New benefit plan has no heroes – only zeroes

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Shall we play a game? This one’s called join-the-dots. I didn’t really like it when I was younger and I doubt that you will, after you see the picture we’ll be creating.

We’ll start here: The government wants to cut another £10 billion from the welfare budget – that’s the bit of public spending that keeps millions of people off the streets, if only on the breadline. The government could, alternatively, try stimulating the economy to make that money in taxes, but policy seems to be pushing hard the other way, as we’ll see shortly.

So: cuts are coming. How to perform them? Draw a line to where the government announces it wants to break the link between benefits and inflation, and link them to average earnings instead.

George Osborne thinks this is a good idea because inflation hit 5.2 per cent last September, much higher than rises in earnings – remember, the man who won’t do what his initials demand (GO) has kept public sector wages frozen for the last few years and private sector wages are also stagnant. As a result, Gideon has been paying out more than he thinks he should to people who, honestly, deserve a break from his miserly administration.

Now draw a line to the results of the NatCen survey that came out earlier this week, stating that people do not want to see more money being spent on welfare than is being spent already. This is the excuse that Mr Osborne wants to use – he can say there is polling evidence that puts significant numbers in support of an end to so-called benefits uprating. Never mind that only 3,000 people were asked or that none of the main parties ever intended to increase the proportion of government spending that goes on welfare; this is his justification and he’s sticking to it.

I wonder what will happen if wages start to rise faster than inflation? Will the Nasty Party write a new clause into the contract, that benefits should rise along with inflation or wages, depending on which is lower? Officials have already stated that they do not want a huge increase in benefits if wages start to climb sharply, so they are already working on ways to ‘fix’ the linking mechanism. Evil, isn’t it?

Never mind; the current plan uses wages, so now draw a line to this: The government still wants to introduce regional pay settlements for the public sector. The Tories – sorry, the Coalition – believe that national pay settlements inflate public sector wages in certain parts of the country far beyond what their private sector counterparts can manage. They also believe that forcing regional settlements on us will save them a fortune in salaries.

Think what this will achieve: The ghettoisation of much of the UK. With regional pay deals, people will have less money available for things other than necessities, meaning fewer trips to the shops (which have already suffered thanks to the idiotic VAT increase to 20 per cent, which cut a large chunk of growth out of the economy). What happens then? The shops shut and their suppliers go out of business too. More people end up on benefits and looking for work.

You see, this right-wing government does not accept the simple fact that welfare benefits help keep the economy stable. Yes, government spending increases as payments are made, but businesses keep their customers, the economy stays afloat and the country as a whole avoids a terminal spiral of decline.

Cutting welfare, thereby reducing the incomes of society’s poorest, creates fiscal hindrance. As billions of pounds (£10 billion in this case) are taken from the active economy, businesses lose customers and lay off staff.

In a recession, increased welfare spending benefits national income so that each pound is worth £1.60 when it has worked its way through shop tills and paycheques. When welfare is cut, this works in reverse, so cutting £10 billion from benefits will increase the UK’s recession by more than one per cent.

This means a longer recession, a larger deficit and more debt. (The above information courtesy of the False Economy website, which has produced a handy factsheet for you to download, keep, and show to anyone spouting Tory propoganda)

Now draw a line to: The government wants to cut more money from the welfare budget.

Look at what you’ve drawn. A big, fat zero.

This is what the government’s plan will achieve for the people, and economy, of Britain.

Survey boosts ‘divide and rule’ agenda – and hate crime

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“I don’t know if anyone’s listened to the news/checked the papers today, but I’m sickened (although not surprised) the Tories are stepping up their hatred campaign against immigrants and the unemployed, by publishing exaggerated and out-of-context statistical reports. All they’re doing is fuelling racism and lack of compassion to get small minded people to support their agenda. Outrageous.”

That was the response of Alex – a very non-political friend of mine – to the data from NatCen Social Research today, that claimed people want to see less spending on welfare and benefits, and fewer immigrants.

The BBC’s report had NatCen’s chief executive Penny Young, who wrote the report, saying the public’s view on welfare was “in tune… with the coalition’s policies”.

Not according to Alex, sister!

He reckons Ms Young is part of a Coalition government agenda to brainwash us all into agreeing with schemes that are, even if only on the face of it, evil. And so do I. Who funded this survey?

Here’s a thing you might not have picked up in all the reporting: You may have noticed that Ms Young says, “For the first time since 2008, we’ve seen that the number of people who are prepared to see more money go on disability benefits has actually fallen.”

But that has never been part of anybody’s plans – Labour, the Tories, the Liberal Democrats or the smaller parties (to my knowledge). The problem is that the Coalition is cutting the amount of money being spent on disability – and other – benefits. Massively.

In doing so, it has created a new target for hate crime and a new underclass for society, presumably as a huge distraction from the real problem faced by the country – the Coalition’s mismanagement of the world’s seventh-largest economy.

There is plenty of money here, enough to help all those with illnesses and disabilities, feed all the children (see yesterday’s blog entry), and even to invest in new businesses and jobs. But it is being held by wealthy people – mostly in offshore bank accounts – and the Coalition is doing nothing to free it from their grasp.

Perhaps people think cutting the welfare benefit bill will lead to a cut in taxes. Think again, people! Even on the face of it – by which I mean according to what they’ve told us – the Coalition needs the money to pay down the deficit and cut back the national debt. What they’re really doing is anybody’s guess, but slashing the livelihood of the disabled will not save you one penny in tax.

And let’s take a moment to remember this important fact, posted on Facebook by Adele (not the singer): “Welfare isn’t just about people on the dole. It’s about people in low-paid jobs, people who are carers, people who are too sick or disabled to work, people with cancer and people who have lost their jobs and cannot get another. It is a safety net for those who are disadvantaged in our society. Everyone falls on hard times and just when it may happen to you and you need that safety net, you would want it to be there to catch you.”

Also attacked in the report are immigrants, with three-quarters of the 3,000+ people asked saying they wanted to see a reduction in the number of those coming into the country.

This survey looks like it was written by the editor of the Daily Mail.

The fact that it also suggests people don’t want any more cuts in public spending is meaningless, compared to the damage it inflicts with what I’ve reported above.

I predict a greater increase in hate crime against immigrants and the disabled because – and this is what the perpetrators will say – “It’s what people want, innit?”

Is it?

Over to you.