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The PIP assessment hoax shows we could believe any claim about our corrupt government

30 Friday May 2014

Posted by Mike Sivier in Benefits, Conservative Party, Corruption, Health, People, Politics, UK

≈ 19 Comments

Tags

allowance, Andrew Lansley, assessment, Atos, benefit, claim, competition, Conservative, corrupt, death, Department, descriptor, disability, disabled, Disabled People Against Cuts, DPAC, DWP, employment, ESA, false, government, health, hoax, Iain Duncan Smith, illegal, Incapacity, inept, lie, Lord Freud, Mandatory Work Activity, Mike Sivier, mikesivier, mislead, mortality, National Health Service, negative resolution, NHS, Parliament, Pensions, people, Personal Independence Payment, PIP, politics, rate, regulation, sick, social security, statistic, support, Tories, Tory, treacher, underhand, Vox Political, WCA, welfare, work, work capability assessment, Workfare


[Image: Getty Images]

[Image: Getty Images]

It seems some of your favourite bloggers – including Yr Obdt Srvt – have been hoodwinked by a hoax claim that assessment criteria for the new Personal Independence Payment have been made much more severe than has been the case until now.

If you were distressed by this article, please be reassured that – from what has been said over the last few hours – it is not accurate.

Vox Political only published the claims because they came here via a colleague of good character who in turn received it from a trustworthy source. There were telltale signs that it was a wrong ‘un – for example the fact that the story is based on unsubstantiated information allegedly provided by an anonymous Atos employee to an equally anonymous source – but here at VP it was felt that the possibility of another DWP betrayal merited a mention.

Much of the hoax article focused on the descriptors used to define the effects of their disabilities on a claimant. These are defined by regulations that can only be changed by Parliament (although not by an Act of Parliament, if I understand correctly) and that should have been evidence enough that the claims were false.

But we know that Iain Duncan Smith, Lord Freud and the other vipers infesting the Department for Work and Pensions like to change the conditions in which people receive benefit – especially if it helps them reach their savings targets. This goes for the rest of the Conservative-led government too; they hide information from us.

Look at the ‘negative resolution’ the government introduced last year, to open England’s health service to widespread competition. This happened after the Conservatives (Andrew Lansley in particular) promised on their honour that they would do no such thing. Their plan was that the new rules would not be discussed, and there would be no vote; instead they would automatically become law. How could any of us know whether the government was planning more of the same?

Let us decide, for the moment, that this was a hoax. Some commentators have suggested that it has been planted by fifth columnists working for the government but claiming to be acting for the people, in order to bring other, more substantial criticisms of DWP policies into disrepute. This seems unlikely.

Instead, it shows us that the policies put forward over the last four years by Mr Duncan Smith and his colleagues, together with the way they have been implemented, have shown ineptitude, underhandedness and treachery of such magnitude that people now believe they are capable of anything at all – even the bizarre and contradictory changes that were publicised yesterday.

This is the government department that changed the assessment rules for Employment and Support Allowance to such a degree that the death rate for people claiming the benefit rocketed. Iain Duncan Smith’s solution: Stop publishing mortality statistics for people claiming incapacity benefits.

This is the government department that, faced with a court ruling that its rules for mandatory work activity were illegal, simply changed the law in order to legalise them. This act alone made the Coalition government a criminal regime.

This is the government department whose behaviour shows only one area of consistency – continually making false or misleading claims about its work. Take a look at DPAC’s excellent Report on DWP Abuse of Statistics from June last year for no less than 35 examples of this.

When you are discussing liars it is easy to believe lies about them.

This is why it will be hard to believe any attempt by the DWP to discredit its critics on the basis of this single hoax.

If Iain Duncan Smith wants us to believe him, why doesn’t he give us those ESA death stats we’ve wanted for so long?

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Jail the DWP fraudsters who tried to fix UK unemployment figures!

17 Monday Feb 2014

Posted by Mike Sivier in Benefits, Conservative Party, Corruption, People, UK, unemployment, Universal Credit

≈ 31 Comments

Tags

allowance, appeal, benefit, benefit cap, benefits, bungle, claim, claimant count, Conservative, crime, criminal, deception, Department, disinformation, DWP, employment, ESA, false, falsified, falsify, fraud, government, Iain Duncan Smith, IB, IDS, in-work, Incapacity Benefit, jail, Jobseeker's Allowance, JSA, lie, Mike Sivier, mikesivier, miss, national, office, omit, ONS, out of work, overpayment, pecuniary advantage, Pensions, people, politics, prison, sanction, self employ, social security, statistics, support, tax credit, Tories, Tory, unemploy, unemployment, Universal Credit, Vox Political, welfare, work, work capability assessment


[Image from a post on Facebook]

[Image from a post on Facebook]

Iain Duncan Smith and everybody else associated with this scam should be facing charges and the possibility of imprisonment, rather than re-election next year.

Let’s be honest about this: The government hasn’t messed up by omitting Universal Credit claimants from the official unemployment benefit claimant count – the Department for Work and Pensions messed up by admitting this had happened.

It means we may be looking at a long-term attempt to defraud the electorate. The plan seems clear: When the general election finally takes place next year, Iain Duncan Smith would have claimed that his policies have been a brilliant success in creating jobs and cutting down the number of people claiming benefits.

If people are convinced that the DWP has succeeded in cutting the amount of money being paid out in benefits – the burden on the taxpayer – then they are more likely to vote for the Conservatives. Electoral victory means more money for everybody involved – what’s known as a pecuniary advantage.

But the claim has been made by deception. Obtaining a pecuniary advantage by deception is the dictionary definition of criminal fraud.

There can be no doubt that the omission was deliberate. When it comes to fiddling the official figures, the DWP has ‘form’ going back for years. Look at the lies about the benefit cap pushing people into work; the way people on ESA were encouraged to say they were self-employed and claim tax credits – even though this is not permitted and they were racking up a huge overpayment.

Look at the abuses of the sanction system; look at the abuses of the IB/ESA work capability assessment; look at the number of successful appeals against the DWP that have been kept out of official figures.

The claimant count, which provides the headline unemployment figure, is the number of people claiming Jobseekers’ Allowance every month – and has been for many years.

But Iain Duncan Smith’s flagship (if the ship was the Titanic) Universal Credit is up and running – on an extremely limited basis – in certain pilot areas of the country, and people without a job in those areas should be included in the claimant count.

This has not happened. It is possible that this is yet another oversight by Mr Duncan Smith, the government’s top bungler (indeed, he was recently voted favourite cabinet minister by ConservativeHome, so he must be doing something right, and the thing he does most often is make mistakes).

Mr Duncan Smith himself would disagree, however. He has claimed repeatedly and vehemently that his department does not make mistakes with statistics; that everything done on his watch has been justified and that everybody at the DWP is entirely competent.

So we must accept that there was a decision to keep Universal Credit claimants out of the claimant count, meaning that there was a decision to make it seem there are fewer people unemployed than is actually the case.

This seems to be supported by the complaint from the Office for National Statistics, which publishes unemployment figures. The wording runs as follows: “The DWP have not been able to supply ONS with this information in a way that has allowed its inclusion within the Claimant Count [italics mine], resulting in the exclusion of UC claims from this measure.”

This implies that the DWP is perfectly capable of supplying the figures in a manageable way but has deliberately done otherwise.

Further indication that DWP officials knew exactly what they were doing comes from a spokeswoman’s response to this affair, published in the Daily Mirror: “We have been fully transparent in publishing the number of people claiming Universal Credit.

“To ensure consistency the Department released these figures alongside the employment statistics. Universal Credit is both an in- and out-of-work benefit so some claimants may be working.”

In that case, the DWP cannot have been “fully transparent”, can it? Transparency would have required the department to separate UC into “in-work” and “out-of-work” claims, and we have no evidence that this has happened. Until it does, neither the ONS nor the rest of us have any way of knowing how many people are unemployed in the UK.

This has been going on for nearly a year, as Universal Credit was rolled out in its first pilot area in April last year. This means that all unemployment statistics since then have been falsified by the DWP and unemployment figures have been higher than claimed.

The Labour Party has tried to paint this as incompetence, but it is wrong to do so.

This was deliberate, premeditated disinformation.

Now the deception has been uncovered, they are unrepentant.

Perhaps someone should remind them that fraud is still a crime.

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‘Abolition of the Bedroom Tax’ Bill is launched in Parliament

13 Thursday Feb 2014

Posted by Mike Sivier in Bedroom Tax, Cost of living, Housing, Labour Party, Politics, Poverty

≈ 29 Comments

Tags

1999, abolish, appeal, bedroom tax, benefit, benefits, bill, child of courage, Coalition, commission of inquiry, committee, Conservative, council, Debbie Abrahams, debt, Democrat, Department, disabled, DWP, esther mcvey, exempt, fake, false, figure, housing association, housing benefit, Iain Duncan Smith, Ian Lavery, Labour, Lib Dem, Liberal, local authority, Lord Freud, Michael Meacher, Mike Sivier, mikesivier, National Housing Federation, number, Parliament, Pensions, people, politics, poverty, Scottish National Party, social landlord, social security, statistic, Stephanie Bottrill, suicide, Tories, Tory, university, Vox Political, welfare, work, York


Ian Lavery launched his ambitious Bill to abolish the Bedroom Tax yesterday. [Image: Daily Mirror]

Ian Lavery launched his ambitious Bill to abolish the Bedroom Tax yesterday. [Image: Daily Mirror]

Make no mistake about it – the purpose of the legislation tabled yesterday (Wednesday) by Labour’s Ian Lavery is to discover how many Liberal Democrat MPs are redeemable and how many have been irreversibly corrupted by their current alliance with the Conservatives.

The Bill to abolish the hated Bedroom Tax is unlikely to gain Royal Assent unless Liberal Democrats who supported the imposition of the Bedroom Tax reverse their point of view. There is even the possibility that some Conservatives may now realise that they, as Mr Lavery put it, “underestimated the real consequences of walking through the Government Lobby to support the introduction”. He also said: “It is an olive branch… I would hope that my Bill would receive support from members in all parties.”

MPs voted almost unanimously for the Bill to be brought in, with 226 votes in favour and only one against – but readers of this blog will be familiar with the fact that this happened with Michael Meacher’s motion for a commission of inquiry into the impact of social security changes on poverty. The House approved; the government did nothing.

So don’t get your hopes up too high.

Mr Lavery was the only person to speak on the subject, and his words are well worth noting here.

“The full and sole intention of this Bill is to sweep away the dreaded bedroom tax,” he said.

“It seeks to restore justice for up to 660,000 people — some of our country’s most vulnerable citizens, two-thirds of whom are disabled. They have been inhumanely let down by the Government’s reforms to housing benefit in the social sector. The tax has caused heartache and devastation to thousands of residents up and down this country. It is a tax whose forced implementation has put extreme pressure on councils, housing associations and social landlords. It is a tax that has put extreme pressure on the ordinary working people who are forced to deal with those unable to move and those unable to pay.

“On the introduction of the tax, Ministers argued that the changes would encourage people to downsize to smaller properties and, in doing so, help to cut the £23 billion annual bill for housing benefit; would free up living space for overcrowded families; and would encourage people to get jobs. Significantly, it has achieved none of those objectives.

“At the same time, the Department for Work and Pensions has trumpeted the measure as ‘returning fairness to housing benefit’. The words ‘fairness’ and ‘bedroom tax’ should not be uttered in the same sentence.”

He said: “This tax is a problem in each and every constituency up and down the country; this is not simply a problem in Labour-dominated authorities. I was contacted only last week by a distraught resident from the Tory shires who is hoping that my Bill will be successful, because he, a disabled man, is living in a three-bedroom property and has just received an eviction notice for bedroom tax arrears. He is not alone. The bedroom tax sufferers in Liberal Democrat and Tory constituencies number around 250,000. Perhaps we should ask them whether they think this abominable tax has restored fairness to housing benefit.”

Mr Lavery said his Bill seeks “to restore fairness and to end the misery that the bedroom tax has caused”. He said there are hundreds, if not thousands, of “appalling” examples of suffering, mentioning (but not naming) mother-of-two Stephanie Bottrill, a woman suffering a crippling illness who committed suicide after realising that she could not pay the bedroom tax. Her family received correspondence later saying that she should have been exempt from the charge.

He also mentioned a case he said was “hard to comprehend; it really is difficult to try to get to grips with”. He said: “The family of the 1999 child of courage, who spent years battling multiple cancers, is suffering at the hands of this horrible reform. These people are not living a life of luxury in palatial properties; they are living in a place in which they feel safe and which they call home. It is time to listen. I am sure that most fair-minded individuals would agree that a bedroom is not spare when carers sleep in it, when couples use it because one of them has health problems and they cannot share a bed, or when it houses vital medical equipment, yet this indiscriminate tax deems it so.

“The reality is that yet another measure introduced by this Government is in total and utter chaos. It lies in tatters, with the victims left to pick up the pieces. As thousands suffer, there is a real risk that the bedroom tax will end up costing more than it saves. The National Housing Federation has said that the savings claimed by the Government are ‘highly questionable’, partly because those who are forced to move to the private rented sector will end up costing more in housing benefit.

“Surely, as politicians and members of the general public, we are entitled to question the motives behind the introduction of the bedroom tax. The tax does not deal with the problem of under-occupation. In fact, the Government’s costings on the yield raised from the bedroom tax explicitly assume that people will not move into smaller properties. There are simply not enough smaller properties for people to move into.

“Some 180,000 households were deemed to be under-occupying two-bedroom homes, yet only 85,000 one-bedroom homes became available during the whole of 2012. The savings projections of the Department for Work and Pensions assume that not one of the 660,000 households affected would respond to the policy by moving to a smaller home. Put simply, this is yet another example of the Government balancing the books on the backs of the disabled and the vulnerable. The tax must be scrapped now.

“Housing associations say that tens of millions of pounds are likely to be lost through the build-up of arrears. Reports this morning estimate that 144,000 people have fallen behind with their rents since the introduction of the bedroom tax and that 14 per cent have received eviction notices [20,160].

“Was that really meant to happen? Was this eviction of the poor really the plan of the Government?

“In October, research by the University of York, which was based on data by the housing associations that have tenants affected by the bedroom tax, suggested that the policy could save up to 39 per cent less than the DWP had predicted. In the past week, it has emerged that more than half of the £500 million that the Government claim will be saved by the hated tax will be spent on re-housing disabled people. These are vulnerable people who already live in properties that have been adapted for their needs and who have built up local support networks with their friends, family and neighbours. The future for them lies in communities that are unknown and foreign to them. They have been cast out like the proverbial dog in the night.”

Interrupted when he mentioned the loophole that exempted Stephanie Bottrill from paying the bedroom tax – another member said that the loophole had been closed – Mr Lavery continued: “As Ministers scramble to mop up the mistakes, another challenge to the hated tax has arisen. A judge has overturned the tax in the case of a Rochdale man who argued that one of his bedrooms was used as a dining room. The appeal was upheld on the basis that the dictionary definition of a bedroom is a room that contains a bed that is used for sleeping in. An avalanche of appeals is on its way.

“I am proud to see that, only last week, the Scottish Labour party shamed the Scottish National party into abolishing the bedroom tax. I must put it on the record that I am also proud that one of the first acts of a future Labour Government will be to end this full frontal attack on the vulnerable. However, we cannot afford to wait until the general election of 2015. I urge the supporters of this tax to think again.

“The question is this: Are they happy to see the misery and social disruption of the vulnerable and disabled? I began this speech by expressing the view that those who voted in favour of introducing this dreaded bedroom tax may have underestimated the human suffering that it would cause. That is no longer in any doubt, so I urge them all to do the honourable thing and support my Bill.”

That really is the question for members of the public to consider, along with MPs. If your MP votes against Mr Lavery’s Bill, then you will know that they are, indeed, happy to inflict misery and disruption on the vulnerable and disabled.

Do you want to live in a country where people like that are allowed to rule?

Make no mistake: This legislation is unlikely to succeed without support from people who previously helped bring the Bedroom Tax into law. As such, it might not work.

But this is also legislation that should help you decide how you will vote in May next year.

We can hope that our MPs – and you yourself, dear reader – choose wisely.

The Bill will have its second reading on February 28.

 Labour’s Chris Bryant took the opportunity afforded by Mr Lavery’s motion to bring a point of order – that Iain Duncan Smith, Esther McVey and Lord Freud had been using false statistics. He said: “Earlier this year, when asked how many people had been affected by the loophole in the bedroom tax legislation, the Secretary of State for Work and Pensions… said that the number was between 3,000 and 5,000. In a written answer, the Minister of State… (Esther McVey)… said that she did not know how many had been affected. Lord Freud, a Minister in another place, said that it was an insignificant number. Today, however, he told the Work and Pensions Committee of this House that the number was 5,000.

“We have been doing their work for them, and from Freedom of Information requests to local authorities in England, Wales and Scotland, we already know, from just the third that replied, of 16,000 cases.”

Debbie Abrahams, a member of the Work and Pensions committee to whom Lord Freud provided the false figure, said committee members will be pursuing the matter.

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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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Are the Tories planning to bury us in debt when interest rates rise?

30 Monday Dec 2013

Posted by Mike Sivier in Conservative Party, Cost of living, Economy, Housing, People, Politics, Poverty, UK, Workfare

≈ 34 Comments

Tags

Bank of England, BBC, BBC News, Coalition, Conservative, consumer, debt, deficit, Democrat, disposable, economic, economy, false, falsify, George Osborne, government, Governor, help to buy, housing bubble, income, inflation, interest rate, Lib Dem, Liberal, Liberal Democrat, long term, Mark Carney, Mike Sivier, mikesivier, mortgage, national, people, personal, politics, recovery, Resolution Foundation, seven per cent, social security, taxpayer, Telegraph, Tories, Tory, underwrite, unemploy, unemployment, Vox Political, wage, welfare, Workfare


Don't look so smug, George - we know what you're trying to do.

Don’t look so smug, George – we know what you’re trying to do.

It is surprising that they don’t seem to think we can make the connections.

Two articles have leapt from the national media to trouble us this week. The first, in the Telegraph, states that the economic recovery that has made George Osborne so proud is built on mounting consumer debt and a housing bubble.

(This is something that has been known to us for several months, in fact. Osborne’s ‘Help to Buy’ scheme is the principle cause of the bubble, and it was recently revealed that there is no way to slow it down. Let’s not forget that the taxpayer is underwriting the scheme – so when the bubble bursts we will have to pay both as individuals and as a nation!)

The second article is on the BBC News website, which tells us that up to 1.4 million extra households could face “perilous” levels of debt when interest rates begin to rise – in addition to the 600,000 families already in that situation.

(It adds that mortgages are the largest source of household debt.)

Vox Political has long held the belief that the Conservatives have been trying to increase personal debt. Whether the plan was to decrease the national debt in this way is debatable as the deficit has plateaued at around £120 billion for the last few years.

When Mark Carney became governor of the Bank of England, he said he would not raise interest rates until unemployment falls below seven per cent – which might provide a bit of breathing-room for those having to deal with mounting debt.

However a few months ago, at the Conservative conference, we heard that George Osborne wants to falsify unemployment figures by putting the long-term unemployed on Workfare indefinitely.

If a person is put on Workfare, they are removed from unemployment statistics, even though they only receive social security payments for the work they do.

We already know that figures show a larger fall in unemployment than commentators had anticipated, so it now stands at 7.4 per cent, according to official statistics. Putting hundreds of thousands more people on Workfare should cut that figure below Mr Carney’s benchmark.

Meanwhile, household debt is due to rise to 160 per cent of income by 2018, partly because wages are dropping in comparison with inflation. The number of households using half their disposable income to repay debt could rise from 600,000 to 1.1 million if interest rates rise to three per cent (according to the Resolution Foundation, as quoted in the BBC piece) – and to two million if rates hit five per cent.

In the light of this information we must ask ourselves: Is this a Tory trap? Are they trying to create conditions in which more people on low or middle incomes become indebted to the rich, just by fiddling interest rates?

What do you think?

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This benefits bully harasses the powerless but runs away from criticism

01 Friday Nov 2013

Posted by Mike Sivier in Benefits, Conservative Party, Cost of living, Disability, Employment, People, Politics, Poverty, tax credits, UK, unemployment, Workfare

≈ 29 Comments

Tags

allowance, annual report, Atos, benefit, benefit cap, benefits, bully, Coalition, committee, Commons, Conservative, court, coward, dead, death, Debbie Sayers, Department, Department for Work and Pensions, die, disability, Disability Living Allowance, disabled, DLA, DWP, employer, employment, Employment and Support Allowance, ESA, fabricate, false, fraud, Freedom of Information, George Osborne, government, Guardian, harass, health, HM Revenue and Customs, hmrc, Iain Duncan Smith, IDS, Information Commissioner, internet, intimidate, Ipsos Mori, Jayne Linney, Job Centre, John Major, law, liability, liar, Mandatory Work Activity, Mike Sivier, mikesivier, Parliament, Pensions, people, politics, Polly Toynbee, Public Interest Lawyers, regulation, retrospective, returned to unit, RTU, ruling, sick, social security, staff, statistics, support, Tories, Tory, unemployment, Universal Credit, vexatious, Vox Political, welfare, work, Workfare


131101IDS1

Several months ago this blog accused Iain Duncan Smith of being a liar and a coward because, not only had he fabricated statistics on the number of people leaving benefits because of his new benefit cap, but he had also weaseled his way out of an appearance before the Commons Work and Pensions Committee to account for this behaviour.

The very next day, we had to apologise (to readers) and publish a correction saying that the man we call ‘Returned To Unit’ would be attending a follow-up meeting in September, at which the 100,000-signature petition calling him to account for the benefit cap lies, organised by Jayne Linney and Debbie Sayers, would also be presented to MPs.

Apparently the meeting was being timed to coincide with publication of the DWP’s annual report for 2012-13.

Now it is November, and we have still had no meeting with RTU. Nor have we seen the annual report, which is now almost eight months late. Meanwhile the calamities at the DWP have been mounting up.

The latest appears in a Guardian report published yesterday, about the ongoing disaster that is Universal Credit. You may remember, Dear Reader, that the Department for Work and Pensions has admitted it had to write off £34 million that had been spent on the scheme; it subsequently emerged that the total amount to be written off might actually be as high as £161 million.

The Guardian article appears to confirm this, adding £120 million to the £34 already written off if the DWP follows one of two possible plans to take the nightmarish scheme forward.

This would restart Universal Credit from scratch, creating a system based on the Internet – and reducing the need for Job Centre staff – and tends to confirm the suggestion that staff are seen as a liability in the government’s plan to cut back on benefit payments; despite being told to bully, harass and intimidate everyone who darkens their doors, they have an annoying inclination to help people claim the benefits due to them.

The other plan would attempt to salvage the existing system, and is understood to be favoured by the Secretary-in-a-State. The drawback is that it could lead to an even greater waste of taxpayers’ money (not that this has ever been a consideration for Mr… Smith in the past. He’ll waste millions like water while depriving people of the pennies they need to survive).

Universal Credit aims to merge six major benefits and tax credits into one, restricting eligibility for the new benefit in order to cut down on payouts. It relies on the government creating a computer programme that can synchronise systems run by HM Revenue and Customs, the DWP itself, and employers. So far, this has proved impossible and a planned rollout in April was restricted to just one Job Centre, where staff handled only the simplest claims and worked them out on paper. Later revelations showed that the system as currently devised has no way of weeding out fraudulent claims.

A leaked risk assessment says the web-based scheme is “unproven… at this scale”, and that it would not be possible to roll out the new system “within the preferred timescale”. Smith has continually maintained that it will be delivered on time and on budget but, as concerns continue to be raised by senior civil servants that systems are not working as expected and there are too many design flaws, it seems likely this is a career-ending claim.

Is this why he hasn’t deigned to account for himself before the Work and Pensions Committee?

Earlier this week, the government lost its appeal against a court ruling that its regulations for Workfare and other mandatory work activity schemes were illegal. Public Interest Lawyers, who handled the case against the government, has taken the view that anyone who fell foul of the regulations may now take action to get their money back. But the matter is complicated by the fact that the government unwisely passed a retrospective law to legalise the rules, in a bid to stop the 228,000 benefit claimants it had sanctioned after they refused to work for their benefits from demanding the money that ministers had – in effect – stolen from them. Iain Duncan Smith is the man behind this mess.

Is this why he hasn’t deigned to account for himself before the committee?

We have yet to learn why this man felt justified in claiming 8,000 – and then 12,000 – people had left benefits because of the £26,000 cap he introduced in April (he claimed it is equal to average family income but in fact it is £5,000 and change short of that amount as he failed to consider benefits that such families could draw). Information from polling company Ipsos Mori showed that the real number of people who had dropped their claims after hearing of the scheme was more likely to be 450 – just nine per cent of the figure he originally quoted.

Is this why he hasn’t put a meeting with the committee in his diary?

Perhaps we should not be surprised, though – it seems that RTU has never had a decent grip on the way his department works. For example, he allowed George Osborne to cancel Disability Living Allowance for one-fifth of claimants in 2010, claiming that the benefit had been “spiralling” out of control because it had 3.1 million claimants – triple the number since it was introduced in 1992. Smith said the rise was “inexplicable” but in fact the explanation is simplicity itself, as The Guardian‘s Polly Toynbee pointed out just two days ago:

“DLA is only paid to those of working age, but when they retire they keep it, so as more people since 1992 move into retirement, numbers rise fast. There has been no change in numbers with physical conditions, despite a larger population; back injuries have declined with the decline of heavy industry. There has been a real growth in numbers with learning disabilities: more premature babies survive but with disabilities, while those with Down’s syndrome no longer die young. More people with mental illness claim DLA now, following changes in case law: there has been no increase in mental illness, with 7% of the population seriously ill enough to be receiving treatment, yet only 1% claim DLA. Psychosis is the commonest DLA diagnosis, hardly a trivial condition. This pattern of disability mirrors the rest of the Organisation for Economic Co-operation and Development countries, with nothing exceptional here.”

In other words, from the moment he took over this hugely important government department, with its huge – and controversial – budget, Iain Duncan Smith had about as much understanding of its workings as a child.

It seems Sir John Major was exactly right when he expressed fears about the DWP Secretary’s ability last week, claiming his genius “has not been proven”.

Is this why we’ve seen neither hide nor … head of the Secretary of State?

Finally, Dear Reader, you will be aware that Vox Political submitted a Freedom of Information request to the DWP, asking for up-to-date statistics on the number of Employment and Support Allowance claimants who have died during a claim or while appealing against a decision about a claim – and that the request was dismissed on the indefensible grounds that it was “vexatious”. This was not good enough so the matter went to the Information Commissioner’s office and, according to an email received this week, will soon be brought to a conclusion.

Is this why Iain Duncan Smith is hiding?

Perhaps it’s time to drag him out of his bolt-hole and force some answers out of him.

Jayne (Linney), in her blog, has called on people who use Twitter to start tweeting demands for Smith to come forward, using the hashtags #whereisIDS and #DWPLateReview. This is good, and those of you who do so are welcome to use any of the information in this article as ammunition in such a campaign.

There is nothing to stop anyone writing to the press – local or national – to ask what is going on and why benefit claimants are being left in suspense about the future of their claims. People have to work out how they will pay their bills, and the continued uncertainty caused by Mr… Smith’s catalogue of calamities is causing problems up and down the country.

A short message to your MP might help stir the Secretary of State out of his slumber, also.

In fact, let’s use all the tools at our disposal to expose this man for what he is – just as this blog stated in July and in May: A liar and a coward who has committed contempt of Parliament and should be expelled – not just from public office, but from public life altogether.

Follow me on Twitter: @MidWalesMike

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The Tory share of the vote is dwindling – why is Labour chasing it?

14 Monday Oct 2013

Posted by Mike Sivier in Benefits, Conservative Party, Housing, Labour Party, Politics, Poverty

≈ 13 Comments

Tags

benefit, benefit cap, benefits, budget, ceiling, Conservative, Department, doorstep, dwindle, dwindling, DWP, Fabian Society, false, fraud, full-time, Iain Duncan Smith, inflation, Ipsos Mori, Labour, living wage, low, Media, Mike Sivier, mikesivier, misconception, observer, part-time, pay, Pensions, perception, plastic, polling organisation, Rachel Reeves, reduce, reducing, share, social security, soft, tax, tax credit, Tories, Tory, unemploy, universalism, vote, Vox Political, work, worker, Your Britain


"Who's been sitting in MY chair?" Nick Clegg would be right to feel supplanted as Labour moves further rightwards, groping for Tory votes - that aren't even there.

“Who’s been sitting in MY chair?” Nick Clegg would be right to feel supplanted as Labour moves further rightwards, groping for Tory votes – that aren’t even there. [Picture: Reuters]

One of the things that really rankled about Rachel Reeves’ attempt at Tory talk in yesterday’s Observer was the (observable) fact that she didn’t need to.

Why try to out-Tory the Conservatives when their share of the vote has been going down at every election – among a proportion of active voters that is – itself – reducing?

So in 1955, they managed to snag 49.6 per cent of the votes. In 2010 this had dropped to 36.1 per cent. Turnout was 76.8 per cent in the first instance and 65.1 in the second. They got 38 per cent of all available votes in 1955 and 23.5 per cent in 2010.

Some could point out that Labour’s share in 2010 was only 29 per cent – around 18.8 per cent of all available votes – but this just proves the point. Neoliberal New Labour were very close to the Conservatives in outlook and policy and most people in the UK don’t want that.

But Rachel Reeves indicated that these policies would continue on her watch, and that’s why people reacted so strongly against the Observer interview.

Perhaps Labour should have done some research on this. Yes, the party has its ‘Your Britain’ website, for members to bring forward ideas – but I’ve been there and didn’t like it. It seemed needlessly complicated, with efforts made to get people discussing particular policy areas at particular times when it would have been better to let people just say what they want – when they want – and sort it out at the receiving end.

Besides – that’s just for members. How much research has Labour done on the doorstep? What do people who aren’t aligned to either main political party want? That is where Labour will get its votes.

Even pointing to research by the polling organisations doesn’t help here. Ipsos-MORI famously polled more than 2,500 people about the benefit cap earlier this year, and Iain Duncan Smith was delighted to announce that a significant majority of respondents were in favour.

It was left to this very blog to break the news that only 21 per cent of those respondents knew enough about the cap to give an educated opinion. It would be informative to know how many – of all the respondents, not just the 21 per cent – were actually affected by it.

All of this is a great shame that may worsen into a missed opportunity. There are some terrific ideas around at the moment and all Rachel Reeves – and Labour as a whole – has to do is look around for them.

The Fabian Society website carried an article entitled Welcome to DWP the other day, in which most current proposals for reform of the system were rejected – which is a telling indictment of the state of the nation in itself. The stated reasons were that they would reduce the incomes of poor families (no thank you, Labour! You’re not going to out-Tory the Tories!) or fatally undermine universalism.

But among the ideas that were there, it was suggested Labour needs to reform individual benefits before setting its planned upper ceiling on the benefits budget. To that, I would add that the ceiling needs to be described as a proportion of a Labour government’s overall budget – not limited to a particular sum of money. This is the only way to keep it fair as inflation increases costs and devalues the pounds in our pockets, year on year.

Reducing unemployment, involuntary part time work and low pay by getting people into full-time jobs on a living wage could cut billions off the benefit bill (and boost the tax take at the same time).

For right now, the article stated, La Reeves needs to work on Labour’s perception problem – the false image created for it by an unsympathetic mass media, that it is ‘soft’ on benefits. This is based on misconceptions; only a quarter of social security goes on working-age people without jobs, and benefit fraud is – as has been explained ad absurdum on this site – miniscule.

Before the recession, Labour had cut the number of people out of work and really made work pay (with tax credits – not necessarily a great way forward, but a start – and these could be eased out of service as pressure was exerted on employers to adopt living wages). The social security budget was falling, not increasing. That’s what Rachel Reeves needs to be saying. Labour’s policies were working. The public has been misinformed. A new Labour government could create a winning formula again.

It could happen – if Labour stops being the Party of Plastic Tories and starts being the Party of the Worker once again.

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Cameron’s speech: The false claims of a failing politician

02 Wednesday Oct 2013

Posted by Mike Sivier in Benefits, Business, Conservative Party, Cost of living, Crime, Democracy, Disability, Economy, Employment, Health, Housing, Immigration, Law, Liberal Democrats, People, Police, Politics, Poverty, Race, Tax, Terrorism, UK, unemployment, Workfare

≈ 23 Comments

Tags

Abu Qatada, advertising, aspiration, banker, BBC, benefit, bubble, cap, conference, Conservative, cost of living, crime, David Cameron, debt, deficit, deport, destitution, disabled, divisive, education, employer, employment, energy bill, false, falsify, figure, finish the job, fuel duty, go home, hardworking, home, housing, Human Rights Act, hypocrisy, Iain Duncan Smith, immigration, indefinite, jobless, knuckle-dragging, Labour, long term, Magna Carta, marriage, mess, Mid Staffs, Mike Sivier, mikesivier, minimum wage, National Health Service, NHS, no future, offshore bank, opportunity, Owen Jones, part-time, police, racist, retrospective law, ruin, Scotland, sick, Skwawkbox, slavery, speech, statistic, student fees, suicide, tax, Theresa May, tolerance, Tories, Tory, under-25, unemployed, van, Vox Political, wages, welfare, work, Workfare, wreck, zero hours


Don't you think he looks old?

Don’t you think he looks old?

Was that really it?

After the barrage of new policy plans from the Labour Party last week, David Cameron’s big revelation, at the end of the most disappointing Conservative conference since – well – the last one, is a hint that the Tories want to take benefits away from anyone under 25 who isn’t in work or education, if they win in 2015?

More repression, then. In a speech that we’re asked to believe is about making the UK a land of opportunity, of aspiration? A “land of hope and Tory”?

Land of hopeless Tories, more like!

Let’s look at those options. Put someone aged between 16 and 25 back into education and you put them into debt (unless they have very rich parents) – we have the Liberal Democrats to thank for that, after they betrayed their own manifesto promise and supported a massive increase in student fees.

Force them into work and its an employer’s market, isn’t it? They can hire or fire under any conditions they like – and the minimum wage will be no problem. You don’t like zero-hours contracts? Too bad – it’s a choice between being listed as employed but unlikely to get any paying work, or losing the pittance you live on anyway. Part-time wages putting you into debt? You’ll be homeless a lot faster without any benefits!

Whatever happens, of course, the benefit bill comes down and fewer people are classed as unemployed.

Just like George Osborne’s plan to put the long-term jobless on indefinite Workfare, this will falsify the employment figures to make it seem the Conservatives have improved the economy when in fact they are making matters worse.

The rest of it was a web of lies and waffle. It has been suggested that Cameron wanted to re-use his speech from last year, rewriting it minimally in the hope that nobody would notice, and that it would be worth finding out if this is true – but that would not get to the heart of the matter, which is that the Conservative Party has completely run out of momentum.

They’re at a dead stop and all they have to support them is falsehood.

Cameron’s speech started with a claim that the Tories are on the side of “hardworking” (it’s hard-working, David – learn some English) people. While he waffled, I had a look at some of the Tory slogans and tried to match some facts to the claims. So we have:

“A tax cut for 25m people” – but they put the cost of living up and wages down so “hardworking” people are worse-off.

“The deficit down by a third” – two years ago. It has been years since they made any notable progress.

“More private sector jobs” – that don’t pay “hardworking” people a bean because they’re part-time or zero-hours. They have also cut the public sector – and given those jobs to people on Workfare.

“Welfare capped” – so poor people are forced towards destitution or suicide

“Crime down” – because police are discouraged from recording crimes against “hardworking” people?

“Immigration down” – because the UK isn’t attractive to “hardworking” foreign people any more.

To these, Cameron added:

“Helping young people buy their own home” – by creating a debt bubble and asking the taxpayer to foot the bill.

“Getting the long-term unemployed back to work” – in order to falsify employment statistics.

“Freezing fuel duty” – and doing nothing about the huge, unjustified, price increases demanded by energy companies.

“Backing marriage” – with less than 20p a day for the poor.

“Creating wealth” – for whom?

“We are clearing up the mess that Labour left” – Labour didn’t leave a mess. Bankers left the mess. Why have the bankers not been cleaned up? Why has Mr Cameron thrown money at them instead?

He referred to the fact that Theresa May (finally managed to have Abu Qatada deported. She wants to get rid of the Human Rights Act, claiming it is necessary if the government is to be able to – among other things – deport suspected terrorists, right? So her action has proved that repealing an Act that protects the rights of British citizens isn’t necessary.

“Who protected spending on the NHS? Not Labour – us.” Wrong. At last count, spending on the NHS under the Conservative-led coalition was down. The plan was to spend £12.7 billion more by May 2015, but by December last year this meant the government needed to find more than £13 billion for this purpose.

He referred to the Mid Staffs hospital scandal as a Labour disaster – look to the Skwawkbox blog for the facts (hint: it’s not as clear-cut as Cameron pretended).

“When the world wanted rights, who wrote Magna Carta?” he said in all hypocrisy. Is he telling us the British people – who demanded those rights in the first place – are now demanding that he divest us of those same rights by repealing the Human Rights Act?

“When they looked for compassion, who led the abolition of slavery?” Fine words from a man whose lieutenant, Iain Duncan Smith, has been working hard to restore slavery for the unemployed, sick and disabled – even going to the lengths of pushing through a retrospective law, after his rules were found to be illegal.

“Whose example of tolerance – of people living together from every nation, every religion, young and old, straight and gay – whose example do they aspire to?” Perhaps someone should point him to his Home Secretary’s advertising vans, which preached intolerance of anyone who wasn’t demonstrably white and British by encourage people on the street to tell anyone else to “go home” in what Owen Jones called the language of knuckle-dragging racists.

His plea for Scotland to remain in the UK must have seemed particularly hypocritical, as the man who has passed more divisive policies than any other Prime Minister, possibly in British history, called for “Our Kingdom – United”.

There was more, much more – and if you have the stomach for it, you can find it here.

The underlying theme was that he wanted to appeal to British citizens to let the Conservatives back into office with a majority government in 2015, so they could “finish the job”.

If we let his party finish the job, we’ll be left with a ruined country, a wrecked system of government, and an elite ruling class laughing all the way to the offshore bank.

I made my opinion clear in a message to the BBC’s ‘live coverage’ page (which of course wasn’t used). I’ll repeat it here:

This speech is really distressing.

Cameron has learned nothing from the last three years, in which his policies have caused suffering to millions of hardworking people.

There is nothing in his words for hardworking people to support.

No growth, no hope, no health…

No future.

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Osborne’s big plan: falsify unemployment figures under the Workfare banner

30 Monday Sep 2013

Posted by Mike Sivier in Benefits, unemployment, Workfare

≈ 25 Comments

Tags

Atos, bait and switch, Bank of England, benefit, benefits, Chancellor, Coalition, conference, Conservative, Department for Work and Pensions, disability, disabled, DWP, Employment and Support Allowance, ESA, Exchequer, fake, false, falsify, figures, George Osborne, Gideon, government, Iain Duncan Smith, interest rate, Jobseeker's Allowance, justification narrative, long term, massage, Mike Sivier, mikesivier, people, Policy Exchange, politics, remove, seven per cent, sick, social security, swivel-eyed loon, Tories, Tory, unemployment, voodoo polling, Vox Political, welfare, work, Workfare


A swivel-eyed loon, earlier today. [Picture: Left Foot Forward]

A swivel-eyed loon, earlier today. [Picture: Left Foot Forward]

So Gideon wants the long-term unemployed to go on Workfare indefinitely, does he?

Forgive me if I’m mistaken, but doesn’t this mean the Chancellor of the Exchequer’s big announcement – at this year’s Conservative Party Conference – is a tawdry plan to massage the unemployment figures?

I’m indebted to The Void blog for the following information, which I recalled while reading reports of Osborne’s drone to the swivel-eyed masses. An article from May stated that the Department for Work and Pensions (DWP) had been forced to admit a rise in unemployment was down to a fall in the number of people on Workfare.

“According to the Department, the number of people in work fell by over 47,000 over the last three months – which they say ‘reflects’ amongst other things a drop of 16,000 in the numbers on Government employment schemes,” the article states. As far as I know, this is still correct – if a person is put on Workfare, they are removed from unemployment statistics, even though they only receive social security payments for the work they do.

Putting the long-term unemployed on Workfare indefinitely, therefore, will effectively wipe long-term unemployment from the national figures. This will make Osborne’s administration look very good indeed – despite having done nothing to improve anyone’s chances of finding a job. In fact, those prospects will have worsened because every Workfare place removes a paying job from the market.

And what will this do for the Bank of England’s scheme to raise interest rates only if unemployment drops below seven per cent?

Wait – it gets worse. We can also see a now-traditional Tory ‘bait-and-switch’ going on, supported by a justification narrative based on a bit of voodoo polling. This one pushes lots of our favourite buttons!

Osborne’s rationale for imposing the scheme – the justification narrative – is simply that people want it. He’s basing his reasoning for this on a voodoo poll by the right-wing Policy Exchange, as described on The Void today.

“The general public’s opinions on workfare have been grossly distorted by the nature of the questions asked in this survey – of which there were only two,” the article states.

“The first question asked whether people thought ‘The government should require people who are unemployed for 12 months or more to do community work in return for their state benefits.’ The truth is that only just over half agreed at 56%. But the public were not asked if this workfare should be full time. In fact it does not even specify that the work should be unpaid – previous workfare schemes have come with a top up payment to benefits attached. Whilst those engrossed in welfare policy might assume workfare to mean 30 hours a week, every week, without pay, there’s no reason a survey respondent would think that. They might think yes, they should volunteer in an old people’s home for an afternoon a week, or do a couple of days a month helping out in the local park, for reasonable expenses. This 56% in no way gives a mandate for full time unpaid workfare.”

It continues: “The second question is even more dubious. The Policy Exchange are attempting to use the answers to this question to claim that only 22% of the public support disabled people being exempt from workfare. That incidentally is disabled people “who are capable of working” – another devious phrase as who is and isn’t capable of working is clearly open to debate as the Atos scandal has shown. The obvious inference from the from this figure is that 78% of the public support workfare for disabled people. Yet in question 1 only 56% of people support workfare for anyone at all. There must be something in the going on to explain this bizarre discrepancy.

“Question 2 asks respondents to imagine that compulsory workfare exists and then questions who should be exempt. Now a disabled person completing this survey may think well if I have to do workfare then why shouldn’t a lone parent, and vice versa. That doesn’t mean they support workfare, it means they support equality, of a sort.

“There is no option available for those who think that everyone should be exempt from workfare, although it is possible to answer that every group of claimants given should undertake unpaid work.”

So: Extremely dubious findings, used to support a dubious claim that the public supports increasing Workfare and this is why the Coalition is doing so. In fact, this is a thinly-veiled attempt to falsify unemployment statistics and trigger an interest rate rise.

The swivel-eyed loons must have lapped it up.

Now, why wasn’t Vox Political‘s best friend, Iain Duncan Smith, making this announcement?

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Standards watchdog orders MPs to repay ‘profits’ on second homes – why isn’t Osborne on the list?

09 Thursday May 2013

Posted by Mike Sivier in Conservative Party, Corruption, Justice, UK

≈ 6 Comments

Tags

account, David Jones, expenses, false, farmhouse, fraud, George Osborne, home, Independent Parliamentary Standards Authority, Interest, ipsa, land, Mike Sivier, mikesivier, mortgage, paddock, profit, scandal, second, Tatton, taxpayer, Vox Political


Shady: Why will the Parliamentary Commissioner for Standards NOT investigate the new evidence that has come to light about George Osborne's expenses?

Shady: Why will the Parliamentary Commissioner for Standards NOT investigate the new evidence that has come to light about George Osborne’s expenses?

Members of Parliament have been made to pay back nearly £390,000 in ‘profits’ judged by the Independent Parliamentary Standards Authority to have been made on taxpayer-funded homes – with one highly-notable exception.

In total, 71 MPs have repaid cash claimed on mortgage interest payments between 2010 and 2012.

The highest amount repaid was £81,446, by Conservative David Jones. He had only claimed around £18,061 but the amount he had to repay depended not only on how much he had claimed, but how much the value of his property had risen.

Changes to the system after the expenses scandal meant new MPs could not claim expenses towards the cost of mortgage interest payments on their second homes. Those who had already bought properties under the old system were allowed to continue claiming until August last year, if they agreed to repay a share of any profit made over that period.

This leads us to the worst offender we know, and the reason he does not appear on this list.

We know that George Osborne falsely claimed mortgage interest on a farmhouse, a neighbouring paddock, and other land in his Tatton constituency as an allowable expense, stating that he needed the house to perform his duties as an MP. Taxpayers’ money paid the interest on the paddock and the other land, even though they were registered separately with the Land Registry and went unmentioned in his expenses claim.

Between 2003 and 2009, he claimed up to £100,000 in expenses on the building (and the two pieces of land, even though they went unmentioned on his claim), which he had bought for £455,000 in 2000. A 2005 re-mortgage allowed him to increase the value to £480,000 and add the initial purchase costs and £10,000 for repairs to the interest-only arrangement; all the money came from the taxpayer.

Osborne stopped claiming in 2009. This is why he cannot be included among the MPs being asked to refund the taxpayer. When the Standards Commissioner examined Osborne’s expenses claims in 2010, he was ordered to pay £1,936 – a derisory amount that mocks the taxpayers who stumped up the cash.

Osborne sold the farmhouse and land in 2011, for an amount believed to be around £1 million. He pocketed all the money and did not repay a single penny that he had taken from the taxpayer.

Considering the amounts these 71 MPs have had to pay back – and especially considering the amounts paid by those whose property (like Osborne’s) increased in value – one might consider him to have made a very canny decision to stop claiming when he did. Bear in mind that it was an interest-only mortgage, so it would not have been paid off when he stopped claiming.

He played the system, using taxpayers’ money to make himself £1 million. He also committed fraud, or at least false accounting, in failing to declare that he was also claiming for two extra pieces of land that would have invalidated the claim altogether, as they were not used for Parliamentary purposes.

While he keeps the money, those MPs who have paid back huge amounts – including prominent cabinet members like Kenneth Clarke and Philip Hammond – have a right to feel that the system has discriminated against them.

I bet they don’t do anything about it.

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