Cameron’s ‘mission’ is morally bankrupt

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When David Cameron stands up in all his hypocrisy and tells you that tearing apart the basic safety net that guaranteed people would not be left in hunger or destitution is part of his “moral mission”, even die-hard Tories should agree that the country has taken a turn for the worse.

When he defends an administration that has become so punitive that applicants who don’t get it right have to wait without food for months at a time, by claiming he is doing “what is right”, even die-hard Tories should agree that the man who claims he is Prime Minister has diverged from reality.

That is precisely what he has done, and you can bet that the Tory diehards will quietly go along with it because they think it is far better for other people to lose their lives than it is for their government to lose face.

Cameron has been responding after the Catholic Bishop of Westminster, Vincent Nichols, delivered a vehement attack on the social security “reforms” being forced on the country’s most vulnerable people by Iain Duncan Smith.

In the Daily Telegraph, Cameron smarmed: “Our long-term economic plan for Britain is not just about doing what we can afford, it is also about doing what is right… Nowhere is that more true than in welfare. For me the moral case for welfare reform is every bit as important as making the numbers add up.

“We are in the middle of a long and difficult journey turning our country around,” Cameron said. “That means difficult decisions to get our deficit down, making sure that the debts of this generation are not our children’s to inherit.

“But our welfare reforms go beyond that alone – they are about giving new purpose, new opportunity, new hope – and yes, new responsibility to people who had previously been written off with no chance.

“Seeing these reforms through is at the heart of our long-term economic plan – and it is at the heart too of our social and moral mission in politics today.”

Drivel. Any evidence-based analysis will find the exact opposite. Where are the opportunities in Workfare schemes that pay only benefits, meaning travel expenses alone put claimants out of pocket, and then send jobseekers back to the dole queue so rich companies can profit further by taking on more claimants on the same terms?

How can anyone derive hope from taking responsibility for their job search, when DWP staff at Jobcentre Plus are ordered to ignore their own responsibilities in favour of harsh sanctions for invented infringements of the Jobseeker’s Agreement?

And how is encouraging people to say they are self-employed, even though they have little chance of earning enough to support them and none of enjoying a holiday or a pension, different from writing them off with no chance?

Look at the new employment figures from the Office for National Statistics – the Coalition government has been making a song and dance about them ever since they came out. On the face of it, they seem reliable: In December 2013, 30.15 million people were in work of some kind, up by 396,000 from the same time the previous year; there were 2.34 million unemployed, down 161,000 from December 2012; and the Claimant Count (those on Jobseekers’ Allowance) was 1.22 million in January, down 327,000 from a year earlier.

However, the number of people marked as self-employed has rocketed to a record level, totalling one in seven of the workforce. That’s 4,370,000 – up 150,000 on the previous year. This is extremely suspicious, as the increase in the previous year totalled 25,000 – just one-sixth of this week’s figure.

Some of these people might be genuinely self-employed and making their new business work – but all of them? In an economy where productivity hasn’t increased since the Coalition took office? You’d have to be stupid to believe that.

Assuming the amount of real self-employment has increased in line with economic growth (at 1.9 per cent), that’s an extra 25,475 in 2013, leaving 124,525 in limbo. Are these really self-employed? Or were they told by Jobcentre advisors to say so and claim working tax credits (as we’ve seen in the past), leading to a huge debt when HMRC tells them they have been claiming fraudulently and have been overpaid?

How many of the unemployed have been wiped off the books due to sanctions? We don’t know, because we don’t have figures up to December 2013. We do know that 897,690 sanctions were enforced in the year to September 2013. We don’t know how many were for one month, how many for three months or how many for three years, but we do know that the rate was six per cent of jobseekers per month in the three months to the end of September 2013. Assuming that rate stayed solid, it suggests that 73,200 were off-benefit due to sanctions in December and should be added to the Claimant Count to give a more accurate figure.

How many of the unemployed have been wiped off the books due to Workfare? We don’t know. How many are unemployed but on Universal Credit, which isn’t included in the Claimant Count? We don’t know – 3,610 were on it at the end of November last year, but the DWP has not divided them into those in work and those without.

David Cameron has access to all of this information, and he doesn’t care. He also has access to the mortality figures for claimants of Incapacity Benefit/Employment and Support Allowance, that the DWP has been withholding from the rest of us, probably for fear of sparking an international outcry. He doesn’t care about that either.

His comments are therefore doubly outrageous – not only is he claiming that his Coalition’s changes are having a beneficial effect when the figures demonstrate the opposite, but he is also claiming the moral high ground when his actions are more appropriate to the populace of the Pit.

In terms of his morality, there can be only one description for him and his cronies:

Bankrupt.

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Public and private debt reach record levels under ConDem Coalition

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Household debt in the UK has reached a record £1.43 trillion, according to the BBC. What a marvellous achievement for Gideon George Osborne to put next to his already-record public net debt of £1.212 trillion (excluding interventions) or £2.184 trillion (including them).

If you’re surprised at that, don’t be – he needs to pretend that there isn’t any money so he can cut any services that are still left in the public domain after the fire sale of the last few years.

The Tory plan was always to increase private debt. Of course it was – if you cut public spending for people on the breadline, then they go into debt. Why do you think Wonga.com’s owner Dawn Capital is such a prolific contributor to Tory Party funds, with £537,000 in known donations this time last year?

The rich are shielded from debt problems in the same way they are shielded from taxation, thanks to the way our tax laws have been rewritten in their favour – all their money is safely tucked away in tax havens and can’t be touched.

On average, each adult in the UK owes £28,489. Some owe much more than that, though. Yr obdt srvt doesn’t owe a bean to anyone, despite being very poor, so that’s already £28,489 to be spread among everyone else. Mrs Mike isn’t in debt either.

The BBC report cautiously suggests that the record debt level “might increase concerns that the UK’s economic recovery [you know, the one they keep talking about on the news and in Parliament as if it actually exists] is based on increased borrowing, rather than growth sustained by rising incomes” – which of course is correct.

According to The Money Charity, total net lending by UK banks and building societies rose by £1.9 billion in September 2013 – that’s just in one month.

Over the four quarters to Q2 2013, they wrote off £3.67 billion of loans to individuals. In Q2 2013, the daily write-off was £7.61 million.

Based on the latest available data, every day in the UK 285 people are declared insolvent or bankrupt – that’s one every five minutes; 84 properties are repossessed; 1,447 people lost their jobs and eight people became unemployed for more than 12 months; 141 mortgage possession claims are issued and 113 mortgage possession orders are made; and 431 landlord possession claims are issued and 319 landlord possession orders are made.

The benefit system helps nobody. It has been redesigned specifically to push people further into debt – the cap on benefit rate increases to one per cent per year means people are two per cent worse-off for every year it continues, while inflation remains at current levels.

It is in this atmosphere that words written in this blog more than a year ago come back to haunt us all: “What do people do for money when the State fails them and they can’t get work? They fall into the debt trap.

“High-interest, doorstep lending to poor people is Britain’s latest – perhaps only – boom industry. In other words, the government’s sick benefits regime is forcing the poor into debt to organisations that will take away everything they have left, in order to make up payments on a loan whose interest rate they probably made up on the spot.

“And when they’ve taken everything, what do you do then?

“Do you really want your kids to starve?”

Sad to see this Tory candidate has not learnt from the last letter I wrote about him

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bankrupt, benefit, borrow, Brecon, budget, candidate, Chris Davies, Conservative, employee, equitable, exploit, fair, housing, Iain Duncan Smith, Labour, ownership, Radnorshire, social security, spend, Tories, Tory, welfare, Work Programme, Workfare, zero hours

Remember Chris Davies? The Tory candidate I shot down in the letters page of the local press because he was parroting the lies of Iain Duncan Smith and Grant Shapps at the population of my constituency as though they were the Gospels and he was God’s Own Messenger?

Well, he came back for more.

“Please allow me the opportunity to respond to the letter from the Labour Party’s Llandrindod branch chairman, Mike Sivier,” he writes. I’m not the branch chairman – just the secretary. Believe me, this is not the biggest mistake he makes!

“He obviously exists in the deluded fantasy world of the Labour Party, a party that has failed to learn the lesson from the last period in government and still actively promotes state dependency over individual responsibility and work.” He’ll contradict himself a few paragraphs down, but I wondered what he meant by that – “still actively promotes state dependency over individual responsibility and work”. I can’t say I do that. I actively promote work that benefits all those who carry it out – look at my article about the Liberal Democrat employee-ownership idea. I campaign against zero-hours contracts, Workfare/the Work Programme, and other practices that exploit the worker in order to make a big profit for bosses while they sit back and do nothing (the lazy scroungers!). I campaign against forcing people into work that is inequitable, and recalling that Cllr Davies’ original letter was about benefits, I include forcing the sick and disabled to seek work in that category. So if he is criticising me for actively promoting fairness and equitable employment practices over his party’s exploitation, then I stand guilty as charged. But I believe this reveals something about himself he would rather keep hidden.

“This is the same Labour Party which, despite bringing this country to the brink of bankruptcy,” – this is impossible – “still has the audacity to deny spending too much whilst they were in government,” – Labour didn’t – “and is still calling for even more borrowing and spending.” Labour isn’t.

“The last Labour government allowed the welfare budget to soar by 60 per cent in a decade.” It’s more like 40 per cent, and if you think that doesn’t excuse Labour, wait until you see my proof that social security spending has never been under control for any sustained period since the modern welfare state began, with the exception being between 2001-7, during the last Labour government! “They allowed housing benefit alone to increase by 100 per cent to £21 billion! The cynical among us say they did this to simply buy the votes of benefit claimants. Whatever the reason, the benefit system inherited by the Conservative-led coalition government was horrendously bloated, disgracefully unfair and heavily defrauded.” Wrong again. Welfare reforms since 1996 have unpicked around 30 per cent of the dependency that built up during previous Conservative governments, and the long-term pattern of social security spending relative to GDP had been falling since the year 2000. It was only the recession engineered by the Tories’ friends, the bankers, that pushed spending upwards – and Cllr Davies won’t blame Labour for a problem created by bankers, surely? (I’m being sarcastic. Of course he will. Every other Tory seems to).

“Benefit fraud totals £1.2 billion a year. You could build a lot of hospitals for £1.2 billion.” This is something that another Tory councillor wrote in a letter to a different paper. My response was: The claim that money saved will be used on hospitals and schools is fantasy. The aim of the cuts is to shrink the state – reducing the amount provided for vital public services. It was never the intention to redistribute savings to hospitals. In fact, David Cameron himself has been rebuked for lying when he said the Coalition was putting extra money into the NHS – funding dropped by nearly £1 billion between 2010 and 2012.

“Yet despite these facts,” WHAT FACTS? “Mr Sivier and his socialist comrades in the Labour Party are still opposing reform of the welfare system.” Absolutely untrue! The system now needs reform more than ever before – to eradicate forever the changes made by Iain Duncan Smith and his Tory-boy friends, and remove the bloodstains from its character, caused by the deaths of thousands upon thousands of innocent people whose only crime was to have fallen ill or become disabled.

“What is so sad is Labour’s inability to see how their reign over the welfare system proved so disastrous for hardworking families, the most financially disadvantaged and the most vulnerable members of our society.” I don’t see that – but then, this is because it didn’t happen.

“We now have a generation of people trapped in welfare dependency.” That’s an Iain Duncan Smith lie. The Joseph Rowntree Foundation stated that this claim has no basis in fact. “We have widespread abuse of the benefits system.” IDS lies again. Benefit fraud stands at 0.7 per cent of the total number of claims. Widespread. HA ha-ha! “We have people travelling from the other side of the world to exploit the UK’s ‘generous’ benefits.” Yet another Iain Duncan Smith lie! Channel 4 News Factcheck looked for the figures, but when they asked HM Revenue and Customs for them, the response was that the tax credit system does not record nationalities of claimants, and HMRC doesn’t have the figures! No basis, therefore, in fact. “Who picks up the bill for all this?” All what? “As always it is the UK’s hardworking families who have to pay for Labour’s incompetence.” Except they’re not. They’re paying for the BANKERS‘ incompetence (see my reference to the bank crisis, earlier).

“I am more than happy to discuss our welfare reforms every week for the next two years if Labour really wants to.” That’s good because it’s exactly what’s going to happen! “They are on the wrong side of the argument on this issue and on the wrong side of public opinion.” If he has to tell newspaper readers that Labour is on the wrong side, he’s already lost the argument. As for public opinion, we know the national media are owned by right-wing press barons who push the Tory side of the stories.

“I might just add that in the last fortnight, it seems that Labour has started to realise the electoral folly of their opposition to welfare reform and is beginning to perform some screeching u-turns. Despite months of howling protests from Labour, their party leader has now said that should they get into government, they will NOT reverse any of the coalition’s spending cuts, including those on welfare!

“It would seem that Labour high command failed to inform Mr Sivier of that policy change.”

Readers of this blog will know that I’m well aware of that issue – and will also know exactly what I think of it!

Here’s my response – going out to the paper today:

Chris Davies seems to have his ideas back to front. At first he tells us I’m the epitome of current Labour thinking, but by the end of his latest missive, I’m out of touch with Labour’s “high command”, whatever that is. The truth is that I am lucky enough to be a member of a party that does not require its members to be mindless drones, parroting the latest approved message from above – like the nonsense that has been handed down to Cllr Davies from Tory Party head office.

There are so many lies in his letter that it is hard to know where to start, so I’ll concentrate on the heart of the matter: Social security reforms and Labour’s record. I have already quoted some figures to Mr Davies but he clearly doesn’t want to take my word for it. Perhaps he’ll accept that of Bristol University Professor Paul Gregg instead (I have no idea what Prof Gregg’s political leanings are).

In his 2010 paper, ‘Radical Welfare Reform’ http://www.bristol.ac.uk/cmpo/publications/bulletin/winter10/gregg.pdf he stated: “The number of welfare claims has actually declined, given the state of the economic cycle… welfare reforms since 1996 [under Labour] have unpicked about 30 per cent of the build-up of excessive welfare dependence after 1979 [under the Conservatives].”

Professor Gregg continues: “In terms of worklessness leading to reliance on welfare, the picture is not of a broken system. Rather it is of a system that has been steadily improving since 1995 but masked by the current recession… Welfare growth has never been under control for any sustained period since the modern welfare state began, with the exception only of the six years from 2001-2 to 2007-8 [under Labour]”.

He is saying that the last Labour government is in fact the ONLY government to have got social security spending under control since the Welfare State was introduced. The graph accompanying his paper shows this to devastating effect, with spending under the Conservative governments of Thatcher and Major increasing by up to 80 per cent in a single year!

In short Professor Gregg finds Labour’s record good – and the Tories’ record appalling. As for Cllr Davies’ other assertions, may I direct readers to my article on the Internet, where they should find responses to most, if not all, of them. In brief: The UK, as a sovereign country with its own currency, cannot be brought to bankruptcy. It didn’t spend too much in government until the Tories’ friends, the bankers, engineered the crisis and recession that caused all our current woes. It is not calling for more borrowing and spending. The benefit system was neither bloated nor unfair, and certainly was not heavily defrauded – unless you consider a 0.7 per cent total fraud rate to be excessive. No hospitals will ever be built from benefit savings under a Conservative government and the suggestion that they could is nothing but a lie. We do not have intergenerational welfare dependency. We do not have widespread abuse of the benefit system. We do not have foreigners travelling here for so-called ‘benefit tourism’.

Labour does not oppose reform to the welfare system – it simply opposes Conservative changes that are intended to cause harm.

If Cllr Davies is determined to continue making a fool of himself, every few weeks for the next two years, I’m quite happy to take him up on it. Perhaps he should bear in mind that, with the Internet, we are all perfectly able to check his so-called “facts” for ourselves.

And where is his apology for repeating IDS’ and Grant Shapps’ statistical claims about DWP benefits? Those claims have now been proved, beyond any doubt, false.