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Marcus Brigstocke v the Government – has he been reading Vox Political?

05 Monday May 2014

Posted by Mike Sivier in Benefits, Cost of living, Economy, Employment

≈ 13 Comments

Tags

absentee, bank, benefit, bonus, company, cost of living, cynic, demoralise, economic, Economic and Social Research, economy, employee, employer, exploit, financial crisis, financial sector, George Osborne, government, growth, illness, in-work, living, Marcus Brigstocke, Mike Sivier, mikesivier, minimum, morale, National Institute, NIESR, politics, productivity, ruthless, sabot, sabotage, social security, staff, stress, The Now Show, turnover, Vox Political, wage, wages, welfare, work, zero hours contract


This is the first pic I could find of Marcus Brigstocke, as he might have looked while delivering the piece quoted below. He's a known beardie so he probably had face-fuzz as well.

This is the first pic I could find of Marcus Brigstocke, as he might have looked while delivering the piece quoted below. He’s a known beardie so he probably had face-fuzz as well.

What a rare and pleasant thing we’ve enjoyed for the last few days – a Bank Holiday weekend with good weather! And isn’t it a shame that this means most of you will have been out, and therefore missed Marcus Brigstocke’s turn on The Now Show.

Here’s a guy who knows how to take the government apart; it seemed as though he’d been reading Vox Political for the last few months because he touched on some of our favourite subjects:

1. The economy

He led with the 0.8 per cent increase in economic growth, mocking the government’s celebratory tone with impressions of how ordinary people took the news, up and down the country (some of the accents were beyond belief).

“Well done, George Osborne,” said Marcus, his voice dripping with sarcasm. “You have proved your theory right, using the Grand Theft Auto model. You have successfully shown that the poor really are like video game prostitutes – if you kick them hard enough, eventually money will come flying out of them.”

Doesn’t this fit nicely with what this blog has been saying about the economy being dependent entirely on the movement of poor people’s money? Those with less spend all – or almost all – of their income and it is this money, being pushed around the system, that boosts profits and keeps Britain going.

He continued: “I know that the state of the economy matters but for the vast majority of people it is as mysterious and cryptic as the shipping forecast… What makes a difference to people is not zero-point-eight-per-cent growth; it’s actual wages and the cost of living.

“The National Institute of Economic and Social Research (NIESR) showed this week that the average worker is £2,000 worse-off since the financial crisis hit,” another common theme here on VP, except in fact it’s £2K per year worse-off. Let’s do a quick shout-out to Jonathan Portes, NIESR’s director, whose Tweets are well worth a read: @jdportes

“I say, ‘hit’. That makes it sound like the crisis swerved towards us. The reality is, the average worker is £2,000 worse-off since the financial sector arrogantly, and with galactic, hubristic stupidity, drove the economy off a cliff, yelling, ‘Does this mean I still get my bonus?’ Of course you’ll still get your bonus. Otherwise you’d leave the country and [chuckling] nobody wants that.” [Laughter from the audience – we’re all in on that joke.]

2. Employment

“More people are in work now; good. But why do employers talk like they deserve a sainthood when they have people working for them? Your company does a thing; you need workers to facilitate the doing of that thing. The workers work, and the thing is done – am I missing something here? Do you feel you need a medal?”

2a. Zero-hours contracts

“One-point-four million British workers are having to scrape a living together from cynical, ruthless, exploitative employers using zero-hours contracts. Value your employees – they are not battery workers; they are people… One in five UK workers earns less than the Living Wage.”

At this point the narrative switches to a spoof advert: “At GreatBigFacelessBastardCorp we care so little about what we do, we pay our workers the minimum wage allowed under the law! That way we can pass on their listlessness and overwhelming sense of defeated apathy to you, the customer! GreatBigFacelessBastardCorp – crushing dreams so you don’t have to!”

This relates to an argument that Vox Political has been having with Tory-supporting businesspeople for years, going back to the earliest days of the blog. Back in January 2012, I wrote False economies that leave the business books unbalanced in which I stated:

It seems to me that many employees are finding life extremely difficult now, because the amount they are paid does not cover all their outgoings and they are having to work out what they can do without. The cost of living has risen more sharply than their pay, so they are out of pocket.

This creates stress, which can create illness, which could take them out of work and turn them into a liability to the economy – as they would then be claiming benefits.

That’s bad – not only for the country but also for their company, because demoralised employees produce poor work and the company’s turnover will decrease; having to bring in and train up new workers to replace those who are leaving through ill health is time-consuming and unproductive.

Therefore, in taking the money for themselves, rather than sharing it with employees, bosses are clearly harming their own companies and the economy.

In fact, it seems to me that this is a microcosm of the larger, national economy. In order to keep more money, bosses (and the government) pay less (in the government’s case, to pay off the national deficit). This means less work gets done, and is of poorer quality (in both cases). So orders fall off and firms have to make more cutbacks (or, revenue decreases so the government makes more cutbacks in order to keep up its debt payments).

[This seems to have been borne out by subsequent events. More people are employed than ever before, according to the government, yet GDP has improved by only a fraction of one per cent in the last quarter. By rights, it should be about 20 percentage points higher than the pre-crisis peak by now, according to some analysts.]

The message to bosses – and the government – is clear: Cutting back investment in people to keep money for yourselves will cripple your earning ability. Cutting even more to make up for what you lose will put you into a death spiral. You are trying to dig your way out of your own graves.

But there is an alternative.

A reasonable pay increase to employees would ensure they can pay their bills, and would also keep them happy.

Happy workers produce better results.

Better results keep businesses afloat and earn extra work for them.

That in turn creates more revenue, making it possible for bosses not only to increase their own pay but employ more people as well.

Wouldn’t that be better for everybody?

Well, wouldn’t it?

3. Welfare lies

“Young workers are amongst the hardest-hit by the downturn, with pay falling by 14 per cent between 2008 and 2013. Well done, everybody! We pay far more from the welfare budget supporting incomes for people in work than we do for those out of a job.

“The government keep on crowing about the number of people they have in work … most of them are not so much in work as near some work, if only they were allowed to do any.

“If you’re on the minimum wage, kept on a zero-hours contract between 7am and 7pm so you can’t work for anyone else but rack up a grand total of – ooh! – just enough hours so your employer doesn’t have to pay your National Insurance [another VP theme], you get no training, no employee benefits, no hope of any promotion and you hear ‘IDS’ banging on about how he’s ‘the saviour of benefits street’, well, if you can still afford a shoe then please throw it at the radio or through the telly or at his actual face.” This is a reference to sabotage, in which workers threw their crude shoes – or ‘sabots’ into machinery to stop it working, in protest against their working conditions and developments that were endangering their jobs.

“Low pay means higher staff turnover, high absenteeism, poor morale and lower productivity.” That’s exactly as I stated in the VP article from 2012.

4. In conclusion

“I don’t know when money started making money faster than people but… It’s not helping,” said Marcus, truthfully. “So instead of running about with your shirt over your head doing ‘airplane arms’, shouting ‘Nought-point-eight-per-cent’… do something to get the people who actually work to be rewarded, recognised and remunerated for what they do.

“It’s not rocket science and, frankly, if it is, I sincerely hope they’re not on minimum wage.”

When I heard that piece, I very nearly stood up to applaud. If you want to hear it yourself (and I’ve left out enough of it to make it worthwhile, I promise you), it’s available for download here, and starts around eight and a half minutes in.

Actually, it would be better if Marcus hasn’t been reading this blog, because then he would have drawn the same conclusions, from the same evidence, thereby reinforcing my own reasoning.

Now, let’s have your opinions, please. I’ll be very interested to hear from supporters of the current “pay-’em-the-bare-minimum” policy as they almost invariably say things like “We can’t pay them any more” – it’s never “They have good reasons that mean they can’t pay us more”.

Interesting, that.

Follow me on Twitter: @MidWalesMike

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The questions that Sunday Politics WON’T ask Iain Duncan Smith

07 Friday Mar 2014

Posted by Mike Sivier in Bedroom Tax, Benefits, Conservative Party, Cost of living, Disability, Employment, Employment and Support Allowance, Food Banks, Health, Housing, Media, People, Politics, Poverty, Public services, tax credits, Television, UK, unemployment, Universal Credit, Workfare

≈ 36 Comments

Tags

Action T4, allowance, appeal, assessment, BBC, bedroom tax, benefit, benefits, British, carer, catholic, ConservativeHome, Council Tax Benefit, cut, death, disability, disabled, disaster, Dunchurch College of Management, elderly, employment, ESA, genocide, hard working, harrowing of the north, housing benefit, Iain Duncan Smith, IB, IDS, illness, impoverishment, Incapacity Benefit, incurable, Jobseeker's Allowance, JSA, mortality, Nazi, Personal Independence Payment, PIP, policies, policy, poor, poverty, progressive, recession, returned to unit, RTU, sanction, sickness, suicide, Sunday Politics, support, Universal Credit, Universal Jobmatch, University of Perugia, Vox Political, vulnerable, WCA, work capability assessment


131010benefitdenier

Like it or not, politics in the UK is far more nuanced today than it has been at any time in the last 100 years. How can it be anything else? All the main political parties are trying to occupy the same, narrow, centre-right ground.

Even so, one man has emerged as the pantomime villain of British politics: Iain Duncan Smith.

ConservativeHome readers regularly vote him into the top slot as the most popular cabinet minister – but it seems that anyone who has ever had dealings with his Department for Work and Pensions has the exact opposite opinion of him. He has been nicknamed IDS, but this blog calls him RTU instead – it stands for ‘Returned To Unit’, a military term for serving soldiers who have failed in officer training and have been returned in disgrace to their original unit (the implication being that his claim of a glittering military career is about as accurate as his claims to have been educated at the University of Perugia and Dunchurch College of Management).

Here at Vox Political, we believe that this man’s tenure at the DWP will go down in history as one of the greatest disasters of British political history – not just recent history, but for all time. It is our opinion that his benefit-cutting policies have done more to accelerate the impoverishment of hard-working British people than the worst recession in the last century could ever have done by itself.

We believe the assessment regime for sickness and disability benefits, over which he has presided, has resulted in so many deaths that it could be considered the worst genocide this country has faced since the Harrowing of the North, almost 1,000 years ago.

That will be his legacy.

On Sunday, he will appear on the BBC’s Sunday Politics show to answer your questions about his work. The show’s Facebook page has invited readers to submit their own questions and this seems an appropriate moment to highlight some of those that have been submitted – but are never likely to be aired; RTU is far too vain to allow hyper-critical questioning to burst his bubble.

Here is our choice of just some questions he won’t be answering:

“Why [has he] decided to cover up the number of suicides due to [his] benefit cuts?” “Why is he killing the elderly and the disabled?” “Does he have a figure (number of deaths) before he accepts a policy might not be working?”

“Universal Jobmatch, Universal Credit, WCA reforms, PIP; are there any policies and projects he has tried to implement that haven’t been a massive shambolic waste of money, causing distress and sanctions to so many people?”

“Would he like to comment on the huge amount of people wrongly sanctioned, and would he like to explain why whistleblowers from the JCP have admitted there are sanction targets?”

“Ask him if he believes a comparison can be drawn between the government’s persecution of the sick, disabled and mentally ill and the ‘Action T4’ instigated by the Nazis in 1939. I am sure the tow-the-line BBC will give him sight of the questions before he gets on the show so he will have time to look it up.”

“People are now waiting months for their appeals to be heard and the meantime their benefits are stopped. What does he expect them to live on? Why [are] he and his Department pursuing this deliberate war against some of our most poor and vulnerable people?”

“Could he comment on the massive amount of money written off due to failures with the Universal Credit?”

“Why are we paying private companies to test disabled and sick people when one phone call to their consultant or GP would provide all relevant details they need?”

“[Does] he have any intention of putting his money where his mouth is, [living] on £53/week, and how does he square that with the £39 on expenses he claimed for breakfast? Half a million people signed the call for him to do so.”

“Why are full time carers who look after loved ones only paid £59.75 a week? Less than JSA, indeed less than any other benefit! they save the tax payers millions, and yet have still been hammered by the changes in housing benefit, council tax benefit and of course the hated bedroom tax.”

“Ask him about the Universal Jobsearch website and the fake jobs on the site. As a jobseeker, this site need[s] better monitoring.”

“Ask him if the bedroom tax was really just a deceitful way to remove all social housing and force people into private rentals for the rich to claim housing benefits paid to claimants.”

“Does he think that paying subsidies to supermarkets and other private companies via welfare benefits because they do not pay well enough is what government should be doing?”

Some of the questioners address Mr… Smith directly:

“Why do you keep testing people with incurable progressive illnesses? Once found unfit to work, [they] never will get any better so to retest is stressful, cruel, and not needed.”

“Why are you telling Jobcentre Plus staff to get ESA claimants and JSA claimants to declare themselves self-employed, then reeling them in with the promise of an extra £20 per week? Is this why the unemployment rate fell last quarter?”

“You say you want the sick off what you call the scrap heap but with few jobs out there, do you mean off the scrap heap into the destitute gutter?”

“Do you feel remotely guilty for the lives you’ve ruined? the lies you’ve told? The dead people on your hands? Do you feel any shame at all that you’ve done all this and more? Do you sleep well at night knowing there are people who can’t feed their children because of you?”

“As a committed Roman Catholic, how does your conscience deal with you supporting and advantaging privileged millionaires while you personally and systematically further impoverish the poor and disadvantaged?”

“Does he feel ashamed to have caused so much suffering, because he flipping well should!”

There were many more questions that were not appropriate for repetition.

To see what he does have to say for himself, tune in to Sunday Politics on BBC1, starting at 11am on March 9 (which is, as you might have guessed, Sunday).

Just don’t get your hopes up.

Follow me on Twitter: @MidWalesMike

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Private company given contract to harass the long-term sick

09 Sunday Feb 2014

Posted by Mike Sivier in Business, Conservative Party, Employment, Health, Liberal Democrats, People, Politics, UK, Workfare

≈ 60 Comments

Tags

A4E, advice, allowance, assessment, BBC, bullied, bully, Coalition, Conservative, costs, Democrat, Department, DWP, economic, economy, employer, employment, England, ESA, GP, harass, health, illness, Lib Dem, Liberal, long term, loss, Mike Sivier, mikesivier, money, non compulsory, output, Pensions, people, plan, politics, profit, Scotland, service, sick, support, Tories, Tory, Trades Union Congress, treatment, TUC, Universal Jobmatch, Vox Political, Wales, WCA, welfare to work, work, work capability assessment


The pretext: These are the figures showing the amount of working time lost to companies in the UK because of illness. Remember that these figures have halved in the last decade.

The pretext: These are the figures showing the estimated amount of long-term illness in the UK per year. Remember that these figures have halved in the last decade.

The Department for Work and Pensions is setting up a new “service” offering “advice” to people who are off work with an illness for more than four weeks.

No reference is made to improving people’s health.

It should also be noted that sickness absence in the UK is among the lowest in Europe, and has halved over the past decade.

The announcement was made on the BBC News website shortly after midnight. Nothing has appeared on the Government’s own website so it seems the Corporation has gone back to being Westminster’s poodle again – breaking news for the government in order to give spin doctors time to assess the reaction and then write a press release that is more acceptable to the public.

The Health and Work Service will be a privately-run operation covering England, Wales and Scotland, offering “non-compulsory” medical assessments and “treatment plans”. This is reminiscent of the way Universal Jobmatch was introduced to jobseekers as a “non-compulsory” service – which many thousands of people have been bullied and harassed into joining.

The scheme will allow employers or GPs to refer employees for a “work-focused occupational health assessment”, according to the BBC report. So this means the employee has no say in whether to go on the scheme – it is down to bosses and doctors. You are invited to consider whether this represents another great step forward in the Conservative Party’s claims to be crusading for patient choice.

The story says workers will be allowed to refuse assessment or to follow any course of action that is recommended but, again, we have the example of Universal Jobmatch.

The “assessment” is meant to identify the issues preventing an employee from returning to work and draw up a plan for them, their GP and their employer, showing how that person can be “helped” back more quickly.

One is forced to question the efficacy of such a system, if faced with illnesses or diseases that must receive medical treatment.

You don’t talk someone better – the huge number of people who have died while going through the DWP’s Employment and Support Allowance sickness denial machine has proved that.

The government has made its aim in setting up the new scheme perfectly clear, saying employers will “save money” by having fewer staff off sick – possibly saving companies up to £70 million a year in reduced sickness pay and related costs.

The DWP says people will return to work earlier. This seems like a pie-in-the-sky aspiration, as illness does not go away in accordance with a timetable. This means the Department’s other claims – that there will be a reduction in lost working days and increased economic output – are also pipe dreams.

It is far more likely that sick people will be forced back to work before they are better – leading to an increased chance that illnesses will spread among workforces, there will be more lost working days and lowered economic output.

The Trades Union Congress, while supporting schemes that could help people back into work, agreed (with me) that this one creates a danger that people will be forced back to work before they are well.

Finally, any company involved in the scheme should be aware that it is unlikely to make a profit from it. Look at the effect on other firms of involvement with DWP schemes: Welfare-to-work provider A4e has reported a pre-tax loss of £11.5 million in the year to March 31, 2013 – up from a £2.1 million loss the year before. Turnover dropped from £194 million to £167 million.

So now we can say very clearly to all private companies:

Working for the Coalition government doesn’t pay.

Follow me on Twitter: @MidWalesMike

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Here’s why Labour needs to go a lot further to win back our trust

22 Sunday Sep 2013

Posted by Mike Sivier in Benefits, Corruption, Disability, Employment, Health, Labour Party, People, Politics, Poverty, Public services, UK, unemployment

≈ 54 Comments

Tags

Anne McGuire, Association of British insurers, Atos, back-up plan, benefit, benefits, biopsychosocial, capita, Chronic Fatigue Syndrome, Chronic Pain, condition, Conservative, dead, death, degenerative, Democrat, Department for Work and Pensions, die, disability, Disability Living Allowance, disabled, DLA, doctor, DWP, Ed Miliband, Employment and Support Allowance, ESA, fibromyalgia, George Engel, government, health, illness, Incapacity Benefit, income protection, insurance, Labour, Liam Byrne, Lib Dem, Liberal, Lord Freud, Lyme disease, Mike Sivier, mikesivier, Mo Stewart, Multiple Sclerosis, New thinking on the welfare state, people, Peter Lilley, policies, policy, politics, Reform, sick, social security, Star Wars, Steve Webb, subjective, Tories, Tory, unemployment, unum, Vox Political, WCA, welfare, work, work capability assessment, workplace


130922unumlabour

Only days after Ed Miliband announced a Labour government would sack Atos, the party’s conference is hosting an event part-funded by the architects of the ‘work capability assessment’ administered by that company – the criminal American insurance giant Unum.

‘New thinking on the welfare state’ is a fringe event taking place at the Labour conference on Monday, September 23, organised by the right-wing thinktank Reform (which has Unum as one of its funders) and sponsored by the Association of British Insurers (which includes Unum among its members). Does anybody doubt that it has been arranged in order to give Unum a chance to influence high-ranking party members? No?

Then consider: This is a private round-table policy seminar, staged by Anne McGuire MP. Rank and file Labour members aren’t invited – attendance is by invitation only. Can you smell a rat? Still no?

The event has already been staged at the Liberal Democrat conference (by Steve Webb MP, whoever he is), and will also be a feature of the Conservative Party conference, courtesy of that turncoat floor-crossing slime Lord Freud. It shouldn’t take a genius to work out that Unum wants to ensure that all three parties have the same social security/welfare policy, going into the next election – and that Unum continues to figure prominently in the formulation of that policy.

If you didn’t smell a rat infestation before, by now you’re probably wondering why pest control hasn’t been called.

Ed Miliband knows that any change of the organisation administering work capability assessments is purely cosmetic; the Conservative-led Coalition itself is bringing in other companies to carry out the work, and Capita has already been taken on to carry it out in some areas.

It is the policy itself that must change.

Unum knows all about that policy. The company came up with it in the 1990s as a way to combat claims on its health insurance policies for ‘subjective’ illnesses such as ‘chronic pain’, ‘chronic fatigue syndrome’, fibromyalgia, multiple sclerosis, Lyme disease and others – by aggressively disputing whether a claimant was ill.

It based its new test on the Biopsychosocial Model of illness developed by the psychiatrist George Engel, which is itself an unproved theory. Unum removed the bio- and -social aspects in order to concentrate on the ‘psycho’ – the claim that a person’s illness is all in their mind; that they are imagining it.

This worked very well for the company until the American people realised that they were being diddled out of their insurance money and very large lawsuits were launched that ended with the company having a criminal record in several US states.

Undaunted by this, Unum branched into the UK and cosied up with then-social security minister Peter Lilley, who wanted to cut the number of people claiming disability benefits. Unum saw an opportunity here, with a long-term goal of making state disability benefits useless to the British citizen and forcing them to pay out for the companies duff health insurance policies – which had already fallen foul of the law in America.

That’s why the work capability assessment takes precedence over any evidence your doctor might provide to support your claim, and it’s also why doctors are being actively discouraged from providing any evidence at all; that’s why UK law currently sees a glowing future for people who may be paralysed, but for one finger, as a button pusher; that’s why people with Parkinson’s Disease or other degenerative conditions are being told they will be able to work again in the future; and that’s why thousands upon thousands of people have died as a result of the current policy – especially since the Conservative-led Coalition came into office in 2010.

Meanwhile, Unum has begun a mass-marketing campaign to encourage able-bodied British citizens to invest in ‘Income Protection Insurance’ and a scheme known as the ‘Back-up Plan’. These are only available via the workplace, and it is understood that it has been designed to ensure that the company can resist paying out if anybody should be unlucky enough to have to make a claim.

So you see, the plan is to leave the sick and disabled of this country with no support whatsoever; they can either take out Unum’s insurance policies, pay the company a fortune in premiums and get nothing in return – or they can throw themselves at the mercy of a state which has no mercy and be refused the benefits for which their taxes have been paying ever since they were old enough to pay taxes in the first place.

Either way, Unum wins. For younger readers, it’s like the plot of the prequel trilogy in the Star Wars saga, where the character who becomes the Emperor engineers a war in which he controls both sides. So you see? Those films weren’t as bad as we all thought.

But of course, any person or organisation that intentionally creates a parallel between itself and the most evil character in recent fiction should absolutely not be anywhere near the real-life political decision-makers of this or any other country.

That’s why Mo Stewart, the retired healthcare professional and disability researcher who has spent four years examining the relationship between Unum and the UK government, has contacted Ms McGuire, demanding to know why she is having anything to do with the firm.

She wrote: “Given the amount of evidence against the practice of the dangerous corporate giant, Unum Insurance, and the fact that Labour MPs have exposed their influence with government during debate, the British disabled community are wondering why you would chose to host a fringe meeting by Unum at the conference on Monday?

“‘New Thinking on the Welfare State’ it seems is the title of the meeting, and they should know since Unum have been helping to systematically destroy the welfare state, as welcomed by various governments, since 1994.

“If you were planning to cause offence, you couldn’t have done a better job.

“Keep betraying the British disabled people and you’ll be waiting in the wings for a lot longer before Labour ever return to Government.

“I have spent the past 4 years exposing the links between the DWP, Atos Healthcare & UNUM Insurance. Some of your colleagues are very familiar with my work, which is to be considered by the UN within weeks, and I suggest that if you wish to be taken seriously as the Shadow Minister for Disabled People then you need to be familiar with this evidence.”

This blog wholeheartedly supports Mo Stewart’s position.

If you want to add your support, you can contact Anne McGuire by emailing anne.mcguire.mp@parliament.uk – and you might wish to include Ed Miliband and Liam Byrne (while he’s still there): ed.miliband.mp@parliament.uk and byrnel@parliament.uk

If you’d like to do more, feel free to broadcast that facts about Unum as widely as you can. There seems to be a media blackout on mention of this criminal organisation’s involvement with the state, so you cannot rely on the national news media. This means word of mouth – viral networking – is the only alternative.

Spread the word.

Oh, and Ed? Mr Miliband? We’ll all be waiting for you to make a slightly more solid commitment to the British people. You know what it is because we’ve made it perfectly clear already:

New policies on sickness, disability and incapacity benefits that are humane to claimants and rely on real medical evidence – not the opinions of an unqualified ‘decision-maker’ at the DWP.

Expel Unum from any position in which it may influence the government – including fringe events at party conferences. This may mean dismantling the DWP altogether as that organisation appears to have been terminally compromised.

End the work capability assessments. Find a different way to assess people’s ability to work – perhaps one that involves knowledge of what jobs are available and whether employers have any intention to take on people with limited abilities… Something practical, rather than the dribble that masquerades as current government policy.

And, for goodness’ sake, get rid of Byrne (and McGuire… and let’s not forget Stephen Timms) and replace them with backbenchers who actually understand and sympathise with the plight of benefit claimants who have been made to suffer under a needlessly brutal system.

You don’t dare betray the British people again.

If you do, you’ll have more than eggs to dodge, whenever you dare show your face in public.

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UK unemployment is anything up to 12 MILLION, not two and a half!

17 Wednesday Jul 2013

Posted by Mike Sivier in Benefits, Disability, Employment, Health, People, Politics, Poverty, UK, unemployment, Workfare

≈ 18 Comments

Tags

BBC, benefit, benefits, Coalition, Conservative, David Cameron, dead, death, disability, disabled, economically inactive, economy, employment, full-time, government, illness, Mike Sivier, mikesivier, minimum wage, mortality, national, office, ONS, part-time, people, politics, private, public, sector, sick, social security, statistics, taxpayer, unemployment, Vox Political, welfare, work, Work Programme, Workfare


austeritydolequeue

Please note: As ever, this is a layman’s view of the figures. If anyone can help add colour and detail to what follows – and correct it if necessary – please do.

Let’s hope we all live long enough to look back and laugh at the euphoric reporting of the Coalition government’s slanted employment figures.

“UK unemployment fell by 57,000 to 2.51 million in the three months to May,” the BBC reported, quoting today’s release from the Office for National Statistics.

What a shame that the figure is meaningless as it bears no relation to the number of people who are out of work and not paid the minimum wage (or above), which would be a better yardstick. That figure is anything up to 11.71 million, using estimated figures from the ONS report.

This includes not only the number officially counted as unemployed, but those counted as ‘economically inactive’ and those on government-sponsored schemes such as Workfare or the Work Programme – who work, but are paid only in government benefit money and therefore, as the taxpayer is picking up the tab, should be counted with the unemployed.

People who are ‘economically inactive’ include people who are not seeking work, such as those looking after the family or home, those who don’t want or need a job, and those who have retired early – which is why this group is not included in ONS unemployment figures – but also includes those seeking work but officially unavailable for it, such as students in their final year, people who cannot work for health-related reasons, and ‘discouraged workers’ who believe there are no jobs available.

The trouble is, the statistics do not show the numbers of people in each of these sub-categories, meaning we cannot – for example – get meaningful figures for those unable to work due to poor health. Also, we have no mortality figures – we don’t know how many people have been removed from the workforce because they have died.

This means that the deeply worrying figure of 103,000 fewer people who are economically inactive due to long-term illness is meaningless. Have they died? Have they found work (this is highly unlikely – see Vox’s article on the failure of Work Programme provider companies in this respect)? Have they all miraculously got better and moved into a different category? We simply don’t know, and these figures are extremely frustrating in this respect alone.

The figures suggest that 29.71 million people are in employment, including more than a million who have multiple jobs. They may or may not be among the 8.038 million part-time workers – the statistical estimate does not go into that detail. This adds up to 71.4 per cent of everyone aged from 16 to retirement age (around 41 million of us); excluding the economically-inactive, this goes up to 92 per cent. The part-timers are 27 per cent of the total between 16-64, and 19 per cent of the economically-active.

That means that the 2.51 million people officially designated unemployed constitute eight per cent of the economically-active workforce (or six per cent of the total).

So we’re a long, long way from full employment – and that’s without even going into whether these people are being paid enough!

Not only that, but we should subtract 160,000 people from the ’employed’ figure. This is the number on government-sponsored work schemes, being paid benefit money by the taxpayer in lieu of the proper wage they deserve. So 29.55 million people have jobs and 2.67 million don’t.

This makes little difference to the percentages, nor can we say that anyone has been lying – they have merely been quoting the figures as required of them.

Let’s fill in some of the gaps in the ‘economically inactive’ category: Of the 9.04 million recorded here (up by 87,000) we have 1.95 million students aged 16-24 not looking for work, and 330,000 older students in the same situation, plus 1.38 million early retirements – an increase of 8,000.

Long-term sickness accounts for 2.04 million – an increase of 26,000 on the previous quarter but (as previously mentioned) down 103,000 on a year earlier.

The retired population totals 10.597 million (up 92,000).

We can blow a few myths out of the water:

David Cameron’s claim that a million private sector jobs have been created is absolute piffle. The ONS acknowledges that 196,000 public sector employees were reclassified into the private sector by an Act of Parliament in 2011, to do with educational bodies. Removing this from the statistics, the number of public sector jobs fell by 112,000 in the last year, while the number of private sector jobs did increase – but by only 544,000 – a country mile away from Cameron’s boast.

Claims that the private sector now employs more than 23 million people are also inaccurate – if not so widely. Take away the number of people on government-sponsored work schemes from the 24.059 million private employees claimed by the ONS and you’re left with 23.9 million. Public sector employment stands at 5.697 million.

Those are the facts – as far as we can take them. Without further information about people who don’t want or need a job, and about those who are looking after the home or family, it is impossible to say how many of the ‘economically inactive’ might be looking for work.

And without further details about those in long-term sickness, we can only fear for the condition of the 103,000 who have fallen off the ledger.

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DWP allowed to appeal against ruling that ‘fitness for work’ test is illegal

02 Tuesday Jul 2013

Posted by Mike Sivier in Benefits, Conservative Party, Disability, Health, Justice, Law, Liberal Democrats, People, Politics, UK, Workfare

≈ 40 Comments

Tags

appeal, Atos, benefit, benefits, Black Triangle, Cait Reilly, Coalition, Conservative, Department for Work and Pensions, disability, disabled, discriminate, DWP, Employment and Support Allowance, Equalities Act, ESA, fit, for, government, health, Iain Duncan Smith, illegal, illness, Incapacity Benefit, Jamieson Wilson, judicial review, Liberal, Liberal Democrat, mental health, Mike Sivier, mikesivier, network, Paul Jenkins, people, politics, problem, resistance, rethink, sick, social security, Tories, Tory, Vox Political, WCA, welfare, work, work capability assessment


All rise: The British court system is supposedly the best in the world - but can we trust it to make the right decision when it is the government that is appealing against a ruling?

All rise: The British court system is supposedly the best in the world – but can we trust it to make the right decision when it is the government that is appealing against a ruling?

It may have taken almost a month and a half, but judges have agreed to let the Department for Work and Pensions appeal against the judgement that the work capability assessment discriminates against people with mental health problems.

According to the Mental Health Resistance Network the DWP was denied permission to appeal on the first attempt.

Iain Duncan Smith’s lackeys then resorted to a second route – applying directly to the Court of Appeal – and it was this court that granted permission.

A spokesperson for the Mental Health Resistance Network said: “This is not the news we wanted, but the Tories were never going to give up without a fight as they are desparate to destroy our welfare state.

“Needless to say we will be fighting back.”

Vox Political was one of many who reported, back in May, that a judicial review had ruled that the work capability assessment actively discriminates against the mentally ill.

The tribunal found that, no matter how ill or even delusional a person may be, the system places on them the responsibility for gathering their own medical evidence and sending it in – otherwise the material will not be considered.

For the DWP to win at appeal, it will have to prove that this is possible for anyone, no matter how severe their mental illness may be.

The current system, for which the DWP lost the judicial review, means that paperwork sent in by anyone else on behalf of a patient with mental illness may be ignored and their ability to work judged using evidence from a 15-minute interview with a stranger who is unlikely to have had any mental health training, and who has no idea what expert opinion has to say.

Vox Political said at the time that we all knew Iain Duncan Smith would not accept this. That prediction has been borne out by current developments.

Paul Jenkins, CEO of Rethink Mental Illness, said after the tribunal decision that it meant the government should halt the mass reassessment of people receiving incapacity benefits immediately, until the system is fixed.

Does anybody think this has happened?

If not, then the government has been acting illegally for almost a month and a half. It is to be hoped that the appeal tribunal takes this into account when considering its decision. If assessments have continued, then the DWP has shown flagrant disregard for the legal process.

Such behaviour would also add emphasis to the Black Triangle Campaign’s comment in May, that the assessment system was “completely at odds with the government’s repeated insistence that mental health is a top priority”.

The campaign’s spokesperson said it was “sad that it took a court case to force the DWP to take action”.

It’s even more sad that the only action so far has been an appeal against the decision.

Some commentators speculated that Iain Duncan Smith might introduce retroactive legislation to re-legalise the work capability assessment – as he did with workfare after Cait Reilly and Jamieson Wilson won their cases against the department.

Unfortunately for him, the current controversy involves a breach of the Equalities Act, which has far-reaching effects.

If he tries to repeal it, we’ll know two things for sure:

1. Iain Duncan Smith is a dangerous fool.

2. The Coalition government has no respect for the rule of law.

To be honest, we knew both of those already.

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You are ‘infrahuman’ and your government thinks you are ‘stock’ – even if you voted for it

16 Thursday May 2013

Posted by Mike Sivier in Benefits, Conservative Party, Crime, Economy, Health, Housing, Law, Liberal Democrats, People, Police, Politics, UK

≈ 11 Comments

Tags

aid, allowance, assessment, authority, bedroom tax, benefit, benefits, care, child, chronic, Coalition, Colin Brewer, Conservative, councillor, debt, deficit, Department for Work and Pensions, destitute, dignity, disability, disabled, disgrace, drop, DWP, economy, employment, Employment and Support Allowance, ESA, expenses, government, Group, health, housing, housing association, illness, income, infrahuman, Jr, justify, legal, Liberal, Liberal Democrat, local, Martin Luther King, Mike Sivier, mikesivier, minister, MP, NHS, package, Parliament, people, police, politics, poll, poverty, privatisation, privatise, sick, social security, Social Services, stock, support, tax, Tories, Tory, vote, Vox Political, Wales, welfare, welfare state


130516colinbrewer

The public voted him back in: Disgraced former Cornwall councillor Colin Brewer resigned over remarks he made about the disabled – it seems he has suggested disabled children should be treated in the same way as deformed lambs. These comments are beyond the pale but the electorate in his Cornish ward voted him back into office, knowing what he had said! What does that tell us about attitudes in Britain today?

 

This is a sequel. Last October, Vox Political published Living under the threat of welfare reform, a personal account of the hardships suffered by just one disabled benefit claimant as a result of the Coalition government’s crude and unnecessary attacks on people who are unable to work and must rely on social security. The author expressed fears about her future, after the main changes to benefits that were expected in April this year. Vox Political contacted her earlier this week to find out how she was coping, and this article is the result. Please welcome Sasson Hann:

Definition of ‘welfare’: the good fortune, health, happiness prosperity, etc., of a person, group, or organisation; well-being: to look after a child’s welfare; the physical or moral welfare of society.

When I first read ‘21st Century Welfare‘ published in the summer of 2010, 10 months after I was forced to give up my professional career, I realised that those of us reliant on benefits were facing an almost insurmountable challenge to their well-being: a challenge like nothing before in recent history.

At the time, I spoke to friends about the possible consequences of welfare reform, then subsequently became distraught and angry when hearing that people had died after having benefits reduced or removed; sadly, now a weekly occurrence. So when Vox Political asked me to write a guest blog – an update of my personal circumstances – in all honesty, I felt that my situation was nothing in comparison: it’s challenging nonetheless.

The collective mindset towards people who claim benefits has definitely changed since 2010. ‘Hate crimes’ are in the news; hateful comments under articles in online newspapers. In fact a new term coined by researchers for this change – particularly toward benefit claimants – is ‘infrahumanism‘; people viewed as ‘less’ than human. Colin Brewer, the disgraced former Cornish councillor who was forced to resign after making derogatory comments about disabled children is an extreme example of this. Only yesterday he was reported as saying that society should treat disabled babies like farmers treat deformed lambs: the police are investigating. What concerns me more is why a community recently voted him back into office: what does this indicate?

Attitudes have certainly altered towards me, though not as drastically. Strangers think that they have the right to walk up to me and demand: ”What’s wrong with your legs then?’  People think it’s fair that the government should force me from my home of 27 years. Others cast doubt on my integrity, not believing that I’m too disabled to work. Some repeatedly ask me to explain why I receive certain levels of care and benefits, even why I should need a wheelchair outside: not indicative of ‘infrahumanism’ exactly, but definitely insensitive. Of all the pressures a disabled person faces, frequently having to justify your disability is one of the hardest challenges.

As for financial matters, my income has dropped drastically since 2010. I receive DLA and I’m in the ESA support group; a half decent income. That was until 2 years ago when my local authority started charging me for my care – some £3,000 per annum – despite me having no assets or savings. Nevertheless, I adjusted, and figured that unlike some, at least I had a ‘personalised’ care package.

Then I had a care reassessment last year. The assessor informed me that most of what my carers do was ‘no longer funded’. Basically, the new packages focus on eating and keeping a person clean: we do more for pets. I fought and gained a hollow victory: whilst I retained 75 per cent of the hours, social services dictated their use; I would also have to pay extra for private care. Ironically, in 2011, the government published a document about personalisation, but implemented the exact opposite. The reassessment commences again in July – another six months of stress compounded by the additional yearly financial and disability reassessments. I tell myself this is the ‘new normal’: I must rise to these challenges; not so easy when chronic illness dominates your life.

Beginning in April, I had the extra cost of a £100 per month bedroom tax (my housing association has nowhere for me to move to); along with the extra care costs, this totals £5,900 per annum. As a result, I can rarely socialise now, and it will take much longer to save to replace things. I reasoned that at least I have a home, enough money to pay bills, buy food, and the occasional treat. It’s unnerving though not having a financial buffer if my benefits are removed: a sobering thought. I have a good network of family and friends to help me, but ultimately, like others, they can’t afford to keep me financially long term; is it any wonder that some feel they cannot carry on, that there is no way out?

Multiply what I’ve lost by thousands of households in my area and country-wide, and imagine just how much money is being taken out of the local/national economy; how damaging this will become. In Wales for instance, due to historical poverty, the cuts to benefits have affected one in three people, such that the Welsh Assembly have recently appointed the first ‘Poverty Minister‘, claiming that austerity will cause hardship not known since the 1930’s.

When the Conservatives were last in power in the 80s, they scrapped housing benefit for the low-paid, water was privatised, and the Poll Tax was introduced. It had a dire affect on my family: we couldn’t afford heating so we suffered painful chilblains and contracted continual chest infections; without heating, the flat developed inch thick black mould on the walls; we couldn’t dry our clothes properly so they smelled of mildew; we were lucky if we could afford one meal a day; after a number of years our clothes and shoes wore out; we regularly had to go without soap, washing powder, loo roll, personal hygiene products and the like. It was a dark and miserable time for us.

I cannot begin to describe what it is like to have your dignity stripped away like this; I never thought I would see such hard times again: I was sadly mistaken. The current cuts to services and benefits go much further than this, leaving people with no safety net and no access to legal services. Incredulously, it isn’t even saving the government much money.

The government say we can’t afford the welfare bill, but regular readers of Vox Political will know there is in fact plenty of money sloshing around. The moving of public money into private hands, and also into the pockets of MPs and Lords: money that should be used to stimulate growth and improve the lives of all. If the post war government had enough money to set up the NHS, the welfare state, and embark on a massive building programme – when they were in a far worse financial situation – then our government can do the same. Yet laughably, MPs were this week lambasting the BBC because of the ‘excessive’ £24,000 average payment made to staff who moved to Salford, when MPs claim far more in expenses every year. On the other end of the scale, the ‘stock’ – as the government like to call us – who suffer and die for the sake of a few pounds a week are collateral damage; acceptable losses like deformed lambs. And if those who are left cannot afford a home and food, so what? A nightmarish ‘survival of the fittest’ scenario.

I can’t do much to oppose this; I’m too ill to attend protests. Occasionally I help people claim benefits and appeal, apply to charities, look up information and advise them, write and print a CV, and I’ve even negotiated with bailiffs! I tell everyone I meet about how welfare reform is affecting people, and I write as much as I’m able. This is all some of us can do; facing each challenge and fighting each battle, one by one. Notwithstanding this human catastrophe, I remain sanguine: I love life and I will not despair.

Martin Luther King Jr said: “The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge.” The government’s answer to that ‘challenge’ is to make the poorest destitute, the opposite to the definition of ‘welfare’: in this we perceive their ‘measure’. Consequently, we ‘infrahumans’ are facing a challenge so great that it will be remembered in history: are you up to this challenge? For all of the people who aren’t; for the many families who have lost loved ones: those of us left have to be.

Sasson Hann May 13, 2013.

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Don’t blame the poor when the rich are bleeding you dry

15 Wednesday May 2013

Posted by Mike Sivier in Benefits, council tax, Disability, Labour Party, pensions, People, Politics, tax credits, UK, unemployment

≈ 32 Comments

Tags

abraham lincoln, andy burnham, benefit, cambridge, co-operation, Conservative, Daily Mail, Democrat, development, disability, douglas alexander, economic, Ed Balls, Ed Miliband, Goebbels, harvard, illness, joseph rowntree foundation, Labour, Liam Byrne, Liberal, Mike Sivier, mikesivier, national, neoliberal, OECD, office, ONS, organisation, oxford, poor, statistics, Sun, Tories, Tory, Tory Lite, unemployment, Vox Political, welfare, yvette cooper


bluelabour

You know that things have come to a pretty pass when Labour Party supporters turn against the poor.

This has happened at a time when the number of people with money to spare has dropped dramatically, meaning more of our people have become poor.

The change may reasonably be blamed on Labour’s adherence to Liam Byrne’s diabolical welfare policy, that aims to continue where the Conservatives and Liberal Democrats leave off – demonising people who have done nothing wrong, unless you count illness, disability and unemployment as a personal choice.

It suggests that people of good heart are leaving the party in large numbers, allowing those who are left to turn it into what its critics have claimed it to be for a considerable time now: Tory Lite.

The change is identified in a report by the Joseph Rowntree Foundation, that showed 47 per cent of Labour supporters surveyed in 2011 thought that, if benefits were less generous, people would learn to support themselves – up from 17 per cent in 1987.

The fact of the matter, of course, is that benefits are much less generous now than they were in the 1980s. In 1987, unemployment benefits totalled around 20 per cent of the average weekly wage; now they come to around 10 per cent – around half of what they were. But Labour supporters – Labour! – say they are too generous.

It looks like the Tories really are brainwashing people with their nonsense rhetoric, as repeated in newspapers that Labour supporters shouldn’t be reading, like The Sun and the Daily Mail. That good friend of the Conservative Party, Joseph Goebbels, was right – “If you tell a lie big enough and keep repeating it, people will eventually come to believe it.”

Of course, Goebbels added: “The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent.”

So those of us who are interested in the facts may be looking forward to hard times. It’s still better than being a fair-weather friend of social justice – only interested in the good of our fellows if it doesn’t impact on us.

But it is already impacting on everybody!

The Office for National Statistics, using Organisation for Economic Co-operation and Development (OECD) figures, has reported that the UK has plummeted down the international league table of economic well-being, from fifth to 12th within the six years up to 2011.

On a separate labour-market ranking, the country fell even further, dropping 12 places. In the labour market league table it ranked 21st out of 34 countries. Top of the league was Norway, which has just three per cent unemployment and, as I understand it, a thriving welfare state. Think about that.

The ONS noted changes to taxes and benefits as key factors in the drop.

This morning, one of Vox‘s longest-serving commentators reported that there is a change among the people around him; that those who argued against his criticism of the Conservative-led government are now turning to the Left. If so, it seems they are not turning to Labour.

Recently we have witnessed a movement to form a new political movement, representing socialist views but untarnished by the memory of New Labour’s 13 years of Neoliberal mistakes. Several contenders have cropped up but none of them will carry any weight at the next general election – instead, all they are likely to do is sap enough votes from Labour to let the Conservatives back into office again. That would be a calamity for the country.

No, the best thing to do is to take Labour back for the people it was meant to serve. First step in that direction must be to consign Liam Byrne and his vile mess of a welfare policy to the back benches, and design a new plan, attacking the causes of unemployment and workplace sickness and disability, rather than their symptoms. This is simple logic.

And we need to get people into the shadow cabinet who have actually held proper jobs. Look at Ed Miliband: Oxford graduate – short media career – Westminster job for Labour. Ed Balls: Oxford graduate (Politics, Philosophy and Economics) – short media career – Westminster job for Labour. Douglas Alexander: University graduate – six-month career as a solicitor – Westminster. Yvette Cooper: Oxford (Politics, Philosophy and Economics) – Westminster researcher job for Labour. Andy Burnham: Cambridge – researcher for Tessa Jowell. Many of these also went to Harvard.

Liam Byrne, the demon of the Labour Party: University (Politics and Modern History at Manchester) – Harvard – then work for a multinational consulting firm (Accenture) and then the Rothschild merchant bankers(!) before going to Labour to help lead its ‘New Labour’ business campaign. This man has nothing whatsoever to do with real working people.

When everybody in a particular group – in business, politics, socially, whatever – is from the same background, they tend to agree about key subjects. From the above group we can see that many of the Labour front bench have followed exactly the same career path. What do they know about working-class people? At least two of them – Ed Balls and Yvette Cooper, no less – graduated from the same Oxford degree course as David Cameron, the comedy Prime Minister.

No wonder people are having a hard time distinguishing between the two main parties and want a left-wing alternative.

It’s time for Labour to grow up and realise it needs to change. It must come back to its voting base and start to represent the people of the UK once again – rather than Oxford, Cambridge and Harvard graduates. If Ed Miliband wants to keep his position, he needs to clear out his shadow cabinet and get some fresh thinkers in. Someone recently mentioned Abraham Lincoln’s ‘cabinet of enemies’, and the fact that it was good for him to have opposing views at the heart of his government.

Until we get that in the Labour Party, maybe we should agree that the ‘Tory Lite’ criticisms are accurate.

What are you going to do about it, Labour?

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Are British workers being lured into health insurance that will never pay out?

22 Monday Apr 2013

Posted by Mike Sivier in Benefits, Business, Corruption, Crime, Disability, Health, People, Politics, UK

≈ 8 Comments

Tags

Atos, back, biopsychosocial, British, chronic, Coalition, Department of Social Security, Disability Living Allowance, DLA, Employment and Support Allowance, ESA, fatigue, fibromyalgia, George Engel, government, health, healthcare, IB, illness, Incapacity Benefit, income, insurance, Lyme disease, mental, model, Multiple Sclerosis, nervous, pain, Personal Independence Payment, Peter Lilley, PIP, plan, protection, self-reported, subjective, syndrome, UK, unum, up, WCA, work, work capability assessment


unum

Working people in the UK could be facing a huge drain on their income, if they join an insurance scheme being offered by a discredited American firm.

It seems that the company behind the hated Work Capability Assessment that has denied disability benefits to thousands of genuinely sick and disabled people, has begun a mass-marketing campaign to encourage able-bodied members of the British public to invest in ‘Income Protection Insurance’, and another scheme known as the ‘Back-up Plan’.

This insurance scheme is only available via the workplace, and it is understood that it has been designed to ensure that the company can resist paying out whenever a claim is made.

In other words, if you join the scheme, you will be giving away your money to a criminal firm. If you become ill or suffer disability in the future, you will not receive a single penny of the insurance money that is due to you.

That is the allegation against Unum Insurance, the American giant that has spent more than two decades advising successive British governments on how to avoid paying sickness and disability benefits to the most deserving claimants in our society.

If you have been contacted in the workplace and offered a chance to take out this insurance, please get in touch. Your experience of this system and insights into its operating procedures could be invaluable.

For those who don’t know the Unum story, you can read some of it here. Unum’s bosses devised their current system to combat the rise of ‘subjective’ illnesses such as ‘chronic pain’, ‘chronic fatigue syndrome’, fibromyalgia, multiple sclerosis, Lyme disease.

The solution devised by the bosses was to reduce the number of successful claims it paid out, by aggressively disputing whether the claimant was ill. So the company skewed its medical examinations to its own favour by questioning illnesses that were “self-reported”, labelling some disabling conditions as “psychological”, and playing up the “subjective” nature of “mental” and “nervous” claims.

The acknowledged basis for this attitude is the Biopsychosocial Model of illness, developed by the psychiatrist George Engel – but it’s a bastardised version, removing the bio- and -social aspects and concentrating on the ‘psycho’. This version of the theory, as used by Unum, has been utterly discredited. It is nonsense, totally disregarding such inconvenient medical procedures as diagnosis and prognosis, or limited life expectancy.

But it proved a great success for Unum – so much so that the UK government sought advice from the company in the early 1990s, when Peter Lilley was running the Department of Social Security. He wanted to reduce the number of disability claimants on his books, and Unum was only too happy to help out. It has been at the heart of disability benefit policy ever since.

We have Unum to thank for the Work Capability Assessment (administered by another private firm, Atos – an IT firm that has no expertise in healthcare, even though that word occasionally appears on its company logo). The recommendations made by Atos representatives, following these assessments, have led to the deaths of at least 73 genuinely ill people every week (according to government figures that are now almost a year old), who have claimed Employment and Support Allowance (formerly Incapacity Benefit). The real figure may be much higher.

The Coalition government considers this to be a great achievement and has now begun expanding the Work Capability Assessment regime to cover claims for Disability Living Allowance, now branded the Personal Independence Payment, with criteria that are much more difficult to achieve.

We can all expect many more deaths to arise from this.

Now, it seems, Unum believes the UK is ripe for bleeding – and that is why it is trying to sell its bogus insurance to working people here.

If you have been contacted, please get in touch.

For further information (with annotations pointing to the really damning evidence) see ‘The Hidden Agenda’ by disability researcher Mo Stewart.

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How would abolishing the minimum wage help to make work pay?

05 Friday Apr 2013

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

≈ 15 Comments

Tags

benefit, benefits, borrow, Coalition, company, Conservative, cutback, debt, deficit, disability, disable, disabled, economy, employee, employment, firm, government, health, Iain Duncan Smith, illness, in-work, infrastructure, Labour, Liberal, Liberal Democrat, living, Low Pay Commission, Michael Philpott, Mike Sivier, mikesivier, minimum, national insurance, Parliament, pay, people, politics, poor, public, service, sick, social security, state, tax, Tories, Tory, unemployment, Vox Political, wage, welfare, work


minimum-wage-poverty

The so-called ‘public debate’ over whether Michael Philpott (or if you prefer, Iain Duncan Smith) typifies the sort of people who live on social security in modern Britain has effectively masked something more sinister that was put in motion this week.

The government wants the Low Pay Commission to consider the impact on “employment and the economy” of the minimum wage.

The implication is clear: The Conservatives want to get rid of the statutory lowest level of wages, in order to further depress remuneration for the poorest workers in the UK. Whether or not that is the fact, it’s what people will infer.

The timing is a classic tragedy of modern Conservatism. Having just made a bold (and entirely false) claim that its benefit cuts are “making work pay”, the Tory-led Coalition appears dead-set on making sure that it won’t.

I had an argument, on this very subject, over on the Conservatives’ (I think) Facebook page. It was a while ago, but I thought I had saved the debate for posterity. I spent much of yesterday looking for it and came up with nothing, so what follows is a paraphrase of what I said there, and the best I can remember. For that I apologise. I can only advise others reading this that you should never throw anything away, as you might need it later! (That goes for things you’ve said, mind, not sweet wrappers or other rubbish – you shouldn’t all become hoarders just because of me).

The discussion was based on the premise that, rather than pay the bare minimum, employers should in fact pay a ‘living’ wage, in line with what Labour has been proposing.

I’m very much in favour of a living wage. If a person receives enough, in return for their work, to pay their way in the world without having to take state benefits, several things happen:

They feel valued in their position, and try harder. The quality of their work improves, along with that of the other workers in the company who also receive the living wage, and as a result, the employer is likely to benefit from improved orders. The company flourishes and is able to take on more employees.

As a result of this, the firm and its employees are able to pay more taxes and National Insurance contributions – not as a result of an increase imposed by an oppressive government, but because more people are employed there. The government therefore has more cash to fund public services; it has less need to borrow money and will not have to pay as much in social security benefits – in-work benefits will be unnecessary because working people will be receiving enough to put them above the threshold for them, and fewer people will be claiming out-of-work benefits.

The government can then pay off its debts and deficit more quickly and then cut tax rates. This means everyone will have more money in their pockets – including employers, who can then plough the extra cash back into the firm with infrastructure improvements and more employment.

You see how this works?

Contrast this with what happens when you employ somebody on the minimum wage, or abolish it.

People on the absolute minimum do not feel valued. They consider their employers to be taking more than their fair share of the profits generated by the company where they all work together. They feel undervalued – and demeaned by the fact that they have to claim state benefits in order to survive. Their health may be put at risk, because they may find themselves having to work ridiculously long hours, just to make ends meet. Their work starts to suffer, and they may end up unemployed, either for health reasons or because the company is suffering (as a result of workers turning in substandard work).

The company makes cutbacks. Its bosses don’t want to take a pay cut so they cut corners elsewhere. The workforce diminishes and the quality of the product suffers. In time, the firm’s contribution to the national economy dwindles – if it doesn’t go to the wall altogether. Its tax and National Insurance contribution plummets.

The government finds itself paying in-work benefits for increasing numbers of people, and unemployment figures skyrocket. Employers and workers do not provide enough money in taxes and National Insurance to pay the bill for public services, so these are cut back and borrowing increases. The nation goes into a debt spiral.

That is the current situation.

Which of the above would you rather have?

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