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Public money is being thrown away on government-contracted scroungers

02 Wednesday Jul 2014

Posted by Mike Sivier in Bedroom Tax, Benefits, Business, Conservative Party, Corruption, Cost of living, council tax, Disability, Discrimination, Employment, Employment and Support Allowance, European Union, Food Banks, Housing, Immigration, Liberal Democrats, Media, People, Politics, Poverty, Privatisation, Tax, UK, unemployment, Zero hours contracts

≈ 26 Comments

Tags

A4E, accountancy, accountant, allowance, avoid, backbencher, bedroom tax, benefit, Big Four, business, cap, Coalition, company, Conservative, contract, council tax, Deloitte, Department, DWP, employment, Ernst & Young, ESA, EU, european union, feckless, firm, food bank, foreign, G4S, government, idle, immigrant, immigration, in-work, incentive, Ingeus, KPMG, lazy, lie, Maximus, Mike Sivier, mikesivier, minister, mislead, parasite, payout, Pensions, people, politics, PricewaterhouseCoopers, private, provider, reassessment, sanction, scrounger, skiver, social security, support, tax, taxpayer, Tories, Tory, Treasury, unemployment, unum, uprating cap, Vox Political, welfare, welfare to work, work, Work Programme, work-related activity, Workfare, Working Links, zero hours contract


workprogramme1

It turns out that some people really do get to lie around all day, doing nothing apart from watching the money rolling in.

Bloody scroungers.

I’m sorry to swear – and you know I’m not usually rude – but these Work Programme provider companies really get my goat.

The revelation that companies such as Ingeus, A4e and Working Links were getting undeserved ‘incentive’ money (see also the BBC’s article), rather than being paid by results as has been claimed loudly and repeatedly by Tory ministers and backbenchers, is nothing new to Vox Political – we first pointed out the problem in November 2012, more than 18 months ago.

You see, not only has this been going on ever since the Coalition government established welfare-to-work in its current form –

Not only have government ministers and backbenchers been lying to you about the payouts given to the profit-driven privately-owned provider companies –

Not only have these companies been sucking down on your hard-earned taxpayer cash as though they had done something to earn it –

But the people they were supposed to be helping – people who have been forced into ever-greater poverty by the benefit uprating cap, arbitrary and unfair benefit sanctions, the bedroom tax, the £26,000 cap on benefits for families, the imposition of council tax on even the poorest households (in England at least), the stress of continual reassessment (if they are ESA claimants in the work-related activity group), the humiliation of having to visit food banks and who knows what else…

The people who are desperate to get any kind of paying job, despite the fact that zero-hours contracts could make them worse-off than unemployment, due to the effect on in-work benefits, despite the fact that those in-work benefits are also being squeezed hard, and despite the fact that there are at least five jobseekers for every job that becomes available…

These are the people that government ministers, backbenchers and the right-wing press keep victimising with their endless attacks on “skivers”, “scroungers”, the “feckless”, the “idle” and the “lazy”!

If I was unemployed and my MP had been caught slagging me off while praising these good-for-nothing so-called work programme ‘providers’, I would make it my business to bring them before the public, lock them into some medieval stocks and pelt them with rotten vegetables. Public humiliation is the least they should get for this continual insult to common decency.

But wait! There’s more.

It turns out that, not only are these work programme providers a bunch of lazy good-for-nothing parasites, but many of them are also a bunch of foreigners who’ve come to the UK to take our jobs!

Ingeus is Australian. G4S is part-Danish. Maximus is American.

It seems that all the politically-fuelled and media-driven anger against immigration into the UK from the rest of the European Union and beyond may be designed to distract us all from the fact that foreign firms are immigrating here to take government jobs that should be yours, and to steal your tax money.

Nobody can say they’ve earned it, after all.

But let us not be unfair. It would be wrong to concentrate on welfare-to-work providers when all of government is riddled with foreign interlopers.

Look at the Treasury, where the ‘Big Four’ accountancy firms have been re-writing tax law to suit their tax-avoiding corporate clients for the last few years. They are Deloitte (American), PriceWaterhouseCoopers (part-American), Ernst & Young (part-American) and KPMG (Dutch).

And then there is the huge, criminal, foreign firm that has been advising the Department for Work and Pensions on ways to privatise the welfare state since the mid-1990s – a firm so controversial that there is currently a moratorium on the mention of its name in the national mainstream media. It is an American insurance giant called Unum.

The best that can be said of these five corporations is that – at least to the best of our knowledge – they do work for a living.

… In their own interest – not yours.

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‘The Budget that confirms Britain is worse-off under the Tories’

19 Wednesday Mar 2014

Posted by Mike Sivier in Bedroom Tax, Benefits, Business, Conservative Party, Cost of living, Economy, Employment, Food Banks, Health, Housing, Labour Party, Liberal Democrats, Media, People, Politics, Poverty, Public services, Scotland referendum, Tax, Transport, UK, Utility firms

≈ 12 Comments

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alistair darling, banker, bedroom tax, benefit, benefit cap, benefits, budget, business, Coalition, Conservative, Corporation Tax, cost of living, council tax, cut, debt, deficit, Democrat, economy, Ed Miliband, employment, energy, environment, food bank, George Osborne, government, green, high speed rail, ISA, Labour, Lib Dem, Liberal, living standard, medical research, Mike Sivier, mikesivier, North Sea oil, nurse, Parliament, pay, Pensioner Bond, people, personal tax allowance, politics, public sector, referendum, restraint, rich, rise, saver, saving, Scotland, self, senior citizen, service, shale gas, social security, special advisor, spending, tax credit, Tories, Tory, Treasury, unemployment, Vox Political, welfare, work


Mr Os-bean: As Ed Miliband gave his response to the Budget, George Osborne had a gormless smile on his face that made him look like Mr Bean.  This is not him - but it's the closest image I could find at short notice. [Image as credited]

Mr Os-bean: As Ed Miliband gave his response to the Budget, George Osborne had a gormless smile on his face that made him look like Mr Bean. This is not him – but it’s the closest image I could find at short notice. [Image as credited]

If a Conservative government is returned to office after the 2015 election, there will be yet more spending cuts and service cuts afflicting hard-working, low-paid families.

That was the message for most people in George Osborne’s latest attempt at a Budget speech today.

There were plenty of groan-worthy moments as the part-time chancellor trotted out the Coalition’s catchphrases: “We will fix the roof while the sun is shining” (groan. The job is taking so long, one has to question whether the contractor is Con-ning the client). “We are all in this together” (groan). Oh really?

Benefit spending is to be capped at £119 billion per year, albeit rising with inflation; public sector pay “restraint” will continue for the foreseeable future. This is from the government whose Prime Minister was confirmed, only minutes previously, as having approved 40 per cent pay rises for his special advisors!

Most significant is the fact that Osborne avoided mentioning ordinary working people for most of his speech; this was a budget for businesses, with the benefits reserved for fatcat bosses.

No major advanced economy in the World is growing faster than the UK, said Mr Osborne; more people are in work. This appears to be borne out by current employment figures (although it should be noted that this is due to a vast and questionable boom in self-employment – the number of employees has dropped by 60,000).

Where is the benefit to the British economy? Why has the deficit not been eliminated? Osborne said it stood at £157 billion in the year he came to office, and would be £108 billion this year, but in fact £39 billion was removed due to measures brought in by the previous Labour chancellor, Alistair Darling. He has cut government spending by something like £80 billion so far, but the deficit has dropped by – possibly – £10 billion. Not a good start to his speech.

There will be further investment in high-speed rail, even though there is no way of predicting whether this hugely costly investment in making train journeys 20 minutes faster will create any economic improvement.

There will be money to fund new centres for medical research – but will these be absorbed by private health firms after the public purse has paid for them?

There will be investment in faster extraction of oil from the North Sea – aiming to get as much as possible out before the Scottish referendum, in order to impoverish the Scots if they decide to go for independence?

And there will be investment in low-cost energy (finally killing the highly questionable green agenda) – meaning money for shale gas companies, and to hell with the environmental cost.

All this investment will go into businesses whose main contribution to the Treasury – Corporation Tax – has already dropped by a quarter (from 28 per cent to 21 per cent) and will go down to 20 per cent this year. This is less than the lowest level of Income Tax.

Up go the profits – down go the tax payments. Who benefits?

Council tax in England remains frozen, meaning fewer public services.

The personal tax allowance is to rise, so people may earn £10,500 before paying tax. This is nowhere near enough to offset the massive drop in living standards that has been caused by the Tory-led Coalition. The cost of living has risen for 44 out of the 45 months of this Parliament – for the whole period, if the earnings of high-paid bankers are removed from the calculation.

The threshold for payment of the 40p tax rate is to rise, so fewer people will pay the higher rate.

Savers are to be helped but – again – this is not a boost for the poor. Most working and unemployed families don’t have any spare money to put into the banks. How does it help them to know they would not pay any tax on savings up to £15,000 in an ISA, when they cannot afford to open one?

And there is a new Pensioner Bond for rich senior citizens (poorer pensioners don’t live long enough to benefit).

As Ed Miliband said in his scathing response, the Coalition can afford to give a tax cut of £200,000 per year to bankers who earn £5 million – but can’t afford £250 per year extra for nurses.

Mr Miliband said the Budget speech was more significant in what it hid than in what it actually said.

Working people are suffering under the Bedroom Tax, under cuts to their tax credits, and they are having to visit food banks if they want to eat.

This is a government that gives with one hand, but takes back much more with the other.

And the Conservatives have the bare-faced cheek to call themselves “The Workers’ Party”.

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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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Divisions in Coalition as MPs demand independent inquiry on poverty

14 Tuesday Jan 2014

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

≈ 60 Comments

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130617childpoverty

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

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

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

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

He said the evidence was all around:

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

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

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

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

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

Other reasons for the rise in absolute poverty included:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Poverty: The situation’s bleak, but the future looks worse!

09 Monday Dec 2013

Posted by Mike Sivier in Benefits, Conservative Party, Cost of living, council tax, Employment, Employment and Support Allowance, Liberal Democrats, People, Politics, Poverty, UK, unemployment, Workfare

≈ 15 Comments

Tags

allowance, assessment, bedroom tax, benefit, benefits, Chancellor, change, charge, Coalition, committee, Conservative, council tax, Daily Telegraph, debt, Democrat, despair, desperation, destitution, employment, ESA, George Osborne, government, Iain Duncan Smith, IDS, income, inflation, jobseeker, joseph rowntree foundation, Lib Dem, Liberal, line, living wage, Mike Sivier, mikesivier, neoliberal, New Labour, overlap, Parliament, pay, penalty, Pensions, people, politics, poverty, reduction, Reform, Return To Unit, RTU, salary, sanction, social security, support, Tories, Tory, underoccupation, unemployment, uprating, Vox Political, wage, WCA, welfare, work, work capability assessment, Workfare, workforce


130617childpoverty

We all owe a debt of thanks to the Joseph Rowntree Foundation for its work to reveal the depth of poverty in British society today.

The Foundation’s latest report reveals that – even by standards that have slipped since the Coalition government came into office – in-work poverty has galloped ahead of that suffered by those in workless and retired families – proving once and for all that, under the Tories and Liberal Democrats, work doesn’t pay!

But the situation is actually worse than the figures suggest, because the poverty line is always 60 per cent of average (median) income – and incomes in the UK have been dropping. Some say the average is now seven per cent lower than in 2010; others say nearly 10 per cent.

This means that, if we add in the people in working families who would be below the poverty line if it had remained at, say, 2008 levels, another two million people would be considered to be in poverty. These people are no better-off than they were before the poverty level slipped; they can’t buy more than they could before – in fact, their money goes a lot less far because inflation, even at 2.7 per cent, has hugely outstripped pay increases.

Add in the number of workless and retired families who are also in poverty – 6.3 million – and we have 15 million people in poverty in the UK today. That’s a quarter of the population of the seventh largest economy in the world.

And George Osborne wants us to congratulate him for his achievements over the past three years. Well done, George. You have conclusively proved that you are the worst Chancellor in British history – heading up the worst government in British history.

Let’s look at some of his successes:

The fall in average incomes in the last two years alone has wiped out all the gains made by Labour in the previous decade – and George has another year and a half to put people in even more serious trouble.

Worse still, incomes for the poorest 10 per cent of the population have been falling since 2004/5, because the neoliberal New Labour government did not protect them. These are the people for whom the four ‘D’s – debt, destitution, desperation and despair – will hit hardest.

The proportion of low-paid jobs increased in 2012. Remember that, when the government tells you that more people are in work than ever before. They are not telling you that these jobs keep people in poverty. They are not telling you the fact that, under the Coalition, work most certainly does not pay.

Among those in work, the number paid less than the living wage rose from 4.6 million to five million in 2012. This means 400,000 more working people are having to claim benefits to make ends meet. Work does not pay. The five million figure is one-sixth of the total workforce and includes two million people who had never previously claimed.

Meanwhile, those in benefit are being pushed into very deep poverty by sanctions, the effect of overlapping changes to social security benefits – which the government has again and again refused to measure, and the falling value of benefits due to the Chancellor’s one per cent uprating cap.

More sanction referrals were made on the unemployed between 2010 and 2012 than there are people currently claiming Jobseekers’ Allowance (1.6 million, against 1.48 million claimants) – and 800,000 benefit stoppages or reductions were approved. This impacts on the government’s jobless figures, which do not include the number of jobseekers under sanction. Think about it – 800,000 is more than half the number that official figures show are out of work. Also, we know that Workfare is being stepped up, in order to fiddle the figures even more seriously.

The Bedroom Tax and council tax benefit cuts have hit 400,000 families, of whom around 267,000 families were already in poverty.

It is in this context that Iain Duncan Smith feebly attempted to distract attention away from the damning facts by telling the Telegraph that 50 families were each earning around £70,000 in benefits before his benefit cap (the £26,000-per-year, not the one per cent uprating limit) was brought in.

While this may be a shocking figure for some people, he did not provide the full details. How many people are we discussing, per family? Will the cap push them below the poverty line? Considering the facts laid out above, would a job relieve poverty for these families – or make it worse?

Smith – or ‘RTU’, as we call him here (it stands for ‘Returned To Unit’, a reference to his dismal Army career) – has yet again insisted that his diabolical changes are making the system “fair”. Anybody who repeats an assertion such as this, as often as he has, knows that nobody believes it.

Today, he is due to go before the Commons Work and Pensions Committee to account for his persistent interference with the statistics. Expect bluster and bravado but do not expect the facts.

For example, he will never admit how many people have died from the poverty caused by his assessment regime for Employment and Support Allowance.

That figure alone could bring down this government.

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Bedroom tax condemns homes to demolition because they are too expensive for families

10 Sunday Nov 2013

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

≈ 29 Comments

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The obvious solution: The government should be helping build new social housing - not forcing the demolition of what little there is.

The obvious solution: The government should be helping build new social housing – not forcing the demolition of what little there is.

If the government really wants to make larger social accommodation available to overcrowded families, why are housing associations knocking them down?

They have to go because the Bedroom Tax has made them too expensive, according to The Guardian.

The story, published yesterday, is another nail in the coffin of Iain Duncan Smith’s credibility. It doesn’t matter how many polls the Conservatives produce to support their claim that people agree with them; in practice, it simply doesn’t work.

Housing associations are finding three-bedroomed properties impossible to maintain. They cannot let them out, sell them or keep up with the costs of keeping them while they are empty.

All of this has serious implications for the Coalition government that voted the Bedroom Tax onto the statute books as part of Mr ‘Returned To Unit’ Smith’s hugely unpopular – and now proving to be unworkable – Welfare Reform Act last year.

On Tuesday, MPs will debate the future of the Tax, when Labour members are expected to vote for its immediate repeal. Senior Liberal Democrats are also believed to have doubts – The Guardian (again) has quoted Danny Alexander’s father as saying it is “particularly unfair”.

Labour’s Rachel Reeves has overcome a shaky start in her role as shadow Work and Pensions Secretary to get right on-message with this. According to The Guardian report, she said: “This incompetent and out of touch government seems oblivious to the perverse and costly consequences of this unjust and unworkable policy.

“Not only is it hitting 660,000 vulnerable households, including 440,000 disabled people; the costs to the taxpayer are mounting as people are pushed into more expensive private rented accommodation while existing social homes are left vacant.”

Of course, Dear Reader, she’s right. You read it here first – all the way back in October last year.

Surely it makes more sense to have someone living in these properties, rather than losing them altogether? Does the government have an answer for this?

Apparently not. A government spokes-robot trotted out the same tired nonsense we’ve all come to despise: “The removal of the spare room subsidy is a necessary reform that will return fairness to housing benefit. We’ve been clear that hardworking people should not be subsidising tenants living in properties that are too large for their requirements.”

Let’s all remember that there never was a spare room subsidy for the government to remove. It never existed. Therefore its removal is not a necessary reform; it can never be vital to remove something that is fictional. Also, the removal of a fictional thing cannot restore fairness anywhere.

Hard-working people probably shouldn’t be subsidising tenants who are under-occupying, but then hard-working people were never the only ones paying for this to happen. Everybody in the UK pays taxes one way or another – even children.

And while we’re on the subject of what hard-working people subsidise, why is it bad for them to help people stay in the social housing that was originally allocated to them, but good for them to help massive corporations keep their payroll costs down by paying tax credits, housing benefit and council tax reduction costs for people earning less than the Living Wage? Why is it good for them to pay the cost of MPs’ energy bills as well as their own?

“Consent from the Homes and Communities Agency is required before any social housing provider can dispose of a site on which social housing stood and will ensure that public investment and the needs of tenants are protected,” the robot continued, but we should all know that this will be no obstacle.

Demolition of social housing means land becomes available for private developers to build new, luxury homes for the very rich.

That’s where the big money is.

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Coalition policy success: 80,000 children homeless for Christmas

04 Monday Nov 2013

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

≈ 16 Comments

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shame

Tory politicians don’t care and Liberal Democrats don’t have any power – that’s why 80,000 children are being housed in temporary accommodation, alongside drug users and enduring threats of violence, as reported by Shelter today.

The government’s own figures show 2,090 families living in bed and breakfasts – an increase of eight per cent on 2012 and the largest number in 10 years, according to The Guardian. Of these, 760 have been living in B&Bs longer than the legal six-week limit – a 10 per cent increase on last year.

More than 43,000 other homeless households with children are in other emergency accommodation – usually privately-rented short-term flats, which are expensive. This is an increase of nine per cent on last year.

To put this into context, a Labour government commitment to halve the number of families in this kind of emergency accommodation meant the total fell between 2005 and 2010 – but it has been rising again since June 2011.

This is a human disaster created by the Coalition government.

Most families interviewed by the charity said they felt unsafe, with one child directly threatened by a man after an argument over a shared bathroom. Almost half said their children had witnessed incidents such as sexual offences, drug use and dealing.

One mother of three said: “One of the reasons we left was one of the residents trying to sell us crack cocaine.”

Most of the 25 families Shelter interviewed lived in one room; half said the children were sharing beds with parents or siblings and the family was sharing kitchen facilities with others. All but three said it was hard to find a safe place for their children to play. Three families had no cooking facilities and one reported sharing a cooker and fridge with 22 other people.

More than half had to share a bathroom or toilet with strangers, with 10 families sharing with seven or more other people; two-thirds had no table to eat on, and schoolchildren were finding it hard to do homework.

And their health is suffering: “It’s so hard to give him a balanced diet as it’s impossible to make proper meals here, let alone a Christmas dinner. He’s getting really pale and is so tired all the time. He gets so scared but it’s difficult when I’m scared myself. This is no place for a child to live,” said a mother in a Hounslow B&B.

“This shouldn’t be happening in 21st century Britain,” said Shelter’s chief executive, Campbell Robb, who described the charity’s findings as “shocking” and the conditions forced on families as “shameful”.

He said: “No child should be homeless, let alone 80,000. But tragically, with more people struggling to make ends meet and homelessness on the rise, we’re bracing ourselves for an increase in demand from families who desperately need our help.”

Housing minister Kris Hopkins couldn’t care less. “We’ve given councils nearly £1bn to tackle homelessness and to support people affected by the welfare reforms,” he sniffed.

“I am very clear that they should be fully able to meet their legal responsibility to house families in suitable accommodation.”

Let us be very clear on this: the problem is not that Tories like Hopkins don’t understand. This is exactly the result that they wanted; they just won’t acknowledge it because it is electorally damaging.

Look at the policies that created this problem: The bedroom tax; the ‘Pickles Poll Tax’, otherwise known as the Council Tax reduction scheme; the benefit cap that so many people in this country seem to support without understanding any of its implications.

Vox Political reported back in January what they would mean: “There will be a rise in rent and mortgage arrears… affordable housing will be less available and landlords less able or willing to rent to tenants on benefits… Private sector rental may become less attractive to landlords if tenants aren’t paying the rent. This will lead to a growth in homelessness. Councils have statutory duties and may see an increasing burden.”

But increases to the Discretionary Housing Payment fund have been entirely insignificant compared with the extra burden councils have faced. They received £150 million between them; Durham County Council had £883,000 and spent it all within eight weeks.

We have seen the start of the social cleansing predicted by this blog back in August 2012, when we noted that at least one council would use these measures to “clear out the poor and set up shop as a desirable residence for the rich”.

The housing bubble created by George Osborne with his ‘Help To Buy’ scheme will accelerate this process.

So don’t let a Tory tell you it’s nothing to do with them. They wanted this. In fact, 80,000 homeless children at Christmas is probably not enough for them.

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Cameron has lied so often that there is no reason to believe him on fracking

12 Monday Aug 2013

Posted by Mike Sivier in Business, Conservative Party, Corruption, Economy, Employment, People, Politics, UK

≈ 11 Comments

Tags

air pollution, allowance, Balcombe, breathing, cancer, carcinogen, coal mine, Coalition, companies, company, Conservative, contaminate, contamination, council tax, Cuadrilla, David Cameron, Department, Department for Work and Pensions, deregulation, disability, disabled, earthquakes, economy, employment, Employment and Support Allowance, energy, ESA, fracking, government, health, hydrocarbon, Iain Duncan Smith, methane, Mike Sivier, mikesivier, neurological, object, ozone, Pensions, people, Personal Independence Payment, PIP, politics, privatise, problem, regulation, reproductive, retrospective, returned to unit, RTU, school, shale gas, sick, social security, support, Telegraph, Thatcher, Tories, Tory, toxic waste, Vox Political, water, welfare, work


Fracked water is set ablaze in the film Gasland: "There is no reason why the process should cause contamination of water supplies," said Cameron.

Fracked water is set ablaze in the film Gasland: “There is no reason why the process should cause contamination of water supplies,” said Cameron.

“We’re all in it together”, David Cameron scrawled in his Telegraph article on fracking. Presumably this means he personally has invested heavily in the process as the evidence suggests there are appalling drawbacks for the majority of the UK.

The article, “We cannot afford to miss out on shale gas”, is sub-headed “Safe fracking will cut energy bills and create wealth without ruining precious countryside, writes David Cameron”.

Let’s put the alternative view immediately. Fracking would involve drilling large numbers of directional wells at regular intervals – coating the landscape with far more than the eight in the current largest onshore gas field in the UK, at Saltfleetby in Lincolnshire. Thousands would be required to temporarily – that’s right, temporarily – replace just one North Sea field. Production from a typical shale well declines by 70-80 per cent in the first year alone, meaning new wells must be drilled constantly to maintain production.

The method is to inject millions of gallons of water, sand and chemicals into the wells, under massive pressure. Water consumption and contamination is a major issue, and disposal of the huge amounts of toxic waste produced by the process is extremely difficult – it seems attempts to inject it into the ground are causing large numbers of earthquakes.

Air pollution means high ozone levels, along with carcinogenic hydrocarbon vapours that can be blown hundreds of miles from the source, creating breathing difficulties, cancer clusters, neurological and reproductive problems in humans and animals living in the shadow of these industries. The typical response from industrialists (and government, to judge from Mr Cameron’s comments) is to demand proof from people who have neither the funds nor the health to do so.

Methane gas emissions amplify the global warming effects of burning other carbon fuels.

This is the process Mr Cameron wishes to inflict on you.

“If we don’t back this technology, we will miss a massive opportunity to help families with their bills and make our country more competitive,” he wrote in the Telegraph. He’s clearly forgetting that families wouldn’t have such serious problems with their bills if a previous Conservative government hadn’t privatised the energy companies, giving them to greedy shareholders who have raised prices far above increases in inflation, every year. As for making the country more competitive, he is forgetting that the Conservative government of Mrs Thatcher reduced our competitiveness by closing down the coal mines in order to chase cheap fuels from abroad, that have now risen in price. What a false economy that was!

With such a track record, why should we now believe a Conservative’s claims about this form of energy extraction?

“Labour’s mismanagement of the economy means that many people are struggling with the cost of living today.” To clarify: Labour did not mismanage the economy – the 1997-2010 government recently received a clean bill of health, as reported on this blog and elsewhere. This is a repetition of a lie that Conservatives have been spouting gleefully, ever since they decided on a whim that they no longer support what Labour did to save the economy after the credit crunch. Previously, they backed Labour all the way but this has been retrospectively changed. They seem to like retrospective alterations.

According to the BBC, “the government’s own energy department DECC says it’s not clear whether fracking will bring down bills or not”. So Mr Cameron is contradicting his own experts.

“Where we can act to relieve the pressure, we must.” Fine. Since there are more fossil fuels stockpiled today than we can burn at once, without causing the climate change that has been feared for so many years, the answer is to cut fuel bills by forcing the energy companies to stop being so stupidly greedy and charge realistic prices. Obviously.

“Secondly, fracking will create jobs in Britain.” But these people will then contract fracking-related diseases and be invalided out of work. They’ll go on to claim Employment and Support Allowance and/or Personal Independence Payment, be refused by “Returned To Unit”‘s* Department of Work and Pensions and die. The deaths will go unnoticed because the government has already decided to stop collecting death statistics.

“Thirdly, fracking will bring money to local neighbourhoods.” This sounds enticing, but no reference is made to how this money will be distributed. It goes to communities, not to people. “This is money that could be used for a variety of purposes – from reductions in council tax bills to investment in neighbourhood schools.” Those are both benefits that could be negated by, say, reductions in government grants to local councils, meaning the local levy must increase, and privatisation of the education system, meaning local people will need to find other ways of educating their children.

“I want all parts of our nation to share in the benefits: north or south, Conservative or Labour. We are all in this together.” Does anybody remember the fuss when the route for the new HS2 rail service was revealed to pass through a government minister’s constituency? That was bad for the government’s image and won’t happen again. Expect fracking to be confined to areas away from Tory heartlands, where ministers and backbenchers won’t complain about it.

“Local people will not be cut out and ignored… firms looking to frack should make people aware of their plans well before they apply for a permit…. if residents express specific concerns, then companies should take them on board.” None of this guarantees that firms will be prohibited from fracking if sufficient public objection is raised; they’ll just say they’ve taken those concerns on board and carry on regardless.

Look at Balcombe, in West Sussex, where the firm Cuadrilla is facing determined opposition from protesters who were horrified when permission for drilling was granted last December. It seems likely that the firm will have to seek – and will receive – the necessary permits for fracking, but the community may receive no benefits as the oil targeted will be in rocks that are “not shale”.

Objections have been raised and ignored. That is what will happen to you.

“International evidence shows there is no reason why the process should cause contamination of water supplies or other environmental damage, if properly regulated,” said Mr Cameron, leader of the Party of DEregulation. Conservatives do not know how to regulate anything and it is against their ideology to do so. “If any shale gas well were to pose a risk of pollution, then we have all the powers we need to close it down.” Note that he does not make any mention of exercising those powers.

Plenty of independent information is available on fracking – certainly on the Internet – and readers are encouraged to look it up and decide for themselves.

And tell other people to do the same – otherwise we all stand in danger of having our land raped by a money-grubbing liar whose political party caused the problems he claims this environmentally-disastrous process will resolve.

*Iain Duncan Smith.

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Government signals biggest disaster ever for Britain’s roads – privatisation

16 Tuesday Jul 2013

Posted by Mike Sivier in Roads, Tax, Transport, UK

≈ 21 Comments

Tags

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Gridlock: Under Coalition plans for transport, motorways and major 'A' roads will be clear - but the roads YOU use will look like this.

Gridlock: Under Coalition plans for transport, motorways and major ‘A’ roads will be clear – but the roads YOU use will look like this.

The Highways Agency is to be privatised, according to new government plans for the biggest disaster in the history of motoring in the UK.

The agency was formed under the last full Tory government in 1994 and operates, maintains and improves (ha ha) the strategic road network – the motorways and major ‘A’ roads that take one-third of the nation’s traffic, in terms of mileage. These are your roads – you pay for them with your taxes. They do not belong to the Conservatives and selling them off is nothing less than the theft of national assets.

The change should signal an end to Vehicle Excise Duty, otherwise known as road tax – but there is no mention of this in the Coalition government’s press release, so it seems likely that the Tories in charge of this project are hoping to siphon your tax money into private hands as profit again, as was the aim with their NHS privatisation.

It may also signal the arrival of tolls on the major roads, creating a two-tier road system: The motorways and ‘A’ roads for rich people and wealthy corporations; the other roads for less wealthy private citizens and smaller firms. Of course the other roads, maintained by local councils, will go to wrack and ruin as they become more clogged with traffic and the surfaces are worn down.

The press release states that the “reforms” (ha ha) will be “tackling decades of underinvestment in roads” and will be “backed by legislation” to ensure “future governments cannot walk away from these commitments”. That’s a mistake – no government may be tied by the decisions of its predecessor and the Coalition knows this. If Labour gets in, it could reverse everything.

The Coalition wants to make the Highways Agency an attractive prize for private investors, which is why it is providing – out of your tax money – “additional funding of £500 million for electric vehicles and £12 billion for road maintenance and resurfacing”.

(Chris Davies: Think how many hospitals you could build for £12.5 billion… Oh, but no – this is money for rich people so you couldn’t possibly contemplate putting it to good use!)

In order to sweeten the deal for future shareholders, the press release says “motorways and trunk roads will get extra lanes, smoother, quieter surfaces, improved junctions and new sections in key areas under the plan published today (16 July 2013) by Transport Secretary Patrick McLoughlin”.

The £28 billion of total investment – £28 billion in a time of austerity that THEY have forced on US! Michael Meacher was right when he wrote “amazing how austerity is irrelevant when the government wants it to be” – includes “a trebling of funding for motorways and major A-roads… the biggest ever upgrade of the existing network.

“The focus will be on cutting congestion and minimising the environmental impact of roads, including an extra £500 million to make Britain a world leader in electric vehicle technology,” the press release says. The congestion will go onto the network of lesser ‘A’ roads, ‘B’ roads and the rest. Result: You will be late for work.

The release foolishly adds: “These measures complement record investment in rail” – an own-goal, considering the railways were sold off in the 1990s and cost the taxpayer more money now, in real terms, than we were paying for them then.

The government’s new command paper, ‘Action for roads’ details plans to turn the Highways Agency into a publicly-owned company with six-year funding certainty for capital projects and maintenance – underpinned by legislation “so future governments cannot walk away from these commitments”. This is impossible to guarantee. Why should a future government not simply repeal any such legislation?

“It is estimated that the reforms could save £600 million for the taxpayer.” Which taxpayer? The taxpayer having to pay road tax for improvements to routes s/he can no longer afford to use? The taxpayer having to use increasingly run-down minor roads to get about and having to pay more in Council Tax for repairs? The taxpayer in danger of losing their job because of lateness caused by increased congestion on those minor roads? Or the taxpayer who just had a £100,000 tax cut on their more-than-£1 million-a-year earnings?

You’d have to be really stupid to say this was a good idea.

“Today’s changes will bring an end to the short-term thinking that has blighted investment in England’s roads so that we can deliver the infrastructure our economy needs. Backed by the government’s £28 billion commitment, they will give us a road network fit for the 21st century and beyond,” said Mr McLoughlin.

“Our major roads are vital to the prosperity of our nation, connecting people to jobs and businesses to markets. They carry a third of all traffic and two thirds of all freight traffic but in recent decades we have failed to invest properly in them.

“That underinvestment has seen us fall behind many of our economic competitors. Since 1990, France has built more motorway miles than exist on our entire network, while Canada, Japan and Australia all spend four times more on their roads than we do.”

All of this reminds me very much of Ben Elton’s novel, Gridlock. Do you remember it? Here’s the reason, quoted from The Politics of Mobility: Transport, the Environment, and Public Policy by Geoff Vigar, page 175:

“The Minister of Transport, Digby Parkhurst, is portrayed as being in the pocket of the roads lobby, and a mythical ‘Global Motors Corporation’ in particular. This fictional association reflects a general view amongst many outside the transport policy world that the roads lobby has a relationship with central government transport officials that borders on the classic corporatist ‘iron triangles’ to be found in policy-making in the United States. This view is supported by various accounts of UK transport planning in the 1970s and 1980s where the activities of a roads lobby are held to be a critical factor in explaining transport policy (Hamer, 1987; Tyme, 1978; Wardroper, 1981).”

It seems, with the Tories back in power, those bad old days are back.

The Department for Transport intends to consult on these proposals in autumn 2013. For your own good, oppose them.

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The only place benefit reforms are fair is Iain Duncan Smith’s mind

01 Monday Apr 2013

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

≈ 14 Comments

Tags

Ant, appeal, banker, BBC, bedroom tax, benefit, benefit cap, benefits, Coalition, Conservative, council house, council tax, Dec, Department for Work and Pensions, disability, disabled, DWP, economy, government, Iain Duncan Smith, let's get ready to rumble, Liberal, Liberal Democrat, living wage, Mandatory Work Activity, Mike Sivier, mikesivier, off, people, politics, rich, sale, sell, social security, tax, Tories, Tory, Vox Political, welfare, YouTube


Getting ready to rumble: These Bedroom Tax protesters aren't going to take the government's changes lying down - oh, sorry. This is Ant and Dec. But a video of Bedroom Tax protests, set to their 'Let's Get Ready To Rumble', would make a strong point.

Getting ready to rumble: These Bedroom Tax protesters aren’t going to take the government’s changes lying down – oh, sorry. This is Ant and Dec. But a video of Bedroom Tax protests, set to their ‘Let’s Get Ready To Rumble’, would make a strong point.

Newswatchers woke this morning to an announcement from DWP dictator Iain Duncan Smith that changes to the UK’s social security system that came into effect today are “fair”.

Was this an April Fool? One might reasonably think so, since he also trotted out the long-discredited line that it was about making sure “people find work always pays”. We all know that work won’t pay until people receive a living wage – the amount of benefit paid out by the government has nothing to do with that at all.

The measures, which are designed to put the squeeze on people who are genuinely poor and in need of state help, will actually ensure that families are around £900 a year worse off (some say “than when the Coalition entered government in 2010”, but some don’t).

The fact that they attack the poor shows that this government is intentionally ignoring the point – which is that those who caused the economic crash in the first place (bankers and the very rich) should by paying off the debts.

Instead, this government is giving a £100,000 tax handout to anyone on the top tax rate. Mr Smith’s ‘Mandatory Work Activity’ schemes drain hundreds of millions of pounds from the taxpayer and nearly £1 billion from the economy every year, while paying the vast majority of that money to rich business bosses, who ensure it is never seen again.

And Smith himself appears to have become confused about what he is trying to achieve. In the Telegraph, four days ago, he said: “If you listen to what I am saying, you will understand the reality is that this country is not cutting welfare, it is managing the growth at a lower level.” So the bill is increasing, is it?

But on the BBC website today he is quoted as saying the government was “trying to get control of the welfare bill and make sure it lowers.”

What is he doing, then – managing an increase or forcing a cut? Either way, the wrong people are being made to suffer.

In the same BBC article, a Liberal Democrat pensions minister called Steve Webb said the bedroom tax was supposed to help a quarter of a million people in Britain who are in “cramped, overcrowded accommodation – desperate for a family home and there aren’t enough homes and we’ve got to make better use of the houses we’ve got.”

Did the interviewer press him to admit that the Conservative policy of selling off council houses during the 1980s and 1990s was wrong? No. Opportunity missed there, BBC!

Remember: There isn’t enough social housing because the Tories sold it all off and pocketed the profit, rather than using it to build more. That’s why there isn’t enough to go around now. They created this situation.

And, if you’re in the overcrowded accommodation to which Mr Webb refers – or a victim of the Bedroom Tax, you are going to pay for it.

The simple fact of the Bedroom Tax is that it is a trap. The government says people can avoid paying it by moving to smaller accommodation, but this avoids the reality that such properties are not available – figures released by the Labour Party show that 97 per cent of the 600,000 affected households have nowhere else to go.

They have no choice but to take the loss in benefits and pay the difference themselves, while they appeal against the decision to include their household in those affected. Current advice is for everyone affected by the Bedroom Tax to appeal. Why make it easy for them?

The BBC website report goes on to damn the government’s other so-called “reforms” (the Conservatives use this word wrongly. A reform would make something better. These are simply cuts).

“It has been estimated that two million low income households [in England] will pay more, as a result of changes to council tax benefit,” the article states.

“Also from this month, most working-age benefits will increase by just one per cent – less than the likely rise in the cost of living.

“And later this month, an overall limit of £500 a week on claims is beginning in four London boroughs, and will come into force across England, Scotland and Wales over the coming months.”

Fair?

Only in the warped recesses of Mr Smith’s mind.

Those of you who watch the pop charts will know that Ant and Dec are enjoying considerable success with their new version of Let’s Get Ready To Rumble.

I mention this because there has to be enough footage of Saturday’s anti-bedroom tax demonstrations to make a decent video to synch up with that perfectly-titled track.

Would anybody like to put one together and post it on YouTube? It could be a smash hit.

In more ways than one.

Follow me on Twitter: @MidWalesMike

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