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?”

Mail and Telegraph silent as research proves Rolnik right

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

What is really to blame?

Greed.

RIP Hugo Chavez – when can the UK have a Prime Minister like you?

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Ahmadinijad, Assad, austerity, boundaries, boundary, cadre, Coalition, ConDem, Conservative, David Cameron, Democrat, dictator, economy, election, equality, government, Harold Wilson, Hugo Chavez, hung Parliament, infant mortality, infrastructure, internet snooping, Jimmy Carter, legal aid, Lib Dem, Liberal, localism, Mike Sivier, mikesivier, National Health Service, NHS, Nick Clegg, Parliament, Parliamentary, people, politics, Poll Tax, poverty, public service, right-wing press, secret court, social security, Tories, Tory, UK, unemployment, voting system, Vox Political, welfare, Winston Churchill

Which would you rather have – Chavez or Cameron?

Isn’t it amazing, the amount of joy the right-wing press and its adherents can project over the death of a man who improved conditions in his country beyond all expectations?

That is what we are seeing after the death of Venezuelan President Hugo Chavez.

But we should not be surprised – after all, these are the same newspapers (and their bosses) who support the nation-wrecking policies of David Cameron and the Coalition – an unelected dictator and a cadre of manipulators whose only linked interest is their own enrichment at the expense of anybody else.

Chavez was not perfect. There are some aspects of his personality that would give any reasonable person cause for second thoughts. His support for foreign dictators is one. Any man who can draw tributes from Ahmadinijad and Assad is questionable. The rise of violent crime in his country is another – and extremely worrying. Violent crime is linked with poverty, and yet…

And yet any criticism of his presidency on economic grounds is absurd. His nation’s wealth tripled during the first 12 years he was in office. Tripled!

As for his association with unelected dictators – this seems beyond strange as he was not one himself. In fact, his share of the popular vote at his last election was enough to turn every British Prime Minister since Winston Churchill pale with envy.

That last election was won under one of the fairest and most robust voting systems in the world – that was implemented by his own party. Former US President Jimmy Carter thinks its system is superior to that of the US. Turnout was more than 80 per cent, with 55.1 per cent of voters casting for Chavez. It’s notable that the 44.3 per cent of votes cast for rival Henrique Capriles would shame every single UK Prime Minister since Harold Wilson in 1966.

In other words, Venezuela’s former president was elected by one of the most democratically-sound systems in the world, and gained more support from his people than any British PM since Churchill.

Not a despot, then.

He has cut extreme poverty by two-thirds, and general poverty by almost half.

He has cut infant mortality and improved equality; and he has cut unemployment by almost half, to 8.2 per cent (strikingly close to the UK level).

He has improved his nations infrastructure and public services.

And he has proved that left-wing policies can improve prosperity and increase economic growth.

That’s why the right-wing press hate him. He shows there is a better alternative to the nightmare we are living through.

So let’s look at David Cameron, shall we?

Only 23.47 per cent of eligible voters supported David Cameron in the UK general election of 2010 (compared with 44.32 per cent for Chavez in January this year).

That election was marred by the fact that many voters were prevented from casting their vote at polling stations that closed at exactly 10pm. This was incorrect – all voters who had arrived and were queueing by 10pm should have been admitted to the building and allowed to cast their vote. So the UK election of 2010 was carried out in an improper way.

The result was a hung Parliament, with no single political party gaining power. The Con/Dem Coalition was formed in a backroom deal between Cameron and Nick Clegg, and had nothing to do with the will of the electorate. Therefore Cameron can be said to be unelected. Less than a quarter of the eligible voters wanted him and he did not win enough Parliamentary seats to justify taking office.

Then we come to dictatorship. How many unwanted policies have we had since this rabble slithered into government, determined to restrict our freedoms just as much as possible?

Policies like, for example, the cuts to Legal Aid?

Secret courts?

The Internet snooping Bill?

The plan to gerrymander the number of Parliamentary seats and the boundaries of constituencies, in order to deliver an unfair advantage to the Conservative Party in the next election (which, thankfully, failed)?

How many policies have been imposed on us with the intention of impoverishing the poorest in society?

The Welfare Reform Act?

The Localism Act, with its reintroduction of the hated Poll Tax (that’s the Council Tax Reduction Scheme, for those of you in England who have to deal with it)?

The Bedroom Tax?

AUSTERITY?

And then there’s the Health and Social Care Act, an attempt to ‘fix’ the National Health Service when it wasn’t broken, in order to let private operators get their hands on the huge cash opportunities it offers. Has anyone noticed that the nation’s health has worsened, according to many indicators, since the ConDems took over?

And there has been no mention yet of all the policies to put money in the pockets of the very rich, donors to the Conservative Party, bankers, people who park their money in offshore tax havens (thereby keeping it away from the taxman) and the many other corrupt ways this government’s members have been filling their own pockets with cash (and those of their friends and donors) when they should have been looking after the national interest.

Yet the right-wing press supports Mr Cameron and his cronies, despite the fact that they have been a worse disaster for the UK than the financial crisis that preceded their arrival.

Can we ever hope to have a champion like Chavez in this country?

Or is the British system now so badly corroded that it can only ever attract the worst that society has to offer?

Why do we tolerate ‘slavery’ schemes that rely on secrecy?

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Cait Reilly took the government to court after she was forced to stop volunteering at a local museum – with a view to getting a job as a curator – and go to work in Poundland for nothing. The government said the scheme was voluntary but – and the clue’s in the title, ‘Mandatory Work Activity’ – this is not accurate. Those on the scheme now could be stripped of their benefit for three years if they refuse to take part, so one wonders what would happen if Ms Reilly or someone like her tried a similar court action today.

It’s like the NHS privatisation all over again.This time, the Department for Work and Pensions is refusing to publish the names of charities and businesses where unemployed people – in their tens of thousands – are being forced to work for no pay, for periods of four weeks at a time.

Readers with long memories will recall that, earlier in the year, the Department of Health refused to honour a ruling by the Information Commissioner that it should publish a risk assessment on the effects of the then-Health and Social Care Bill.

The argument was that publication would discourage the civil servants who write these reports from including the more controversial likely effects from future risk assessments on other subjects. The reason that the public accepts as true is that the scale of the changes, the waste of public money in achieving them, and the amount of profit to be made by private ‘healthcare’ companies from UK citizens’ misery would be unacceptable to the British people if they knew about it.

Some details leaked out anyway and, now we are experiencing those effects, we are able to see just how accurate those predictions were (and in many cases, how far short of the mark they fell).

Both the requirement that the DoH publish its risk assessment and the demand that the DWP publish its list of businesses and charities involved in ‘Workfare’ follow Freedom of Information requests made to the government.

So much for open government. It seems that such requests are a waste of time when the government in power is determined to operate in secrecy.

Note that the government’s line on organisations taking part in Workfare is now that they “tend to be charitable organisations”. Previously we were led to believe they were all organisations that provide “social benefit”. It seems, once again, this government has lied to us (and not very well). How many profit-making businesses are involved, then, and what are their names?

The real problem with this one is that the ConDem Coalition seems to be childishly ignoring the facts of the matter, which are (i) Workfare doesn’t work, and (ii) Workfare is unpopular in the extreme.

The government’s own research shows that the scheme does not help unemployed people to get a job. Once they have finished their four weeks of work – for whichever unnameable company or, God forgive them, charity – they get thrown back onto Jobseekers’ Allowance and somebody else is picked up to work for nothing. Workfare has no effect on getting people off benefits in the long term.

In fact, the effect of Workfare on the economy is harmful. I commented yesterday on figures showing that, after Job Centre Plus staff started putting people into jobs instead of any of the government’s several work placement programmes, unemployment has dropped and productivity has gone up. I think this may be a temporary blip, with more jobs available because of special events over the summer like the Olympics, but the statistics are revealing.

The government has ploughed on, with changes in the rules a fortnight ago which mean that unemployed people who refuse to take the unpaid placements can have their JSA benefit stripped from them for up to three years.

Note (again) that one of the reasons Cait Reilly lost her court case against the government over Workfare was that the DWP claimed incessantly that the scheme was voluntary and she had the opportunity not to take it up. I wonder what would happen if someone like her took the scheme to court now?

Whatever happens next, it seems the names of the organisations taking part in Workfare (or Mandatory Work Activity, to give it its current official title) will continue to be secret. The reason? The DWP has said the programme would “collapse” if the names were made public, due to the likelihood of protests against the organisations involved.

Doesn’t that give anyone in the DWP a clue?

These schemes are totally unsuccessful and utterly unpopular with the British public.

So why persist?

I think it’s an ideological programme. The government is complaining that the benefits bill is too high and needs to be shrunk, but no employer in his or her right mind would think of paying the full amount for an employee when they can get them on Workfare instead, and have the taxpayer foot the bill.

Workfare is therefore a way of ensuring that the current lack of full-time jobs continues into the future – thereby allowing the government to use it – and the consequent, high benefits bill – as justification for its welfare benefit cuts.

Insidious.

The great debate – the incapable assessment regime

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"no financial targets", "you're killing us", Atos, BBC, Black Triangle, Chancellor, Chris Grayling, Coalition, Con-Dem, ConDem, Conservative, corporate manslaughter, Dame Anne Begg, debate, descriptor, disabled, Disabled People Against Cuts, Dispatches, DPAC, Employment and Support Allowance, ESA, fit for work, George Osborne, Iain Duncan Smith, John McDonnell, Labour, Panorama, Paralympic, Personal Independence Payment, PIP, police, sick, Sonia Poulton, Stephen Timms, suicide, support group, tick-box, Tom Greatrex, Twitter, WCA, Westminster Hall, work capability assessment, work-related activity group

Some supporters of disabled people are using this image as a car sticker, to raise awareness of dissatisfaction with the Atos assessments.

The most telling moment in today’s (September 4) Westminster Hall debate on Atos and Work Capability Assessments came when Chris Grayling was delivering his speech. A woman shouted, “You’re killing us!” and was immediately told to shut up or the public gallery would be cleared.

It was an act of insensitivity that put into a nutshell the Coalition government’s attitude to public discontent over its Work Capability Assessment regime for claimants of the new Employment and Support Allowance (and soon, the new Personal Independence Payment); it doesn’t care what we say, it will carry on doing what it wants, and it will lie to us about what that is.

I was listening to the debate and watching responses on Twitter. John McDonnell MP tweeted: “Protesters sum up exactly what this debate is all about. The Atos system is causing immense suffering & killing people.”

Mr Grayling did not address these concerns in his speech.

He said the DWP would not be changing the controversial ‘descriptors’, that are used in WCAs by the tick-box assessors, who need them to understand whether any person’s abilities mean they deserve a much-coveted place among the 13 per cent of claimants in the ‘Support Group’ – or whether they should be turfed out into the ‘Work-Related Activities Group’ or market “Fit For Work”.

But a potential new set of descriptors, more appropriate to the conditions suffered by the sick and disabled, is still being considered. Where’s the truth?

He said the assessment regime had “no financial targets”. This was a flat-out lie. We know there are targets because Atos trainers made that perfectly clear in the recent Dispatches and Panorama documentaries on the subject.

“Atos do not take decisions.” Another lie. The DWP decision-makers rubber-stamp Atos recommendations in the vast majority of cases.

He repeatedly told us the process was “not an exact science” before contradicting himself by stating that the government wants to “get it right”.

Before he got up to speak, the criticisms had been mounting up like a tidal wave against him. All to no avail, as he sailed on, oblivious.

“How many people have died between being rejected and their appeal, and how many committed suicide?” This was a question I was hoping to hear, as this blog has been criticised for using the “32 deaths per week” statistic. No response to that one, though! And what about corporate manslaughter? The issue wasn’t even raised, but the government – and Mr Grayling, together with his (now former) boss Iain Duncan Smith – might be guilty of killing thousands.

“Will claimants still get ESA while they ask for a reconsideration?” The current answer is no. Judging from the lack of response in the debate, that will remain the case.

Assessors’ lack of mental health knowledge came up time and time again.

One MP after another got up to speak, making it clear that they had all received multiple accounts of mistreatment at the hands of a company that clearly couldn’t give… well… Atos: “There cannot be an MP that hasn’t heard terrible constituent stories over WCAs.”

Labour MP Stephen Timms made some strong points. He pointed out the fluctuating nature of many claimants’ conditions, and warned that the work capability assessment does not take account of changes. “The WCA must not be a snapshot,” he said, and went on to add that the test needs “radical improvement”.

He admitted that Employment Support Allowance was a Labour initiative – but made it clear that the Coalition rolled it out before trials to ensure it was fit for purpose had been completed.

And Dame Anne Begg MP won praise for listing poor decisions by assessors and the failings at Atos, repeating, like a mantra: “When people feel this persecuted, there is something wrong with the system.”

She called for the contract to be re-written, saying it “can’t be fixed with a few tweaks here and there”.

Tom Greatrex, who opened the debate, said too many people were being found fit for work when they weren’t fit at all. He said the £60 million cost of appeals against assessment findings meant the taxpayer was effectively paying for a system that doesn’t work, then paying again to put it right. He said details of the Atos contract should be made public (a forlorn hope; confidentiality is a large part of many government contracts with private firms, although the Atos contract is particularly vague).

And he pointed out that, although Mr Grayling had said the transfer schedule for moving people off Incapacity Benefit and onto ESA was on-target, it was in fact very far behind, with waiting times up by 85 per cent.

Honourable mention was given to the disability campaigns Disabled People Against Cuts (DPAC) and Black Triangle. Dishonourable mention was made of police brutality at last Friday’s protest outside the headquarters of Atos and the DWP in London.

Calls were made to reduce unnecessary assessments (of people whose condition was unlikely to change), anger was expressed that Atos is a sponsor of the Paralympics. The debate heard that applicants find the process of going through the Work Capability Assessment terrifying (I can personally attest to this, having witnessed my girlfriend’s. Terrifying and humiliating) – and that it was felt to take away their dignity as human beings.

Sadly, nobody called for a comprehensive study of the mortality rate.

Not one single Coalition backbencher indicated a desire to speak.

Amid all this, one online wit tweeted: “I do hope Osborne comes in at the end to take the now-traditional booing” – a reference to an incident the day before, which has already become infamous, when the Chancellor appeared at the Paralympics to hand out medals and was booed by the 60,000-strong stadium crowd.

Sonia Poulton, the Daily Mail columnist who became a campaigner against Atos, summed up the event: “W-C-A….SEIZE THE DAY! Yes, Labour started it, we ALL know that now…but Con-Dems butchered like never before. Time to get rid!”

If only we could.

For another perspective on the debate, please see the BBC website’s report at – oh. There isn’t one.