the rise is not stopped, it will increase to four million – around 30 per cent of children in the UK.
  • The use of sanctions depriving people of all their benefits for several weeks at a time, had increased by 126 per cent since 2010 and 120 disabled people who had been receiving jobseeker’s allowance had been given a three-year fixed duration sanction in the previous year.
  • There are now more than 2,000 families who have been placed in emergency bed-and-breakfast accommodation after losing their homes.
  • The per cent rise in the overall homelessness figures last year included nearly 9,000 families with children, which is the equivalent of one family losing their home every 15 minutes.
  • A third of families spent less than £20 a week on food and that the average spend on food per person per day was precisely £2.10. That is a third less than those families were able to afford three months before that.
  • The proportion of households that had to make debt repayments of more than £40 a week had doubled and the average level of debt was £2,250.
  • A third of families had council tax debt.
  • 2.7 million people had lost out through the Government’s changes to council tax benefit – many of them disabled people, veterans and some of the most vulnerable in our communities.
  • Households were having to spend 16 per cent more on gas and electricity.
  • There are 2.5 million people who have been unemployed for the best part of two years, and there were 562,000 vacancies when the debate took place (Monday), so four out of five of those who are unemployed simply cannot get a job whatever they do.
  • Cuts to local authorities mean many home care visits are limited to 15 minutes.
  • The 10 per cent of local authorities that are the most deprived in the country face cuts six times higher than those faced by the 10 per cent that are the most affluent.
  • 60 per cent of benefit cuts fall on those who are in work.

Mr Meacher said the biggest cause of absolute poverty was the huge rise in sanctioning, often for trivial reasons such as turning up five minutes late for a job interview or the Work Programme:

  • A dyslexic person lost his Jobseekers Allowance because his condition meant that in one fortnightly period he applied for nine jobs, not 10. He was trying to pay his way and already had work, but it provided only an extremely low income.
  • The jobcentre didn’t record that a claimant had informed them that he was in hospital when he was due to attend an appointment and he was sanctioned.
  • A claimant went to a job interview instead of signing on at the jobcentre because the appointments clashed – and was sanctioned.
  • A claimant had to look after their mother who was severely disabled and very ill – and was sanctioned.
  • A Job Centre sent the letter informing a claimant of an interview to their previous address, despite having been told about the move. The claimant was sanctioned.
  • A claimant was refused a job because she was in a women’s refuge, fleeing domestic violence and in the process of relocating, but I was still sanctioned.

Mr Meacher also quoted what he called a classic: “I didn’t do enough to find work in between finding work and starting the job.”

The latest DWP figures suggest that more than one million people have been sanctioned in the past 15 months and deprived of all benefit and all income. “Given that the penalties are out of all proportion to the triviality of many of the infringements, and given that, as I have said, four out of five people cannot get a job whatever they do, the use of sanctioning on this scale, with the result of utter destitution, is — one struggles for words — brutalising and profoundly unjust,” said Mr Meacher.

Other reasons for the rise in absolute poverty included:

  • Delays in benefit payments.
  • The fact that it is impossible for many poor and vulnerable people to comply with new rules – for example a jobseeker who asked to downsize to a smaller flat who was told he must pay two weeks’ full rent upfront before getting housing benefit. He does not have the funds to do so and is stuck in a situation where his benefits will not cover his outgoings due to the Bedroom Tax.
  • The Bedroom Tax, which applies to around 667,000 households, and two-thirds of those affected are disabled. More than 90 per cent of those affected do not have smaller social housing to move into.
  • The Benefit Cap, imposed on a further 33,000 households.
  • Mistakes by the authorities; up to 40,000 working-age tenants in social housing may have been improperly subjected to the Bedroom Tax because of DWP error (although Iain Duncan Smith claims a maximum of 5,000).

Mr Meacher said: “The Chancellor’s policy of keeping 2.5 million people unemployed makes it impossible for them to find work, even if there were employers who would be willing to take them, and the 40 per cent success rate of appeals shows how unfair the whole process is.”

Responding to a comment from David TC Davies (Conservative) that those who are not looking for work must realise there will be consequences, particularly when a million people have been able to come to the UK from eastern Europe and find work, Mr Meacher said, “Those who come to this country are more likely to be employed and take out less in benefits than many of the indigenous population.”

He asked: “Is all this brutality towards the poor really necessary? Is there any justification in intensifying the misery, as the Chancellor clearly intends, by winding up the social fund and, particularly, by imposing another £25 billion of cuts in the next Parliament, half of that from working-age benefits?

“After £80 billion of public spending cuts, with about £23 billion of cuts in this Parliament so far, the deficit has been reduced only at a glacial pace, from £118 billion in 2011 to £115 billion in 2012 and £111 billion in 2013. Frankly, the Chancellor is like one of those first world war generals who urged his men forward, over the top, in order to recover 300 yards of bombed-out ground, but lost 20,000 men in the process. How can it be justified to carry on imposing abject and unnecessary destitution on such a huge scale when the benefits in terms of deficit reduction are so small as to be almost derisory?”

Suggested alternatives to the punitive austerity programme of cuts came thick and fast during the debate. Challenged to explain what Labour’s Front Bench meant by saying they would be tougher on welfare than the Tories, Mr Meacher said: “As the shadow Chancellor has made clear on many occasions, is that we need public investment. We need to get jobs and growth. That is the alternative way: public investment in jobs, industry, infrastructure and exports to grow the real economy, not the financial froth, because that would cut the deficit far faster than the Chancellor’s beloved austerity.”

He asked: “How about the ultra-rich — Britain’s 1,000 richest citizens — contributing just a bit? Their current remuneration — I am talking about a fraction of the top 1 per cent — is £86,000 a week, which is 185 times the average wage. They received a windfall of more than £2,000 a week from the five per cent cut in the higher rate of income tax, and their wealth was recently estimated by The Sunday Times at nearly half a trillion pounds. Let us remember that we are talking about 1,000 people. Their asset gains since the 2009 crash have been calculated by the same source at about £190 billion.

“These persons, loaded with the riches of Midas, might perhaps be prevailed upon to contribute a minute fraction of their wealth in an acute national emergency, when one-sixth of the workforce earns less than the living wage and when one million people who cannot get a job are being deprived of all income by sanctioning and thereby being left utterly destitute.

“Charging the ultra-rich’s asset gains since 2009 to capital gains tax would raise more than the £25 billion that the Chancellor purports to need. I submit that it would introduce some semblance of democracy and social justice in this country if the Chancellor paid attention to this debate and thought deeply about what he is doing to our country and its people.”

Ronnie Campbell (Blyth Valley, Lab) suggested that the Government might save a lot more if its members “showed the same energy and enthusiasm for getting those who evade their taxes and run to tax havens as they do for going after the poor, the sick and people on the dole”.

Against this, David TC Davies offered insults and distortions of the facts, quoting the Daily Mail as though it provided an accurate account of current events: “Members of the shadow Cabinet might need a boxing referee to sort out their disputes at the moment, as we read today in the Daily Mail.”

He said: “We took office with a deficit of £160 billion and a debt that was rising rapidly to £1 trillion. That was after years of overspending in good times, as well as in bad, by Labour, a cheap money supply and lax banking regulation under the former Government.” Labour’s spending, up until the financial crisis, was always less than that of the previous Conservative administration; Gordon Brown and Tony Blair both ran a lower deficit than John Major and Margaret Thatcher, and at one point actually achieved a surplus, which is something that the Conservatives had not managed in the previous 18 years. While Mr Davies here complained about the “lax banking regulation”, Conservatives supported it at the time and in fact demanded more DE-regulation, which would have made the financial crisis worse when it happened.

“We had disastrous economic decisions, such as that to sell gold at a fraction of its real rate,” said Mr Davies. Yes – the UK lost around £9 billion. But compare that with the disastrous economic decision by George Osborne to impose more than £80 billion worth of cuts to achieve a £7 billion cut in the national deficit. The UK has lost £73 billion there, over a three-year period.

And Mr Davies said: “Worst of all and most seriously, we had a welfare system that allowed people to get into a trap of welfare dependency, leaving them on the dole for many years, but at the same time filling the consequent gap in employment by allowing mass and uncontrolled immigration into this country, which completely undercut British workers.” The first assertion is simply untrue; the second is a legacy of previous Conservative administrations that agreed to the free movement of EU member citizens, meaning that, when the eastern European countries joined in 2004, citizens migrated to the UK in the hope of a better life. Labour has admitted it should have negotiated for a delay in free movement until the economies of those countries had improved, making such migration less likely, but the situation was created before Labour took office.

Challenged on the Coalition’s record, Mr Davies fell back on the Tories’ current trick question, which is to counter any criticism by asking: “Is he suggesting that we are not doing enough to pay down the national debt? Is he suggesting that we should cut further and faster? If so, and if we had the support of other Opposition Members, that is exactly what the Government could do and, indeed, possibly should do. I look forward to seeing that support for getting the deficit down.” This disingenuous nonsense was batted away by Labour’s Hugh Bayley, who said “investing in the economy, creating jobs and thereby getting people off welfare and into work” was the way forward.

Mr Davies’ Conservative colleague Jeremy Lefroy took a different view, agreeing that increasing numbers of people are finding it impossible to make ends meet, and that job creation and apprenticeships were a better way out of poverty than changing the social security system alone. He agreed that sanctions were applied to his constituents “in a rather arbitrary manner”. He spoke against George Osborne’s suggested plan to remove housing benefits from people aged under 25, saying this “would have a drastic impact on young people who need to live away from home and who have no support from their families”. He spoke in favour of councils increasing their housing stock. And he admitted that disabled people faced severe problems when unfairly transferred from ESA to JSA: “A lady in my constituency says, ‘I am simply not fit for work, but by signing on for JSA I have to say that I am available and fit for work.’ She does not want to tell a lie.”

Steve Rotheram (Liverpool Walton, Labour) spoke powerfully about the effect of being on benefits: “Lots of people in my city are on benefits for the very first time. Far from being in clover — it beggars belief what we read in the right-wing press — they are struggling to make ends meet, and the problem that thousands of Liverpudlians are facing is new to them. For many, the idea that they might miss a rent payment is totally alien. They have not done that in the past 20 years, but since May 2010, their individual household incomes have been on such a downward trajectory that they now find themselves in rent arrears, seeking advice on debt management and unable to afford the daily cost of travel, food and energy. Figures suggest that 40 per cent of the adult population in Liverpool are struggling with serious debt problems.”

And he said poverty had health implications, too: “David Taylor-Robinson of the University of Liverpool and his fellow academics have highlighted the doubling of malnutrition-related hospital admissions nationally since 2008.”

John Hemming (Birmingham Yardley, LD) raised concerns about “the interrelationship between the welfare cap and victims of domestic violence, and whether there are situations that need more attention. I believe that people can get discretionary housing payment to leave a violent home, but it is important that we ensure that there is a route out of domestic violence for women. I am worried about that issue, just as I am about some wrongful sanctioning that I have seen. That does not help at all, because it undermines the whole process.” He also called for “a substantial increase in the minimum wage, because as the economy is improving the Government should look at that, rather than maintain things as they are”.

The vote gave huge endorsement to the call for an independent inquiry into poverty under the Coalition.

But with an election just 15 months away, how long will we have to wait for it to report?

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Who can afford to buy or rent property in Britain now?

18 Friday Oct 2013

Posted by Mike Sivier in Conservative Party, Cost of living, Housing, Politics, Poverty, UK

≈ 8 Comments

Tags

10 per cent, afford, authority, average, BBC, bed and breakfast, bedroom tax, Coalition, Conservative, council, crisis, cut, David Cameron, debt, developer, earn, economy, evict, government, help to buy, High, house, housing bubble, income, landlord, local, LSL Property Services, Mike Sivier, mikesivier, people, politics, price, private sector, property, record, rent, salary, supply, Tories, Tory, Vox Political, wage


This bubble will burst: The Coalition government has engineered a recovery based on the false inflation of house prices and rents.

This bubble will burst: The Coalition government has engineered a recovery based on the false inflation of house prices and rents. It is bound to burst; the only questions are when – and who will be harmed by the fallout? [Picture: Haynesonfire blog]

Today the BBC reported that average private sector housing rents have hit a record high of £757 per month – just three days after the Corporation told us house prices have also hit a record high (averaging £247,000).

If you are an “average” UK earner (whatever that is), then your income has been cut by almost 10 per cent in the three years and five months since David Cameron became Prime Minister. Who can afford to rent at these prices? Who can afford to buy?

And is this the private rented accommodation that people affected by the Bedroom Tax were supposed to rent instead?

Are these the houses on which the government is going to underwrite 15 per cent of the mortgage in its ‘Help to Buy’ scheme? Already a(nother) huge housing bubble is growing and the debt crisis when it bursts will be appalling.

Meanwhile, everything costs a fortune and you have no money.

But somebody is buying. And somebody is renting.

Somebody rich, obviously.

“Higher rents in almost every region show that, despite government schemes, buying a first home is still a difficult aspiration,” the article quotes David Newnes, director of LSL Property Services.

“This is not only down to low salary growth, but also a general shortage of supply – which is the underlying reason why homes are getting more expensive. The long-term trend to renting therefore looks unlikely to change significantly in the near future.”

So the lack of house-building – either to buy or to rent – has proved lucrative for property developers and landlords. They don’t need to build any more if the value of their current buildings keeps rising. And nobody else can afford to build.

In the meantime, people in social housing are feeling the bite of the Bedroom Tax, with 50,000 families in danger of eviction because of it – putting pressure on local authorities who have to pay through the nose to put them into bed and breakfast accommodation instead.

Was this the Tory plan? To make things – the important things like housing and land – so expensive that only they and their friends could afford them? To push you into dependency by proxy?

And we didn’t see it coming?

Gosh.

At least nobody reading this voted for them. Anyone who did that must feel like a real chump now.

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Will ‘independent’ study whitewash the Bedroom Tax?

16 Wednesday Oct 2013

Posted by Mike Sivier in Bedroom Tax, Benefits, Conservative Party, Cost of living, Housing, Liberal Democrats, People, Politics, Poverty, UK

≈ 14 Comments

Tags

accommodation, authorities, authority, badger, bed and breakfast, bedroom tax, benefit, benefits, bovine, Coalition, complaint, Conservative, council, cull, Democrat, Department, Department for Work and Pensions, DHP, discretionary housing payment, downsize, DWP, evict, evidence, government, Harriet Harman, homeless, House of Lords, housing, housing benefit, Independent, Lib Dem, Liberal, local, local government ombudsman, Lord Freud, Mike Sivier, mikesivier, move, New Labour, Nick Clegg, Parliament, Pensions, people, politics, private, rent, report, small, social housing, social security, Stephanie Bottrill, suicide, tax, tenant, tuberculosis, university, Vox Political, welfare, work, York


Doesn't he look like a puppet? In fact the correct term is 'marionette' - for a puppet on strings, worked from above. But who's pulling Nick Clegg's strings this time?

Doesn’t he look like a puppet? In fact the correct term is ‘marionette’ – for a puppet on strings, worked from above. But who’s pulling Nick Clegg’s strings this time?

The Government is running an independent study into the impact of the Bedroom Tax, in order to find out if it is really possible for social housing tenants to move into smaller accommodation to escape its effects. The result should more likely be feared than welcomed.

Nick Clegg announced that the study was taking place in response to a Parliamentary question from Harriet Harman – but was immediately undermined by the Department for Work and Pensions. A government spokesman said the DWP routinely commissions research on new policies and an independent consortium was already carrying out evaluation work.

Clegg had to say he was taking action after his own party voted to change its policy on the Tax – the Liberal Democrats now oppose it – but this is not cause for celebration.

Who will carry out this independent study? We are told it is an “independent consortium” but what does that mean? What will be their terms of reference? What questions will they be asking and will they be the questions that need to be asked?

Observers should be raising serious doubts about all of these because this is not a government with a good track record on evidence-led policy.

We all know what this is about – the government’s hugely flawed scheme to claw back Housing Benefit cash from social housing tenants, taking 14 per cent of payments from those with one spare bedroom, and a quarter of the benefit from anyone with two. The Discretionary Housing Payment scheme for local councils was boosted to £60 million in anticipation of extra demand from struggling tenants.

It is true that evidence about the policy is conflicting. Lord Freud, introducing it in the House of Lords, apparently refused to listen to arguments that there were too few single-bedroom properties into which under-occupiers could downsize. Now he is blaming local authorities for the shortage.

The government said the policy would save £480 million, but the increased cost of DHPs must be subtracted from that, and also the costs of people who do manage to downsize. This could range from just four per cent of the 660,000 affected households to 20 per cent, depending on who you believe – a recent study by the University of York suggested that 20 per cent of households intended to move (which isn’t quite the same as actually doing it), but this was based on evidence from just four housing associations.

It seems unlikely that one-fifth of everyone affected nationally is moving to a different property – but even if they were, this would not create a saving for the government because it would have to pay out, not only increased Housing Benefit for those who have moved into smaller but more expensive private rented housing, but also Housing Benefit for people moving into the now-vacant larger social housing.

And then there are the people who cannot downsize but cannot afford the rent if their Housing Benefit is reduced. Recent reports had 50,000 households facing eviction – around one-thirteenth of the total number affected.

If they become homeless, local councils will have to find temporary accommodation for them – and this is paradoxically much more expensive than putting them in social housing, because they have to go into bed-and-breakfast rooms. Homelessness was already on the increase before the Bedroom Tax was introduced, rising from 44,160 households in 2011-12 to 53,540 in 2012-13.

Not only that, but there has been a sharp increase in complaints about this accommodation, according to the Local Government Ombudsman.

Finally, let us not forget that at least one suicide has been attributed to the Bedroom Tax – that of Stephanie Bottrill.

So definitive research is certainly desirable. There’s just one problem: The Coalition Government is very good at commissioning ‘independent’ reports that say exactly what ministers want them to.

Look at the report on culling badgers to get rid of bovine tuberculosis. A seven-year study during New Labour’s period in office concluded that this would be useless, and in fact could worsen the situation. The Coalition came in and a new study appeared advocating a cull.

With no knowledge of who is carrying out the report it is hard to predict whether its findings will be accurate – or just what the government ordered.

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Nick Clegg is in ‘Bedroom Tax’ denial – how does he sleep at night?

20 Friday Sep 2013

Posted by Mike Sivier in Benefits, Disability, Health, Housing, Liberal Democrats, Politics

≈ 25 Comments

Tags

accommodation, adaptation, authorities, authority, bedroom tax, benefit, benefits, build, carer, Coalition, Conservative, cost of living, council, Democrat, Department for Work and Pensions, DHP, disability, Disability Living Allowance, disabled, discretionary housing payment, DLA, Don McLure, Durham County Council, DWP, employer, Employment and Support Allowance, ESA, evict, Facebook, False Economy, food, government, greed, health, heat, housing benefit, Incapacity, Incapacity Benefit, Independent, Lib Dem, Liberal, local, low, Mike Sivier, mikesivier, Nick Clegg, Northern Echo, people, policy, politics, repeal, resources director, Shirley Nott, Shirley Williams, sick, social cleansing, social security, spare room subsidy, tax, Tories, Tory, under occupation charge, unemployment, Vox Political, wage, welfare


The body language says it all: Nick Clegg appears to goose-step off the stage after his conference speech on Wednesday, Nazi-saluting his fellow party members.

The body language says it all: Nick Clegg appears to goose-step off the stage after his conference speech on Wednesday, Nazi-saluting his fellow party members.

It seems this blog’s prediction that the Liberal Democrat leader would ignore the wishes of his party in favour of cosying up to the Tories has been proved accurate.

The Northern Echo has reported that Clegg is refusing to do anything about the so-called ‘under-occupation charge’, even though it is now his party’s policy to oppose it and demand its repeal.

Instead he has blamed local authorities for any problems suffered by the tax’s victims. He told the Echo that councils were failing to spend – or even returning – Discretionary Housing Payment cash which the government has handed out to them as aid for people falling into rent arrears.

He was lying, of course. It seems unlikely that a falsehood of this magnitude can be ascribed to poor advice.

The example used by the newspaper was that of Durham County Council, which received £883,000 from the government to hand out as DHPs – a sum which the council’s resources director, Don McLure, said would last just eight weeks.

In total, councils have been given £150 million to hand out, which may seem a large amount – but is in fact dwarfed by the demand.

Clegg’s rationale for his claim was that several councils had returned some of their DHP allocation at the end of the last financial year – but this was before the bedroom tax had been imposed and so the claim means nothing – and he must know this.

Excuses for the bedroom tax are flying thick and fast, after research by the Independent and the campaign group False Economy proved that 50,000 families are in danger of eviction because of it.

On the BBC’s Question Time, Shirley Williams claimed that the tax had created problems because suitable smaller accommodation had not been built in readiness for the demand it caused. This is nonsense. If there was already demand for accommodation – and we must assume so, because this is the reason the Conservatives have spent so long bleating about families on waiting lists who need accommodation that the tax’s victims are, allegedly, blocking – then why didn’t the government just get on and build it?

The tax was really brought in for several reasons: It is partly a reaction against the increase in the Housing Benefit bill to accommodate people with jobs whose wages are below their cost of living – this is due to greed on the part of employers; it is partly intended to clear housing – not for people on any waiting list but as a form of social cleansing, getting the riff-raff out of attractive parts of our towns and cities; and it is also another attempt to spite people on sickness, incapacity or disability benefits, who must either face the extra cost and inconvenience of removing special adaptations to their houses and reinstalling them elsewhere if they are able to move, or must lose the company of carers who use spare bedrooms when they have to stay over, or must pay the tax and live without food or heat, thereby risking their health.

According to Facebook friend Shirley Nott, the government’s spokespeople are extremely relaxed about this eventuality: “Apparently, there’s no need for alarm. Under no circumstances should anyone assume anything untoward is occurring.

“The reports of 50,000 potential – imminent (initial) evictions are not (“necessarily”) going to be “representative” of a potential situation in the more medium/long term. The ‘rationale’ for this cheery response is (obviously) that the ‘Not a Bedroom Tax’ is only just starting to make its presence felt and so, (of course) people have only just begun “adjusting” to it.”

So their imminent eviction followed, no doubt, by a nice quiet death in a side street is merely “adjusting” to the new system.

Shirley continues: “Government spokespeople… have been at pains to explain – in words of one syllable – that no-one else should worry. It seems possible that some – even most – of those 50,000 mentioned in today’s news might find such an artfully-delivered response to imminent eviction a little difficult to come to terms with – but interested members of the government are very likely to have reasoned that they’ll probably be far too preoccupied with practicalities to make much of it.”

Maybe not – but they can still rely on blogs such as this one to make the point for them.

Please – everyone – feel free to splash this article around wherever you see fit. Use excerpts in letters to your local newspapers, share it with friends who don’t realise the seriousness of the situation – we’ve already had suicides because of this tax, don’t forget…

Make sure it doesn’t go away.

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Mail and Telegraph silent as research proves Rolnik right

19 Thursday Sep 2013

Posted by Mike Sivier in Benefits, Conservative Party, Economy, Housing, Media, People, Politics, Poverty, UK

≈ 27 Comments

Tags

adequate housing, arrears, authorities, authority, bedroom tax, benefit, benefits, character assassination, Chipping Norton, Coalition, ConDem, Conservative, Daily Mail, Daily Mirror, Daily Telegraph, David Cameron, debt, Democrat, Department for Work and Pensions, drip-down, DWP, economic, economy, employer, evict, False Economy, Freedom of Information, government, housing benefit, Jeremy Clarkson, Landlord Subsidy, Lib Dem, Liberal, local, Margaret Thatcher, Mike Sivier, mikesivier, National Housing Federation, neo-liberalism, Paul Bolton, people, politics, Raquel Rolnik, rent, social security, spare room subsidy, special rapporteur, Stewart Jackson, Toni Bloomfield, Tories, Tory, un, unemployment, united nations, Universal Declaration of Human Rights, Vox Political, wage, welfare, Witney, work


[Image: Anti-Bedroom Tax and Benefit Justice Federation]

[Image: Anti-Bedroom Tax and Benefit Justice Federation]

This is how the right-wing media try to stifle popular protest against their masters – by trying to distract attention away from the facts.

There can be no doubt about what today’s big news story is: According to the Daily Mirror, hundreds of thousands of families have been put into rent arrears because of the ConDem government-imposed Bedroom Tax – and, according to the Independent, 50,000 of those people are now facing eviction.

Isn’t that exactly what the United Nations special rapporteur on adequate housing, Raquel Rolnik, was saying at the end of her recent tour of Britain to investigate the effect of the Bedroom Tax (often wrongly described as the spare-room subsidy. A subsidy would give money to people; this takes it away)?

Article 25 of the Universal Declaration of Human Rights (to which the UK is a signatory) includes housing as part of the “right to a standard of living adequate for the health and well-being of himself and of his family”.

But Ms Rolnik said that in Britain “the most vulnerable, the most fragile, the people who are on the fringes of coping with everyday life” were being hit hard by the policy – and called for it to be abolished.

In response, the Daily Mail (in particular) attacked Ms Rolnik – on the grounds that she was “a dabbler in witchcraft who offered an animal sacrifice to Marx”. How this relates to her Bedroom Tax investigation has yet to be explained.

The alleged newspaper published a series of character assassination pieces on the internationally-respected United Nations special rapporteur, in which it criticised her for staying in a £300-a-night hotel (booked on her behalf by the United Nations and nothing to do with her personally), and for being born in a country (Brazil) that it described as “violent” and “slum-ridden” (an accident of birth).

It also quoted some stupid Tory lucky-to-be-an-MP called Stewart Jackson, who said she was a “loopy Brazilian leftie”.

But none of its claims about her mission – or those of the Tory MPs it quoted – were true. All were refuted within a day of being voiced.

Today, the Mail thinks it is more important to tell us that the B&B owners who refused to let a gay couple stay on their premises have been forced to sell up because of lack of business.

That other bastion of Conservatism, the Torygraph, tells us that Conservative MPs are on a mass outing to Chipping Norton today. How wonderful for them.

One couple for whom Chipping Norton isn’t wonderful consists of Toni Bloomfield (25), who lives there with her partner Paul Bolton (42) and his four children.

“I have to pay £98 extra a month since the bedroom tax came in,” she told the Independent. “We’ve got a four-bedroom house and Paul’s four children, aged between two and eight, live with us. Before the school holidays we were struggling and now we’re nearly three months behind on rent.

“The children get free school meals and feeding them through the holidays was tough. Paul and I are only eating in the evenings two or three nights a week to make sure we can put enough food on the table. We’re not working, but not out of choice. Trying to find a full-time job here is a nightmare.”

Chipping Norton is the home of David Cameron, when he isn’t pretending to be the Prime Minister, and lies in his constituency of Witney. If people in the Prime Minister’s constituency can’t get on in life, what hope does anyone else have?

It would be interesting to hear more from Mr Bolton and Ms Bloomfield. What is it like, living below the breadline in the home of the infamous ‘Chipping Norton set’? Do they rub shoulders with Jeremy Clarkson down the supermarket (when they can afford to go)? If so, would they kindly suggest to him that he lay off the drink for a while, as it’s encouraging him to say silly things about standing for election?

The information supporting the story was supplied by campaigning group False Economy, which submitted Freedom of Information requests to local authorities across the UK. Of these, 114 replied, providing the figure of 50,000 tenants threatened with eviction.

As not all local authorities responded, the newspaper stated that the total number of affected council tenants was likely to be much higher.

Separate research by the National Housing Federation swells this number by 30,000 housing association tenants, the Independent states.

Clifford Singer, campaign manager for False Economy, said: “Together with the raft of other benefits cuts the Government has forced through, both this year and previously, the bedroom tax is driving tenants and families who were just making ends meet into arrears, and pushing those who were already struggling with the cost of living into a full-blown crisis.”

The Daily Mirror‘s report estimated 330,000 families to have fallen behind with their rent, including around 165,000 who always paid on time in the past.

The reality of the situation is that it shows how badly wages have slipped since Margaret Thatcher came into power with all her silly neo-liberal drip-down economic theories. The Bedroom Tax is a threat because working people do not earn enough to pay the rent along with all their other overheads. This is why the Housing Benefit bill has blown up to huge proportions; if only the unemployed were claiming it, it would be manageable. Employers are to blame – partly.

And who really benefits from Housing Benefit? Not the tenant! No, the people who really receive Housing Benefit are landlords. This is why some, including this blog, have called for it to be renamed ‘Landlord Subsidy’. So part of the blame must also lie with them and the amounts they charge – especially for council houses, where the money never really leaves the local authority’s bank account; it would go out, only to be paid straight back.

So we can say that the debt into which these people have fallen is not their fault; working people should be paid enough to be able to cope, and the unemployed should be able to rely on the state to support them until they can get back on their feet – without the state, itself, going into debt.

It has been created because, somewhere along the line, somebody has been taking too much money for themselves.

What is really to blame?

Greed.

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Let’s make abuse of power a crime and Lord Freud the first to be prosecuted

20 Thursday Jun 2013

Posted by Mike Sivier in Benefits, Conservative Party, Crime, Housing, People, Politics, Poverty, UK

≈ 29 Comments

Tags

abuse, authorities, authority, avoidance, bedroom, benefit, bully, classify, Coalition, Conservative, council, Customs, Department for Work and Pensions, designated, DWP, government, haven, hm, hmrc, housing, inconsistency, inspector, local, Lord Freud, Mike Sivier, mikesivier, non, office, offshore, people, politics, power, re, rent, Revenue, rich, robbery, social security, subsidy, tax, Tories, Tory, Treasury, UK, Vox Political, welfare


Face of evil: Because of creatures like Lord Freud, Parliament should legislate against a new crime - abuse of power. (Picture by Black Triangle)

Face of evil: Because of creatures like Lord Freud, Parliament should legislate against a new crime – abuse of power. (Picture by Black Triangle)

Lord David Fraud – sorry, Freud. That was a Freudian slip – the man who said “People who are poorer should be prepared to take the biggest risks; they’ve got least to lose”, has been at it again.

According to Inside Housing this man, whose principles allowed him to take Labour’s money and provide that government with his duff advice before running off to join the Tories as soon as it looked as though they would be in office after the 2010 election, wants to bully councils out of an entirely legal way to help their tenants avoid paying the punitive and unfair bedroom tax.

The tax, as we all should know by now, affects people living in social rented accommodation with more bedrooms – as defined by the rent agreement (if I recall correctly) – than the government last year arbitarily decided they need. The options are to give up 14 per cent of your housing benefit if you have one ‘extra’ bedroom, 25 per cent if you’ve got two – or move to smaller accommodation which does not, in the vast majority of cases, exist.

Out of 600,000 affected families, 582,000 have nowhere else to go. So this is a thinly-veiled robbery, from people who can do nothing to prevent it.

It is a tax that has offended many councillors in local authorities across the UK, and some came up with the novel idea that rooms within the properties they own may be reclassified as offices or ‘non-designated’ rooms, thereby avoiding the need to pay the tax. After all, a room is just an enclosed space within a building, right? If it doesn’t have a bed in it, why should it be classified as a bedroom?

Lord Fraud – sorry! Freud – doesn’t see it that way. He wants that cash and couldn’t care less that people in social housing need it to keep a roof over their heads. He has been spending the last month or so (since the councils started re-classifying) trying to put a stop to it and now, it seems, he thinks he has found a way.

In a letter to council chief executives yesterday (Thursday), he has said redesignating properties without reducing their rent to reflect the loss of a bedroom creates an inconsistency for housing benefit and rent purposes.

“Blanket redesignations without a clear and justifiable reason and without reductions in rent, are inappropriate and do not fall within the spirit of the policy,” his letter states [italics mine].

“If it is shown properties are being redesignated inappropriately this will be viewed very seriously.” Meaning: The DWP will commission an independent audit to “ascertain whether correct and appropriate procedures have been followed”. Redesignation without reducing rent would lead to incorrect housing benefit subsidy claims being submitted to the DWP, he stated, adding, “Where it is found that a local authority has redesignated properties without reasonable grounds and without reducing rents, my department would consider either restricting or not paying their housing benefit subsidy.”

The flaw, of course, is this: The size of these properties will have remained the same, therefore so should the rent. But a room without a bed in it is not a bedroom.

Let’s move on to another tax avoidance issue. Since we’re discussing actions that are “inappropriate and do not fall within the spirit of the policy“, what about tax avoidance schemes that are used by very rich individuals, in order to avoid paying the full amount they owe to the UK Treasury?

This has been going on for more years than any of us can remember and the total currently parked offshore, where the tax inspector can’t get at it, is estimated at £21 trillion (it might actually be dollars, but either way it’s a heckuva lot of money).

If the turncoat Lord Freud’s new Conservative friends had been quick off the mark in dealing with this aspect of tax avoidance, he might have been justified in his own hasty behaviour, but they haven’t. Even now, there is no guarantee that the Treasury will get anything back from the tax havens, despite all its posturing and sabre-rattling. There’s just no interest. And by the time anyone gets around to actually taking action, the offenders will have had plenty of opportunity to move their capital elsewhere.

But the actions of the individual taxpayers who have chosen to put their money out of HMRC’s reach is no closer to the spirit of UK tax policy than the actions of the councils who have chosen to protect their tenants.

The difference is that one set of individuals is acting in selfish self-interest, while the other is taking action to help others.

Freud, by his own actions, has shown us all exactly where his loyalties lie. He’s not against tax avoidance, as long as it’s his kind of people doing it. And he loves to bully the little people. He really gets a kick out of threatening them, and he’s not above bending – or changing – the law to do it.

That’s why I say any new government coming into office after 2015 needs to enact a law that criminalises abuse of power – being any legislation or act by a government member that unfairly punishes any named individual or group within British society.

So for example here, it could be applied because Freud wants to penalise hundreds of thousands of people with a tax they can’t pay, when there is no alternative because they have nowhere else to go (except to be thrown out onto the streets, and then the question to be asked is, who takes over the properties after they have gone?) – and is now threatening to punish any attempt legally to avoid paying that unfair tax with another unfair punishment, because others who also legally avoid paying a – fair – tax are being allowed to do so.

As a criminal offence it should involve the sternest penalties possible – stripping the guilty of any titles and privileges, and all property, alongside a lengthy prison sentence involving the hardest labour to which prisoners may be put. Anyone who is willing to deprive the defenceless of everything they own should be made to lose everything as well.

So Lord Freud, for example, would have to kiss goodbye to his luxury mansion in Kent, and everything in it. When he finally came out of clink, he’d be living in council accommodation – and if nowhere could be found that didn’t have more bedrooms than he needed, he’d have to pay his own bedroom tax which would be poetic justice.

I know. It will never happen. Politicians look after their own.

But it should – and you know it.

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The summer is heating up – but are the Conservatives melting down?

20 Monday May 2013

Posted by Mike Sivier in Benefits, Conservative Party, council tax, Disability, Economy, Education, European Union, Health, Labour Party, pensions, People, Politics, Public services, Tax, tax credits, UK, unemployment

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Swivel-eyed loon: And Jeremy Hunt is a member of the government, not a grassroots Conservative association.

Swivel-eyed loon: And Jeremy Hunt is a member of the government, not a grassroots Conservative association.

The Conservative Party is eating itself from within. It is therefore an odd time for members to go into Labour marginal constituencies, trying to undermine support with a loaded questionnaire.

That, however, is exactly what we have seen this weekend. But then, what did you expect from the Party of Doubletalk? The Nasty Party? The Party that sows Divisive-ness wherever it can, while mouthing platitudes like “We’re all in it together”? The Party that claims it is responsible with the nation’s finances, while threatening to run up greater debts than any of its rivals ever did?

Let’s start on financial responsibility: Sir Mervyn King, who retires as Governor of the Bank of England next month, has warned that the ‘Help to Buy’ scheme for new mortgages must not be allowed to run indefinitely. The scheme has the state guaranteeing up to 15 per cent of a mortgage on homes worth up to £600,000, and is intended to run until 2017. Sir Mervyn’s fear is that the government will expose the taxpayer – that’s you and me – to billions of pounds of private mortgage debt. He said the UK must avoid what happened in the USA, where state-backed mortgage schemes had to be bailed out.

This particular scheme has already run into flak from those who claimed it was a “second-home subsidy” for the very rich. The new criticism raises fears that the Conservatives are actively engineering a situation that will create more unsustainable debt – and we all know what they do to resolve that kind of problem, don’t we?

They cut. Most particularly, they cut parts of the public services that help anyone who doesn’t earn at least £100,000 per year.

And no – before anyone pipes up with it – nobody receives that much on benefits.

For doubletalk, let’s look at Michael Gove. The Education Secretary was heckled and jeered when he appeared before the National Association of Head Teachers’ conference, where members passed a motion of no confidence in his policies.

The BBC quoted Russell Hobby, general secretary of the NAHT: “What I think he’s failed to pick up on is the short termism of the targets and the constant change, [which] means that people no longer feel that they’re doing the job that they came to do, which is to teach children.”

Mr Gove said he had been “delighted with the warmth and enthusiasm” that had greeted some of the government’s education policies.

But he went on to say there would be no change of course: “What I have heard is repeated statements that the profession faces stress, and insufficient evidence about what can be done about it. What I haven’t heard over the last hour is a determination to be constructive. Critical yes, but not constructive.”

Doubletalk. At first he was saying one thing when we know he means something else entirely; then he went on to ignore what he had been told – by the experts – because it did not support his policy.

Meanwhile, of course, the Conservative Party is eating itself alive over Europe. There are so many angles to this, it’s hard to know where to begin!

We know that Conservative backbenchers tried to amend their own government’s Queen’s speech with a motion regretting the lack of intention to legislate for an in/out referendum on membership of the European Union, and we know that 116 of them voted in favour of that motion. That wasn’t anything like enough for it to pass, so David Cameron didn’t have to worry about resigning (as suggested in previous articles on this blog).

Next thing we knew, the Telegraph‘s political editor, James Kirkup, told us a government figure close to the Prime Minister had said the backbenchers had to vote the way they did because they had been ordered to do so by grassroots Conservative association members, and they were all “mad, swivel-eyed loons”.

Downing Street has denied that anybody said such a thing, but Kirkup has tweeted “I stand by my story” – and anyway, the damage has been done. Conservative association members were already at loggerheads with the Parliamentary party and the government, we’re told, because they believe their views are being ignored.

(One wonders what those views might, in fact, be. This could be one case in which ignoring the will of the people is actually the more sensible thing to do!)

Jeremy Hunt, the Health Secretary, has said the Conservatives are “united” in their view of Europe – but then, Jeremy Hunt – as Health Secretary – told Parliament that spending on the NHS has risen in real terms since the Coalition came into office, and we know from Andrew Dilnot, head of the independent UK Statistics Authority, that this is not true.

Lord Howe, on the other hand, has accused Crime – sorry, Prime – Minister David Cameron of “running scared” of Eurosceptics and losing control of the party. This is the man whose resignation speech, which memorably included a comment that being sent to deal with the EU was like being in a cricket team whose captain had broken his bat, signalled the end of Margaret – later Baroness – Thatcher’s career as Prime Minister.

Who do we believe, the silly youngster or the boring old guy? That’s right – we believe the old guy who already brought down one Prime Minister. Perhaps he can do the same to another.

Meanwhile, we were told on Sunday that members of Parliament are all set to receive a pay rise of up to £20,000, starting in 2015, the year of the next general election. The Independent Parliamentary Standards Authority has been considering an increase of between £10,000 and £20,000, with the lower figure most likely – despite a consultation revealing that some MPs (all Conservative) thought they were worth more than £100,000 per year.

Backbencher pay is around £65,000 per year at the moment. This means the pay rise they are likely to get is 15 per cent, while those Conservatives who wanted £100 grand expected a rise of 54 per cent.

Average pay rises for working people over the last year were less than one per cent.

Do you think this is appropriate remuneration for the political organisation that said “We’re all in it together?” Because I don’t.

And this is the time the Conservative Party decides to float a proposal for a two-tier benefit system, in a survey sent to residents of marginal seats held by Labour.

One question asked whether benefit payments should be the same, regardless of how many years a person has paid National Insurance or income tax. If people answered ‘no’, the next question asked what proportion of benefits should be dependent on a record of contribution.

This is insidious. If benefits become dependent on contribution, that means young people without a job will not qualify for benefits – they won’t have paid anything in, so won’t be able to take anything out. Also, what about the long-term sick and disabled (don’t start about fraud – eliminating the 0.4 per cent of fraudulent claims does not justify what the Conservative-led Coalition is already doing to 87/88 per cent of ESA claimants, or what it has started doing to PIP claimants)? Their claims are likely to continue long after their contributions run out.

This is, I think, a trick to allow rich people to get out of paying higher tax rates. Think about it – rich people pay more, therefore they subsidise public services, including social security benefits, for the poor. Get people to support benefit payments based on the amount of money people pay in and the rich get a nice fat tax cut while the poor get their benefits cut off.

Fair? All in it together?

There’s a lot of doubletalk, so sections are headed “helping with the cost of living” (they tend to make it impossible for people to meet that cost) or “making our welfare and benefits system fair” – Tories have never tried to do this in the entire history of that political party.

And respondents were asked to agree with one of two statements, which were: “If you work hard, it is possible to be very successful in Britain no matter what your background” and “In Britain today, people from some backgrounds will never have a real chance to be successful no matter how hard they work”. The correct answer is to agree with the second statement, of course. And this government of public schoolboys have every intention of pushing that situation to its utmost extreme, so if you are a middle-class social climber and you think there are opportunities for you under a Tory government, forget it.

The whole nightmarish rag is prefaced by a letter from David Cameron. It’s very funny if you accept that it’s full of doubletalk and nonsense. Let’s go through it together:

“I’d like to know what you think about some of the steps we’ve taken so far – and I’d like to know your ideas about what more the Government can do to help families like yours,” he begins. He means: I’d like to know what we can say in order to get you to vote for us in 2015. We’ll have no intention of carrying out any promise that does not advantage ourselves and our extremely rich friends. The correct response is: Your policies are ideologically-motivated twaddle that are causing critical damage to this country and its institutions. Your best action in the future will be to resign.

“I think helping people through tough economic times means making sure our welfare and benefits is [sic] fair. That means ensuring the system helps those who do the right thing and want to get on. That’s helping rich people through tough economic times. We’ll make welfare and benefits as unfair to the poor as we can. That means ensuring the system helps those who support us and are rich enough for us to want to help them. Your changes to welfare and benefits have led to thousands of deaths. That is not fair. You are breaking the system.

“That’s why we’ve capped the amount an out-of-work household can receive in benefits, so this can’t be more than an average working family earns. Again I’d like to know what you think about the actions we’ve taken so far, and your ideas to the future.” It’s nothing near what an average working family earns, because they would be on benefits that top up their earnings to more than £31,000 – but you couldn’t cap at that level because almost nobody would have been knocked off the benefit books (all your talk about people taking more than £100,000 in benefits was nonsense). Resign, join a monastery and vow never to enter public life again.

There is no doubt about it – the cracks are beginning to show. Last summer, the Olympic Games gave us spectacular firework displays. As public unrest mounts, it seems likely that we’ll see even more spectacular fireworks this year – unplanned.

But then, that is why the Conservatives bought the water cannons that are being tested at Petersfield. When they go into use, we’ll all know what they really think of the general public.

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