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Tag Archives: Child Benefit

The minimum income is 2.5 times what people get on benefits – but still they are labelled scroungers

30 Monday Jun 2014

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

≈ 17 Comments

Tags

adequate, benefit, benefits, Child Benefit, Conservative, Consumer Price Index, couple, CPI, debt, Democrat, earn, for hardworking people, government, increase, joseph rowntree foundation, JRF, Lib Dem, Liberal, living, loan, Mike Sivier, mikesivier, minimum income, out of work, pension, people, politics, price, rise, scrounger, social security, standard, tax allowance, tax credit, Tories, Tory, unemployment, Vox Political, wage, welfare, Wonga


140630minimumincome

The numbers speak for themselves: Under ‘Adequacy of safety-net benefits’, EVERY SINGLE INCOME GROUP has lost out. While others have suffered a great percentage drop, single working-age people remain the least able to make ends meet.

“How much money do you need for an adequate standard of living?”

That is the question posed every year by the Joseph Rowntree Foundation – and every year the organisation calculates how much people have to earn – taking into account their family circumstances, the changing cost of these essentials and changes to the tax and benefit system – to reach this benchmark.

This year’s research finds:

A lone parent with one child now needs to earn more than £27,100 per year – up from £12,000 in 2008. A couple with two children need to earn more than £20,200 each, compared to £13,900 each in 2008. Single working-age people must now earn more than £16,200, up from £13,500 in 2008;

Despite social and economic change, the list of goods and services different families need to live to an adequate level is very similar to that of the original study in 2008 – but people’s ability to afford them has declined. Overall the cost of a basket of essential items has risen by a massive 28 per cent over six years – much higher than the 19 per cent rise claimed by the official Consumer Price Index – while average wages have increased by just nine per cent and the minimum wage 14 per cent;

Increased tax allowances have eased the pressure somewhat for some households, but the freeze to child benefit and ongoing cuts in tax credits have outweighed this for low-earning families with children.

Out-of-work benefits have fallen further and now provide just 39 per cent of what single, working-age people need to reach a Minimum Income Standard.

On the other hand, pensioner couples who claim all their allowances receive 95 per cent of the amount required.

The bottom line is that the Conservative-led government has been hammering the working poor and people on benefits, while claiming to be helping them. The minimum income necessary for an adequate living standard, according to JRF research, is no less than two-and-a-half-times what people on benefits receive. That is an appalling disparity in the sixth-richest country in the world.

It also creates a danger that more people will look to loan suppliers like the government’s favourite (Wonga) for short-term help – at the cost of going into disastrous long-term debt.

Slow earnings growth and price increases have made all households worse off on average, relative to the MIS, the report has found.

The conclusion is a disaster for the Coalition’s “hardworking” people: “In the past six years the more important determinants of whether low-income households can afford the minimum budget have been the increasing cost of living relative to earnings and benefit cuts for households in and out of work.

“For working families with children, if these cuts continue, the opportunity to reach an acceptable living standard may not improve, even as wages start rising again in real terms.”

And the Conservatives have the cheek to use the slogan “For hardworking people”.

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Coalition drags out the pain with promise of many more cuts

05 Wednesday Feb 2014

Posted by Mike Sivier in Children, Conservative Party, Cost of living, Democracy, Economy, Housing, Immigration, Liberal Democrats, People, Politics, Poverty, Public services, Tax, UK

≈ 16 Comments

Tags

appeal, BBC, benefit, bias, break, budget, Child Benefit, Coalition, Conservative, contribute, contribution, crony, cut, David Cameron, deficit, Democrat, Department, Disability Living Allowance, DLA, DWP, economy, elect, employment, ESA, Fiscal Studies, George Osborne, gift, government, growth, health, help to buy, housing bubble, Iain Duncan Smith, IDS, IFS, immigrant, immigration, Institute, insurance, Jobseeker's Allowance, JSA, keynes, Lib Dem, Liberal, Michael Meacher, Mike Sivier, mikesivier, National Health Service, net, NHS, Pensions, people, Personal Independence Payment, PIP, politics, population, pump priming, quango, recovery, returned to unit, right-wing, RTU, Support Allowance, surplus, tax, Tories, Tory, Treasury, unintended consequence, unum, vote, Vox Political, work


140205cuts

The BBC has reported findings by the Institute for Fiscal Studies, showing that the Coalition government will be less than halfway through its planned spending cuts by the end of the current financial year (March 31).

The organisation said 60 per cent of the cuts were still to come.

This raises a few urgent questions. Firstly: This government was formed on the promise that it would balance the books by 2015, which presupposes that its entire plan for doing so would be in place long before then. We know that this ambitious claim was dismissed after years of failure, but part of the reason for this failure was that George Osborne stopped a recovery that was already taking place, and which would have led to economic growth of 20 per cent by now, if it had been allowed to continue (according to Michael Meacher MP). My question, therefore, is: Have the Conservatives been working to ensure that they would have an excuse to make more cuts, rather than to restore the economy and balance the deficit?

Secondly: We may presume that these further cuts will be inflicted over a period of years (as even the Tories know it is important to enact change gradually, rather than inflict sudden shocks on the economy that could create entirely unforeseen consequences). Are the Coalition parties assuming that they will be re-elected next year, and is it not supremely arrogant of them to believe this, considering the harm they have caused so far?

Thirdly: If the Coalition parties do want to be re-elected, it is clear that they will need to try to bring a majority of voters back on-side. Therefore we may reasonably expect to see all sorts of gifts coming our way over the next year – tax breaks or whatever else they can devise – aimed at increasing the amount of money in our pockets. However, knowing that 60 per cent of the Tory/Lib Dem cuts process is still to come, this means they will want to make even more cuts if they are returned to office. Why would we want to give them our vote, in return for presents they’ll grab back as soon as they’ve got what they want?

Fourthly: Iain Duncan Smith has inflicted £28 billion of cuts on people receiving benefits from his Department for Work and Pensions. If the IFS statement is accurate, then the total amount he’ll want to cut is a staggering £70 billion. If we consider that the amount spent on pensions (more than £100 billion) is safe, this leaves only tiny amounts for all the other benefits supplied by the DWP. Are people currently on Jobseekers’ Allowance to get nothing in the future? What about disabled people getting DLA or PIP? How about all the many, many people on Employment and Support Allowance, including those currently going through the appeal process because of wrong decisions? Mr… Smith might claim that all these benefits are being rolled into Universal Credit, but that won’t happen until 2016 or 2017 according to his own estimates, and the rest of us know that it’s not going to happen at all. Will we have any benefit system left if these cuts continue – or will the Tories try to trick us into buying duff health and employment insurance policies from their friends at Unum instead?

The BBC report said George Osborne wants a budget surplus by 2018-19, but “additional spending, population growth and extra demands on the NHS meant more cuts were needed”. This statement is not supported by any source material and we may take it this is a further sign of BBC right-wing bias.

The additional spending was made necessary because of unintended consequences of the cuts – the Tories got their sums wrong. Population growth, if due to the EU immigration that everyone complains about, will have led to a net growth in the economy as it has been proved that migrant workers from the European Union contribute more to the Treasury than they ever take out – so this is not a cause of increased spending. If the indigenous British population has been growing faster than expected, let us remember that Child Benefit is to be restricted to the first two children in a family (Cameron has denied it so it must be true) and therefore any further growth in individual families will have no bearing on the government’s bank balance. Extra demands on the NHS are a thorny subject as the Coalition promised to inject billions of pounds into the health service but no evidence has yet appeared to show that it has. Since this money was promised many years ago, it should have been included in national budgets and should not be a burden now.

The IFS also reports that there is no evidence of a housing bubble in the UK, as a result of Osborne’s ‘Help To Buy’ scheme. This was introduced last year, when Osborne realised that his austerity programme had failed and resorted to a Keynesian ‘pump-priming’ scheme to boost the housing market. Fears that this would lead to a debt-fuelled ‘bubble’ made commenters like myself cautious about the plan.

However, if there are no signs of a debt-fuelled bubble, then we should consider this to be proof that Keynesian economics was always the way forward and austerity has led us up an economic dead-end for the past four years.

This means none of Osborne’s ridiculous cuts were necessary (barring a few to eliminate waste and corruption – but under a Conservative-led regime we have no evidence that these took place and every reason to believe the opposite to be true. Look at the current ‘cronyism’ row over the appointment of Conservative ‘yes’-people to senior quango posts).

It also means the government and the right-wing media have been lying to you for four long years – and will continue doing so in self-justifying stridence for another 14 months to come.

Let them talk.

But don’t ever let them convince you their cuts are necessary.

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The Coalition is creating serious problems and distracting you with phantoms

24 Friday Jan 2014

Posted by Mike Sivier in Benefits, Employment, Immigration, unemployment

≈ 20 Comments

Tags

Annual Survey, ASHE, Bank of England, BBC News, beauty, bedroom tax, benefit, benefit cap, BoE, breasts, bribe, Bulgaria, business, business rate, catastrophe, Child Benefit, claimant, Coalition, Conservative, council, council tax, CPI, Croatia, cure, cut, David Cameron, debt, defence, Democrat, deodorise, earning, earnings, economic, economy, false, falsify, fiddle, figure, fiscal, flood, frack, fund, George Eaton, George Osborne, government, Heathrow, hours, household, housing bubble, IFS, immigrant, Income Tax, individual, industry, inflation, Institute, interest rate, invent, Jill Filipovic, job, jobseeker, Jonathan Portes, Jonathan Wilson, Keith Vaz, Lib Dem, Liberal, low-paid, Matthew Hancock, Mike Sivier, mikesivier, National Institute, national insurance, New Statesman, NIESR, pay, Personal Allowance, politics, pretend, problem, reassessment, retail, rise, Romania, RPI, salary, sanction, self-employed, shale gas, Social Research, storm, Studies, swoob, tax credit, The Guardian, Tories, Tory, unemployment, uprating, upturn, Vox Political, wage, weather, Workfare


140124earnings

According to the beauty industry, women must now start deodorising under their breasts.

I kid you not – it was in The Guardian.

Columnist Jill Filipovic hit the nail on the head when she wrote: “I can already hear your objections: ‘But the area under my boobs doesn’t stink!’ or ‘What kind of marketing genius not only came up with the term “swoob,” but actually thought half the world’s population might be dumb enough to buy into it?’ or simply, ‘This is a dumb product aimed at inventing an insecurity and then claiming to cure it.’

“You would be correct on all three points.

“In fact, inventing problems with women’s bodies and then offering a cure – if you pay up – is the primary purpose of the multi-billion dollar beauty industry.”

The simple fact is that you don’t really need to worry about smells down there – a good old soapy flannel will cure any such problems.

That’s not the point, though. The aim is to get you thinking about it and devoting your energy to it, rather than to other matters.

Now let’s translate that to politics.

We already know that all the scaremongering about Romanian and Bulgarian immigrants storming the country from January 1 was a crock. That bastion of good statistics, The Now Show, told us last week that the total number of Bulgarian immigrants in the last couple of weeks was “around two dozen so far”, according to their ambassador. In the first three months after our borders were opened to Croatians, 174 turned up.

Yet the government wanted you to believe they would flood our immigration service in their millions, “taking benefits and yet simultaneously also taking all the jobs”.

My use of language such as “storming” and “flood” is not accidental. By far the more serious threat to the UK in the early days of 2014 was the weather – and, guess what, not only was the government unprepared for the ferocity of the storms that swept our islands, the Coalition was in fact in the process of cutting funding for flood defence.

This would have gone unnoticed if the weather had behaved itself, because we would all have been distracted by the single Romanian immigrant who was ensnared by Keith Vaz in a ring of TV cameras at Heathrow Airport.

Now the Tories are telling us that our take-home pay is finally on the rise for all but the top 10 per cent of earners, with the rest of us seeing our wages rise by at least 2.5 per cent.

The government made its claims (up) by taking into account only cuts to income tax and national insurance, using data leading up to April last year, according to the BBC News website.

This kind of nonsense is easily overcome – New Statesman published the above chart, showing the real effect of changes to weekly income for people in various income groups, and also provided the reason for the government’s mistake (if that’s what it was).

“The data used … takes no account of the large benefit cuts introduced by the coalition, such as the real-terms cut in child benefit, the uprating of benefits in line with CPI inflation rather than RPI, and the cuts to tax credits,” writes the Statesman‘s George Eaton.”

He also pointed out that other major cuts such as the bedroom tax, the benefit cap, and the 10 per cent cut in council tax support were introduced after April 2013 and were not included in the Coalition figures.

Once all tax and benefit changes are taken into account, the Institute for Fiscal Studies has shown that almost all families are worse off – and the Coalition also appears to have forgotten the five million low-paid workers who don’t earn enough to benefit from the increase in the personal allowance.

Skills and enterprise minister Matthew Hancock compounded the mistake in an exchange on Twitter with Jonathan Portes, director of the National Institute of Economic and Social Research (NIESR). Asked why his analysis “ignores more than four million people in work (the self-employed)”, Mr Hancock tweeted: “Analysis based on ONS ASHE survey of household earnings data”.

Wrong – as Mr Portes was quick to show: “Don’t you know the difference between household and individual earnings?”

Apparently not. ASHE (Annual Survey of Hours and Earnings) is a survey of employed individuals using their National Insurance numbers – not of households or the self-employed.

So the Coalition – and particularly the Tories – were trying to make us all feel good about the amount we earn.

That’s the distraction. What are we supposed to be ignoring?

Would it be David Cameron’s attempt to bribe councils into allowing shale gas companies to frack their land? Councils that back fracking will get to keep all the business rates collected from the schemes – rather than the usual 50 per cent.

He has also claimed that fracking can boost the economy and encourage businesses into the country, in a further bid to talk down dissent.

Or is it the growing threat of a rise in interest rates, which may be triggered when official unemployment figures – which have been fiddled by increased sanctions on jobseekers, rigged reassessments of benefit claimants, a new scheme to increase the number of people and time spent on Workfare, and the fake economic upturn created by George Osborne’s housing bubble – drop to seven per cent?

It seems possible that the government – especially the Tory part of it – would want to keep people from considering the implications of an interest rate rise that is based on false figures.

As Vox Political commenter Jonathan Wilson wrote yesterday: “If the BOE bases its decisions on incorrect manipulated data that presents a false ‘good news’ analysis then potentially it could do something based on it that would have catastrophic consequences.

“For example if its unemployment rate test is reached, and wages were going up by X per cent against a Y per cent inflation rate which predicted that an interest rate rise of Z per cent would have no general effect and not impact on house prices nor significantly increase repossessions (when X per cent is over-inflated by the top 1 per cent of earners, Y per cent is unrealistically low due to, say, the 50 quid green reduction and/or shops massively discounting to inflate purchases/turnover and not profit) and when it does, instead of tapping on the breaks lightly it slams the gears into reverse while still traveling forward… repossessions go up hugely, house prices suffer a major downward re-evaluation (due to tens of thousands of repossessions hitting the auction rooms) debt rates hit the roof, people stop buying white goods and make do with last year’s iPad/phone/tv/sofa, major retail goes tits up, Amazon goes to the wall, the delivery market and post collapses… etc etc.

“And all because the government fiddled the figures.”

Perhaps Mr Cameron doesn’t want us thinking about that when we could be deodorising our breasts instead.

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The great wage con is keeping you poor

26 Tuesday Nov 2013

Posted by Mike Sivier in Benefits, Business, Cost of living, Economy, Employment, European Union, Health, Housing, Immigration, People, Politics, Poverty, Tax, tax credits, UK, Universal Credit

≈ 22 Comments

Tags

Any Answers, BBC, benefit, benefits, Channel 4, Child Benefit, civil unrest, Coalition, con, Conservative, contract, contractor, corporation, debt, Deloitte, disease, Dispatches, economy, employ, employment, Ernst & Young, EU, european union, firm, flat rate, food, government, health, heat, holiday, housing benefit, ill, immigrant, income, KPMG, Landlord Subsidy, living wage, low income, malnourishment, mental, Mike Sivier, mikesivier, minimum wage, national insurance, parasite, part-time, pay, people, physical, politics, PricewaterhouseCoopers, private, production, rent, self-employed, sick, social security, stress, tax, tax avoidance, tax credit, Tories, Tory, trap, unemployment, Universal Credit, Vox Political, welfare, work, zero hours


minimum-wage-poverty

Is anyone else sick of employers bleating that the minimum wage is hindering their business?

They must think we’re all stupid.

A few of them were on the BBC’s Any Answers on Saturday, saying the minimum wage keeps pay down, and that people can’t afford to go to work – especially if they live in London – because their housing costs are paid by benefits. This is nonsense.

The minimum wage is exactly what it claims to be – a minimum. And if people aren’t getting up to work for it because benefits give them more, we can see that it is not enough.

But let’s take this further: We all know that Landlord Subsidy is being restricted – especially in London, where landlords charge more than in the rest of the country. This means that people on low incomes in rented homes will be unable to pay the bills and will be forced to move somewhere cheaper (if they can find it), as intended by our extreme right-wing government.

Where are all these minimum-wage employers going to find their minimum-wage workers then?

Even that isn’t the limit of it, though. We know from such sources as the summer’s excellent Dispatches documentary on Channel 4 that employers have found ways around the minimum wage.

  • They have taken people on as self-employed contractors who are paid a flat rate for a day’s work – no matter how long that work takes – and being self-employed, these people pay their own taxes and National Insurance, and get no time off for holidays or if they are ill.
  • They have taken on workers on part-time contracts, meaning reduced or non-existent holiday and sick pay entitlements – and then boosted up their hours to full-time levels with fake ‘overtime’ offers.
  • They have employed workers on zero-hours contracts, meaning they can demand an employee’s presence at any time and make them work for as long – or short – a period as required. Again, there are no tax administration obligations, NI, sickness or holiday benefits.

The result is very nice for a government of liars such as the current Westminster administration, because it seems they have managed to increase employment (in fact the last figures showed unemployment is greater than at the end of the Labour administration in 2010, but by such a small amount that it’s not worth mentioning).

Production, on the other hand, has remained flat. If more people are in work, it should have increased.

That is how we know we are looking at a con.

If more people are in work but production hasn’t gone up, we must question the incentive for this increased employment. It has already been mentioned: The lack of holiday and sick pay entitlement, National Insurance and tax admin obligations. The larger the employer, the larger the saving – but this doesn’t mean small firms aren’t feeling the benefit.

The minimum wage worker’s income is topped up by benefits – but the government is cutting these back. Landlord Subsidy in London won’t be enough for people on the kind of contracts described here to stay in their homes, and this means a consequent job loss if they have to move out of the area.

Tax credits are being removed; child benefit restricted. Universal Credit (if it ever works) will operate in real-time, adjusting benefits to ensure that low-paid workers remain in an income trap for as long as their wages remain below a certain level.

Employers reap the benefits. But even they are being conned, because this can’t last forever.

Imagine a Britain without in-work benefits but where the living wage has not been introduced nationwide (this will be a reality in a few years, under a Coalition or Conservative government). Workers on the self-employed, part-time or zero-hours contracts described here will not earn enough to survive.

Private debt will increase exponentially, leading to increased mental illness as the stress of trying to cope takes its toll on the workforce. Physical illness will increase as people cut back on heating in their homes and food in their fridges and larders. Result: malnourishment and disease.

What happens then? It’s hard to say. It may be that employers will take on increasing numbers of cheap foreign workers – but there is already resentment at the influx of immigrants from the European Union and this could lead to civil unrest.

It seems likely that the largest firms will leave these shores. If we compare them to huge parasites – and we can – then the host will have been drained almost dry and it will be time to move on and find another to treat the same way. These are the companies who have reaped huge rewards from tax avoidance, aided by the ‘Big Four’ accountancy firms – KPMG, Deloitte, PricewaterhouseCoopers and Ernst & Young – who have been writing – into British law – ways for them to get out of paying their share.

The smaller employers might keep going for a while or collapse; it depends how much their bosses save up for the inevitable crash. Deficit financing of their business will support them for a while but, if they don’t have any ideas, they’ll go under.

All because a few very greedy people just won’t pay a reasonable amount for a hard day’s work.

They get on the media, telling us they can’t afford higher wages. In that case, why are they even in business? If they need a workforce of a certain size, but cannot pay a living wage, then they simply should not bother. All they are doing, in the long run, is contributing to a monumental confidence trick that will cause immense harm to the economy and the nation’s health.

Of course, the UK did not always have in-work benefits. People used to be paid enough to make ends meet. We should be asking why that changed and who benefits. A return to that situation would benefit the country enormously – but it isn’t going to happen on the minimum wage, and it isn’t going to happen on zero-hours contracts.

It’s time to name these firms and ask bosses who employ on these terms why those contracts are necessary and why they feel justified in the damage they are causing.

And while we’re at it, it’s time to ask our MPs why they tolerate it, too.

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More fake statistics from the denial factory

10 Thursday Oct 2013

Posted by Mike Sivier in Benefits, Conservative Party, Disability, Housing, People, Politics, Poverty, tax credits, UK, unemployment

≈ 36 Comments

Tags

benefit, benefit cap, benefits, bill, carers allowance, Child Benefit, Coalition, Conservative, cost, cut, Department, Department for Work and Pensions, disability, disabled, DWP, employer, Employment and Support Allowance, ESA, government, health, home, house, housing benefit, Iain Duncan Smith, Incapacity Benefit, Income Support, Ipsos Mori, Jobcentre Plus, Jobseeker's Allowance, living wage, making work pay, Mike Sivier, mikesivier, move, Pensions, people, politics, reduce, returned to unit, sick, social security, survey, tax credit, Tories, Tory, unemployment, Universal Credit, Vox Political, wage, welfare, work


131010benefitdenier

One lie leads to another, as Iain ‘Returned To Unit’ Smith seems to have found out – now that he has started, he can’t stop for fear that he’ll be found out.

Tough. The evidence is available for all to see.

His latest attempt at hoodwinking the public is a press release, Public think benefit cap claimants should work or move, in which even the headline is a lie.

It aims to publicise the results of a survey by Ipsos-MORI, examining public attitudes to the cap. The survey was carried out among more than 2,000 people who were selected to be representative of the UK as a whole.

“The vast majority (70 per cent) of the public think people affected by the benefit cap should be prepared to find jobs or work more hours,” the piece begins. This is accurate, according to the survey being quoted – but it is based on the premise that the benefit cap should be set at £26,000 per year for a workless family, which is significantly lower than what was originally advertised by the DWP – the income of an average working family.

The DWP, imposing the cap, drummed up support by saying it would limit the amount workless families could receive to the same as the average income of a family in work, claiming that this was £26,000. In fact, a working family claiming all the benefits to which it is entitled can get £31,000 – so the cap means workless families are at least £5,000 per year worse-off, a huge gap of 16-17 per cent.

“Two-thirds (65 per cent) say they should be willing to move to a cheaper property,” the release claims – but the Ipsos-MORI report’s summary makes it clear that support for the policy drops to 44 per cent – a minority – and opposition rises to 26 per cent if it means those benefit claimants affected by the cap have to move to other areas to find more affordable accommodation.

The press release, which came out to support the government policy ‘Simplifying the welfare system and making sure work pays’, continues: “Independent research published today (10 October 2013) shows that 60 per cent support the cap even if it means that those affected have to take a job, regardless of the pay.” So now it seems that making work pay is not the objective; cutting wages is the real plan.

“The Ipsos MORI report finds around three-quarters of the public support the benefit cap in principle.” This, at least, is accurate and is no bad thing. Benefits should be lower than wages – they are a safety net that should enable people to carry on living while they find paying work. But in return, employers need to pay a living wage, ensuring that nobody in work has to claim any benefit at all. That, at the moment, is sorely lacking in the UK.

“58 per cent think that politicians needed to do more to reduce the welfare bill.” But they weren’t asked how they thought this should be done, or whether politicians were doing the right things.

“50 per cent think that benefits are too generous.” Among those who’ve received benefits this drops, but surprisingly only to 45 per cent. Among those who haven’t received benefits, 62 per cent thought them too generous.

“11 per cent think the benefits system is working effectively.” But they weren’t asked whether the Conservative-led Coalition was to blame for the poor performance.

At this point, the press release stops quoting statistics – but there is one further piece of evidence that people need to know. It relates to what the people who were surveyed knew about the benefit cap before they answered the questions.

Only 29 per cent knew even a fair amount about the cap before answering the survey’s questions. Of the rest, 42 per cent said they knew “just a little” about it, 18 per cent said they’d heard of it but knew nothing at all about it, and eight per cent had never even heard of it.

So this survey – put out by the DWP as a measure of public support for the Benefit Cap – is in fact a measure of public ignorance.

Why should anybody accept these findings as authoritative? How can we accept the 70 per cent view that people affected by the cap should be prepared to find jobs or work – that’s fewer than those who admitted they don’t know much about it!

In fact, none of these statistics can claim to be authoritative because only a tiny minority of those surveyed knew enough about the subject.

Now look at Iain Duncan Smith’s comment: “Today’s report makes it clear that the public support setting a limit on benefits and the successful delivery of the benefit cap shows we are committed to returning fairness to the welfare state.”

Lie. It shows that most of the public are ignorant about the limit. The successful delivery of a benefit cap set at 17 per cent less than average income shows that he is committed to returning unfairness to the benefit system.

“Claimants affected by the cap need to make decisions about work and housing and what they can afford, just as hardworking families do. We have made sure the support is there to help people back into work and the Benefit Cap and Universal Credit will ensure that work pays.”

Lie. The press release itself states that people are being pressurised into any work they can get – whether it pays or not. Support is not available to get people back into jobs because the jobs aren’t there. And Universal Credit does not work.

The release goes on to state: “Since claimants were first notified of the benefit cap in April 2012, Jobcentre Plus have helped around 16,500 potentially capped claimants into work.” The wording is very careful; notice no mention is made that they moved into work specifically to avoid the cap – Smith and others have been reprimanded over such claims in the past. But the context suggests that the benefit cap is what motivated these people to get jobs, and that is unsupportable as well.

What a shambles.

Follow me on Twitter: @MidWalesMike

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Labour’s latest welfare betrayal means the party could change name to ‘Red Conservatives’

06 Thursday Jun 2013

Posted by Mike Sivier in Benefits, Conservative Party, Disability, Economy, Labour Party, Media, People, Politics, UK, unemployment

≈ 64 Comments

Tags

BBC, bill, Blue, budget, cap, cause, Child Benefit, child poverty, Conservative, death, die, disability, disabled, dying, Ed Miliband, employers, George Osborne, health, help, industry, Jobseeker's Allowance, Labour, law, Liam Byrne, Mike Sivier, mikesivier, mislead, National Health Service, NHS, pay, Ralph Miliband, red, rent, safety, sick, social security, spending, Tony Benn, Tories, Tory, unemployment, univeral, Vox Political, wages, welfare, William Beveridge


Red Tory betrayal: He might as well have said, "We're going to grip the poor by the throat and push them down so far and so hard that they'll never be able to get on their feet again."

Red Tory betrayal: He might as well have said, “We’re going to grip the poor by the throat and push them down so far and so hard that they’ll never be able to get on their feet again.”

The Red Conservative Party has announced a new policy attack on people receiving benefits, in its latest bid to out-Tory the Blue Conservatives.

Ed Cameron announced that he would impose a three-year cap on any welfare spending not linked to the economic cycle, stealing an idea put forward by George Osborne of the original Conservative Party during the March budget.

He also vowed to make people work for two years before they qualify for a new, higher rate of Jobseekers’ Allowance.*

Shadow work and pensions secretary Iain Duncan Byrne said the cap would force a Labour government to engage in long-term reforms necessary to bring the welfare bill down.

Neither man actually spelled out which benefits would be affected by the cap.

But Ed Cameron tried to salvage his party’s reputation in the eyes of left-wing supporters by promising to drive down rents and improve pay.

And in a contradictory move, he said he would not abandon the long-standing goal of abolishing child poverty by 2020, even though his new policies mean that, inevitably, more children will suffer poverty through no fault of their own.

Cut through the spin and the above is, pretty much, what has been announced. The Labour Party is becoming even more right-wing, rather than less, as the Tory tabloids claimed when Ed Miliband became the leader.

It seems that failing to reverse the abolition of universal child benefit was just the tip of the iceberg, Ed Miliband’s father, Ralph Miliband, must be spinning in his grave… In fact, he’s probably drilling his way through the Earth’s crust towards countries unknown, in the same way I said William Beveridge must be, after Liam Byrne’s Guardian article on the welfare state in 2012.

What we’re seeing isn’t really a conversion to Conservatism – although the retention of critically dangerous neoliberal elements at the top of the party structure means this will continue to be a threat. It’s actually worse than that.

This is a Labour Party that goes any way the wind blows.

Does anybody remember the great Tony Benn’s comments about politicians being either signposts or weathercocks? It has been mentioned previously, in this blog. He said some politicians are like signposts. They point in the direction they want to travel and say, “This is the way we must go!” And they are constant. Others are like weathercocks; they lick their fingers, find out which direction the political winds are blowing and follow.

The Guardian illustrates that Miliband has become a cock in its article, stating that the new announcement “is seen as critical to Labour being able to claw back its poll deficit on welfare and show its ability to take tough decisions”.

It will do neither.

If Labour wanted to “claw back its poll deficit on welfare” it would be announcing new policies to tackle the causes of unemployment, sickness and disability, in order to ensure that unemployment was never again likely to rise as high as it has. This means helping industry; it means restoring the National Health Service; it means making sure employers – especially the really large ones who think they can get away with anything – conform strictly to health and safety laws and can’t blame employees’ work-based sicknesses on anything other than their own negligence.

It means setting the terms of a new debate on this issue – not meekly accepting the Conservatives’ warped frame of reference.

Because, you see, that doesn’t indicate an “ability to take tough decisions”. Nor does copying an idea already mentioned by a Conservative. Tough decisions are those that the public might find hard to accept at first – about policies that might need to be explained before they are accepted. Labour isn’t making any tough decisions. It is following the Conservative/Coalition example and that simply is not good enough.

The Guardian article says Labour hopes the electorate “will focus on the party’s decision to take a credible and specific stance on the deficit, after three years of low growth, rather than punish Labour for its apparent volte face [about turn] by ending three years of criticism of welfare cuts”.

There is no chance of that happening. The electorate is not stupid and I predict that those parts of it that have supported Labour as a force for working people, those who want to work but are unemployed through no fault of their own, and those who have been invalided out of work, again through no fault of their own, will desert the party en masse. Miliband and Byrne might pick up a few right-wing votes – but not enough to make a difference. They will lose far more than they will gain.

Note particularly that line about “ending three years of criticism of welfare cuts”. They’ve stopped criticising the Conservatives/Coalition about cuts that are literally ending UK citizens’ lives at an alarming rate. That is not – and will never be – justifiable on any level at all.

Let’s not forget that an average of 73 people a week are dying as a result of Conservative/Coalition policies on benefits – possibly many more, as this figure is nearly a year old. A Labour government that would allow this to continue is not an electable Labour government.

This announcement marks the beginning of the Conservative victory in 2015.

Thanks for nothing, Ed Miliband. Thanks for nothing, Liam Byrne.

Shame on you, you sell-outs.

*Interestingly, the Blue Conservative mouthpiece BBC misleadingly reported that Labour believed “only people who pay into the system for more than two years should get Jobseekers’ Allowance” at all! This seems to be an inaccuracy but it is damaging and more people will read it.

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Why whine, Cameron? Labour can’t reverse Child Benefit cut because you cocked up the economy!

05 Wednesday Jun 2013

Posted by Mike Sivier in Benefits, Conservative Party, Health, Labour Party, Liberal Democrats, People, Politics, Tax, UK

≈ 16 Comments

Tags

accident, avoidance, benefit, benefits, borrowing, Child Benefit, Coalition, Conservative, consultation, David Cameron, debt, deficit, Democrat, economy, Ed Miliband, emergency, George Osborne, government, haven, Health and Social Care Act, Labour, Liberal, listening exercise, Mike Sivier, mikesivier, minister, NHS, Parliament, people, politics, Prime, questions, sick, social security, tax, Tories, Tory, Vox Political, welfare


Child-Benefit

Either David Cameron is suffering a touch of sunstroke left over from his foreign holiday, or he is suddenly happy to admit he is a braying buffoon.

That is what we learned from his determination to continually harp on about Labour’s policy on child benefit during this week’s Wednesday Shouty Time (Prime Minister’s Questions).

Also that he has no answer to any questions asked of him about the Coalition’s failure to manage the NHS, or indeed, the national economy.

Ed Miliband’s first question today was about Accident & Emergency waiting times, but Cameron responded about child benefit. To the general public, that makes him a man with no answer.

Pressed on the issue, Cameron resorted to his old standby – waiting times in Welsh hospitals. The last time Mrs Mike was at a Welsh hospital, she waited maybe 15 minutes, between the time she arrived and the time of her appointment. More recently, I had to take a neighbour to hospital for some emergency medication for a mouth abscess. She was seen immediately.

Immediately.

And we live in Wales.

(I’m not denying that the health service could be better but improvements are constantly taking place – and what’s more, over here, they make changes in consultation with the public! I mention this to make the distinction between it and, say, coming out with hugely unpopular plans, halting the process for a so-called “listening exercise”, paying no attention to the results of that exercise and pushing through the original plans regardless. That’s the Cameron method).

We had no sense from Cameron about A&E – but was he making a good point about Child Benefit? Was Labour now supporting the Coalition’s decision to change it from a universal to a means-tested benefit, despite its bitter opposition when the cut (and don’t think it’s anything else!) was first announced.

Of course not. That would be silly.

The fact is that, if Labour comes back into office in 2015, the party’s leaders believe it will be extremely unlikely that enough money will be available to fund the restoration of universal Child Benefit.

That’s not a U-turn by Labour – it’s economic mismanagement by the Conservatives (and their little yellow enablers, the Liberal Democrats).

When George Osborne became Chancellor in 2010, he vowed to eliminate the national deficit by the next election in 2015. Some of you might have forgotten that; he said he would balance the books by then, making it possible for the (poor people of the) country to start on the national debt (because the rich people have parked £21 trillion in foreign tax havens and the Tories are determined not to do anything about it, even though collecting some tax would solve our problems in a stroke).

The 2015 election is now less than two years away. You might think the Coalition has done well, as it continues to claim the elimination of a quarter of the deficit. That was announced in 2012. In the year to 2013, it eliminated something like a quarter of one per cent of the deficit – maybe even less!

Borrowing continues to increase under this Coalition government. It has failed in its reason for existing.

That’s why Labour won’t be able to restore universal Child Benefit.

And that’s why David Cameron is a babbling buffoon.

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Will the government’s benefit raid turn us all into April Fools?

15 Friday Mar 2013

Posted by Mike Sivier in Benefits, Conservative Party, Disability, Economy, Justice, Law, Liberal Democrats, pensions, People, Politics, Powys, Tax, tax credits, UK, unemployment

≈ 16 Comments

Tags

adoption, bedroom tax, benefit, benefit cap, benefits, bureau, carers allowance, charge, child, Child Benefit, Citizens Advice, clinical negligence, Coalition, Conservative, debt, Department for Work and Pensions, disability, Disability Living Allowance, disabled, divorce, DLA, DWP, economy, employment, Employment and Support Allowance, ESA, family, government, health, housing, Iain Duncan Smith, Incapacity Benefit, Income Support, independent living fund, Jobseeker's Allowance, legal aid, Liberal, Liberal Democrat, local housing allowance, maternity, Mike Sivier, mikesivier, Parliament, paternity, pay, people, Personal Independence Payment, PIP, politics, poverty, sick, social security, spare room subsidy, state, tax, tax credits, Tories, Tory, underoccupation, unemployment, Universal Credit, Vox Political, welfare, working


ripwelfarestate
Why is the cumulative effect of the government’s raid on benefits and other public services continuing to be ignored by the public at large?

Are people deliberately sticking their heads in the sand, perhaps in the hope that, if they avoid it long enough, it’ll go away?

That’s not going to happen.

Here’s an analysis of what’s happening, compiled by Vox Political for a local Mid Wales organisation. It makes sobering reading.

THE HEADLINE FIGURES

Working-age benefits including Jobseekers’ Allowance, Employment and Support Allowance and Income Support

One per cent rise in each of the next three years, from April 2013.

Child Benefit

Frozen until April 2014. Will rise by one per cent in each of the following two years.

Maternity, Paternity and Adoption Pay

One per cent rise in each of the next three years.

Carers’ Allowance and Disability Benefits (other than ESA)

Rise in line with inflation (2.2 per cent in April)

Child Tax Credits and Working Tax Credits

Rise by one per cent for the next three years, from April 2013. Basic and 30-hour elements – uprating will not apply until 2014.

Local Housing Allowance

Capped at a one per cent rise for two years from April 2014

The one per cent cap in those benefits that are affected will take £3.7 million out of the UK economy over the next three years.

THE BENEFIT CAP

A limit will be put on the total amount of benefit that most people aged 16 to 64 can get. This is called a ‘benefit cap’. Local councils will be introducing this between 15 April and 30 September 2013.

This affects: Carer’s Allowance, Child Benefit, Child Tax Credit, Employment and Support Allowance (barring support group), Housing Benefit, Incapacity Benefit, Income Support, Jobseekers’ Allowance, Maternity Allowance, Severe Disablement Allowance, Widowed Parent’s Allowance (also Widowed Mother’s Allowance or Widows Pension if receipt began before April 9, 2001), Bereavement Allowance, Guardian’s Allowance.

The expected level is £500 per week for couples and lone parents – equivalent to £26,000 per year (net); and £350 per week for single adults.

Across the UK, 56,000 households will be affected by the benefits cap, including 1,680 in Wales. Job Centres have already notified those who will be affected; they do not include “a vast amount” in Powys.

LEGAL AID

Legal aid in civil cases is cut by £350 million, meaning people who need qualified advice on social welfare debt, benefits, employment, family problems, clinical negligence, divorce and housing problems will not get it. Those people may have to pursue the cases on their own behalf, clogging up the civil justice system, perhaps for years to come.

More than 500,000 people in need of advice will be denied the help and justice they need.

INDEPENDENT LIVING FUND

The Government has closed this to new applications, and plans to permanently close the scheme from 2015. the ILF provides money to help disabled people live an independent life in the community rather than in residential care.

Disabled people could be forced out of independent living arrangements and into residential care, or trapped at home by the fund’s closure.

This will take £320 million out of the national economy.

NEW BENEFIT – THE PERSONAL INDEPENDENCE PAYMENT

On April 8, 2013, the Personal Independence Payment replaces Disability Living Allowance. PIP will maintain links to passported benefits where possible, and there are special rules for claimants who are terminally ill.

The differences are that claimants must have still have their problem nine months after they apply; and there will be planned interventions and an early reconsideration process.

It is being rolled out gradually and will not affect new claimants in Wales until June. From October, claimants on fixed period awards that are coming up for renewal will be reassessed, along with young people coming up to age 16, and indefinite awards with a change of circumstances. Nobody else will be reassessed until October 2015.

There is no PIP claim form available from the usual sources. Claims are to be made by telephone on an 0800 number, when claimants will be asked general questions – including their bank details. Then a form will be posted to the claimant. It will be individually-addressed and bar-coded with the claimant’s details.

This ‘Digital By Default’ idea creates problems, especially in rural areas. Access to broadband internet is still an issue in places, and capability to use the internet is just as much an issue. People who might have access to broadband may still need help going through the claiming process.

For those with fluctuating conditions, the form will provide an opportunity to explain them.

Claimants can have help completing the form, and reports from health professionals such as occupational therapists and doctors may be added to it.

The form will go to a health professional working for the company Capita (in Wales; other parts of the UK have Atos). They may decide a claimant’s entitlement straight away, but most will be asked to attend a face-to-face interview. It is possible that this company may carry out home visits if the need presents itself.

Attendance with a friend, relative, partner, health professional or similar is encouraged.

All evidence will be reviewed and a report will be sent to the Department for Work and Pensions to make a decision.

The health professional will not make any recommendations at all – a DWP case manager will review the evidence and make a decision.

If a claim is disallowed or reduced, they will phone on three separate dates, at three separate times, to explain the decision. There are concerns that claimants with particular issues such as mental health problems might not understand.

Finally, as part of an ongoing process, questions and replies about PIP will be posted on the Frequently Asked Questions (FAQ) page of the DWP’s PIP website, www.dwp.gov.uk/pip

If people are receiving low-rate care component Disability Living Allowance, we believe it is unlikely that they will get Personal Independence Payment.

The www.parliament.uk website itself makes it clear that “A key aim of the new benefit is to deliver savings of over £1 billion a year by 2014-15, rising to £1.5 billion a year by 2016-17.”

HOUSING BENEFIT – THE BEDROOM TAX

This affects:

People who are working but on low pay, who must therefore claim housing benefit in order to keep a roof over their heads. This means it applies to 93 per cent of people who have claimed housing benefit since the Coalition government came to power.

Separated parents who share the care of their children and who may have been allocated an extra bedroom to reflect this. Benefit rules mean that there must be a designated ‘main carer’ for children (who receives the extra benefit). This is likely to cause friction within these former-family groups.

Couples who use their ‘spare’ bedroom when recovering from an illness or operation.

Parents whose children visit but are not part of the household – but households where there is a room kept for a student studying away from home will not be deemed to be under-occupying if the student is away for less than 52 weeks (under housing benefit) or six months (under Universal Credit). Students are exempt from non-dependant deductions, but full-time students will not be exempt from the Housing Cost Contribution (HCC) which replaces non-dependent deductions under Universal Credit. Students over 21 will face a contribution in the region of £15 per week. Are you confused yet?

Families with disabled children; and

Disabled people, including those living in adapted or specially designed properties (this could mean these people will be required to leave that home for another one, with the added expense of having to re-install all the special adaptations).

The government has withdrawn, under pressure, the application to Foster carers. The original rationale was that foster children were not counted as part of the household for benefit purposes.

It has also withdrawn the application to families of young people serving away from home in the armed forces.

Pensioners will not be affected. The government has clarified that couples in which one member is of pensionable age will both be exempt from the Bedroom Tax. But couples of mixed age claiming for the first time under Universal Credit (after it is introduced – possibly in October this year – will have to wait until both are of pensionable age before being exempted from the charge).

Housing benefit will be restricted to allow for one bedroom for each person or couple living as part of the household. However:

Children under 16, who are either both boys or both girls, will be expected to share. This will undoubtedly create many family feuds as puberty is not known for its calming effect on young people.

Children under 10 will be expected to share, regardless of gender. Again, this will create problems for families. It is not a normal situation and it seems bizarre for the government to suggest that it should be.

On the ‘plus’ side, a disabled tenant or partner who needs a non-resident overnight carer will be allowed an extra bedroom for that carer.   If you have a ‘spare’ bedroom under the new rules, you will lose 14 per cent of your housing benefit; for two or more extra bedrooms, you’ll lose a quarter of your benefit. According to the government’s impact assessment, this means 660,000 people will lose an average of £14 per week (£16 for housing association tenants).

Now for the complications.

After Universal Credit is brought in, if only one member of a couple is over pension age, the bedroom tax will apply to the household. If one is receiving Pension Credit, they will be unaffected.

There are currently six different rates of ‘non-dependent deductions’ – amounts removed from housing benefit according to the earnings of people aged over 18 who live in a household but are not dependent on the tenant for financial support. This will become one flat-rate ‘housing cost contribution’ that will be deducted from housing benefit. It will not apply to anyone aged under 21.

Under UC, each adult non-dependent will get their own room, but each must pay the full, flat-rate housing cost contribution – unless aged under 21 and therefore exempt.

Under UC, lodgers will not get a room allowance but any income is disregarded. They will not count as occupying a room under size criteria rules. Currently any income is taken into account and deducted pound for pound from benefit, apart from the first £20. As this income is completely disregarded under UC, my best guess is that the government expects this amount to cover any loss in both housing benefit and Universal Credit. I have a doubt about that. Taking in a lodger will also affect home contents insurance policies, potentially invalidating them or raising the premiums.

Bedroom tax will not apply in joint tenancy cases.

Until UC comes in, benefits will be protected for up to 52 weeks after death; afterwards the run-on will be three months.

And until UC comes in, tenants will receive 13 weeks’ protection where they could previously afford the rent and housing benefit has not been claimed in the previous year; afterwards, the size criteria will apply immediately.   Pre-1989 tenancies are not exempt from the bedroom tax.

Disabled children are not exempt, even though David Cameron wrongly claimed they were.

If you’re on a low income, aged over 40 with children who have left home, or disabled, you could be not only slightly but severely and unfairly affected. It seems likely you will have to choose to either pay the extra amount, or move. Surveys say around a third of tenants will try to move, mainly to one-bedroom properties. This is far more than the government has anticipated in its planning.

There is a national shortage of one bedroom council and housing association homes, meaning many tenants will have no choice but to move into the more expensive private sector or stay put – even though they will not be able to afford the extra costs.

The majority will stay put, but nearly eight-tenths (80 per cent) of those are worried about going into debt, with two-fifths (40 per cent) fearing they will accumulate rent arrears.

The evidence shows that, whether you move or stay put, landlords will lose income which evictions and homelessness will increase. A trial of the benefit changes in Torfaen saw rent arrears rise SEVEN-fold to £140,000 over seven months. This was a trial of Universal Credit, of which Housing Benefit will be a part. From this we can conclude that Universal Credit will create more problems, possibly much worse than what we are facing now.

I am glad to report that the plan to withdraw Housing Benefit from claimants aged under 25 has been withdrawn. But anyone under 35 will be entitled to only the shared accommodation rate of housing benefit.

There will be an impact on family relationships – people will be forced to move into properties together. Young people under 35 who can’t live independently because the shared accommodation route won’t let them do that. People are being forced into ‘pressure-cooker’ situations.

People will have to move their home because of the bedroom tax. That will have an impact – not just on individuals, but on education if a child has to move away from a school where they have friends, to a new area.

The government claims the bedroom tax will save £480 million, affecting £660,000 homes who will have to pay at least £700 per year each. But this is only if families refuse to – or are unable to – move to what the government calls suitable accommodation. There is no chance of this happening because the government has not allowed such accommodation to be built; therefore we may see it as a trap, from which to plunder millions from the poor.

THE WIDER IMPLICATIONS

There will be a rise in rent and mortgage arrears.

There will be generally less income – less money available. That’s also for people owning local businesses as benefit income is spent locally and High Street shops will receive less.

There is a huge risk that more and more people will access ‘lenders without conscience’. Responsible lenders, such as credit unions, are fantastic places to put money, but the services provided are different, depending on the union. They will see more and more people coming to them. That will impact on their business model and the risks will be greater.

An increased demand for advice – for example from the Citizens Advice Bureau – is already happening. The figures will ramp up significantly over the next 12 months and beyond. Funding is decreasing.

There will be a big impact on social landlords and the housing market – the availability of affordable housing and landlords’ ability and willingness to rent to tenants on benefits.

Pressure on the appeal system means people waiting longer for the outcome of appeals.

There will be pressure on public sector resources – local authorities will bear the brunt of this, at a time when they have received difficult financial settlements.

The fund for Discretionary Housing Payments is increasing, though – but not by enough. These payments may help people top-up to pay accommodation costs. Given the effects of the reforms, people will also be looking for these payments and in those circumstances, the budget won’t touch the sides of what’s needed.

And the cumulative impact on child poverty will be huge, with an extra 200,000 children falling below the poverty line.

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Why working people should fear the Coalition’s social insecurity

10 Thursday Jan 2013

Posted by Mike Sivier in Benefits, Business, Conservative Party, Disability, Economy, Liberal Democrats, People, Politics, tax credits, UK, unemployment

≈ 3 Comments

Tags

Andrew Lansley, bank, benefit, benefits, Benefits Uprating Bill, Child Benefit, Coalition, Conservative, Council Tax Benefit, credit, David Cameron, Department for Work and Pensions, DWP, economy, employer, food, government, housing benefit, Iain Duncan Smith, Jobseeker's Allowance, Liberal, Liberal Democrat, loan, maternity allowance, Mike Sivier, mikesivier, National Health Service, NHS, Parliament, payday, people, politics, poverty, security, social, tax, Tories, Tory, unemployment, Vox Political, welfare, worker


TUCpollIt’s absolutely astonishing, the amount of willingness people have to be tricked by Tory doubletalk.

For example: “We love the National Health Service,” said David Cameron. Then Andrew Lansley turned it into something that was neither national nor healthy.

Now Iain Duncan Smith is busy turning our social security system into something that is extremely insecure and downright antisocial!

In the name of fairness.

He and his cronies keep repeating their mantra that benefits have increased by almost twice as much as average wages, even though it has already been proven to be total nonsense.

Well, I’ve got a few more statistics for you – covering the expected effects of the Coalition’s (let’s not forget the Liberal Democrat part in all this) benefits tinkering.

Thanks to this government, working families will lose £9 billion of support every year, according to Liam Byrne. But he said the welfare bill – barring tax credits – will not rise by the one per cent of the benefit uprating, but by four per cent – £8 billion – because the government is failing to create jobs. (Why not? We’ll come to that later)

More working people are in poverty than ever before, with the figure currently standing at a record 6.1 million, according to Karen Buck. She said, according to the House of Commons Library, if only out-of-work benefits were subject to the one per cent cap, but in-work benefits were uprated as normal, 80 per cent of the proposed savings would disappear.

Add changes to the personal tax allowance (increasing to £9,440 this year) to the effects of the Benefits Uprating Bill and working people take 60 per cent of the hit – in other words three-fifths of the drop in income will affect people in work, but they will be expected to take FOUR-fifths of the financial squeeze.

So now even the government’s flimsy claim to be standing up for working people is revealed as a tatty lie.

In each Conservative-held constituency, an average of 6,000 families will be worse-off, Mr Byrne said. Nationally, if the Bill is passed, of the 14.1 million working-age households with someone in work, seven million will be hit – alongside 2.5 million jobless households – so the Benefits Uprating Bill will reduce the capacity of 9.5 million of the UK’s 23-24 million households to pay their bills (Karen Buck).

According to Ian Mearns, 4.4 million jobs pay less than £7 an hour.

As a result of the Bill, five million people may resort to payday loans in order to balance the books for the end of the month, according to Chris Bryant.

He said a food bank is opening every three days and working people are using them to feed their children.

You see, the Government cannot make serious money out of an assault on out-of-work benefits alone – just three per cent of all welfare spending goes on Jobseeker’s Allowance, and all out-of-work benefits account for only three per cent of GDP between them (figures courtesy of Karen Buck)

And the reality is that the line between working people and the jobless is blurred, with people changing between being in and out of work all the time. Last year there were between 244,000 and 357,000 new claims every month for Jobseeker’s Allowance, while between 242,000 and 370,000 left benefit every month (Karen Buck).

Let’s look at the figures affecting both workers and the jobless. According to Liam Byrne, the Benefits Uprating Bill means a child benefit rise of 20p per week; maternity allowance would go up by £1.37 and Jobseekers’ Allowance by just 72p.

Getting back to those 2.5 million jobless – they will lose about £215 a year by 2016, said Karen Buck. Ian Mearns added that, according to the Child Poverty Action Group, a working family eligible for both housing and council tax benefit will gain only 13p a week extra as a result of the extended personal tax allowances.

Meanwhile, a millionaire’s income will rise by £2,058 per week as a result of the cut in the top rate of tax from 50 per cent to 45 per cent, according to Liam Byrne.

With less money to spend, more shops will close and more people will lose jobs (Chris Bryant). this is because money in the pockets of people at the bottom end of the income spectrum is far more likely to be spent, and therefore to keep the economy moving (Sarah Teather, one of the few Liberal Democrats who rebelled against the Bill).

The government would have you believe that the losses I have described above, and the poverty they will bring, could be avoided if scroungers stopped stealing money from the system through fraud, and got back to work.

But benefit fraud stands at 0.7 per cent, according to official figures, and the total number of available jobs (according to the Office of National Statistics) is 489,000.

And – for the third time in this article – there are around 2.5 million people out of work.

There aren’t enough jobs to go around.

So why do you think the government wants to make it impossible for those who are out of work to make ends meet?

It all comes down to something identified by Skwalker1964 in his excellent blog: Greed.

This is about employers wanting to make sure they don’t have to pay too much of their profits away to their workforce – the people who actually make things and do things to generate the money – bear in mind that employers’ pay has risen to eight and a half times what it was 30 years ago, while workers’ pay has increased by an average of just 27 per cent.

Employers want to make sure workers stay in a weak position when bargaining for more pay. If there were more jobs available, or the number of long-term jobless was high, their position becomes stronger as they would realise they could not be replaced very easily.

Lots of people unemployed over the short term means more insecurity for those in work, so they’ll tolerate lower wages and won’t demand increases. The long-term unemployed are less of a threat to job tenure as they are more likely to remain out of work than take a working person’s job.

That’s how the ‘fat cats’ think. And they, of course, pay huge donations to a certain political party, currently in power, to ensure that they get their way.

Do you think I’m wrong?

Then tell me – by how much has the income of the UK’s top earners increased, in total, since May 2010?

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The BBC: helping the Tories force-feed falsehoods to the masses

08 Tuesday Jan 2013

Posted by Mike Sivier in Benefits, Conservative Party, Disability, Liberal Democrats, pensions, Politics, tax credits, UK, unemployment

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"Nation shall speak peace unto nation" according to the BBC's motto. But it seems that same nation's public service broadcaster shall speak lies unto its own people. Why?

“Nation shall speak peace unto nation” according to the BBC’s motto. But it seems that same nation’s public service broadcaster shall speak lies unto its own people. Why?

I think we should all play a little game, based around the Parliamentary debate on the one per cent benefit cap. It’s called ‘Count the Tory lies’ and I’ve already spotted a few on the BBC website’s latest article: Iain Duncan Smith “said inaction would leave the UK ‘bankrupt’, and that ‘like Greece and like Spain… we’ll have huge borrowing costs’.”

Bankrupt, is it? The UK wasn’t bankrupt when its national debt was two and a half times its GDP, so there’s no chance of it now! This is clearly a lie, trotted out to scare people.

He went on to say that pensioner benefits like the winter fuel payment weren’t being capped because pensioners didn’t have the flexibility of being able to go to work – that’s actually untrue as well. I know of many people past pension age who still work. The reason it isn’t being capped is that pensioners are more likely to vote – and the Tories want those votes, so need to keep pensioners sweet. Young people don’t vote as much, therefore they get hammered.

“‘No-one is going to be demonised on my watch,’ he promised.” Except the sick, the disabled, the unemployed, people in work but on low pay…”

Mr Duncan Smith said welfare payments had risen by about a fifth over the past five or six years while incomes had increased by only a tenth over the same period.” Twisting the statistics. In fact benefits as a proportion of average incomes, have been kept at 1/6 of wages, which seems perfectly reasonable to me, especially since wages have been depressed severely over the last 20 or 30 years.

Just to hammer this misleading point home, the article restates it: “Mr Duncan Smith said welfare payments had risen by about a fifth over the past five or six years while incomes had increased by only a tenth over the same period.” Therefore I’m happy to re-state that benefits have remained at only one-sixth of average wages. The difference between the percentages has to do with the differences in amounts – a 20 per cent rise in benefits equals just £11.85, while a 12 per cent rise in average wages is £49. Perhaps that might make it seem a little less unfair to your readers.

“Legislation is needed to implement changes announced by Chancellor George Osborne in last month’s Autumn Statement.” Doubtful – and the BBC should not be pushing this as fact. Was it a Guardian article over the weekend that said the vote was being introduced to make Labour look like the party of slobs, shirkers and scroungers? Instead, Labour will come out as the party for strivers, as it is defending benefits that working people, and people who want to work, need in order to survive in these hard times.

People have been force-fed falsehoods by a government that is desperately trying to justify its unreasonable attacks on the poor and vulnerable.

The BBC should not be part of this. It should set the record straight where figures are available, otherwise its reports are misleading readers.

Let’s have a bit of factual accuracy in the run-up to this vote.

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