UK government refuses to accept responsibility for crimes against humanity

Tags

Alan Reid, allowance, Angela Watkinson, Atos, BBC, Black Triangle, British Medical Association, Caroline Lucas, Citizens Advice, Coalition, Conservative, corporate manslaughter, crime, David Cameron, decision maker, Democrat, Department, disability news service, DWP, Eilidh Whiteford, employment, ESA, Freud, George Hollingbury, government, Guto Bebb, Harrington, humanity, IB, Incapacity Benefit, Inclusion Scotland, insurance, Jim Sheridan, John McDonnell, John Pring, Labour, Lib Dem, Liberal, Linda Nee, Litchfield, Margaret Thatcher, Mark Wood, Mental Health Welfare Commission, Mike Sivier, mikesivier, minister, Mo Stewart, Motability, national audit office, Panorama, Pensions, Personal Independence Payment, PIP, preventable harm, public accounts committee, Rachel Reeves, Royal College of Nurses, Scotland, support, The Guardian, Tories, Tory, UK, Unite, unum, Vox Political, welfare reform, Welfare Reform Act, work, work capability assessment, wow petition

A guest report by Mo Stewart ©Mo Stewart April 2014

Following the bogus Work Capability Assessment (WCA) conducted by Atos Healthcare, as contracted by the Department for Work and Pensions (DWP), the United Kingdom (UK) Government admitted that it was wrong to cut the disability benefits of Mark Wood, the vulnerable disabled man who starved to death following the removal of his benefits, in the 21st century UK, when weighing only 5st 8lbs.

Regardless of this tragedy, the UK Conservative led Coalition Government still refuses to accept any responsibility.

Despite the fact that the WCA was introduced by the Labour Government in 2008, it was originally designed by previous Conservative Governments, in consultation with the notorious American corporate giant now known as Unum Insurance, identified in 2008 by the American Association for Justice as the second most discredited insurance company in America.

Without a welfare state, sick and disabled people in America are required to use private healthcare insurance. The tyranny now imposed on the sick and disabled people in the UK, using the WCA, was designed in consultation with Unum Insurance to oblige the general public to purchase private income protection insurance policies once it was made very clear that chronically sick and disabled people could no longer rely on the British State for adequate financial support.

Americans often suffer when attempting to claim from the income protection insurance policies of Unum Insurance, who use an identical bogus disability ‘assessment’ model as that used by Atos Healthcare.

Due to the similarities of the negative and damaging experiences of claimants, American sick and disabled people are periodically informed about the struggle in the UK by the high calibre and relentless work of Linda Nee, who tries to encourage claimants to publicly protest as witnessed in the UK, which it seems disabled Americans still don’t dare to do – such is the intimidation of Unum Insurance & the American authorities (see here, here and here).

The new report by The Mental Health Welfare Commission for Scotland, regarding a woman’s suicide after being ‘stripped of disability benefits’, was reported by John Pring at the Disability News Service (DNS) and by many others. The Coalition Government knew this carnage would happen.

Three years ago a list of distinguished academics, together with politicians and disability support groups, identified the future in a letter as published in The Guardian newspaper: ‘Welfare reform bill will punish disabled people and the poor.’ Now, three years after this letter was published, questions are being asked as to why the appointed and totally unsuitable Lord Freud, in his capacity as the Minister for Welfare Reform – who was not elected by anyone in the usual democratic way – deemed it necessary for the DWP to stop collating the numbers of deaths recorded after the long-term sickness and disability benefit, Incapacity Benefit, now changed to the Employment Support Allowance (ESA), is removed from claimants. (My emphasis.MS)

Questions are also being asked as to why this unelected former City banker was ever afforded so much authority and power in the UK Government given his reputation, where one commentator described Freud as: ‘…one of the key players in several of the most embarrassing and badly managed deals in investment banking history.’ (See here and here)(My emphasis. MS)

The recent welfare Backbench Business debate in the House of Commons (HOC) was granted due to the 104,000 signatures on the WOW petition, as gathered by disabled people and their carers, who are demanding a cumulative impact assessment of all the welfare reforms. The debate was held on February 27, 2014 where, lamentably, most Coalition Government Members of Parliament (MPs) failed to attend this very important and historic debate. Of course, Coalition MPs still played the ‘blame game’, reminding the opposition that the previous Labour Government had introduced the Work Capability Assessment (WCA).

However, the Coalition routinely overlook the fact that they knowingly changed the WCA into the government-funded nightmare that it is today, whilst MPs such as George Hollingbury (Column 430) actually claimed that the Coalition “took it forward”… (Welfare Reform Act 2012) whilst disregarding the fact that a WCA face-to-face assessment with Atos Healthcare is taking over six months to arrange. (Column 433) (My emphasis.MS)

Hollingbury waxes lyrically about all the ‘expert’ opinion (Column 431) that totally failed to expose the dangerous and limited reality of the WCA, not least due to the restricted possible answers in the tick box WCA computer questionnaire, as conducted by Atos Healthcare, that fail to offer the choice of ‘none of the above’ as an additional possible answer when the WCA questions do not refer to a particular claimant’s situation.

Hollingbury quotes Dr Litchfield’s WCA review whilst overlooking the fact that Professor Harrington, who conducted the first three annual reviews into the WCA, when no longer responsible, appeared in a BBC Panorama documentary and confirmed that ‘…people will suffer.’ No government representative can answer the subsequent obvious simple question – why should chronically sick and disabled people ‘suffer’ in the UK, apart from at the whim of a tyrannical government? (My emphasis.MS)

During the historic WOW petition debate, Alan Reid (Column 434 & 435) claims to be proud of his record in government as a Liberal Democrat (Lib Dem), still claiming that Lib Dems in government have been responsible for ‘improving’ the WCA process, whilst totally disregarding the fact that it is irrelevant how much more ‘flexibility’ is given to the DWP ‘Decision Makers’ and overlooking the fact that the ‘Decision Makers’, by their own admission, are totally unqualified for the vast responsibility they have. (My emphasis.MS)

They are basic grade administrators, not medical administrators, and they are incapable of comprehending diagnosis, prognosis or the implications of long term drug use when using a combination of prescribed drugs. (See here and here) More and more DWP bureaucracy with more and more administration means more and more delays, increasing DWP errors and utter chaos with a system clearly in meltdown as more and more victims of this UK government suffer and die. (See here and here) (My emphasis.MS)

Guto Bebb (Column 442) demonstrated that he is very poorly briefed, and doesn’t appear to want to be better informed, claiming that the damning report by the National Audit Office was ‘disappointing’ but insisted that the policy aims were OK. Bebb still seems to think that any sick or disabled person not in paid employment is ‘unproductive’. This disabled researcher begs to differ and, if the MP reads the very detailed published reports (here and here) as accessed by academics at universities throughout the UK, he’d know how incorrect he is.

Dame Angela Watkinson (Column 445) also appears to be remarkably poorly informed, as were various other speakers in this poorly attended yet important debate, who continued to repeat government rhetoric whilst disregarding the detailed evidence that has exposed the realities behind the ‘reforms’ as paving the way for private insurance to replace the once-hallowed UK Welfare State.

Since being introduced by the Conservative Government in 1992, all UK Governments have used the second worst insurance company in America as “government advisers” on welfare reforms, and the dangerous and totally discredited WCA is the result. (See here and here)

Jim Sheridan’s comments (Columns 448,449) were especially welcome during the debate when making reference to the new Personal Independence Payment (PIP) that has replaced DLA: “Reference has already been made to the obsession with people receiving welfare benefits, but for those with money – the tax avoiders and evaders – life goes on as normal. If only a fraction of the resources used and the time spent on chasing down those on welfare benefits was diverted to tackle tax avoidance and evasion, some people might understand the rationale behind it.”… “When people finally hear about their assessments, there is not much hope. Only 15.4 per cent of new claims have received a decision, and only 12,654 of the 220,300 people who have made a new claim since April 2013 have been awarded some rate of PIP. A constituent of mine got in touch because her father had been diagnosed with lung cancer. Because there is a possibility that his treatment will work, giving him a life expectancy of up to five years, he has not been classed as terminally ill. He is not well enough to attend a medical assessment and so will have to wait longer for a home visit. It appears that letters from his GP, cancer doctor and cancer hospital are not enough to prove the seriousness of his illness.”… “Inclusion Scotland has highlighted the case of the father of an applicant who was told that they would have to wait at least 10 months for any kind of decision, and perhaps even for a first assessment. A constituent of mine who is undergoing cancer treatment has been told that the eight-week time frame given by DWP is an unrealistic amount of time in which to process an application and offer an assessment slot. When my staff called the MP’s hotline, they were told that they simply cannot process the number of applicants as there is not enough staff. They also say that most people who have applied for PIP will not be entitled to it, even before individual cases have been looked at. If that is the mindset of the staff processing the applications, it is hard to see how balanced decisions will be made.” (My emphasis. MS)

Dr Eilidh Whiteford’s comments during the debate were also very welcome (Columns 450 & 451) and highlighted the vital work of the disability support groups such as the Black Triangle Campaign: “The Government are looking at this through the wrong end of the telescope. Raising the bar on eligibility will not make anyone any less sick or any less disabled; it will just make it more difficult for them to function in society and place more pressure on those on whom they rely for their care and support”…. “One of the most profoundly disheartening experiences for me as an MP since being elected in 2010 has been the relentless way in which disabled and sick people have been vilified and stigmatised in the public discourse about welfare reform. Those who had very little responsibility for the financial collapse and subsequent economic problems have nevertheless had to carry the can. The attempt to discredit disabled people in order to justify harsh and punitive cuts in their already fairly paltry incomes is quite shameful. It appals me that the most disadvantaged have been asked to pick up the tab disproportionately for the profligacy of others. As we look to the future, we see further cuts of £12 billion, at least, promised in the years ahead. For disabled people in Scotland, the choice between two very different futures is opening up before them: one with decisions on welfare made in Scotland or one where further cuts slash their incomes even more. That choice must seem very stark indeed.” (My emphasis. MS)

The very experienced Labour MP, John McDonnell, who requested this Backbench Business debate, actually confirmed the involvement of Unum Insurance with the entirely bogus WCA (Column 426): “The work capability assessment was flawed from the start. It stemmed from the work of the American insurance company Unum, and the so-called biopsychosocial model of disability assessment. That was exposed as an invention by the insurance companies simply to avoid paying out for claims.” … “The staff employed in order to achieve that often had minimal medical or professional qualifications, and their expertise or experience was often totally unrelated to the condition or disability of the people they assessed.”… “Assessments largely disregarded people’s previous diagnosis, prognosis or even life expectancy. The recent Panorama programme Disabled or Faking It? exposed the scandal of seriously ill patients—people diagnosed with life-threatening conditions such as heart failure or endstage emphysema—being found fit for work. The so-called descriptors, or criteria, on which assessments are based bear no relation to the potential employment available, take little account of fluctuating conditions and are particularly unresponsive to appreciating someone’s mental health issues.” John also identified the utter absurdity of this Government, introducing yet another bogus assessment as the Personal Independence Payment (PIP) that will ‘replace’ DLA although it is likely to remove this additional support from the vast majority of the 3.5 million people in receipt of DLA.

Shockingly, the provision of a Motability long leased vehicle, as funded by the mobility component of the DLA, will now be removed from the majority of chronically disabled people who do work; thus actually preventing them from going to their place of work since they are physically unable to use public transport, which will dramatically and knowingly increase the numbers of disabled people not in paid employment. (Column 428) (My emphasis.MS)

No matter how many unnecessary tragedies are reported, or how many people die in utter despair and destitution, Conservative MPs like George Hollingbury will dismiss them all as ‘questionable’ results….and Alan Reid, for the Lib Dems, still actually claims to have had some positive function in a Government that helped sick and disabled people, whilst disregarding the horrors, the deaths, the suicides and the overwhelming evidence; including distinguished academic papers from UK universities, together with detailed reports by both the British Medical Association and the Royal College of Nurses. Reid accepts no responsibility for the nightmare he helped to create, blaming anyone except the Government he belongs to. He needs to read the detailed, referenced research to help him learn what the disability movement already know. As he talks nonsense, people die.

Reid complains about Atos whilst ignoring the fact that the DWP is complicit. Totally unqualified DWP ‘Decision Makers’, under any UK Government, are dangerous as they aren’t qualified; they can’t comprehend diagnosis or prognosis and hence they are a liability and constantly make incorrect decisions. Their decisions to remove benefits from genuine claimants are killing the innocent victims of this UK State tyranny. Their countless wrong decisions mean that people die, encouraged by this enthusiastic and very dangerous UK Government, who sit back and watch as the majority of people blame Atos Healthcare who are simply following the DWP contract by using the bogus Lima computer assessment to conduct the WCA, as required by the DWP. (My emphasis.MS)

Atos Healthcare doesn’t remove anyone’s benefits – a constant incorrect claim by many – as they don’t have the authority. All Atos staff can do is to decide if someone is ‘fit for work’ based on the results of a bogus imported computer assessment. Any other company in the same position would result in the same conclusions as that is how the computer software in designed, which is why the Lima software should be banished and this particular WCA cancelled. (My emphasis.MS)

By definition, DWP ‘Decision Makers’ actually make the decisions about welfare benefits. These totally unqualified administrators are required to consider all additional evidence provided by the claimant; including detailed letters from Consultants and GPs who know their patients very well. It is the incompetence of the unqualified DWP Decision Makers, who fail to comprehend the details of medical information and choose to accept any decision following the WCA, as conducted by Atos Healthcare, that makes these DWP staff so very dangerous to the most vulnerable people in the UK. Mandatory reconsiderations won’t help if the Decision Makers remain unqualified for the job. What better way is there to remove as many people as possible from welfare benefits than to employ totally unqualified staff to make these vital decisions? (My emphasis.MS)

Identified claimant suffering includes dramatic increases in the onset of mental health problems. The General Practice (GP) service is close to collapse due to overwhelming numbers of patients needing support with DWP paperwork, that limits GP time spent with other patients who are ill and the British Medical Association (BMA) and the Royal College of Nurses (RCN) have both exposed the WCA as causing ‘preventable harm’ (as we have already seen). Yet this dangerous UK Government, with a Cabinet full of millionaires who fail to comprehend need, dismisses all other evidence regardless of source. They disregard the obvious fact that the ‘reforms’ are falling disproportionately onto chronically disabled people, and those who are very ill and in need of guaranteed long-term welfare benefits, as the Government sells the UK and transforms a once-great nation into UK plc. (My emphasis.MS)

In a now-infamous 2008 interview, Lord Freud claimed that he ‘couldn’t believe’ that anyone had been awarded a benefit ‘for life’, demonstrating the immense danger of permitting a former investment banker to have control of welfare spending when he fails to comprehend that many health conditions are permanent and do indeed last a lifetime. Meanwhile, the Public Accounts Committee’s report of February 2013 regarding the DWP’s contract management of medical services was unlimited in its criticisms of the DWP: ‘Poor decision-making causes claimants considerable distress, and the position appears to be getting worse, with Citizens Advice reporting an 83 per cent increase in the number of people asking for support on appeals in the last year alone. We found the Department to be unduly complacent about the number of decisions upheld by the tribunal and believe that the Department should ensure that its processes are delivering accurate decision-making and minimizing distress to claimants.‘ (My emphasis. MS)

There were many powerful speeches in the historic WOW petition debate and it isn’t possible to highlight them all. However, one name in particular should be highlighted for the courage to expose the fact that, if a link could be proven, “…there would be a case for corporate manslaughter.” (Column 460) (My emphasis.MS)

I salute Caroline Lucas MP of the Green Party for her courage and, in particular, for her condemnation of the official opposition for their total failure to offer detailed, significant support to this nation’s chronically sick and disabled people, with the new Shadow Secretary for Work and Pensions, Rachel Reeves MP, using her first interview to announce that she ‘…would be tougher on people on benefits’. (My emphasis.MS)

What a catastrophic announcement from the Shadow Secretary for Work and Pensions that, effectively, offers this nation’s most vulnerable people no hope if the Labour Party were to win the next General Election in 2015.

Given the recent announcement by the largest trade union UNITE, who have threatened to withdraw financial support for the Labour Party due to their abject failure to identify with the working people of this country, there seems little chance of a Labour Government in the UK any time soon. Any future Conservative or Coalition Government will continue to kill many more innocent victims in this state-sanctioned slaughter, which remains the ultimate Thatcher Legacy as interpreted by her devoted disciple – David Cameron.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political opposes discrimination against society’s most vulnerable
… but we need YOUR help to do so.
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

Advertisements

Why should we endure this disrespect from a public servant?

Tags

allowance, benefit, benefits, bullish, committee, Conservative, contempt, cost, Dame Anne Begg, Debbie Abrahams, Department, discourtesy, disrespect, down, election, employment, ESA, Glenda Jackson, government, hubris, Iain Duncan Smith, IDS, Mike Sivier, mikesivier, national audit office, off, Pensions, people, politics, Return To Unit, review, RTU, social security, support, Tories, Tory, Universal Credit, Vox Political, welfare, work, write, written

Awkward indeed: Iain Duncan Smith spent today’s meeting with the man he tried to blame for the Universal Credit fiasco – DWP permanent secretary Robert Devereux – sitting next to him. When Debbie Abrahams laid into Mr… Smith with the words quoted in the article, Mr Devereux was staring directly at him with an enormous smile on his face. [Image: Political Scrapbook]

“I can say with the strongest feeling my concern about the hubris you have demonstrated and your tone to this committee. You haven’t explained – certainly to my own satisfaction, and I am sure anybody that has been watching will draw their own conclusions – you have not made any satisfactory explanation about how you have informed, and kept this committee informed, about the difficulties that the Department was experiencing. There has been obfuscation, smoke-and-mirrors, even up to a few weeks before the report from the National Audit Office. The memorandum that was released in August was clearly saying that everything was fine and dandy. It is, clearly, not. I’ll give you one more opportunity to answer, so you can explain to this committee why there is such poor information provided by your Department.”

These were the words of Commons Work and Pensions committee member Debbie Abrahams to Secretary of State Iain Duncan Smith, just a quarter of the way through today’s (Monday) clash over Universal Credit and his Department for Work and Pensions’ appalling book-keeping.

Mr… Smith’s response typified the attitude that she was decrying. He said: “Well, I just don’t agree with you, and I don’t agree that we have done anything else but be open and honest about what the issues are, as and when they have been identified, and what we would do about them, as and when we had made our decisions about that.”

Oh, is that so? One of the first questions asked in the meeting was why Iain Duncan Smith did not tell the committee he had decided to conduct a ‘red team review’ of Universal Credit when he gave evidence to it in September 2012. He said the results had not been ready at the time: “With respect, I don’t have to tell you everything that is happening in the Department until we have reached a conclusion about what’s actually happening; I think I will take those decisions myself and account for the decisions that were taken.”

(He said “with respect” a lot. It became clear that he meant the exact opposite.)

Listening to the evidence again, it seems he tied himself in a knot, because he said the review had reported back in July of 2012, meaning there would have been plenty of time for him to make a full and formal account of his actions to the committee, long before September of that year.

His response? “It was an internal review.”

When committee chair Dame Anne Begg said the committee should have been told the plans were being reviewed as a matter of courtesy, and the September committee meeting would have been the perfect opportunity to explain that a review had taken place, “but at that session you were bullish about how successful everything was, Duncan Smith responded: “With respect [see what I mean?]… I don’t think this committee can run the Department.

This initial exchange set the tone for the entire meeting. Committee members asked questions and Duncan Smith treated them with discourtesy bordering on contempt.

He did not tell the committee about changes to the programme for rolling out Universal Credit because they were not fixed when he met the committee, he said – avoiding the fact that he could have at least said changes were taking place.

Universal Credit costs had not been written off, he said; they had been “written down” (meaning they were said to be worth less money now than when they were introduced). This seems like nonsense to anyone who has seen reports of the sums of money involved – anything from £40 million to £160 million.

Asked whether Universal Credit is still dealing only with single people at the moment, Duncan Smith sidestepped the question and responded that it was being rolled out in phases. Clearly he does have something to hide, even though he began his evidence by saying there had been no attempt to sweep anything “under the carpet”.

He said the whole (improbable) edifice would be working by 2016 – apart from cases involving the most vulnerable group, who receive Employment and Support Allowance. This is an extremely optimistic appraisal, as Duncan Smith is unlikely to be in office by then, and a future government may decide to scrap the whole project as a hopeless waste of millions of pounds.

There is no point in covering details of the whole meeting because you get the gist already. Iain Duncan Smith was determined to deny that he or his Department had committed any mistakes or wrongdoing, while giving away ample evidence that this was exactly what they had done.

And he was rude – at one point he told Glenda Jackson: “I have no idea what you’re asking… You lost me about five minutes ago.” Her equally abrasive reply, “You’ll have to try harder,” was drowned out as he muttered, “It sounds like a foreign language to me.”

The tone of the meeting was not lost on those who were using the Internet to watch it. Their attitude can be summed up in tweets from ‘Tentacle Sixteen’, who commented, “You’re not supposed to have a look of horror on your face when asked if you’ll make details of a public project public.”

He continued: “The most worrying thing out of this select committee so far is IDS’ constant assertion that he doesn’t have to tell people everything.”

And he concluded: “You’re a f***ing public servant IDS, you bloody do have to tell us everything.”

This is exactly the issue.

The information content of this meeting was zero – or as close to it as possible. What we got was a display of posturing, “hubris” – as Debbie Abrahams rightly identified it – and further obfuscation of the facts.

What the meeting did reveal was everything we need to know about Iain Duncan Smith. Here is a man who understands nothing about being a public servant. He thinks that, sitting in a plush Whitehall office, with civil servants running around clearing up his various disasters, that he is somehow above the rest of us and doesn’t have to justify himself.

He’s completely mistaken. He is there as our servant – to act in a way that suits us, not him. It is disrespectful of him to treat us this way.

But he just doesn’t get it.

If enough people had seen his performance today, he could have single-handedly lost the next election for the Conservative Party.

(If you’ve got the stomach for it, you can watch the meeting for yourself, here.)

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy Vox Political books!
The second – Health Warning: Government! is now available
in either print or eBook format here:

The first, Strong Words and Hard Times
is still available in either print or eBook format here:

Back to the maths class for DWP decision makers

Tags

allowance, Armed Forces Compensation Payments Scheme, Attendance Allowance, audit, benefit, benefit cap, benefits, CCHQ, Coalition, committee, Conservative, David Cameron, decision maker, Democrat, Department, DLA, DWP, Easterhouse, economic, employment, error, ESA, fraud, Grant Shapps, Iain Duncan Smith, Income Support, Industrial Injuries Benefits, is, Jobseeker's Allowance, Jonathan Portes, JSA, Lib Dem, Liberal, math, Mike Sivier, mikesivier, national audit office, National Institute, NIESR, Pensions, people, PIP, politics, qualified, Reform, regression, Research, select, social, support, Tories, Tory, Vox Political, War Disablement Pension, work, work-related activity, WRAG

When I was six, I told friends and family I did not want to go out with a girl because “she can’t do her maths”. What a pity the adults in the Coalition government don’t know now what I knew as a child.

Iain Duncan Smith was right to weep when he visited Easterhouse, all those years ago – although he would not have known the reason.

It turns out there are probably drug dealers on that estate with a better grasp of mathematics than anybody in his Department for Work and Pensions – or, let’s be honest, the entire Coalition government.

This week it emerged that the National Audit Office has refused to sign off the DWP’s accounts – for the 25th year running. While this indicates that the problem is not limited to the Coalition, it should be noted that David Cameron’s crew has done nothing to rectify it.

The NAO has instead delivered a “qualified” audit opinion, in respect of fraud and error which is considered to be unacceptably high. It seems the department overpaid £3.5 billion or 2.1 per cent of total benefit expenditure due to fraud and error – and also underpaid £1.4 billion to claimants.

Of this, fraud remained static at £1.2 billion (the same as in 2011-12), while underpayments due to official error increased from £400 million to £500 million.

Official error has increased while fraud has not.

An interesting sidebar to this is the fact that fraud has not decreased either, despite all Mr Duncan Smith’s apparent efforts to hammer it. Next year’s accounts – due after April 2014, although your guess on the actual date is as good as anyone’s – should make interesting reading, as they should show the effect of the major regressions (not reforms) he introduced this year.

Further evidence of government incompetence with the figures came in a chart from Conservative Central HQ’s press office, flagged up by Jonathan Portes and the immeasurably cleverer people at NIESR (National Institute of Economic and Social Research).

The chart’s claim was that 28,500 households had been receiving more than £500 per week in benefits, despite containing people who could work but weren’t – until the £26,000 per year Benefit Cap was brought in and reduced it to nothing.

Mr Portes told us the chart was based on DWP statistics published last week that show that 28,500 households have had their benefit capped at £500 per week, “however, the interpretation – and the chart – is utterly wrong in every respect.

“It just is not the case that every one of those 28,500 households contains someone who “can work”.  As the DWP publication clearly states, the cap applies to households in receipt of key out of work benefits – including both those in the Employment and Support Allowance (ESA) Work-Related Activity Group (WRAG) and those on Income Support (IS).  For people in the WRAG, the position is quite clear. As the DWP itself puts it… they are ‘currently too ill or disabled to work’.

“DWP makes clear that there is no assumption that Income Support claimants ‘can work’, but quite the opposite. As a general rule, most people who ‘can work’ should be on Jobseekers Allowance (JSA), not IS. In practice, most of those on IS are single mothers with young children, who are not expected to work.

“Overall, although we don’t have precise numbers from the DWP statistics, it seems quite likely that in fact less than half of the households affected by the cap contain ‘people who can work but aren’t’.”

Mr Portes went on to analyse the second assumption in the chart – that there are now no households receiving more than £500 per week in benefits that include “people who can work but aren’t” – and found it “just as wrong,” – because DWP guidance exempts households with anyone on DLA, PIP, Attendance Allowance, the support component of ESA or Industrial Injuries Benefits, and those receiving War Disablement Pension and equivalent payments from the Armed Forces Compensation Payments Scheme.

“Of course it’s perfectly possible for such households to contain ‘people who can work but aren’t’ – most obviously households with a child receiving DLA, but there are lots of other possible cases. Moreover, even this excludes couple households where one person is working but the other could work, but is not, who are also exempt. Given enough children and/or high enough housing costs, such households can receive more than £500 per week in benefits,” wrote Mr Portes.

“Again, we don’t know the exact numbers, but we are certainly talking about thousands of households, not zero.”

Only on Monday, Mr Duncan Smith assured the Commons Work and Pensions Select Committee that he had warned CCHQ and Tory chairman Grant Shapps against such jiggery-pokery with his departmental stats: “I have had conversations with him and others about being careful to check with the department.”

So did the chart go out with his department’s full endorsement, in which case this is even more proof that the DWP can’t get its facts right – or did CCHQ ignore Mr Duncan Smith’s words and make its own mistake?

For this government, and Mr “In Deep Sh…ambles”, the result is the same.

Vox Political is funded entirely by donations and book sales.
You can make a one-off donation here:

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

Who is the fool who chose Grant Shapps to question BBC trustworthiness?

Tags

BBC, bias, chairman, Chuck Champion, Conservative, David Cameron, Ed Miliband, education, executive, fair, Freedom of Information, Gordon Brown, Grant Shapps, Howtocorp, Jeremy Hunt, Jimmy Savile, licence fee, Martin Rowson, Michael Gove, Michael Green, Mike Sivier, mikesivier, national audit office, NHS, payout, politics, report, right-wing, Sebastian Fox, share, Stuart Hall, Tories, Tory, trust, trustworthiness, trustworthy, Vox Political

Shapps v BBC: Take a look at the name on his tag and ask yourself who you think is more trustworthy.

Sometimes you have to wonder if the Conservatives are just having a laugh. Admittedly, the jokes would be sick, but it seems the only logical explanation for some of their decisions.

Take the latest attack on the BBC. A Conservative spokesman has said the Corporation should face a cut in its licence fee or be forced to share it with other broadcasters unless it rebuilds public trust after receiving bad publicity over payouts to top executives and the way it handled the Jimmy Savile scandal.

Unfortunately, the spokesman himself is Tory Chairman Grant Shapps, a man who has his own issues in the same area and who is known to have used at least two false identities for shady reasons.

As ‘Michael Green’, in the run-up to the 2005 election and afterwards, he “charged clients £183 an hour for advice on how to make money from the web as well as offering tips on how to beat the recession blues, including splashing out on a jet-ski or learning to play the guitar,” according to the Daily Mail. Apparently he said his use of the name was to keep his business interests separate from his future political work, but he ended his involvement with that business in 2009, four years after he entered Parliament.

‘Sebastian Fox’ was another alias he used on Howtocorp, the web publishing company he created in 2000.

The two aliases were enough for people to make a connection with ‘Chuck Champion’ of a website called Howtopickupwomennow – but the evidence suggests it is unlikely that this is yet another pseudonym. Besides, the two we already had were enough to make the point that the BBC has no need to accept lectures about trust from Grant Shapps.

Of the BBC (and on the BBC News website) Mr Shapps/Green/Fox said: “They have ended up working in this culture which is buried in the last century, which is ‘we are the BBC, we do what we like, we don’t have to be too accountable’.

“But they are raising £3.6bn through the licence fee, which is a tax, and, quite rightly, the public wants to have sight of how the money is spent. Things like the pay-offs have really caused concern, as have, obviously, things like Savile and [Stuart] Hall [currently in prison for sex offences against young girls) and the culture that goes around that. I think it is one of too much secrecy,” said the man who hid his own business affairs behind false names for the first four years of his Parliamentary career.

Shapps said the BBC should open its books to inspection by the National Audit Office, and open itself up to Freedom of Information requests. He added that there was a “question of credibility” for the BBC over whether it applied “fairness” to its reporting of politics.

How interesting that last point is.

Regarding the bulk of the Shapps complaints, the BBC was quick to point out that the NAO already has full access to the BBC, except for its editorial decisions, and that in 2012 the Corporation responded to more than 1,600 FoI requests and volunteered information on hundreds more subjects.

Then we come to that interesting last point. The BBC spokesman said: “Mr Shapps is right that transparency is key to the future of the BBC. So is its freedom from political pressure.” (Italics mine)

It seems bizarre that the chairman of the Conservative Party should be complaining about the fairness of BBC political reporting. He can only be doing this to imply that the BBC is biased against the Conservatives – but we know that this has already been investigated and the opposite was found to be true.

As reported by this blog in August: “The BBC has a broadly right-wing bias. The study showed that the government of the day generally gets more airtime than anyone else (natural considering it is making policy and actually carrying out the business of government) but in reporting of immigration, the EU and religion, in 2007 Gordon Brown’s appearances on the BBC outnumbered David Cameron’s by less than two to one, while in 2012, Cameron’s outnumbered Ed Miliband’s by around four to one. The same ratios occurred for other prominent members of each party. When reporting of all topics is taken into account, Conservative politicians were featured more than 50 per cent more often than those from Labour in both 2007 AND 2012.”

So now the real motive behind the Shapps attack becomes clear. He wants to coerce the BBC into an even more slavish adherence to the Conservative Party line than it has already, with the threat of losing its monopoly of the licence fee hanging over it.

And he wants to get the public on-side by pushing the discredited claim that the BBC is a den of Lefties.

You’ll have noticed, Dear Reader, that Shapps has not referred directly to any individual news stories. Are we to take it that he opposes the BBC’s failure to report the anti-Tory demonstration outside the Conservative Party conference on September 29? More than three times as many people turned up for that (50,000) as there were delegates in the conference, if I recall correctly.

The Shapps intervention has already received the lack of respect it deserves on the social media. “I see Grant Shapps now loudly slagging off the BBC so we’re all diverted from Hunt’n’Gove systematically destroying the NHS and Education,” Tweeted one member of the Great British public. See recent Vox Political articles for the facts behind those words.

And cartoonist Martin Rowson put the whole affair in context: “Does everyone know that unbelievably fatuous poltroon @grantshapps is Cousin of Mick Jones of The Clash? Weird, huh? Though not as weird as this meretricious delusional oaf thinking anyone ever takes anything he’s ever said ever more seriously than a pool of puppy sick.”

Incrementalism – we think we’re winning victories but in fact we are losing freedoms

Tags

and Trade Union Administration Bill, benefit, benefits, bill, blacklist, campaign, Chris Grayling, civil service, Coalition, Conservative, David Cameron, Democrat, Department for Work and Pensions, DWP, gag, government, Iain Duncan Smith, increment, Kat Craig, legal aid, Liberal, lobbying, lobbyist, Michael Gove, Mike Sivier, mikesivier, national audit office, non-Party Campaigning, Parliament, people, politics, red tape, Reprieve, returned to unit, RTU, Sadiq Khan, scandal, Sydney Finkelstein, Tories, Tory, totalitarian, trade union, Transparency of Lobbying, unemployment, Universal Credit, Vox Political, welfare, work

Loss of freedom: Every day the Coalition government tries to take something away from you; at the moment, it’s your right to criticise.

Here’s a long-standing Conservative policy that has served that party very well over the years and continues to be alive today: Incrementalism.

This is the process of putting several changes into a single policy – or using one change as an excuse for another – so that, even if the main aim is defeated by public opinion or Parliament, others are achieved. Their plans progress by increments.

This week we are seeing it in several ways.

Did you think Chris Grayling’s announcement about Legal Aid was a victory for common sense and freedom? Think again.

He announced yesterday that plans to cut the Legal Aid bill by awarding contracts only to the lowest bidder have been dropped, after they attracted huge criticism.

The policy had been mocked because it meant smaller legal firms would be priced out of the market and replaced by legal outbranchings of large firms like Tesco or even Eddie Stobart. For these companies, there would be no financial incentive to fight any cases and they would most probably advise defendants to admit any crime, even if they were innocent. Meanwhile, habitual criminals, used to accepting the advice of their regular representative, would distrust that of the man from Eddie McTesco in his ‘My First Try At Law’ suit and would most likely deny everything. Result: The innocent go to jail and the guilty go free.

That was the headline issue; it has been defeated.

But Grayling still intends to cut Legal Aid fees by 17.5 per cent across the board. How many law firms will find they can’t operate on such lowered incomes?

The government’s war on immigrants will be stepped up with a residency test; only those who have lived in the UK for more than 12 months will be eligible for Legal Aid. Otherwise, for poorer immigrants, there will be no access to justice here.

Thousands of cases brought by people who have already been imprisoned will no longer be eligible for legal aid. Grayling says it won’t be available “because you don’t like your prison”. One supposes we are to hope this loss of one more right will not adversely affect people who are fighting wrongful imprisonment, or who have crimes committed against them while they are in prison, but we should all doubt that.

There is one block on Legal Aid that we may support, in fairness: An income restriction meaning that people with more than £3,000 left over every month after paying their “essential outgoings” will not be entitled to it. That’s a lot of money, and people earning this much should definitely be paying their own legal fees and not asking the taxpayer to do it for them.

According to the BBC report, Labour’s shadow justice secretary Sadiq Khan said the dropping of ‘price competitive tendering’, as the plan to award contracts to the lowest bidder was known, was “a humiliating climbdown”.

It would have been better for him to take a leaf out of the charity Reprieve’s book. Its representatives said blocking Legal Aid to immigrants who have been here less than a year would deny justice to people wronged by the UK government, ranging from victims of torture and rendition to Gurkhas and Afghan interpreters denied the right to settle here. Legal director Kat Craig said the government wanted to “silence its critics in the courts”.

Another attempt to silence critics of the government is the Transparency of Lobbying, non-Party Campaigning, and Trade Union Administration Bill, which is due to be discussed in Parliament next week.

The publicised aim of this legislation was to curb what comedy Prime Minister David Cameron himself has called “the next big scandal” – but none of the measures in the first part of the Bill would achieve this. A statutory register of all consultant lobbyists – those working for independent companies who represent the interests of others – as recommended by the Bill, would have prevented none of the lobbying scandals in which Cameron has found himself embroiled during his premiership.

Instead, it seems likely that this will make lobbying by smaller-scale individuals and organisations more difficult, while larger concerns, with in-house lobbyists, may continue to walk through the doors of Number 10, chequebook in hand, and buy any policy they deem beneficial to their business. If this Bill becomes law, they’ll be rubbing our faces in it.

The Bill was introduced on the very last day that Parliament sat before the summer recess – and ministers waited until the very last moment to bolt two new sections onto it. There had been no consultation on the content of these sections, and the timetable proposed for the Bill meant there could be only limited discussion of them.

These were the provisions for gagging political campaigners who do not belong to a political party, and for tying up trade unions in excessive and unneeded red tape. The only possible reason for the first of these is to stop anyone from publishing material that criticises the government in the run-up to the next election – a totalitarian move if every there was one.

And the restriction on trade unions, having their memberships audited independently, is totally unnecessary as the unions already adhere to very strict rules on membership. The real reason would appear to be a plan to make union membership a matter of public knowledge in order to allow businesses to ‘blacklist’ anyone in a union – stop them from getting jobs.

The Bill “will now undergo more detailed scrutiny from MPs”, the BBC website story states. This scrutiny will last a mere three days, next week. This is far too short a period, and rushed onto the Parliamentary schedule far too early, for MPs to subject it to proper scrutiny.

Some of the provisions will be altered, but the Tories are sure to get their way in others. The possibility that union members will be ‘blacklisted’ seems extremely likely, since this is something Coalition partners the Liberal Democrats are not keen to oppose.

And then there is Iain Duncan Smith, who came under fire from the National Audit Office yesterday, over his extremely expensive and utterly unworkable bid to remake social security in his own image – Universal Credit.

The report hammered the project for the poor leadership shown throughout – nobody knew what Universal Credit was supposed to do or how its aims were supposed to be achieved, the timescales imposed for it were unrealistic, the management structure imposed on it was unorthodox and (it turned out) unworkable, there were no adequate measures of progress, and nobody working on the project was able to explain the reasoning behind any of these decisions.

Smith himself, whose likely inadequacies as a bag-carrier in the Army have led to him being labelled ‘RTU’ (Returned To Unit, a sign of shame in the armed forces), was revealed to have lied to Parliament last year, when he claimed the process was running smoothly just weeks after having to order a rethink of the entire project.

How did he explain himself?

He blamed the Civil Service.

So now the issue is not whether Universal Credit will ever work (it won’t) but whether the British Civil Service – described in this blog as “the most well-developed, professional and able government organisation on this planet” – can do its job properly.

The article in which that description was made also described ministerial attacks on civil servants as “the Conservatives’ latest wheeze”. Michael Gove has already hammered morale in his Education department by making huge staff cuts and then employing his ignorant mates to impose their stupid views on the professionals.

It also foreshadowed RTU’s outburst this week, quoting a Spectator article that said, “If Universal Credit is a flop, then it will prove our current Whitehall set-up is failing. But if it succeeds, it will be no thanks to the Civil Service either”.

So the scene is set for the government to attack the very people who try to enact its policies. This blog stands by its words in the previous article, when the plan was described this: “Blame the Civil Service for everything, cut it back, and leave the actual mechanics of government unusable by anybody who follows”.

Meanwhile, ministers such as Mr ‘Denial’ Smith have made the British government an international laughing-stock.

Sydney Finkelstein, Professor of Strategy and Leadership at the Tuck School of Business in Dartmouth, in the USA, tweeted the following yesterday: “Shocked to hear top guy not take full responsibility for bad execution. Never happens in America.

“140 character twitter not enough to convey amateurism of leader who can’t lead.”

He might not be able to lead, but – by devious means – he and his odious ilk are getting almost everything they want.

The verdict: Universal Credit is a Governmental Disgrace

Tags

allowance, Amyas Morse, benefit, benefits, budgeting loan, child, Coalition, computer, Conservative, Department, Department for Work and Pensions, Director General, DWP, employment, government, housing benefit, Howard Shiplee, Iain Duncan Smith, income based, Income Support, IT, Jobseeker's Allowance, Labour, Liam Byrne, Mike Sivier, mikesivier, NAO, national audit office, Pensions, people, politics, returned to unit, RTU, social security, support, tax credits, Tories, Tory, UC, unemployment, Universal Credit, Vox Political, welfare, work, working

Can the DWP do anything right? Universal Credit joins the Work Programme and the murderous administration of Employment and Support Allowance on the list of Iain Duncan Smith’s failures.

The National Audit Office has published its ‘early progress’ report on Iain Duncan Smith’s flagship Universal Credit scheme – and it is damning.

The report states that, after years of development in which £425 million was spent on the scheme, the Department for Work and Pensions does not even have a detailed view of how Universal Credit is supposed to work.

I should just stop there and spend the rest of this article discussing that one piece of information. After months and years of listening to ‘RTU’ ranting about how Universal Credit was going to be a revolution in benefit claims, we now know that he does not know – and never bothered to work out – how his revolution was going to be delivered!

Nor does Howard Shiplee, the ‘director general’ who has been talking it up on the media over the last few days.

Universal Credit is an attempt to “simplify” six major areas of social security into one streamlined payment system. They are: Income Support, income-based Jobseekers Allowance, income-based Employment and Support Allowance, tax credits (child and working), housing benefit and budgeting loans.

However: “Poor control and decision-making undermined confidence in the programme and contributed to a lack of progress,” the report states. This is directly attributable to the Secretary of State – it is his failure.

The report – and we should remember that this is from an organisation concerned with whether the government is spending our money wisely – concluded that the DWP has not achieved value for money.

The department was over-ambitious in both the timetable and scope of the programme, the report states. This is interesting in itself. How can its scope be “ambitious” if nobody even knew how it was supposed to work?

According to the NAO: “The Department took risks to try to meet the short timescale and used a new project management approach which it had never before used on a programme of this size and complexity. It was unable to explain how it originally decided on its ambitious plans or evaluated their feasibility.” In other words, from its employees right up to its ministers and Secretary of State, the DWP could not justify the risks it took with taxpayers’ money and never bothered to investigate the likelihood of failure.

“Given the tight timescale, unfamiliar project management approach and lack of a detailed plan, it was critical that the Department should have good progress information and effective controls. In practice the Department did not have any adequate measures of progress.”

The report singles out for particularly strong criticism the computer system intended to run the new benefit. “The Department is not yet able to assess the value of the systems it spent over £300 million to develop… Over 70 per cent of the £425 million spent to date has been on IT systems,” it states.

Then it says, “The Department, however, has already written off £34 million of its new IT systems and does not yet know if they will support national roll-out.” So the systems are not – to use a favourite DWP phrase – “fit for work”.

In fact, some parts don’t work on any level at all: “For instance, the current IT system lacks a component to identify potentially fraudulent claims so that the Department has to rely on multiple manual checks on claims and payments.” Meaning: In the single Job Centre where UC has been introduced, employees have been working out claims on paper.

“Such checks will not be feasible or adequate once the system is running nationally.” It seems amazing, but Iain Duncan Smith probably needed to see that, written down in black and white, or he might never have considered the possibility.

Problems with the IT system have delayed the national roll-out of the programme (and for that, considering all of the above, we should all breathe a long-drawn-out sigh of relief). “In early 2013, the Department was forced to stop work on its plans for national roll-out and reassess its options for the future… The Department will not introduce Universal Credit for all new claims nationally in October 2013 as planned, and is now reconsidering its plans for full roll-out.

“Instead, it will extend the pilots to six more sites with these new sites taking on only the simplest claims. Delays to the roll-out will reduce the expected benefits of reform and – if the Department maintains a 2017 completion date – increase risks by requiring the rapid migration of a large volume of claimants.”

The DWP intends to spend £2.4 billion on Universal Credit up to April 2023. To put that in perspective, that’s twice as much as the government loses on all benefit fraud – not just those being bundled together here – every year. And this will “increase risks”.

The spending watchdog found that the DWP took some action at the end of 2012 to resolve problems, but was unable to address the underlying issues effectively.

“The programme suffered from weak management, ineffective control and poor governance,” said Amyas Morse, head of the National Audit Office.

Despite all this, the report incredibly states that “the programme still has potential to create significant benefits for society, but the Department must scale back its delivery ambition and set out realistic plans”.

Liam Byrne will no doubt seize this as an opportunity, yet again, to offer Labour’s help to find a way forward and bring Universal Credit back on track. He should be discouraged from doing so. This ‘flagship’ hasn’t so much sailed as sunk.

Universal Credit is a FAILURE.

It should be SCRAPPED – before that idiot Smith wastes any more of our money on it.

Gauke, Osborne and Goldman Sachs: The Treasury’s corrupt tax avoidance conspiracy

Tags

Amyas Morse, Andrew Parks, blower, Customs, Dave Hartnett, David Gauke, deal, Enterprise and Regulatory Reform Bill, George, Gideon, Goldman Sachs, Guardian, High Court, hmrc, judge, Macfarlanes, Margaret Hodge, Mike Sivier, mikesivier, national audit office, Osborne, Osita Mba, Parliament, Revenue, smear, sweetheart, tax avoidance, Treasury, UK Uncut, Vox Political, whistle

Rumbled: David Gauke, the ugly face of Treasury-approved tax avoidance. This man is one reason the poor are being made to pay so heavily for the foolishness of the very rich.

You know something is wrong in the Treasury when the minister in charge of tax is revealed to have worked for a firm specialising in tax avoidance.

The wrongdoing goes off the scale when it is revealed that the same minister has been actively trying to gag a whistleblower who uncovered a “sweetheart” deal to write off a huge amount of tax owed to the UK by a private company.

That is precisely what we have learned today, thanks to The Guardian.

It seems that David Gauke, the exchequer secretary to the Treasury, green-lit a plan to discredit testimony from Osita Mba, a solicitor with HM Revenue and Customs, after he took the notorious Goldman Sachs “sweetheart” deal to the public.

For those who don’t know about this, the deal with Goldman Sachs was worth up to £20 million, and was part of a series of four such settlements, with large companies, that netted £4.5 billion for the Treasury. That might seem like a lot of money.

But it begs the question, asked by Margaret Hodge MP, who chairs Parliament’s public accounts committee: How much did we not get?

One person who might know the answer is Mr Mba, who told two parliamentary committees that the then-head of tax, Dave Hartnett, had agreed a deal allowing Goldman Sachs, a US bank, to escape £20 million in interest charges, payable to the UK. He claimed Mr Hartnett had done this without following proper procedures.

Disciplinary proceedings were launched against Mr Mba within HMRC, meaning he was suspended from work, and an emailed exchange between an HMRC press officer and Gauke’s private secretary strongly suggest that the minister wanted to discredit the whistleblower with a media smear campaign.

From here, matters get very dodgy indeed.

The National Audit Office was asked to investigate the Goldman Sachs case, along with four others, and although Judge Andrew Parks’ report was not publicly released, the head of the NAO, Amyas Morse, told MPs that the deals had been cleared. Morse’s role was later questioned after a leaked document showed that he had told Hartnett the inquiry would find “nothing of substance” – before it began.

And it was revealed last Thursday – again by The Guardian, which appears to be living up to its name – that the deal with Goldman Sachs had been arranged partly to save our part-time Chancellor of the Exchequer, Gideon 0sborne, from embarrassment.

It seems that the dispute with Goldman Sachs was settled hastily after the bank threatened to pull out of a new tax framework, a week after 0sborne had announced that the bank had signed up to it.

The revelation was made at the High Court last Wednesday, where UK Uncut was calling for a judgement to declare that the 2010 settlement between the bank and HMRC was unlawful. The court heard that Hartnett had personally overruled legal advice, the HMRC’s own guidelines and its internal review board over the issue (confirming Mr Mba’s claim).

So it was a cover-up, in order to allow a company to escape paying the UK a huge amount of money, with the blessing of ministers including 0sborne and Gauke.

In Gauke’s case, of course, this is unsurprising. It has long been known – as can be seen by this entry on the right-wing Guido Fawkes blog – that the minister has not only avoided paying tax himself but also worked for Macfarlanes, a top city law firm that specialises in helping the wealthy avoid paying tax.

The Enterprise and Regulatory Reform Bill, which has been passing through Parliament recently, includes a section intended to introduce greater protection for individuals from harassment when they blow the whistle at work.

In the light of the treatment of Mr Mba, by members of the government that has introduced this bill, it remains to be seen whether this measure was ever intended to succeed.

‘The man who cut the NHS, not the deficit’

Tags

ambulance, andrew dilnot, Andrew Lansley, andy burnham, any qualified provider, arriva, Assembly Government, Barnett, Coalition, Conservative, David Cameron, debate, government, health, john appleby, kings fund, Labour, Liberal, Liberal Democrat, Mike Sivier, mikesivier, national audit office, NHS, opposition day, Parliament, people, politics, Prime Minister's Questions, private, privatise, reorganisation, saving, secretary, shadow, spending, state, Tories, Tory, Treasury, uk statistics authority, Vox Political, Wales, Welsh

Life imitating art: I made this poster months ago, and it is pleasant that its words were echoed by Andy Burnham in the NHS debate.

It was a debate the Labour Party could not win at the vote; the Coalition has the weight of numbers and is always going to vote down a motion that criticises its decisions and record – in this instance, it called for “much-needed honesty” in the public debate on the NHS, and “in particular, NHS spending”.

But it was also a debate that had to take place, and Andy Burnham, the Shadow Secretary of State for Health, was right to put the arguments before the public. Anyone listening to the arguments with an open, if inquiring, mind could see that Labour has won this argument.

Easily.

The Opposition Day debate in the House of Commons yesterday was called by Mr Burnham after Andrew Dilnot, head of the UK Statistics Authority, wrote to caution the government that its claims of increased spending on the health service, year on year, during every year of the current Parliament, were inaccurate. He stated that the figures show a real-terms cut in expenditure between the 2009-10 tax year when Labour was in power, and 2011-12.

In fairness, the next sentence of the letter went on to say that, “given the small size of the changes and the uncertainties associated with them, it might also be fair to say that real-terms expenditure has changed little over this period”. Even so, that is not an agreement that funding had increased; it is an assertion that the best the government could say is that funding has been at a standstill.

Mr Burnham pointed out two drains on NHS funding that have taken £3.5 billion out of the system – savings of £1.9 billion that went back to the Treasury instead of being ploughed back into NHS services as promised, and £1.6 billion spent on Andrew Lansley’s vanity-prompted, ideologically-based top-down reorganisation that brought private companies into the NHS with disastrous results.

(I think my own opinions may have intruded into the narrative of the last paragraph, but since these conclusion will be obvious to anyone who reads what follows, I feel justified in drawing attention to them here)

I hope we all know what the promises were. The 2010 Conservative Manifesto stated: “We will increase health spending in real terms every year”; the Coalition Agreement said “We will guarantee that health spending increases in real terms in each year of this Parliament”. And week after week, ministers from the Prime Minister downwards have claimed that is exactly what they have delivered. Until recently, the Conservative Party website prominently stated: “We have increased the NHS budget in real terms in each of the last two years”. And on October 23, from the Health Secretary, Jeremy Hunt, to the House of Commons: “Real-terms spending on the NHS has increased across the country.”

But there’s a mismatch here, said Mr Burnham. People have heard that spending is increasing, but what they have seen is an ever-increasing list of cuts to funding and services. Along with other Labour MPs, he delivered a devastating list of these cuts in support of his claims. These included:

• 750 jobs cut at Salford Royal Hospital, with a total of 3,100 job losses across hospitals in that area, and two walk-in centres closed.
• Cuts to the mental health budget.
• A broken pre-election promise not to close accident and emergency at Queen Mary’s, Sidcup; it closed after the general election.
• A plan to close accident and emergency at Lewisham Hospital.
• Cuts to cancer networks.
• £1 billion spent on managerial redundancies when patients are seeing treatment restricted and nurses laid off in their thousands.
• 7,134 nursing posts have been lost since the Coalition came in, 943 in the last month alone.
• Training places are being cut by 4.6 per cent this year, after a 9.4 per cent cut in 2011-12.
• 125 separate treatments have been restricted or stopped altogether since 2010.
• More than 50,000 patients have been denied treatments, kept off waiting lists, and there have been big falls in operations for cataracts, varicose veins, and carpal tunnel syndrome. “We have heard claims about reducing waiting lists but that is because people can’t get on the waiting list in the first place,” said Mr Burnham.
• West Midlands Ambulance Service advised on Tuesday that there are about half a dozen hospitals in the West Midlands whose A&E staffing situation is so critical that it is having a knock-on effect to turnaround time of ambulances.
• In Bolton, South Tees, Maidstone and Tunbridge Wells, large numbers of staff have been given 90-day redundancy notices.

The consequences were clear, according to the shadow Health Secretary:

74 per cent of NHS leaders described the current financial position as the worst they had ever experienced or very serious, he said. “The reason the government’s cuts feel much deeper is because they are contending with the added effects of a reorganisation that nobody wanted and that they pleaded with the former Secretary of State to stop. Cuts and reorganisation – it’s a toxic mix. As trusts start to panic about the future, increasingly drastic cuts are being offered up that could have serious consequences for patient care.”

Leading on from this, he said the Care Quality Commission found that 16 per cent of hospitals in England did not have adequate staffing levels. “I am surprised a warning of this seriousness hasn’t received more attention,” Mr Burnham said.

“The Prime Minister has cut the NHS – fact,” said Mr Burnham. “But just as he airbrushed his poster, he has tried to airbrush the statistics and has been found out.

“What I find most troubling about all of this, and most revealing about the style of this government and the way it works, is that even when they are warned by an official watchdog, they just carry on as if nothing has happened. When they admitted cutting the NHS in 2011-12 by amending their website, what was the excuse that they offered to Sir Andrew? ‘Labour left plans for a cut.’ Simply untrue.

“According to Treasury statistics, Labour left plans for a 0.7 per cent real-terms increase in the NHS in 2011-12. From then on, we had a spending settlement giving real-terms protection to the NHS budget. It was this government that slowed spending in 2010-11, which allowed the resulting £1.9 billion underspend to be swiped back by the Treasury, contrary to the promise that all savings would be reinvested, and it was this government that still has published plans, issued by HM Treasury, for a further 0.3 per cent cut to the NHS in 2013 and 2014-15 – contrary to the new statement that they have just put up on their website.”

He said the Coalition parties’ arrogance “seems to give them a feeling that they can claim black is white and expect everyone to believe it“. (Would it be in poor taste to hope that, in this case, Douglas Adams is proven correct and they all have terminal experiences the next time they venture onto a zebra crossing?)

“The lethal mix of cuts and reorganisation is destabilising our hospitals,” said Mr Burnham. “They are the first to feel the full effects of the free-market ideology that they have unleashed on the NHS. No longer a ‘One NHS’ approach, where spending is managed across the system, but now a broken-down, market-based NHS. The message to Britain’s hospitals, from this government, is this: ‘You’re on your own. No bailouts. Sink or swim. Oh, but if it helps, you can devote half your beds to treating private patients.’

“So we see increasing signs of panic as they struggle to survive in this harsh new world. And we see half-baked plans coming forward to reconfigure services, with an effort to short-circuit public consultation. Will the Secretary of State today remove the immediate threat to Lewisham A&E by stating clearly that it is a straightforward breach of the rules of the administration process to solve the problems in one trust by the backdoor reconfiguration of another? In Greater Manchester, will he ensure that the future of all A&E provision is considered in the round, in a citywide review, rather than allowing the A&E at Trafford to be picked off in advance? And in St Helens and Mosley, will he reverse the previous SoS’s comments when he told the CCGs they had no obligation to honour financial commitments to the hospital, entered into by the previous PCTs?

“It’s chaos out there, and [the Health Secretary] urgently needs – in fact, they all need to get a grip, not just the Secretary of State; all of them.

“Cuts and reorganisation are resulting in a crude drive to privatise services, prioritising cost over clinical quality. Across England, deals have been signed to open up 396 community services to open tender under ‘any qualified provider’. But these deals are not subject to proper public scrutiny as the deals are held back under commercial confidentiality. In Greater Manchester, plans are advanced to hand over patient transport services to Arriva, despite the fact that an in-house bid scored higher on quality, and despite the fact that the CQC recently found serious shortcomings with the same provider in Leicestershire. Nobody has asked the patients who rely on this service whether they want this change.

“‘Any qualified provider’ is turning into the NHS version of compulsory competitive tendering, a race to the bottom and a rush to go for the cheapest bid, regardless of the effect on patients and services. What clearer symbol could their be of a privatised, cut-price, Coalition NHS than the decision in Greater Manchester to award patient transport to a bus company.”

In the NHS constitution, patients and staff “have the right to be involved, directly or through representatives, in the planning of healthcare services, the development and consideration of proposals for changes in the way those services are provided, and in decisions to be made affecting the operation of those services”. So Mr Burnham asked: “Why doesn’t he just press the pause button now, and ask people if they want their ambulance services run by a bus company? ‘The NHS belongs to the people,’ says the first line of the NHS constitution – not when this government has finished with it, it won’t!

“People will remember the personal promises this Prime Minister made on the NHS to win office. Promises it now seems had more to do with his desire to de-toxify the Tory brand than with any genuine regard for the NHS.

“No top-down reorganisation of the NHS – broken.

“A moratorium on hospital changes – broken.

“And real-terms increases in every year of this Parliament – broken.

“They can now see the chaos that the breaking of these promises is visiting on the NHS: Nurse numbers – cut.

“Health visitors – cut.

“Mental health – cut.

“Cancer networks – cut.

“Cataract operations – cut.

“The man who cut the NHS, not the deficit.”

How did the Coalition combat these assertions? First with an attempt to divert the debate onto the NHS in Wales, overseen by a Labour Assembly Government, where spending has been cut. This was a matter that has exercised David Cameron very much during recent Prime Minister’s Questions, and it was welcome to see Mr Burnham set the record straight as thoroughly as he did yesterday.

He said the Coalition has given to the Welsh Assembly Government a real-terms funding cut of £2.1 billion – and this is the truth of it. I remember discussing the matter with Assembly members last year and it seems that even funding, which had been set aside to cushion the expected blow of cuts from Westminster, had been clawed back by the UK Treasury, with no regard for the consequences to Welsh NHS patients.

“They have done their best to protect health spending in that context,” Mr Burnham said. “Since 2010 there has been no reduction in frontline staff, particularly nurses, unlike [the UK] government. The Welsh Assembly are doing the best they can with the awful hand of cards which [this] government dealt them.”

Next, Mr Burnham was asked if he regretted “removing and reducing health spending to old people and rural areas, which happened under his watch”. It appears that this was a fabrication, dreamed up by the questioner, as Mr Burnham said it bore no relation to reality: “There was no reduction in health spending on my watch. I left plans for an increase. He illustrates my point.”

We heard that the chief economist of the King’s Fund, John Appleby, said that before the general election, the former chancellor had left plans for 2011-12, 2012-13 that would see a cut in real terms.

“I did the deal,” said Mr Burnham, “just months before the general election, protecting the NHS in real terms.

“At the election I was arguing for real-terms protection. I said it would be irresponsible, yes, to give real-terms increases over and above real-terms protection because the only way [to] pay for that would be taking it off councils, hollowing out the social care budget.”

One Tory who seemed particularly keen to assert his superiority said she was “very disappointed” to hear Mr Burnham “talking down the NHS”. She claimed that, before the election, the NHS knew it was facing an “unprecedented efficiency challenge”. And she said that, under Labour, productivity in the NHS fell continuously. Would the shadow health secretary acknowledge the achievements of the NHS in achieving a productivity gain?

This member got what she deserved – a three-word dismissal: “Productivity hadn’t fallen.” It’s a classic Tory ploy, criticising the opposition’s previous record to take the heat off their own current policies. But it doesn’t work when it’s based on a falsehood.

All of these were interjections from backbenchers. We could expect more high-quality responses from the Health Secretary himself, couldn’t we?

Judge for yourself.

“This government is spending more on the NHS than Labour would have, and because that money has moved from the back office to the front line, the NHS is performing better now than it ever did under Labour,” said Jeremy Hunt, the well-known misprint, providing no proof to support his claims.

“In 2011-12, spending went up by £2.5 billion in cash terms, 0.1 per cent in real terms, on 2010-11. And this year, 2012-13, it will go up again, as it will in every year of the Parliament.” But this did not address Andrew Dilnot’s assertion – that spending had dropped from 2009-10 levels. He was being selective with his statistics, and one can only conclude that he was trying to avoid dealing with an inconvenient fact. This was the point at which I knew Labour had won the argument.

“He [Andy Burnham] can hardly come to us, criticising our plans for NHS spending, if his own plans would have led to not higher, but lower NHS spending.” Note that it had already been stated that this was not what Mr Burnham had been doing. He made it clear that he would have protected levels of spending.

Mr Hunt joined the attack on the Welsh Government by stating that Labour has announced plans to cut the NHS budget by eight per cent in real terms, “despite an overall settlement protected by Barnett” (the Barnett settlement is a funding plan for devolved governments. Note that Mr Hunt did not say what the settlement was, and we are therefore deprived of the ability to determine whether this settlement is fair). Mr Hunt went on to ask of his Labour counterpart, “Will he condemn the choice that Labour made in Wales? If he doesn’t want to condemn that, let me tell him what the BMA says is happening in Wales. They talk of a ‘slash and burn’ situation. They talk about ‘panic on the wards’. Would he want that to be repeated in England?” He seemed not to have noticed Mr Burnham stating this is exactly what is already happening.

On a personal note, I use hospitals in Wales – a lot. My girlfriend is disabled and I myself have had occasion to seek hospital treatment. It has always been timely, professional, conducted in a calm, warm, welcoming atmosphere. I have seen no signs of panic on the wards, and if any aspect of the service is being slashed and burned, I haven’t experienced it myself. I have absolutely no complaints about the health service in Wales; if I were to level criticism anywhere, it would be across the border in England.

The final shot in the Wales mini-debate came from a Labour member, who wondered if the cut in Welsh health funding “has got anything to do with the cuts in capital spending from the Westminster government?”

This member added: “And has he any comment to make on National Audit Office figures that show spending on health in Wales is higher than that in England? Or does that not fit with his fictitious version of events?”

Fictitious. That’s exactly right. Now contrast Mr Hunt’s approach to questions from the opposition with the style already displayed by Mr Burnham – who, as evidenced above, tackled his critics head-on, answering them directly with the required facts.

The question was: Will he confirm just how many nurses have been cut under this government’s watch? The answer? “The nurse to bed ratio has gone up. The average bed is getting an extra two hours of nursing care, per week, than under Labour.”

That’s not an answer, and the Labour backbenchers knew it. Smelling blood in the water, another asked: “Why won’t he answer the question put to him – how many nurses have lost their job on his watch? Don’t tell me about nurse-to-bed ratio – answer the question.”

Fat chance! The response, again avoiding a direct answer, was: “The number of clinical staff in the NHS has gone up and not down. I don’t want to micro-manage every hospital in the country and tell them how many doctors and how many nurses.”

Mr Hunt returned to the Coalition line on NHS spending: “”We are increasing spending by £12.5 billion; he [Andy Burnham] thinks that is irresponsible.”

He was, of course, shot down – by two separate comments. One female Labour member stated: “My understanding of that english is that things had not changed much, in any circumstances, but the Secretary of State has said, consistently, he and the government were pledged to an increase. There is nothing in that letter [by Andrew Dilnot] to suggest that any increase has occurred.

And I believe it was Dame Joan Ruddock who said: “I find it impossible to find a record of this extra spending. It seems the reality is cuts and reductions to services.”

No point in listening beyond that. Coalition demolished.

Note: I apologise for the lack of information on who said what, other than the Health Secretary and his Shadow. I’m afraid I was too busy taking down what people were saying to catch their names, as they flashed up on my computer screen. It is not my intention to cause offence.

Tax and tax avoidance: Osborne’s attack on small businesses

Tags

Anglian, avoidance, BBC, business, Conservative, Customs, economy, George Osborne, government, haven, hmrc, legal, loophole, Mike Sivier, mikesivier, national audit office, people, politics, Revenue, road, small, sole trader, tax, Thames, Tories, Tory, Treasury, two-tier, Vox Political, water, Yorkshire

The Madness of George: Mr Osborne’s latest attack is on the smaller businesses and sole traders who prop up the UK’s economy. Does he understand nothing at all about his job?

It seems George Osborne wants to focus his next attack on the small businesses of the UK – the firms that form the vast majority of the nation’s business base.

Lunacy, you might say. Craziness. You may ask why he would want to do such a thing, and what evidence I have to suggest it.

Well, let’s start with the letters going out to 1,500 people suspected of taking part in a tax avoidance scheme – which is currently legal, although the BBC report suggests its legality will be challenged. These people are suspected of depriving the Treasury of £10 billion per year.

The National Audit Office said HM Revenue and Customs was dealing with a backlog of 41,000 cases of aggressive tax avoidance involving individuals and small companies.

That’s all very interesting. Why not write to the shareholders of the Thames, Anglian and Yorkshire Water companies, whose tax avoidance history received an airing in the press and on this blog very recently? The evidence suggested they were removing a combined total of £1 billion per year to tax havens offshore and, to me, it seems far simpler to write letters to three companies, and investigate them, than to 150 individuals.

Could it be because the water companies were exploiting tax loopholes that had been created especially for them, and other large businesses, by Mr Osborne himself in 2011?

Could it be that shareholders in those large concerns might also be donating money to the Conservative Party? Attacking them would be the political equivalent of self-harming, if that were the case.

So the focus of attack goes down to the smaller business or sole trader.

Were you aware that Mr Osborne is considering changing road tax rules, to introduce a new two-tier system?

It seems he wants to create a class system for the roads, in which second-class citizens will be licensed to use the smaller roads, while first-class citizens will be able to pay for the extra tax disc, entitling them to use the motorways.

I see that as an attack – on the private driver, yes, but also on the small businessperson. Think about it. Small businesses can spend a lot of time on the roads, zipping around between jobs. An extra expense on the balance sheet could be the difference between being a profitable concern and going under.

At a time when the UK is relying on small and start-up businesses to re-ignite the economy, this is nothing short of madness.

But then, when’s the last time anyone ever suggested George Osborne had sense?