• About Mike Sivier

Mike Sivier's blog

~ by the writer of Vox Political

Tag Archives: average

Employers should never be allowed to dictate the minimum wage

19 Monday May 2014

Posted by Mike Sivier in Business, Cost of living, Employment, Labour Party, People, Politics, Poverty, UK

≈ 27 Comments

Tags

average, BBC, British, CBI, confederation, earning, Ed Miliband, employ, government, industry, Katja Hall, Labour, Low Pay Commission, Mike Sivier, mikesivier, minimum wage, politician, Radio 4, salary, Today, Vox Political, wage, work


130829milibandstatesman

Here’s an interesting development: Ed Miliband announced today that a Labour government would link the minimum wage to average earnings, after the Low Pay Commission proved itself woefully inadequate for the job.

Employers’ organisation the Confederation of British Industry (CBI) immediately leapt up to scream that politicians should not set wages, completely missing the point that, under Miliband’s plan, politicians wouldn’t.

CBI chief policy director Katja Hall gave verbal evidence of her inability to understand a simple issue when she told Radio 4’s Today programme: “The system we have at the moment has been really successful and that system involves the setting of the minimum wage by an independent Low Pay Commission… They have done a really good job and we think it’s much better the job is left to them rather than given to politicians.”

… Really?

The Miliband plan would not give the job to politicians. It would make the minimum wage a percentage of the average wage.

Mr Miliband said it was a “basic right” that hard work should be rewarded with fair pay.

He also took time to talk to Today, saying: “This gets at what is a terrible scandal in this country… that we still have five million people in paid work, unable to make ends meet.”

Perhaps the reason the CBI doesn’t like this idea is the fact that the average wage includes its own members’ massively over-inflated salaries. Under the proposed scheme, every increase in their own paycheques would require a similar raise for the lowest-paid workers in the country.

There is no reasonable argument against that, but it is what they are arguing against, nonetheless.

Perhaps politicians’ next target should be the CBI itself.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Donate Button with Credit Cards

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

SWAHTprint SWAHTeBook

Share this:

  • Twitter
  • Facebook
  • LinkedIn
  • Tumblr
  • Email
  • Print
  • Reddit
  • Pinterest

Like this:

Like Loading...

Osborne promising full employment – is this an April Fool?

01 Tuesday Apr 2014

Posted by Mike Sivier in Benefits, Business, Conservative Party, Cost of living, Economy, Employment, People, Politics, Poverty, UK, unemployment

≈ 11 Comments

Tags

accommodation, April Fool, average, boss, cap, community work, Conservative, CV, divide, dunce, electricity, employment, encouragement, food, gas, George Osborne, harassment, heat, help, identity theft, job, light, living wage, mortgage, myth, national insurance, park, pay, proportion, rent, rule, safety net, sex, silly, social security, tax, Tories, Tory, underclass, Universal Credit, Universal Jobmatch, wage, water, welfare, working class


Bottom of the class: If you believe George Osborne's talk about jobs and benefits, you must have been educated at one of Michael Gove's 'free schools'. [Image: Gaianeconomics]

Bottom of the class: If you believe George Osborne’s talk about jobs and benefits, you must have been educated at one of Michael Gove’s ‘free schools’. [Image: Gaianeconomics]

The answer has to be in the affirmative. Conservatives can’t promise full employment because it simply isn’t part of their philosophy.

As this blog has stated many times, Tories need a discontented underclass fermenting away beneath the lowest-paid members of the working class, in order to create the level of fear necessary to keep wages down.

The argument is that a person will not ask for a pay rise if they know their boss will turn around and say, “There are hundreds out there who will work for less than you – pick up your cards on the way out!”

For a more easy-access disproval of Osborne’s claim, we only have to look a little further into his speech – from the part where he said: “For it’s no good creating jobs – if we’re also paying people to stay on welfare.”

Hang on! When did our great Social Security system change from being a safety net to help get people back into work to “paying people to stay on welfare”?

Oh yes, that’s right – when we had an unelected Conservative government foisted on us. Tories pay people to stay on welfare because they need that fermenting underclass. The aim is always not to pay enough (as you will see).

The next few lines contain unfounded claims and opinions. See for yourself:

“We inherited a welfare system that didn’t work.” According to whom?

“There was not enough help for those looking for a job – people were just parked on benefits.” But there isn’t enough help now. Come to that, there aren’t enough jobs. Where are all the jobs, George?

“Frankly, there was not enough pressure to get a job – some people could just sign on and get almost as much money staying at home as going out to work.” How many people, George? Five? Six? You make it seem as though more than a million jobseekers were sitting at home and drawing as much money in social security as at work. That would be a lie, George.

“That’s not fair to them – because they get trapped in poverty and their aspirations are squashed.” Whereas Conservative policy means what? Oh yes – they get trapped in poverty and their aspirations are squashed.

“It’s certainly not fair to taxpayers like you, who get up, go out to work, pay your taxes and pay for those benefits.” Tory divide-and-rule. You are different to them, because you have a job. If you are low-paid, it is because they are sucking down your tax money to pay for their extravagant lifestyles (I think we’ve all quite thoroughly killed that particular myth, haven’t we? It doesn’t exist outside the Tory political mind).

“Next Monday is when we do more to encourage people without jobs to find them… Benefits will only go up by 1 per cent – so they don’t go up faster than most people’s pay rises, as used to be the case.” This means people on benefits will start to become much worse-off than they are already. Jobseekers’ allowance used to be pegged at around one-sixth of average pay but will now drop to a far lower proportion, because the Tories lied to you when they said benefit rises were far greater than pay rises. One per cent of Jobseekers’ Allowance at a weekly rate of £71 is 70p; one per cent of the average weekly wage in April 2013, which was £517 per week, is £5.17. You see the difference? Oh, and one more thing: Where are all the jobs, George?

“When I took this job, some people were getting huge payouts – receiving £50,000, £60,000 even up to £100,000 in benefits. More than most people could get by working.” How many people, George? Five? Six? One, perhaps?

“So we’ve capped benefits, so that a family out of work can’t get more in benefits than the average working family.” I’m not actually opposed to ensuring that people on benefits can’t take home more than people in work. However, while accurate, this line is disingenuous. George has ensured that a family out of work takes home at least £5,000 less, per year, than an average working family because of the way he and his Tory friends rigged the system. He’s lying to you.

“And we are bringing in a new Universal Credit to make sure work always pays.” He means “pays more than benefits”. He doesn’t mean “pays a living wage”. Spot the difference?

Now here comes some more oppression, based on a really big lie.

“From this month we’re also making big changes to how people go about claiming benefits. We all understand that some people need more help than others to find work.” What work? Where are all the jobs, George?

“So starting this month we’ll make half of all people on unemployment benefits sign on every week – and people who stay on benefits for a long time will have to go to the job centre every day so they can get constant help and encouragement.” Help and encouragement, is it, George? Have you witnessed the kind of “help and encouragement” they get at the job centre? DWP employees should face harassment charges for the disgraceful way they treat their fellow citizens.

“We’re going to require people to look for work for a week first before they get their unemployment benefit. From now on the deal is this: look for work first; then claim the dole. Not the other way around.” Why? In order to drive people into grinding poverty as early as possible? Forcing people to wait until they claim means they could be without money for food, accommodation and utilities for up to a month, while the system processes them. This is not fair. It is cruel and demeaning – especially when Tory George knows there’s no work to be had.

“When people turn up at the job centre they’ll be expected to have a CV ready and to have started looking on our new jobs website.” This is the Universal Jobmatch website that is habitually used by criminals for identity theft, or to offer jobs in the sex industry. It’s so bad that the government itself is planning to ditch it when the contract with its provider runs out in two years’ time. Why would anybody in their right mind use that?

And now here’s the clincher:

“We will ask many of the long term unemployed to do community work in return for their benefits – whether it is making meals for the elderly, clearing up litter, or working for a local charity.”

In other words, they will ensure that fewer jobs are available by making jobseekers do the work for nothing. Brilliant idea, George – you are wrecking our economy.

“All of this is bringing back the principles that our welfare state was originally based on – something for something, not something for nothing.” A lie, couched in truth. The Welfare State is based on the principle that people on hard times were able to take advantage of benefits because, when in work, they paid into the system via taxes and National Insurance. That’s the “something for something”. It is not based on the idea that jobseekers have to take jobs off the market by doing them for free. That’s just plain silly.

In fact, George, you are just plain silly.

So, returning to the question in our headline, it’s clear to see the answer.

If anyone here is an April Fool, it’s George Osborne.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political can get its sums right
… but we need people willing to provide a certain sum for us.
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Donate Button with Credit Cards

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

SWAHTprint SWAHTeBook

Share this:

  • Twitter
  • Facebook
  • LinkedIn
  • Tumblr
  • Email
  • Print
  • Reddit
  • Pinterest

Like this:

Like Loading...

Another Cameron lie: Energy companies’ profits are unaffected by his changes – and we still pay

02 Monday Dec 2013

Posted by Mike Sivier in Business, Conservative Party, Cost of living, Economy, Liberal Democrats, People, Politics, Poverty, Television, UK, Utility firms

≈ 20 Comments

Tags

'Big Six', average, bill, boss, carbon, Caroline Flint, change, Coalition, Conservative, David Cameron, Democrat, eat, economy, energy, freeze, FTSE 100, fuel, general taxation, government, green levy, greenhouse gas, heat, household, income, IPPR, Labour, Lib Dem, Liberal, market, Mike Sivier, mikesivier, overcharge, overcharging, Parliament, pay, people, policy, politics, poverty, price, profit, re-order, subsidy, tax, thinktank, Tories, Tory, Vox Political


Cost shock: Even the Conservative-supporting Daily Telegraph has been complaining about high energy prices - as demonstrated by this cartoon from 2012.

Cost shock: Even the Conservative-supporting Daily Telegraph has been complaining about high energy prices – as demonstrated by this cartoon from 2012.

To borrow a favourite David Cameron phrase: Let us be clear on this – any savings on your fuel bills as a result of the Coalition government’s policy change will be added to general taxation in another way and you will still pay.

Energy firms’ profits, which have tripled since 2010, will be unaffected. Cameron’s plan is akin to shifting deckchairs on the Titanic (to borrow another well-known saying).

Why on Earth does he think anybody is going to be deceived by this silliness?

Even with the changes in place, prices will still rise by an average of around £70, at a time when people were already being forced to choose between (let’s have yet another now-tired phrase) heating and eating. Average household incomes have dropped by nine per cent since David Cameron made himself Prime Minister by the back door three years ago.

Average pay for bosses of FTSE-100 companies has risen by 20 times the rate of pay growth for most workers, just in the last year. And let’s not forget that they were getting much higher than average pay already!

It should surprise nobody that all of the ‘Big Six’ energy firms are part of the FTSE-100 – or were, before foreign takeovers.

This means average pay for these companies’ bosses should be around £2,321,700, while profits have risen to £2 billion – up 75 per cent on last year (according to the Independent reports).

None of this will be changed by David Cameron’s measures, which were hastily cobbled together in a bungled bid to regain the initiative from Labour, whose plan to freeze energy prices and re-order the energy market has captured the public imagination.

Instead Cameron – who once campaigned under the slogan ‘Vote Blue – Go Green’ – will postpone green policy targets to a later date, cutting the so-called ‘green levy’ on the energy firms accordingly. This means the UK will be forced to rely on greenhouse gas-producing carbon fuels for longer.

Subsidies for people in fuel poverty will be moved into general taxation, meaning we pay for them rather than the energy firms who should.

“Even after these changes to levies, energy bills are still rising and the average household will still be paying £70 more for their energy than last winter,” said Labour’s Shadow Energy and Climate Change Secretary, Caroline Flint. “Any help is better than none, but you can judge this Government by who they’re asking to pick up the tab – the taxpayer. The energy companies have got off scot-free.

“This shows why nothing less than a price freeze and action to reset the market to stop the energy companies overcharging again in the future will do.”

She was expected to tell the IPPR thinktank today: “If David Cameron and Nick Clegg think just doing what the energy companies ask of them is the answer to bills being too high, they are wrong.

“Energy bills have gone up by £120 this winter alone, so even with a £50 cut in levies, people’s bills will still be higher this winter than last year. The real reason bills are rising year on year without justification is because the energy market is broken.

“Instead of bailing out the energy companies, David Cameron should stand up to them and stop them overcharging people.”

But we all know that David Cameron never stands up to his corporate masters, don’t we?

(Vox Political‘s Mike Sivier will be talking about the energy scandal, along with the continuing cover-up of DWP-related deaths on Sonia Poulton Live today. You can see it by visiting www.thepeoplesvoice.tv, starting at 5pm.)

Vox Political is funded entirely by donations and book sales.
You can make a one-off donation here:

Donate Button with Credit Cards

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

SWAHTprint SWAHTeBook

Share this:

  • Twitter
  • Facebook
  • LinkedIn
  • Tumblr
  • Email
  • Print
  • Reddit
  • Pinterest

Like this:

Like Loading...

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.

Share this:

  • Twitter
  • Facebook
  • LinkedIn
  • Tumblr
  • Email
  • Print
  • Reddit
  • Pinterest

Like this:

Like Loading...

Iain Duncan Smith: Big on belief – lacking in truth

15 Monday Jul 2013

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

≈ 33 Comments

Tags

000, 12, andrew dilnot, average, BBC, believe, benefit, cap, Centre, child, committee, Conservative, crisis, Department, Department for Work and Pensions, disprove, government, housing, Huffington Post, I Believe, Iain Duncan Smith, Ipsos Mori, job, John Shield, Mike Sivier, mikesivier, no behavioural change, Pensions, people, Plus, politics, poverty, Rowan Atkinson, social security, Today, Tories, Tory, uk statistics authority, Vox Political, work


Strong beliefs: But is Iain Duncan Smith about to say a prayer - or is he eyeing up his next victim?

Strong beliefs: But is Iain Duncan Smith about to say a prayer, or eyeing up his next victim?

I believe that Chris Huhne really wasn’t a crook
I believe Britannia Unchained is a readable book
I’m prepared to believe that the government isn’t leaking
And that Boris Johnson sometimes thinks before speaking
Yes I believe J Hunt is clever
Norman Tebbit will live forever
And that GM foods will make us healthier
And there were WMDs out in the desert.

I believe that Cameron means what he says.
And that Michael Gove got good ‘O’ Level grades.
And I believe our courts are great;
That the NHS is safe:
And the economy’s professionally-run…
And that George Osborne knows how to do his sums.

And I believe that the Devil is ready to repent
But I don’t believe IDS should be in government.
(With apologies to Rowan Atkinson)

Early to bed and early to rise… means you have a chance to hear the Secretary of State for Work and Pensions put his foot down his own throat on BBC Radio 4’s Today programme.

Needless to say, I missed it. It’s a shame, because the letter of complaint I was to write to Andrew Dilnot of the UK Statistics Authority would have been slightly different if I had.

But we’re getting ahead of ourselves.

In yesterday’s article, I mentioned the need to query a claim attributed by the BBC News website to the Department for Work and Pensions. True to my word, I wrote – and sent – the following:

“A report on the BBC website has stated, ‘More than 12,000 people have moved into work after being told about the benefits cap, the government says.’

“It continues: ‘The Department of Work and Pensions (DWP) said that 12,000 claimants have found jobs over the last year, after being contacted by job centres. The job centres warned them they might have their benefits capped if they did not find employment.’

“I am writing to ask you to investigate this claim, as I believe it may have its origins in a previous statement that you have already shown to be false – relating to a claim that 8,000 people had found jobs because of the benefit cap.”

I went on to quote Andrew Dilnot’s letter containing his verdict on the ‘8,000’ claim – that it was “unsupported by the official statistics” in two documents, one of which “explicitly” stated that the figures were “‘not intended to show the additional numbers entering work as a direct result of the contact’”, while the other noted “Once policy changes and methodological improvements have been accounted for, this figure has been no behavioural change.’”

I also drew attention to the comments made by John Shield, the DWP’s Director of Communications, at a meeting with the Commons Work and Pensions Committee last Wednesday (July 10) when he seemed to be saying that Mr… Smith ignored his officers’ advice and went ahead with a false statement.

I now dearly wish I had known about the part of the Today interview in which Mr… Smith discussed his own opinion of the affair.

The Huffington Post reported it as follows: “Challenged over the fact his statement was not supported by officials statistics published by his own department, Duncan Smith said: ‘Yes, but by the way, you can’t disprove what I said either.'” We’ll come back to that in a moment!

“‘I believe this to be right, I believe that we are already seeing people going back to work who were not going to go back to work,’ he said.

“‘I believe that this will show, as we move forward ,that people who were not seeking work are now seeking work.'”

“The work and pension’s secretary was mocked by Labour’s shadow minister for disabled people, Anne McGuire, who tweeted that ‘I believe’ was ‘a substitute for facts in IDS world’.”

Well, maybe his Roman Catholic upbringing makes him a creature of strong beliefs.

Unfortunately, his beliefs don’t hold a candle to the facts – and yes, we can disprove what he said!

The blog alittleecon takes up the story: “Ipsos Mori undertook telephone interviews with 500 of the 8,000 people who had found work since the announcement of the benefit cap to try to show that people had been motivated by the cap to find work.

“The problem is that they did not find that. Remember, IDS originally tried to claim that all 8,000 had moved into work because of the benefit cap. The survey found though that 15% of them hadn’t even heard of the benefit cap, and another 31% only knew a little about it. Only 57% remembered being informed that the cap would affect them, and of these, 71% were already looking for work.

“About half of those who remembered getting a letter about the cap took action afterwards. For 31%, this meant looking for work (although half of these were already looking). This means of the 500 surveyed, only around 45 people started looking for work because of the cap that weren’t doing so before. 45!!

“Looking at the results then, and if we assume the survey was representative of all 8,000 people, far from being able to say all 8,000 found work as a direct result of the cap, the best that can be said in reality is that about 720 people started looking for work and found it after hearing of the cap that weren’t looking before. Not a particularly impressive behavioural change.”

There can be no doubt about this. Ipsos Mori is a reputable polling agency and its figures are trustworthy.

It doesn’t matter what Iain Duncan Smith believes, his figures were wrong – plainly wrong.

He has no business peddling them around the TV and radio studios as though they’re set in stone.

He has no business mentioning them at all.

And, if he is determined to keep pushing his falsehoods on us, claiming they aren’t lies because he believes in them, then he has no business being a Cabinet Minister.

Share this:

  • Twitter
  • Facebook
  • LinkedIn
  • Tumblr
  • Email
  • Print
  • Reddit
  • Pinterest

Like this:

Like Loading...

The benefit cap reveals the black centre of IDS’ mind

15 Monday Jul 2013

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

≈ 25 Comments

Tags

Anne Begg, average, BBC, benefit, cap, Centre, child, committee, Conservative, crisis, Daily Mail, David Cameron, Department, Department for Work and Pensions, earning, family, government, homeless, housing, Iain Duncan Smith, income, Ipsos Mori, job, John Shield, Mike Sivier, mikesivier, New Statesman, Pensions, people, Plus, politics, poverty, social security, Tories, Tory, unemployment, Vox Political, work, workless, YouGov


130715benefitcap

The long-feared roll-out of the benefit cap happened today. There has been a great deal of shouting about it from all sides, but it is possible to get a balanced view – by linking news articles from opposing sources such as, say, New Statesman, the BBC and the Daily Mail.

Yes, the Daily Mail. I’m serious.

The benefit cap is one of the Coalition’s most popular policies – not the ONLY popular policy; believe it or not, a sizeable proportion of the population think Cameron and Co are doing a good job. New Statesman quotes a YouGov poll in which 79 per cent of people, including 71 per cent of Labour voters, support the cap – with just 12 per cent opposed. The Mail quotes Ipsos Mori, whose poll states 74 per cent support the cap.

We’ll start with the Statesman, which gives us the facts that Iain Duncan Smith – architect of the policy – won’t want people to know:

“1. An out-of-work family is never better off than an in-work family

“The claim on which the policy rests – that a non-working family can be better off than a working one – is a myth since it takes no account of the benefits that an in-work family can claim to increase their income. For instance, a couple with four children earning £26,000 after tax and with rent and council tax liabilities of £400 a week is entitled to around £15,000 a year in housing benefit and council tax support, £3,146 in child benefit and more than £4,000 in tax credits.

“Were the cap based on the average income (as opposed to average earnings) of a working family, it would be set at a significantly higher level of £31,500. The suggestion that the welfare system “rewards” worklessness isn’t true; families are already better off in employment. Thus, the two central arguments for the policy – that it will improve work incentives and end the “unfairness” of out-of-work families receiving more than their in-work equivalents – fall down.

“Contrary to ministers’ rhetoric, the cap will hit in-work as well as out-of-work families. A single person must be working at least 16 hours a week and a couple at least 24 hours a week (with one member working at least 16 hours) to avoid the cap.

“2. It will punish large families and increase child poverty

The cap applies regardless of family size, breaking the link between need and benefits. As a result, most out-of-work families with four children and all those with five or more will be pushed into poverty (defined as having an income below 60 per cent of the median income for families of a similar size). Duncan Smith has claimed that “at £26,000 a year it’s very difficult to believe that families will be plunged into poverty” but his own department’s figures show that the poverty threshold for a non-working family with four children, at least two of whom are over 14, is £26,566 – £566 above the cap. The government’s Impact Assessment found that 52 per cent of those families affected have four or more children.

“By applying the policy retrospectively, the government has chosen to penalise families for having children on the reasonable assumption that existing levels of support would be maintained. While a childless couple who have never worked will be able to claim benefits as before (provided they do not exceed the cap), a large family that falls on hard times will now suffer a dramatic loss of income. It was this that led the House of Lords to vote in favour of an amendment by Church of England bishops to exclude child benefit from the cap (which would halve the number of families affected) but the defeat was subsequently overturned by the government in the Commons.

“The DWP has released no official estimate of the likely increase in child poverty but a leaked government analysis suggested around 100,000 would fall below the threshold once the cap is introduced.

“3. It will likely cost more than it saves

“For all the political attention devoted to it, the cap is expected to save just £110m a year, barely a rounding error in the £201bn benefits bill. But even these savings could be wiped out due to the cost to local authorities of homelessness and housing families in temporary accommodation. As a leaked letter from Eric Pickles’s office to David Cameron stated, the measure “does not take account of the additional costs to local authorities (through homelessness and temporary accommodation). In fact we think it is likely that the policy as it stands will generate a net cost. In addition Local Authorities will have to calculate and administer reduced Housing Benefit to keep within the cap and this will mean both demands on resource and difficult handling locally.”

“4. It will increase homelessness and do nothing to address the housing crisis

“Most of those who fall foul of the cap do so because of the amount they receive in housing benefit (or, more accurately, landlord subsidy) in order to pay their rent. At £23.8bn, the housing benefit bill, which now accounts for more than a tenth of the welfare budget, is far too high but rather than tackling the root of the problem by building more affordable housing, the government has chosen to punish families unable to afford reasonable accommodation without state support.

“The cap will increase homelessness by 40,000 and force councils to relocate families hundreds of miles away, disrupting their children’s education and reducing employment opportunities (by requiring them to live in an area where they have no history of working).

“5. It will encourage family break-up

“Duncan Smith talks passionately of his desire to reduce family breakdown but the cap will serve to encourage it. As Simon Hughes has pointed out, the measure creates “a financial incentive to be apart” since parents who live separately and divide the residency of their children between them will be able to claim up to £1,000 a week in benefits, while a couple living together will only be able to claim £500.”

The BBC opened with a much sunnier perspective that has caused Vox Political to send a query to the UK Statistics Authority.

According to the report, “More than 12,000 people have moved into work after being told about the benefits cap, the government says.” Oh, really?

“The Department of Work and Pensions (DWP) said that 12,000 claimants have found jobs over the last year, after being contacted by job centres,” the BBC report went on. “The job centres warned them they might have their benefits capped if they did not find employment.”

Didn’t Iain Duncan Smith get into trouble only a few months ago, for reporting that 8,000 people had moved into work after being told about the cap?

Only last week, his own officials told the Work and Pensions committee he had ignored small print in their reports, stating clearly that he could not use the figures to claim that any “behavioural change” had taken place.

Vox‘s article last week quoted Dame Anne Begg, who asked: “So no-one checking the written articles from the Secretary of State – from the statisticians’ point of view – actually said ‘Secretary of State – if you look at the little footnote… It says that you cannot interpret that these people have gone into work as a result of these statistics’. Nobody pointed that out?“

John Shield, Director of Communications at the DWP, responded: “In this instance it did involve the press office. I’m just trying to be clear that not everything that comes out of the department will go through us – particularly when there are political ends.”

In other words, the Secretary of State ignored his advisors to make a political point that had no basis in fact. He lied to the public.

How do we know he isn’t doing it again?

A letter to Mr Dilnot is in order, I think.

Finally, to the Daily Mail, where it was reported that “Cabinet minister Iain Duncan Smith today accused the BBC of launching a ‘politically-motivated’ attack on government plans to cap benefits at £26,000.

“The Work and Pensions Secretary accused the Corporation of using ‘lots of little cases’ to claim that limiting welfare payments would not get people back to work.”

Unfortunately for Mr… Smith, his story unravelled further down the piece, when it was revealed that he told the nation that HIS evidence is right because it’s from people working in Jobcentres: “This is advisers, they talk to me… I talk to people actually in the Jobcentres.”

That’s anecdotal, and may not be used to suggest a national trend. He is using lots of little cases to claim that his cap will work.

So we go from the cold, hard facts, to the comforting fantasy, to the shattering of the Secretary-in-a-State’s temper on national radio when the flaws in his scheme were exposed.

Mail readers, in that paper’s ‘comment’ column, seem to have supported his viewpoint – despite the facts.

Will their opinions change when the horror stories start appearing – or will they stick their fingers in their ears and scream, “La la la I’m not listeniiiiiing!” – as Mr… Smith did (figuratively speaking) on the Today programme?

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Donate Button with Credit Cards

Alternatively, you can buy Vox Political books!
The second – Health Warning: Government! is now available
in either print or eBook format here:

HWG PrintHWG eBook
The first, Strong Words and Hard Times
is still available in either print or eBook format here:

SWAHTprint SWAHTeBook

Share this:

  • Twitter
  • Facebook
  • LinkedIn
  • Tumblr
  • Email
  • Print
  • Reddit
  • Pinterest

Like this:

Like Loading...

Iain Duncan Smith’s most shocking statistical lie yet: Child poverty

17 Monday Jun 2013

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

≈ 18 Comments

Tags

average, Barnardo's, benefit, benefit cap, benefits, child, Child Poverty Act, Coalition, congress, Conservative, Department, Department for Work and Pensions, DWP, economy, families, family, Gingerbread, Gordon Brown, government, Huffington Post, Iain Duncan Smith, income, Jobseeker's Allowance, JSA, Metro, Mike Sivier, mikesivier, Oxfam, Parliament, Pensions, people, politics, poverty, social security, Tories, Tory, trade, TUC, unemployment, union, Vox Political, wage, welfare, work, workless


Still poor despite the statistics: IDS and his DWP spin-doctors need to get something clear - children haven't stopped becoming poor, just because of a skewed set of statistics. Incomes have dropped - meaning MORE children are in poverty than before.

Still poor despite the statistics: IDS and his DWP spin-doctors need to get something clear – children haven’t stopped becoming poor, just because of a skewed set of statistics. Incomes have dropped – meaning MORE children are in poverty than before.

According to a TUC report, average wages have dropped by 7.5 per cent since the Coalition came into office. This has a direct impact on child poverty statistics, which the government has conveniently ignored in its latest, Iain Duncan Smith-endorsed, child poverty figures.

Child poverty is calculated in relation to median incomes – the average income earned by people in the UK. If incomes drop, so does the number of children deemed to be in poverty, even though – in fact – more families are struggling to make ends meet with less money to do so.

This is why the Department for Work and Pensions has been able to trumpet an announcement that child poverty in workless families has dropped, even though we can all see that this is nonsense. As average incomes drop, the amount received by workless families – taken as an average of what’s left – appears to rise, even though, as we know, the increase is not even keeping up with inflation any more.

The problem lies in proving it.

Let’s do a rough calculation. In 2007-8, Jobseekers’ Allowance for a couple with at least one person over 18 was £92.80 per week (£4,839 per year). It is now £111.45 per week (5,811 per year) – an increase of 20 per cent in real money (not inflation-adjusted). In the same period, average earnings for those in employment rose from £26,020 per year (according to the Office for National Statistics’ Annual Survey of Hours and Earnings (ASHE)) to £26,500 – the figure we all know from the government’s calculation of its benefit cap). That’s an increase of just 1.8 per cent.

This doesn’t mean unemployed people are receiving too much – it means wages are being pushed down, as the TUC report shows. They are only ‘scratch’ figures – accurate data was impossible to find on the Internet this morning – but they show that JSA as a percentage of average wages has risen from 18.6 per cent to 21.9 per cent (roughly).

So workless income has risen in relation to the national average, meaning that child poverty in this sector appears to have dropped.

Alternatively, you could just use your common sense: People on benefit are not well-off, especially under a Conservative or Tory-led government.

The government’s figures don’t take 2007-8 – the year incomes began to drop – as their baseline figure. “To keep the absolute measure more in line with contemporary living standards” they use 2010-11 as the baseline. Incomes had already begun to drop by then, meaning the figures are misleading. In fairness, the press release does state that “you cannot compare this year’s published figure with last year’s” because of that change.

What this means is that the DWP’s press release about child poverty is utterly worthless. Let’s look at it anyway. It says:

“New annual poverty statistics (households below average income) out today, show how the number of children in workless poor families has reduced by 100,000 children over the past year (a two percentage point reduction).” While correct within its frame of reference, in comparison with previous income averages, this must be wrong.

“The statistics for relative poverty – the most commonly used poverty line – also show that the most vulnerable groups have been protected as pensioner poverty fell by 100,000, disability poverty by 100,000 and child poverty stayed the same.” Wrong.

“The number of children in absolute child poverty has increased by 300,000.” Wrong.

“Work remains the best route out poverty – these statistics show how children in workless households are around three times more likely to be in poverty than those in working families.” Absolutely wrong!

How can the last claim be correct? If the number of children in workless poor families has dropped by 100,000 but the total in poverty has risen by 300,000, that’s an extra 400,000 children belonging to working families who have fallen into poverty – by this government’s own figures!

Out comes Iain Duncan Smith with his latest lie: “We have successfully protected the poorest from falling behind and seen a reduction of 100,000 children in workless poor families.” Shockingly wrong!

Let’s get some sanity from the Huffington Post and Metro: “Some 2.3 million children were recorded as living in relative poverty between 2011 and 2012, in official government statistics,” the HuffPost reported. Interestingly, this compares with a Metro report claiming 3.8 million were in ‘absolute’ poverty (which is a statistical measurement, not a statement about how poor they actually are). Metro goes on to say this means more than one in six children are in relative poverty.

“Two out of three children living in poverty, 66 per cent, are now from working families. This has risen from 43 per cent in 1996-1997 and and amounts to 1.5 million children, according to analysis of the figures by the Resolution Foundation,” says the HuffPost.

“The proportion of children in poverty from working families has risen sharply since the start of the financial crisis in 2008.” In other words, Iain Duncan Smith and the DWP have lied again.

“Poverty is calculated by households living with less than 60 per cent of median average disposable income, compiled by the Department for Work and Pensions. But statistics have been skewed because of the fall in wages. If the number was calculated using average household income from the previous year, the number of children in poverty rises by 300,000.” This confirms the argument I am putting forward.

Oxfam and Barnardo’s have both criticised the government over the figures.

And Fiona Weir, chief executive of single-parent charity Gingerbread, said in the HuffPost: “Government claims that work is the best route out of poverty are simply not ringing true.”

The Government has a legal responsibility, under the Child Poverty Act of 2010 (passed by Gordon Brown’s Labour government), to reduce relative child poverty to below 10 per cent by 2020.

While Iain Duncan Smith has expressed frustration with the current method of defining poverty, it seems his government is determined to achieve that target by reducing incomes so much that nobody will be in ‘relative’ poverty…

… but across the nation’s working people, real poverty will be absolute.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Donate Button with Credit Cards

Alternatively, you can buy Vox Political books!
The second – Health Warning: Government! is now available
in either print or eBook format here:

HWG PrintHWG eBook
The first, Strong Words and Hard Times
is still available in either print or eBook format here:

SWAHTprint SWAHTeBook

Share this:

  • Twitter
  • Facebook
  • LinkedIn
  • Tumblr
  • Email
  • Print
  • Reddit
  • Pinterest

Like this:

Like Loading...

Lord Young – a talking example of why working people should never vote Conservative

12 Sunday May 2013

Posted by Mike Sivier in Benefits, Business, Conservative Party, Disability, Economy, Health, Housing, People, Politics, Tax, UK, unemployment

≈ 29 Comments

Tags

average, benefit, benefits, business, cabinet, cheap, chief whip, Christmas, commission, Conservative, cut, Daily Telegraph, David Cameron, destitute, destitution, earning, economy, Enterprise, fear, firm, government, Guardian, health, homeless, hour, inflation, jobless, Labour, Lord Young, low, manpower, Mike Sivier, mikesivier, national, nudge, office, opera, over, paid, people, politics, profit, recession, richest, safety, services, sick, Sir George Young, social security, statistics, step, Stephanie Bottrill, tax, theory, Tories, Tory, turkey, unemployment, Vox Political, wage, welfare


Unrepentant: Ignorant old Tories like Lord Young cannot see anything wrong with starving workers - and, through lack of tax revenue, the benefits bill - to make fat profits for greedy business bosses. The families of all those who have died because of these policies might have a different point of view.

Unrepentant: Ignorant old Tories like Lord Young cannot see anything wrong with starving workers – and, through lack of tax revenue, the benefit budget – to make fat profits for greedy business bosses. The families of all those who have died because of these policies might have a different point of view.

Apparently we are living in an excellent time for businesses to boost their profits – because labour is cheap.

That is what Lord Young, who advises David Cameron on enterprise, told the cabinet yesterday (May 11). His words make it crystal clear that working people who vote Conservative are classic examples of turkeys voting for Christmas. They beg to be exploited.

He said low wage levels in a recession made larger financial returns easier to achieve – in other words, he actually admitted that bosses could use the current state of the UK economy, as caused by his own government (not the previous Labour administration, for reasons we’ve covered in the past), to push workers’ wages down and keep more moolah for themselves.

Vox Political has accused the Conservatives of exactly this behaviour in the past, but we never expected to see a member of the government admit it so brazenly.

Perhaps this is more of the government’s pet ‘nudge’ theory at work. We have seen that benefit increases have been lowered in order to instil fear of destitution in the jobless, and in those who have low-paid jobs. Now, businesses are being urged to capitalise on this, exploiting their workforces with the obvious threat: “There are plenty of other people out there who’ll do it for less!”

Let’s just back this up with some statistics, courtesy of The Guardian , shall we? UK employees’ average hourly earnings have fallen by 8.5 per cent, in real terms, since 2009. That’s adjusting for inflation, and the newspaper got its figure from the Office for National Statistics.

Meanwhile, the 1,000 richest people in the UK are now worth more than £414 billion – up more than £155 billion in the three years to December 2012. And in April, the Tory-led government gave those people a £100,000 per year tax cut.

Lord Young is not to be confused with Sir George Young, the Tory Chief Whip who once famously said “the homeless are what you step over when you come out of the opera” – but he is cut from the same cloth.

He had to apologise after telling the Daily Telegraph that “for the vast majority of people in the country today, they have never had it so good, ever since this recession – this so-called recession – started”.

For this reason it is easy to suggest that he would have stepped over the body of Stephanie Bottrill, had he been the first to find it.

Oh – do you think that statement goes too far? Please, reserve your judgement until I have explained my reasoning.

Like so many members of the Tory government, this is a man who absolutely point-blank refuses to understand the relationship between the decisions he makes and the conditions in which the majority of us are forced to live.

This former advisor to the Prime Minister on health and safety laws has advocated relaxing them, ignoring the fact that this will increase the likelihood of work-related injury that makes it impossible for people who need the money to go to work.

This enterprise advisor was asked to conduct a “brutal” review of the relationship of government to small firms, presumably with a view to cutting off as much public assistance for small businesses as possible.

This former chairman of the Manpower Services Commission advised the late Baroness Thatcher on unemployment, and we may take it that it is due to this advice that joblessness skyrocketed during the Thatcher years.

He refuses to see that his attitude is causing the problem: By ensuring that Britain’s labour market remains “flexible” (read “low-wage”), he ensures that the national tax take remains far lower than it should be; low-paid workers form the overwhelming majority of the workforce. In turn, the low tax take means the government cannot pay off its debts and provides it with an excuse to cut public spending – especially on benefit payments.

Stephanie Bottrill had an auto-immune system deficiency, Myasthenia gravis, which meant she was permanently weak and needed constant medication. Doctors said she was too ill to hold a job, but she never qualified for disability benefits.

She committed suicide because she could not afford the cost of living after the Bedroom Tax was forced on her, and it has been said by others that she died for want of £20 per week.

It is the attitude of Tories like Lord Young that has deprived her of that money – and ultimately, of her life.

Share this:

  • Twitter
  • Facebook
  • LinkedIn
  • Tumblr
  • Email
  • Print
  • Reddit
  • Pinterest

Like this:

Like Loading...

Does anybody believe this Conservative claptrap dressed up as information?

25 Thursday Apr 2013

Posted by Mike Sivier in Benefits, Conservative Party, council tax, Disability, Health, Housing, Labour Party, People, Politics, UK, unemployment

≈ 22 Comments

Tags

accommodation, adaptation, Atos, average, bankruptcy, Baroness Thatcher, bedroom, bedroom tax, benefit, benefit cap, benefits, borrowing, Brecon, candidate, carer, censor, child, Chris Davies, Cllr, Coalition, Conservative, councillor, cut, death, debt, deficit, Department for Work and Pensions, disability, disabled, DWP, Ed Miliband, Employment and Support Allowance, ESA, Facebook, fraud, government, health, homeless, housing, housing benefit, Incapacity Benefit, income, insurance, Jobseeker's Allowance, Labour, Liberal, Liberal Democrat, medical, Mike Sivier, mikesivier, Parliament, pension, people, politics, poverty, Radnorshire, Reform, respite, sick, social, social security, spare, spending, tax, taxpayer, Tony Blair, Tories, Tory, under occupation charge, unemployment, unum, Vox Political, WCA, welfare, work, work capability assessment, working family


Tory Parliamentary candidate Chris Davies: In his letter he accuses local Labour members of "acting as disciples of their London hierarchy" - and then regurgitates as much of the drivel handed down to him by his own Westminster masters as he can manage.

Tory Parliamentary candidate Chris Davies: In his letter he accuses local Labour members of “acting as disciples of their London hierarchy” – and then regurgitates as much of the drivel handed down to him by his own Westminster masters as he can manage.

Once upon a time, if you found an error in an article, a document or (in my case – I’m going back to when I was very young) a teacher’s work, you were congratulated for finding the “deliberate mistake”. The culprit would say something like: “Well done! I put that in there as a deliberate mistake to see if you were alert enough to find it. You’ve passed the test! As a reward, clean the blackboard.”

I wonder if the same can be said of a letter in the local paper by a Councillor Chris Davies who, we’re told, is the Conservative Parliamentary Candidate for Brecon and Radnorshire. If so, it seems likely that even the doziest student should find at least one, because his screed is riddled with errors.

Last night I spent several hours writing up a response to his nonsense, and I propose to share it with you now. This means the article will be quite long, but never mind. As those of you who keep up to date with current affairs know, it’ll give Facebook something really juicy to censor.

Here’s the letter from Cllr Davies. Spelling mistakes and misuses of apostrophes are all his own work:

“For years people have had difficulty in distinguishing between the policies of political parties, accusing politicians of all being the same and hogging the middle ground.

“I am grateful to the local Labour Party acting as disciples of their London hierarchy for putting clear water between our parties.

“As reported [on April 11], the local Labour councillors are up in arms over the Coalition Government’s Welfare Reforms.

“Yet rather than offering to help people back into work or helping them move into more suitably sized accommodation, all these Labour councillors offer is, ‘Check your exemption status.’

“This is the sad reality of a Labour Party that despises individual responsibility and aspiration, preferring instead to encourage and promote state dependency.

“During the last Labour government, welfare spending rose by 60 per cent.

“Such reckless spending and disregard for taxpayer’s money not surprisingly brought record levels of borrowing and debt which left the UK on the brink of bankruptcy.

“For these Labour councillors to now clearly advocate working the welfare system instead of striving to escape it proves that they still have not learnt their lesson.

“These Labour councillors are also completely out of touch with the public, the majority of whom support the coalition’s welfare reform policies.

“The Welfare State is there as a last resort, a safety net, for those who need it – Not as an alternative to work as it became under Labour.

“Labour has always shown little regard for the hardworking taxpayers’ who pay for the welfare state; those paying for others to stay at home and paying for tenants to live in larger houses than they need. The fact that so many of these hard working taxpayer’s cannot afford a property of any size themselves appears of no concern to Labour.

“Whether you are running your own business, working on the checkout in the local supermarket or working as a farm labourer, the majority of the tax you pay now goes to fund the welfare state.

“No one minds paying for those who truly need support, but as these welfare reforms have already shown, there were many people claiming support that they did not need or were not entitled to.

“Tougher medical tests recently introduced to assess the health of the 2.6 million people claiming incapacity benefit found 800,000 of them were perfectly fit and able to work.

“Another 900,000 dropped their claim to these benefits rather than take the test.

“How can Labour honestly say it is unfair that we are capping benefits at £26,000 a year when that is far more than most workers in Brecon & Radnorshire earn?

“How can Labour continue to support a benefit system that gives workless households a higher income than the majority of working individuals who are paying for the system?

“The system should never have allowed unemployment to become more financially rewarding than working. It is this disincentive to work that has largely caused the welfare problem we are now dealing with.

“All Labour can do is pour scorn on anything the Coalition Government does. What are they offering as an alternative? We are seeing No policies, No ideas, No alternatives.

“To quote Tony Blair recently – “Ed Milliband is in danger of being seen as reducing the Labour party to nothing but a party of protests” – It seems to me that whether in London or locally the Labour Party is already there.”

If I know my readership, you are all shaking your heads in blank astonishment that someone who professes to be a reasonable human being – and has managed to become a county councillor, here in Powys, should come out with such an unremitting stream of dribble.

In response, I wrote the following. Be warned – it doesn’t address every single piece of nonsense in Cllr Davies’ letter. There is a word-limit on letters submitted to the newspaper.

So here’s a game for you: Spot the ‘deliberate’ mistakes in his letter that I haven’t singled out, tell us what they are and why they’re wrong.

Here’s my response:

I read with interest the letter from Cllr Chris Davies, who is keen to put “clear water” between our parties. His letter certainly achieves this, ably clarifying that Conservatives have little or no understanding of the effect their so-called reforms are having on those they claim they are trying to help. I’d like to set the record straight. Although I am a Labour member, I think it is appropriate to quote the late Baroness Thatcher: “Where there is error, may we bring truth.”

If taken to its obvious conclusions, the under-occupation charge – more correctly known as the Bedroom Tax – will cost the taxpayer far more than the former situation. The stated aim is to get people who are living in social housing with spare bedrooms to move into smaller accommodation or lose housing benefit. This means a disabled person in a house with thousands of pounds worth of adaptations for their disability, that has two extra bedrooms (one used as a carer’s respite room while the other would be more accurately defined as a cupboard), would lose so much money that they would be forced to move out. If they then went to a private, one-bedroom flat, the taxpayer would not only have to pay full housing benefit (around £100 extra per month) but also the cost of removing the disability adaptations from one dwelling and installing them in the other (thousands of pounds).

You see, the Conservative-led government got its sums wrong. It would be better for all involved (not least the taxpayer!) if ways could be found to prevent this extravagance with the public purse. What the Labour councillors were suggesting was a way of saving taxpayers’ money – not spending it.

Cllr Davies’ claim that welfare spending rose by 60 per cent under the last Labour government is scaremongering and cynical manipulation of the figures. Total expenditure on welfare when Labour took over in 1997 was 11.6 per cent of Gross Domestic Product. Under Labour, it averaged 10.7 per cent – that’s right, it went down – right up to the crash. Afterwards, benefits for children and working-age adults rose from an average 4.9 per cent of GDP to six per cent, which is what one might expect during a recession.

For clarity, the majority of welfare spending goes into pensions – around 55 per cent. Benefits for the unemployed total just three per cent. Fraudulent claims total a miniscule 0.7 per cent.

Moving on to Cllr Davies’ ridiculous claim that many people were claiming support who did not need or were not entitled to it, he claims that 900,000 people (in fact it was 878,300) dropped their claim for Employment and Support Allowance rather than take the Work Capability Assessment. In fact, DWP figures show that the number of cases closed before assessment has remained consistent since before the new assessment came into use. It is known as ‘churn’ – a turnover of claims withdrawn for perfectly normal reasons like people getting better or finding a job they can do, even if they’re ill. That is a result of people using the benefit system properly. Every month, around 130,000 people come off ESA – it isn’t a lifetime benefit; it’s something you claim for as long as you must. Because of the huge number of cases on the system and the amount of time it takes for them to be assessed and decided, some people who no longer need to claim haven’t even had their assessment.

DWP figures show the number of people receiving the benefit has in fact risen since the current government increased its scrutiny of disabled people.

Cllr Davies’ claim that the Work Capability Assessment is a “medical” test is also inaccurate. It is based on a system devised by an American insurance company called Unum, in order to avoid paying out to customers whose policies had matured. The aim is to convince very sick people that their illnesses are imagined. As a policy, you might consider that to be sick in itself. The result is horrifying but I’ll try to put it in context: According to the BBC, by October 30, 2012, the total number of British soldiers who had died in Afghanistan since military operations began there in 2002 was 437. That’s equivalent to the number of sick or disabled people who die while going through the work capability assessment system (or as a result of going through it) – every six weeks; an average of 73 per week (according to figures released after a Freedom of Information request).

The benefit cap is another waste of taxpayers’ money. It will reduce households’ ability to pay the rent, leading to an expected increase in homelessness of 40,000 families. How much will local authorities have to pay, housing families in temporary accommodation? Child poverty will skyrocket by 100,000. Many families may break up in response to the pressures. Parents who live separately and divide their children’s residency between them can claim up to £1,000 a week in benefits, while a couple living together may only claim £500. Of course, this would completely wipe out any saving the government would have made on that family, costing £26,000 more every year.

Cllr Davies rightly says £26,000 a year is more than most workers in Brecon and Radnorshire earn. That’s not a good thing – it means people here don’t get the pay they deserve. But even that figure is inaccurate as it omits benefits, so the average income of a working family is in fact £31,500, or £605 per week. The trouble with that is, if applied to benefit recipients, so few people would lose benefits that it would make the cap pointless. You see, it’s all about cutting the benefit bill; it isn’t about fairness at all. But, as I say, the Conservatives are so hopeless they can’t even get their sums right.

Cllr Davies is wrong to say that Labour opposes a benefit cap, however. There is cross-party support for limiting benefits as an incentive to seek work. The difference is that the Labour version would have been fair.

Cllr Davies says Labour supports a benefit system that gives workless households a higher income than the majority of working individuals who are paying for the system – and again he is manipulating the figures, comparing households with individuals. The simple fact is that unemployment benefits stood at around one-sixth of average earnings until April, when the one per cent uprating came into effect and pushed unemployed people closer to poverty. When benefit is so much less, in real terms, than earnings, a higher percentage increase does not mean you receive more money than a working person – something the Conservatives find hard to grasp, it seems.

So which do you believe – the comfortable lies that Cllr Davies has foisted on you, unencumbered by any factual evidence – or the unpalatable truth that the government’s imbecilic handling of the situation will cost us all many millions more in damage control when it all goes wrong?

Share this:

  • Twitter
  • Facebook
  • LinkedIn
  • Tumblr
  • Email
  • Print
  • Reddit
  • Pinterest

Like this:

Like Loading...

The benefit cap: Popular, but ill-judged and supported by lies

16 Tuesday Apr 2013

Posted by Mike Sivier in Benefits, Conservative Party, council tax, Disability, Housing, Labour Party, Liberal Democrats, People, Politics, tax credits, UK, unemployment

≈ 12 Comments

Tags

accommodation, authorities, authority, average, benefit, benefits, break, cap, cb, child, children, Coalition, Conservative, cost, council, credit, David Cameron, debt, Democrat, Department for Work and Pensions, disability, disabled, DWP, employment, Employment and Support Allowance, ESA, family, government, hb, homeless, housing, Iain Duncan Smith, impoverish, income, is, Jobseeker's Allowance, JSA, Labour, Lib Dem, Liberal, lie, living, local, mark hoban, Mike Sivier, mikesivier, Parliament, people, politics, poverty, regional, rent, sick, social security, support, tax, temporary, Tories, Tory, Twitter, up, variation, Vox Political, wage, welfare, work, working


Mark Hoban has a history of lying to the people, as the above image shows. How can we believe what he's trying to tell us about the benefit cap?

Mark Hoban has a history of lying to the people, as the above image shows. How can we believe what he’s trying to tell us about the benefit cap?

What a shame that so many Vox Political articles this week are on the same subject: Your Government Is Lying To You.

Today, the lies are clustered around the benefit cap, which has been launched this week – in only four London boroughs, rather than nationally.

Perhaps the Tory-led Coalition government already has an inkling that it got its sums wrong?

Nevertheless, David Cameron’s Twitter feed announced to the world that yesterday (April 15) was “A big day for welfare reform as we pilot a cap on benefits equal to the average wage. Amazingly Labour oppose it.”

Two sentences, two untruths.

Firstly, let’s look at the average amounts that families bring into their homes. While it may be true that the average family wage is £26,000 per year – equal to the £500 per week at which benefits will be capped – it is not true that this is the total amount of income such a working family may receive. A couple with four children earning that much after tax, with rent and council tax liabilities of £400 a week would get around £15,000 a year in housing benefit and council tax support, £3,146 in child benefit and more than £4,000 in tax credits: £48,146.

That’s not an average; just an example. The average income of a working family is, we are told, £31,500, or £605 per week, with a little change left over. So there is a huge difference between what Mr Cameron says the average working family takes home, and what the average working family in fact takes home.

If benefits were capped at this figure, though, most unemployed families would already be receiving less, so there is no saving to be made – and the whole point of this, from the Coalition’s point of view, is to cut the benefit bill. It isn’t about fairness at all.

The second lie is that Labour opposes it. In fact, the Labour Party agrees that there should be a limit on the amount of benefit working-age people may receive – for exactly the same reason the Coalition keeps using: Limiting benefits is an incentive to seek work.

Obviously, employment should pay more. If people have a particular way of life and they want it to continue, then they should earn it. There is cross-party support for that principle and, by stating otherwise, Mr Cameron is feeding falsehoods to the public, trying to create a false impression.

Is he doing this because this is his most popular policy (wrongly so, for reasons we’ll address shortly) and he doesn’t want to admit that Labour would have carried it through as well?

Of course, there would have been one difference: The Labour version would have been fair.

Note that the government is also lying about the benefits affected by the cap. It says Jobseekers’ Allowance, Income Support, Child and Housing Benefit all count towards it, but not disability benefits.

What is Employment and Support Allowance if it isn’t a disability benefit, then? ESA is also counted when calculating whether a claimant’s or family’s benefits should be capped. It is only provided to people with a long-term sickness or disability.

So: Labour supports the benefit cap and would probably have brought it in. But Labour would have installed the cap on a regional basis, taking account of variations in the cost of living across the country. Labour said this would help ensure that the policy works in practice.

As long ago as January last year, Labour was saying that the version of the policy that has now come into effect would backfire.

When rolled out nationally, it is expected to save £110 million per year from the £201 billion benefits bill. For the drop-in-the-ocean effect it will have, we can see that it is already disproportionately popular. But consider the knock-on effects and it becomes clear that the benefit cap may cost the taxpayer much more than leaving matters as they were!

How much will local authorities have to pay on homelessness and housing families in temporary accommodation? Most out-of-work families with four children, and all those with five or more, will be pushed into poverty – Department for Work and Pensions figures show that the poverty threshold for a non-working family with four children (two of whom are over 14) is £26,566 – £566 more than the cap.

“Serves them right for having so many children while on benefits,” you might say. What if they weren’t on benefits when they had the children? The UK has been plunged into a recession after a period of full employment (more or less) as defined back in the 1940s, when the original Welfare State was created. The number of families forced into unemployment has grown massively as a result of the credit crunch and banking crisis, and they have been kept there by the policies of the Coalition government, which continue to depress the economy and prevent growth. Anybody can fall on hard times unexpectedly and it is one of the principle injustices of the current government that a person can be labelled a “striver” one day, lose their job the next and instantly become a “skiver” in the opinion of, among others, Daily Mail readers.

Of course the DWP has not released any estimates of the increase in poverty – especially child poverty – but a leaked government analysis suggests around 100,000 children would be impoverished once the cap is introduced nationally.

The first benefit to be trimmed, if families’ or individuals’ current benefit exceeds the limit and is deemed to need capping, is Housing Benefit (or, let’s be accurate here, Landlord Subsidy). It is expected that 40,000 families will be unable to pay their rent and will become homeless. That’s a lot of work for local authorities, who will have to try to find reasonable accommodation for them while paying the (higher) cost of putting them up in bed-and-breakfasts.

Many families may break up in response to the pressures. Parents who live separately and divide the residency of their children between them will be able to claim up to £1,000 a week in benefits, while a couple living together will only be able to claim £500. Of course, this would completely wipe out any saving the government would have made on that family and in fact would cost £13,000 more every year, per family.

Finally, Mark Hoban was on Radio 4’s Today programme, telling the nation that the best way to avoid the benefit cap is “to move into work” – completely ignoring the fact that there is hardly any work available. When thousands of people apply for a single job in a coffee house, as happened within the last few weeks, you know the employment situation is dire. Perhaps the government is playing fast and loose with its increased employment figures as well?

So which do you believe – the comfortable lie that the benefit cap ensures people in work earn more than those on benefits (there was never any danger of the situation being otherwise), or the unpalatable truth that the government’s imbecilic handling of the situation will cost us all many millions more in damage control when it all goes wrong?

Share this:

  • Twitter
  • Facebook
  • LinkedIn
  • Tumblr
  • Email
  • Print
  • Reddit
  • Pinterest

Like this:

Like Loading...
← Older posts

Vox Political

Vox Political

Enter your email address to follow this blog and receive notifications of new posts by email.

Vox Political

  • RSS - Posts

Blogroll

  • Another Angry Voice
  • Ayes to the Left
  • Diary of a Benefit Scrounger
  • The Green Benches
  • The Void

Recent Posts

  • The Coming of the Sub-Mariner – and the birth of the Marvel Universe (Mike Reads the Marvels: Fantastic Four #4)
  • ‘The Greatest Comic Magazine in the World!’ (Mike reads the Marvels: Fantastic Four #3)
  • Here come the Skrulls! (Mike Reads The Marvels: Fantastic Four #2)
  • Mike Reads The Marvels: Fantastic Four #1
  • Boris Johnson’s Covid-19 u-turns (Pandemic Journal: June 17)

Archives

  • August 2021
  • June 2021
  • March 2021
  • February 2021
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011

Topics

  • Austerity
  • Banks
  • Bedroom Tax
  • Benefits
  • Business
  • Children
  • Comedy
  • Conservative Party
  • Corruption
  • Cost of living
  • council tax
  • Crime
  • Defence
  • Democracy
  • Disability
  • Discrimination
  • Doctor Who
  • Drugs
  • Economy
  • Education
  • Employment
  • Employment and Support Allowance
  • Environment
  • European Union
  • Flood Defence
  • Food Banks
  • Foreign Affairs
  • Fracking
  • Health
  • Housing
  • Human rights
  • Humour
  • Immigration
  • International Aid
  • Justice
  • Labour Party
  • Law
  • Liberal Democrats
  • Llandrindod Wells
  • Maternity
  • Media
  • Movies
  • Neoliberalism
  • pensions
  • People
  • Police
  • Politics
  • Poverty
  • Powys
  • Privatisation
  • Public services
  • Race
  • Railways
  • Religion
  • Roads
  • Satire
  • Scotland referendum
  • Sport
  • Tax
  • tax credits
  • Television
  • Terrorism
  • Trade Unions
  • Transport
  • UK
  • UKIP
  • Uncategorized
  • unemployment
  • Universal Credit
  • USA
  • Utility firms
  • War
  • Water
  • Workfare
  • Zero hours contracts

Meta

  • Register
  • Log in
  • Entries feed
  • Comments feed
  • WordPress.com

Create a free website or blog at WordPress.com.

Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Cookie Policy
  • Follow Following
    • Mike Sivier's blog
    • Join 168 other followers
    • Already have a WordPress.com account? Log in now.
    • Mike Sivier's blog
    • Customize
    • Follow Following
    • Sign up
    • Log in
    • Report this content
    • View site in Reader
    • Manage subscriptions
    • Collapse this bar
 

Loading Comments...
 

    %d bloggers like this: