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By their own standards, Coalition ministers should be in prison

25 Monday Nov 2013

Posted by Mike Sivier in Benefits, Conservative Party, Cost of living, Disability, Economy, Employment and Support Allowance, Health, Labour Party, People, Politics, Poverty, UK

≈ 27 Comments

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"duty of care", allegation, allege, allowance, appeal, Atos, Barack Obama, benefit, benefits, Co-op Bank, Coalition, cocaine, Conservative, criminal, Department, destitute, destitution, disability, disabled, doctor, Ed Balls, employment, ESA, fit for work, government, Group, health, Iain Duncan Smith, IDS, ill, insecure, insecurity, jail, Jeremy Hunt, manager, Matt, Mid Staff, Mike Sivier, mikesivier, minister, mistreat, money, National Health Service, neglect, NHS, Northern Rock, nurse, observer, patient care, Paul Flowers, Pensions, people, politics, prison, Professor Don Berwick, returned to unit, Ridley, RTU, scandal, serious, sick, social security, stress, support, target, Tories, Tory, tribunal, unemployment, vexatious, Viscount, Vox Political, WCA, welfare, wilful, work, work capability assessment, work-related activity, WRAG


131125criminality

Everyone should agree that the Tory fuss over former Co-op Bank chief Paul Flowers is an attempt to distract us all from a more serious transgression that they themselves have committed.

Flowers, who is also a former Labour councillor, was arrested last week after being filmed allegedly handing over money to pay for cocaine.

The Conservatives have spent the last few days working very hard to establish a link, in the public consciousness, between the criminal allegations against Flowers, the Co-op Bank’s current financial embarrassment – believed to have been caused because Flowers knew nothing about banking, and the Labour Party, which has benefited from loans and a £50,000 donation to the office of Ed Balls.

This is unwise, considering a current Tory peer, Viscount Matt Ridley, was chairman of Northern Rock at the time it experienced the first run on a British bank in 150 years. He was as well-qualified to chair that bank as Paul Flowers was to chair the Co-op. A writer and journalist, his only claim on the role was that his father was the previous chairman (apparently the chairmanship of Northern Rock was a hereditary position).

Ridley was accepted as a Tory peer after the disaster took place (a fact which, itself, casts light on Conservative claims that they were going to be tough on bankers after the banker-engineered collapse of the western economies that started on his watch). The Conservatives are currently obsessing about what happened between Flowers and the Labour Party before the allegations of criminality were made.

Ridley is listed as having failed in his duty of care, which is not very far away from the kind of responsibility for the Co-op Bank’s collapse that is alleged of Paul Flowers. (Source: BBC Any Questions, November 22, 2013)

In addition, the Co-op Bank is not the Co-operative Party or the Co-operative Movement, and those two organisations – one of which is affiliated with the Labour Party – must not be tarred with the same brush.

The Tories are hoping that the public will accept what they are told, rather than digging a little deeper for the facts.

There’s no real basis for their venom; they ennobled a man who presided over much worse damage to the UK’s financial institutions, and attracting attention to criminal behaviour by members or supporters of political parties would be a huge own-goal.

Therefore this is a distraction. From what?

Cast about a little and we discover that Jeremy Hunt is threatening to create a new criminal offence for doctors, nurses and NHS managers if they are found to have wilfully neglected or mistreated patients – carrying a penalty of up to five years in jail.

The law was recommended in the summer by Professor Don Berwick, a former adviser to Barack Obama, who recommended criminal penalties for “leaders who have acted wilfully, recklessly, or with a ‘couldn’t care less’ attitude and whose behaviour causes avoidable death or serious harm”.

Some of you may be delighted by this move, in the wake of the Mid Staffs scandal – even though questions have been raised over the accuracy of the evidence in that case.

But let’s look at another controversial area of government – that of social security benefits for the seriously ill.

It appears the Department for Work and Pensions, under Iain Duncan Smith, is planning to remove financial support for more than half a million people who – by its own standards – are too ill to seek, or hold, employment.

Apparently Smith wants to disband the Work-Related Activity Group (WRAG) of Employment and Support Allowance (ESA) claimants, because they aren’t coming off-benefit fast enough to meet his targets.

The Observer‘s report makes it clear that the arguments are all about money, rather than patient care. Smith is concerned that “only half of WRAG claimants are coming off-benefit within three years, and hundreds of millions of pounds are being tied up in administration of the benefit, including work capability assessments and the appeals process”.

No mention is made of the fact, revealed more than a year ago, that many of those in the WRAG in fact belong in the Support Group for ESA (the group for people recognised to have long-term conditions that are not likely to go away within the year afforded to WRAG members). They have been put in the WRAG because targets set by Smith mean only around one-eighth of claimants are put into the Support Group.

The knock-on effect is that many claimants appeal against DWP decisions. This has not only caused deep embarrassment for Smith and his officials, but added millions of pounds to their outgoings – in benefit payments and tribunal costs.

Not only that, but – and this is the big “but” – it is known that many thousands of ESA claimants have suffered increased health problems as a result of the anxiety and stress placed on them by the oppressive process forced upon them by Iain Duncan Smith.

This means that between January and November 2011, we know 3,500 people in the WRAG died prematurely. This cannot be disputed by the DWP because its claim is that everyone in the WRAG is expected to become well enough to work within a year.

These are not the only ESA claimants to have died during that period; a further 7,100 in the Support Group also lost their lives but are not used in these figures because they had serious conditions which were acknowledged by the government and were getting the maximum benefit allowed by the law.

What about the people who were refused benefit? What about the 70 per cent of claimants who are marked “fit for work” (according to, again, the unacknowledged targets revealed more than a year ago by TV documentary crews)?

We don’t have any figures for them because the DWP does not keep them. But we do know that many of these people have died – some while awaiting appeal, others from destitution because their benefits have been stopped, and more from the added stress and insecurity of seeking work while they were too ill to do it.

Now Iain Duncan Smith (we call him ‘RTU’ or ‘Returned To Unit’, in reference to his failed Army career) wants more than half a million people – who are known to be too ill to work – to be cut off from the benefit that supports them.

Let’s draw a line between this and Jeremy Hunt’s plan to criminalise medical professionals whose wilful, reckless or ‘couldn’t care less’ attitude to patients’ needs causes avoidable death or serious harm.

Clearly, such an attitude to people with serious long-term conditions should be carried over to all government departments, and yet nobody is suggesting that the DWP (and everybody who works for it) should face the same penalties.

Why not?

By its own admission, choices by DWP decision-makers – acting on the orders of Iain Duncan Smith – have led to deaths. We no longer have accurate information on the number of these deaths because Smith himself has blocked their release and branded demands for them to be revealed as “vexatious”. No matter. We know they have led to deaths.

If doctors are to face up to five years in prison for such harm, then government ministers and those carrying out their orders should be subject to the same rules.

By his own government’s standards, Iain Duncan Smith should be in prison serving many thousands of sentences.

Consecutively.

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Iain Duncan Smith owes us all an apology – but do we owe one to Rachel Reeves?

15 Tuesday Oct 2013

Posted by Mike Sivier in Benefits, Conservative Party, Cost of living, Disability, Housing, Labour Party, Media, Politics, Poverty, UK, unemployment

≈ 39 Comments

Tags

Andy Sawford, apologise, apology, Atos, bedroom tax, benefit, benefits, building, cabinet, claimant commitment, Coalition, Conservative, contempt, Department, disability, disabled, divide, DWP, Ed Miliband, elitist, FOI, free schools, Freedom of Information, government, health, home, house, Iain Duncan Smith, jobs guarantee, jobseeker, lie, living wage, Michael Gove, Mike Sivier, mikesivier, observer, one nation, Parliament, part-time, Pensions, people, policy, politics, questions, Rachel Reeves, rent, sanction, service, shadow, sick, social security, Tories, Tory, Tristram Hunt, unemploy, unemployment, Universal Credit, Vox Political, vulnerable, wasteful, welfare, work, Work Programme, Youth Contract, zero hours


Iain Duncan Smith: He opens his mouth - and the world screams. [Image: Steve Bell]

Iain Duncan Smith: He opens his mouth – and the world screams. [Image: Steve Bell]

It seems redundant to start an article by saying Iain Duncan Smith is a filthy liar, because it is a fact that we all know too well already.

The latest offence – and the word is used very deliberately – took place during Work and Pensions Questions in Parliament yesterday (October 14) and means that he has lied to Parliament – not for the first time, either!

It is interesting that he phrased his words in a particular way. Responding to Andy Sawford’s call for clarity on whether, under the new claimant commitment, benefits officers will sanction jobseekers for refusing zero-hours work, he said this referred to “people’s obligations under the existing terms… Once they are offered a job they must take it… Right now, zero-hours contracts are legal.”

You will note, Dear Reader, that he did not simply say, “Under the claimant commitment, they must take zero-hours work or be sanctioned,” even though that is clearly the meaning of his words. It seems likely he was looking for leeway if questioned about it afterwards.

Well, he shouldn’t get any. A reasonable person, looking at the statement, will draw the obvious – intended – conclusion.

It is a conclusion – and a statement – that runs against current DWP policy.

The DWP responded to a Freedom of Information request in July this year, which also called for clarity on zero-hours contracts. The response contains the very clear statement: “Jobseeker’s Allowance claimants are not required to apply for zero hours contract vacancies and they will not face sanctions for turning down the offer of a zero hours contract.”

So Iain Duncan Smith was lying to Parliament yesterday – a very grave offence for a Secretary of State to commit.

Smith said, responding to Mr Sawford: “People will lose benefits for three months for a first offence, six months for a second offence and three years for a third offence.” When it comes to Parliamentary lies, he has committed multiple offences, and yet he gets away with it every time.

Why?

Another person who seems to have had trouble saying what they mean is Rachel Reeves. This blog – and many other people – took her to task last weekend, after The Observer published an interview in which she reportedly made many ill-advised comments, giving the impression that Labour policy on social security was lurching to the right yet again.

Yesterday a statement appeared on the Labour Party website in which the new Shadow Work and Pensions Secretary put forward a much more reasonable plan for social security reform under a Labour government. Particularly attractive are the parts where she says Labour will work with the disabled to design services and benefits that will help them play their part, and where she promises to repeal the Bedroom Tax, which has penalised vulnerable people, many of them disabled.

It is a much better statement of intent and indicates that Ms Reeves has been from one end to the other of a very steep learning curve with extreme rapidity.

Does it mean she was misquoted in the Observer article, and should she receive an apology from those of us who leapt down her throat? No.

There has been no suggestion that the article was inaccurate or unfair. The logical conclusion is that she said those words, and it is also logical to deduce that, had we not reacted so strongly, she might not have released the new statement.

It is unfortunate that, for many, the damage has been done. The Observer article was the first chance we had to see what the new Shadow Work and Pensions Secretary was thinking – and first impressions last. Her new statement seems like to go largely unreported. It should be noted that Tristram Hunt also made a fool of himself by supporting Michael Gove’s wasteful and elitist ‘Free Schools’ scheme. Hopefully Ed Miliband has accepted the need to make sure all of his Shadow Cabinet stay on-message from now until the next election. Reeves and Hunt should count themselves lucky to still have their new jobs.

But let’s not dwell on that. The new statement by Rachel Reeves has much to commend it, and is reproduced in full below. Your responses are invited.

Leading the debate on employment, poverty and social security.

Families facing a cost of living crisis want to know we have a social security system that is fair and sustainable, with costs kept under control but there for them when they need it.

The Tories seek to use every opportunity to divide this country and set one group of people against another. But their approach is failing – with the result that people are left out of work for year after year and costs to the country continue to rise. The Work Programme isn’t working, the roll-out of Universal Credit is in disarray, the Youth Contract has been a flop and there is mounting anger at the degrading and disgraceful treatment of disabled people by ATOS.

The complacent Tories are congratulating themselves about a long-delayed recovery. But almost a million young people are out of work. For those in work, increasing numbers of them aren’t being paid a living wage, are stuck on zero hours contracts or working part time when they want to work full time, and are being hit by soaring rents because levels of house building are so low – all of which drive up the benefits bill.

Labour will control the costs of social security by getting more people into work, rewarding work and tackling low pay, investing in the future, and recognising contribution. We’ll strive to make the right to work a reality for people with disabilities, working with them to design services and benefits that enable them to play their part.

A One Nation social security system will be one with responsibility at its heart – people receiving benefits who can work have a responsibility to look for work, prepare for work and take jobs that are available to them, but government has a responsibility to treat benefit recipients fairly and decently, help and support them and work with employers to ensure there are real job opportunities available.

Our compulsory jobs guarantees for young people and the long term unemployed, funded by repeating the tax on bank bonuses and limiting pensions tax relief for those on more than £150,000, would ensure there is work for under 25s out of work for more than a year and adults out of work for more than two years. These would be proper paid jobs – and people would be expected to take them or face losing benefits.

And unlike the Tories, we’ll put an effective cap on structural social security spending by getting tough on the causes of unemployment and rising benefit bills: low pay, lack of economic opportunity, shortage of affordable housing.

We would repeal cruel and counterproductive measures like David Cameron’s Bedroom Tax. I see constituents week in and week out with heart-breaking stories about how this policy is hitting them and their families. Around the country hundreds of thousands of vulnerable people, many of them disabled, are being penalised by this perverse policy which could end up costing more than it saves because of the distress and disruption it’s causing.

And we’ll keep up the campaign for the living wage, and for the economic reforms we need to ensure that prosperity is fairly shared and welfare is not a substitute for good employment and decent jobs.

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

14 Monday Oct 2013

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

≈ 13 Comments

Tags

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Are these the men who would be king?

23 Monday Sep 2013

Posted by Mike Sivier in Benefits, Business, Conservative Party, Corruption, Democracy, Disability, Employment, Health, Labour Party, Law, Liberal Democrats, People, Politics, Poverty, Public services, Tax, UK, unemployment

≈ 40 Comments

Tags

account, allowance, Andrew Lansley, Anne McGuire, Association of British insurers, Atos, benefit, benefits, Big Four, CCG, chief executive, clinical commissioning group, commissioning board, commissioning support unit, Conservative, csu, Department, despondency, DH, disability, Disability Living Allowance, disabled, disillusion, DLA, doctor, DWP, EC, Ed Miliband, employment, ESA, European Commission, George Osborne, government, health, Health and Social Care Act, Hong Kong, Incapacity Benefit, insurance, James Kingsland, John LoCascio, KPMG, Leicester, Liberal Democrat, Mark Britnell, Michael Andrew, Mike Sivier, mikesivier, misunderstanding, New thinking on the welfare state, NHS, no mercy, observer, Parliament, Pensions, people, Peter Lilley, politics, Pride's Purge, Reform, sick, social security, support, tax, tax avoidance, Tennessee, thierry breton, Thomas Ratjen, Tim Rideout, tom pride, Tories, Tory, Treasury, unemployment, unum, voluntary organisation, Vox Political, WCA, welfare, work, work capability assessment


Unelected rulers? Thomas Watjen of Unum, Thierry Breton of Atos, and Michael Andrew of KPMG. As things stand, whoever you support in 2015, these people will be behind them. Do you want that?

Unelected rulers? Thomas Watjen of Unum, Thierry Breton of Atos, and Michael Andrew of KPMG. As things stand, it seems whoever you support in 2015, these people will be behind them. Do you want that?

There is a certain kind of person who takes great delight in commenting on political blogs with a variant of the following:

“It’s no use voting! They’re all the same! It doesn’t matter what you vote for – a politician always gets in!”

No doubt you’ll be familiar with their work.

They are extremely annoying. Their insistence that all politicians are the same breed of pond scum does a huge disservice to those in public service who genuinely want to improve the lives of their fellow human beings; the fanaticism with which they disseminate their opinions may be seen as an attempt to stop ‘casual’ voters from bothering, thereby condemning the country to the current status quo.

Also, most annoyingly of all, they may have a point.

Take the three men pictured above. The one on the right is Michael Andrew, chairman of accounting firm KPMG. This is one of the ‘Big Four’ accountancies who are, among other things, involved in rewriting UK tax law for George Osborne at the Treasury, partly to suit their own desires as architects of the largest tax avoidance schemes currently available to corporations and wealthy individuals resident in the UK.

Today, thanks to an illuminating blog article by Tom Pride over at Pride’s Purge, we learn that KPMG has taken over the running of no less than a quarter of all the clinical commissioning groups (CCGs) that Andrew Lansley swore blind would be run by doctors when the Conservative-led Coalition government pushed through the NHS Privatisation Act of 2012 (otherwise known as the Health and Social Care Act).

The pretext for creating these organisations was that doctors were in the best position to commission health services in any part of England, as they had the detailed knowledge required to determine what was needed.

In fact it was well known that GPs would not be able to carry out this important work – it would be too much for them to take on in addition to their ‘day job’, and they simply did not have the necessary skills. Lansley knew this, and therefore knew that his law would open the door for private firms to take over.

This is borne out by an article in GP online which is now almost a year old; so readers should bear in mind that the current situation may be much further advanced. It stated that KPMG had confirmed the firm was working with “just over 50” of the 211 CCGs in England, along with 11 commissioning support units (CSUs).

The article indirectly quoted Tim Rideout, who said CCGs did not have the capacity to commission in an effective way.

This is an interesting revelation from the former chief executive of the NHS in Leicester City who was then seconded to the Department of Health as the senior responsible officer for the development of – guess what? – NHS commissioning boards. If the new commissioning groups don’t have the capacity to work properly, why didn’t he do something about it at the appropriate time?

Oh, wait. Here’s the answer: In March 2012, Mr Rideout was hired by KPMG as an associate director responsible for – who would have thought it? – commissioning.

In the same article, national clinical commissioning lead for England, Dr James Kingsland, said clinicians and GPs should not be involved in complex procurement, and added: “We are seeing a lot of misunderstandings, disillusionment and despondency.”

Mark Britnell, KPMG’s head of healthcare since 2009 – and another former NHS chief executive, was quoted by The Observer in 2011 as stating: “In future, The NHS will be a state insurance provider not a state deliverer”, and that “The NHS will be shown no mercy and the best time to take advantage of this will be in the next couple of years.”

The following day, KPMG released a statement in which he said the quotes did “not properly reflect” what he had said.

So we have a firm moving to take over CCGs, helped by the fact that its roster now includes the man responsible for setting them up in the first place. Going back to Tom Pride’s piece, he states that the situation chillingly reflects the way the Dutch health service was privatised in 2006. Provision of health services is being handed over to private companies, control of the health budget was handed over to private consortia made of doctors and consultants, but now those consortia are being taken over by private companies.

When private firms like KPMG run all CCGs, the Conservative plan to privatise the NHS will be complete. And the NHS, it seems, will be run by Michael Andrew, head of KPMG, from his base in Hong Kong.

But the rot doesn’t stop there.

Tom Pride correctly adds that the consulting arm of KPMG has been owned, since 2002, by another company – called Atos.

That’s right – Atos. The French firm run by Thierry Breton (pictured, centre).

The firm that Ed Miliband wants to fire from running work capability assessments for the DWP will still be involved in government work – at the Department of Health.

You see how this works? Let a private company inveigle its way into the plans of politicians and there’s no getting rid of it. Like the giant squid, it extends its pseudopods into every government department it can possibly contaminate, planting a sucker onto everything it thinks it can take for itself.

Over at the DWP, as everyone should know by now, Atos have been carrying out work capability assessments on claimants of Employment and Support Allowance. These were dreamed up by an insurance company called Unum, that has been working with the UK government – Conservative, Labour and Coalition – since Peter Lilley invited then-boss John LoCascio in, back in the early 1990s.

Unum is now run by Thomas Ratjen (pictured, left), who is based in Tennessee, USA. Its long-term aim seems to be the ruin of the British social security system, rendering it pointless for anyone to claim benefits. Instead, the plan appears to be to encourage working people to buy Unum insurance policies – which are themselves useless, as lawsuits in several US states have proved, while also giving the company a criminal record.

This blog recently revealed that it seemed Unum was trying to influence the policies of all three main UK political parties. The thinktank Reform, that has been part-funded by Unum, is running a fringe event at all three party conferences, entitled ‘New thinking on the welfare state’. This event was sponsored by the Association of British Insurers, which has Unum among its members.

Labour’s version of this event took place on Monday (September 23), hosted by Anne McGuire, shadow minister for disabled people.

She defended her role in an email today, as follows:

“I don’t know why you have been led to believe that I was hosting an event by Unum. For the record, I was speaking at a round table discussion with organisations which included the European Commission, voluntary organisations, insurance companies amongst others. As it was such a conversation, it was by invitation only as was the event I attended this morning organised though the Shaw Trust and Mencap. It is not unusual to have such events at party conference.

“I also spoke at an open meeting last night on the future of welfare reform and disabled people with many disabled people in attendance and participating.

“I am aware of the strong feelings on Unum and Atos. However I trust that you will appreciate that having discussions with a range of organisations should not be seen as anything other than that and in no way implies an endorsement of any particular company or organisation.”

It simply doesn’t ring true.

Let’s look at the context: This event was organised by a right-wing thinktank (they’re ideologically opposed to state-run social security systems) that has been sponsored by Unum; was about “new” thinking on the welfare state; was itself sponsored by the Association of British Insurers, of which Unum is a member; and representatives of insurance companies – and we’re willing to bet Unum was among them – took part in the behind-closed-doors discussion.

It seems clear that this event was intended to influence Labour Party policy away from providing a well-run and reasonable state benefit system, as was the case in the UK until Peter Lilley in the early 1990s, and towards dismantling that system to make way for a system based on privately-run insurance policies, such as those produced by Unum.

The fact that it is being mirrored at the other two party conferences clearly suggests that the firms involved want to influence all major British political parties in the same way. If successful, this would mean that it won’t matter who gets into office after the 2015 election; Unum will still be in power at the Department for Work and Pensions.

Just as KPMG will still be in power at the Treasury, and at the Department of Health, alongside its owner Atos.

And the three gentlemen pictured at the top of this article will be the unelected kings of the UK because, no matter which way you vote, they will be in charge.

Well now.

That would be a good place to end this article, but then, dear reader, you might be left thinking there is nothing you can do. There is something you can do.

You can write to your MP, to local newspapers, to the party leaders and the ministers running these government departments and you can bitch like hell about it!

The people of this country deserve elected representatives who are going to run this country by their own decisions, in the best interests of the citizens who voted for them – not employees of a dubious gang of unelected corporations, running this country in their own best interests and treating the citizens like dirt.

You can make a difference.

But you need to start now.

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Another Tory ‘bait-and-switch’ scam – shares-for-rights scheme is employers’ tax dodge

01 Sunday Sep 2013

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

≈ 5 Comments

Tags

'Starve the Beast', Another Angry Voice, avoidance, bait and switch, budget, capital gains, Coalition, congress, Conservative, Corporation Tax, debt, deficit, dodge, economy, employee owner, employee shareholder, evasion, flexible working, George Osborne, government, Mike Sivier, mikesivier, Mirror, OBR, observer, office, people, politics, redundancy pay, responsibility, rights, shares, social security, statutory, tax, Tories, Tory, trade, training, TUC, unemployment, unfair dismissal, union, Vox Political, welfare, work, workers


shares-rights-tax

“This government is taking action domestically on [tax] avoidance and evasion,” wrote George Osborne in an article for The Observer, back in February. How right he was.

The Tory-led Coalition has done everything in its power to facilitate tax avoidance and ignore evasion, it seems, including the latest wheeze, which is to link it with a feeble attempt to get working people to throw away their rights in exchange for a few shares.

The BBC has reported that the new status of “employee shareholder” has come into force, allowing working people to claim shares in the company that employs them, if they give up the rights to claim unfair dismissal and statutory redundancy pay, the right to request flexible working (except in the case of two weeks’ parental leave), and some rights to request time off for training.

Nobody in their right mind would do this and expert opinion is that take-up will be small. So why do it?

Well, it’s not about the workers at all. It’s about helping company bosses avoid paying their taxes. Even the right-wing-leaning BBC was unable to cover up the facts (although it left them until the end of the article):

“Companies can also claim some corporation tax deductions on the issuance of shares to employees.”

Yes – it’s a tax dodge!

Here’s how it works, according to the Mirror: “New analysis show[s] it could also allow executives to avoid paying revenue on company shares. Tax experts commissioned by the TUC believe ruthless bosses could classify themselves as ’employee owners’ to escape Capital Gains Tax. And the Office for Budget Responsibility estimates the scheme could cost up to £1 billion, mainly due to tax avoidance.”

This will, of course, involve a drop in tax income to the Treasury, meaning increases in the national debt and deficit, which the Tories will no doubt use to justify further cuts to public service budgets as part of their ‘Starve The Beast’ agenda. Remember, this country has a chancellor who, for ideological purposes, actually wants to harm the British economy.

Meanwhile, as our friend at Another Angry Voice has put it: “If you’re thick enough to cash in your labour rights for a few grand worth of shares in the company you work for, then in a couple of years time when people are calling you ‘feckless’ for being unemployed, you’ll be one of the minority that actually deserve it (and your shares might well be worth only pennies in the pound compared to the value they had when you scrapped your labour rights to get them).”

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Gauke’s attack should be a rallying cry for Labour

06 Tuesday Aug 2013

Posted by Mike Sivier in Conservative Party, Economy, Labour Party, People, Politics, Poverty, UK

≈ 13 Comments

Tags

alistair darling, attack, austerity, BBC, blacklist, Coalition, Conservative, cuts, David Cameron, David Gauke, Democrat, economy, Ed Balls, Ed Miliband, fall, George Osborne, Geraint Davies, Gordon Brown, Jack Lew, Labour, Liberal, lie, Matthew Hancock, mess, Michael Meacher, Mike Sivier, mikesivier, myth, never had it so bad, observer, Oxford Journal of Economic Policy, pay cut, spending, tax avoidance, The Independent, Tories, Tory, Treasury Secretary, Vox Political, wages, whistleblower, William Keegan, zero hours


Another fool who doesn't think before speaking: David Gauke, pictured here with jaws clamped shut in a desperate attempt to prevent his foot from leaping into his mouth. It would serve him right if his ill-judged attack on a Labour MP brings the entire party and all its supporters together for a concerted attack on the Conservative-led coalition's silly and baseless policies.

Another fool who doesn’t think before speaking: David Gauke, pictured here with jaws clamped shut in a desperate attempt to prevent his foot from leaping into his mouth. It would serve him right if his ill-judged attack on a Labour MP brings the entire party and all its supporters together for a concerted attack on the Conservative-led coalition’s silly and baseless policies.

Tory Treasury tax-avoidance fan and whistleblower-basher David Gauke’s attack on the Labour Party is yet another shot in the foot for the Government That Can Do Nothing Right.

His ill-judged, ill-timed remark that Labour MPs were “turning on each other” is more likely to galvanise Her Majesty’s Opposition into more co-ordinated and powerful attacks on Coalition ideology and incompetence – especially after we learned the Tory claim that they inherited an economic mess from the last Labour government was nothing more than a blatant lie.

“They don’t really have anything to say and they’re now turning on each other and I think their own backbenchers are beginning to realise that the Labour leadership haven’t really got a voice,” Gauke told the BBC in response to a piece by Labour’s Swansea West MP, Geraint Davies, in The Independent.

In doing so, it seems Gauke was trying to distract attention from what Mr Davies was actually saying – which is worth repeating here, because it is likely he speaks for a huge majority of Labour members who are becoming increasingly frustrated by the contradictory and self-defeating behaviour of their leaders.

So what does Mr Davies say?

First: “The electorate doesn’t yet see a clear choice between the parties on cuts vs growth.” This is because Labour has promised not to reverse Conservative-led ideological cuts and to keep spending at Tory-set levels for 2015-16, if returned to office at the general election – even though the Conservatives have decisively lost the argument on austerity. It simply isn’t necessary.

Second: “The Tories have been relentless in asserting that Labour messed up the economy. Not rebutting this charge makes us look like a shamefaced schoolboy admitting responsibility by omission.” Mr Davies makes a second good point here – more so because, as William Keegan reported in Sunday’s Observer, the spring issue of the Oxford Review of Economic Policy exonerates the last Labour government of any economic wrong-doing. Gordon Brown and Alistair Darling did the right thing – and it is worth reminding everybody that the Conservatives, at the time, supported their actions. That was when the Tories were led by – who’d have thought it? – David Cameron and George Osborne, just as they are now!

The Observer article went on to note that US Treasury Secretary Jack Lew has also endorsed the Labour government’s actions in his recognition that demand in our economies must be stimulated. Conservative-led Coalition policy has drained demand away. This is why the smart commentators are pointing out that the unforeseen upturn in the UK economy in recent months has nothing to do with government policy; it’s just that things had to get better, sooner or later.

Third: He puts up his opinion – that a Labour government should boost the UK’s productive capacity “by linking industry, universities and councils. We need a sharper focus on the growing export opportunities to China, India, Brazil and Russia. We must invest in homes and transport, use public procurement as an engine to grow small and medium-sized firms…. We need to continue a journey towards jobs and growth, not to be diverted into a cul-de-sac of more cuts.”

The last comment dovetails perfectly with the attack launched by Labour this week on the Coalition’s record – which claims the average worker will have lost £6,600 in real terms between the 2010 election and that due to take place in 2015.

Paraphrasing former Tory PM Harold Macmillan, Labour said many workers had “never had it so bad”, pointing out that David Cameron has presided over a more sustained period of falling real wages since 2010 than any other prime minister in the past 50 years.

The Tories’ only response has been to repeat the lie that the Coalition was clearing up a “mess” that we all now know for certain Labour neither created nor left.

Conservative business minister Matthew Hancock was the one voicing it this time, so voters in his West Suffolk constituency please note: This man is a liar. You must not trust him.

And of course David Gauke weighed in as well. He’s the minister in charge of tax – who was revealed to have worked for a firm specialising in tax avoidance. Do you trust him? He’s also the minister who reportedly green-lit a plan to discredit Osita Mba, a solicitor with HM Revenue and Customs, after he blew the whistle on the notorious Goldman Sachs “sweetheart” deal that wrote off millions of pounds in interest charges on tax owed to the UK Treasury by the multinational corporation. A trustworthy man?

David Gauke is the MP for South West Hertfordshire. Voters there may wish to reconsider their opinion of him.

What these chuckleheads are missing is the fact that Mr Davies is not a lone voice in the wilderness; his article expressed the opinions of a wide majority of Labour members and voters.

And it cannot be coincidence that only a day after his Observer article appeared, veteran Labour MP Michael Meacher weighed in on his blog with a few opinions of his own about what Labour’s leaders should be saying.

“Will the Labour party declare it is opposed to zero hours contracts and will end them?” he wrote (perhaps after reading the Vox Political article on that subject).

“Will it show it is opposed to blacklisting by making it an imprisonable offence, prosecuting the 44 companies who indulged in it if convicted, and making it sure that all the 3,213 building workers secretly subject to blacklisting are informed of the cause of their up to 20 years’ joblessness and fully compensated? Will it say loud and clear that a decade of pay cuts for those on the lowest incomes is flagrantly unjust when the 0.01 per cent richest have not only not paid any price, but have seen their wealth continue to grow untouched?”

This is the sort of fire Labour members and voters want to see from the leaders. There is nothing to fear from tissue paper-thin Tory arguments and outright lies. It is time to stand up for Labour principles, damn the Tories for their evil, damn the Liberal Democrats as fools and dupes, and set out a plan to get the ship of state off the rocks and into calmer waters.

If Ed Miliband, Ed Balls, and the rest of the Labour front bench have any sense, they’ll realise that continuing with the course they have set will put them in a tiny minority that cannot possibly hope to win the next election. Alignment with Geraint Davies, Michael Meacher and the millions like them should ensure an overwhelming victory.

It isn’t even a choice, is it?

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Iain Duncan Smith’s shirkers and scroungers: Soldiers, teachers and nurses

06 Sunday Jan 2013

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

≈ 4 Comments

Tags

allowance, benefit, benefits, children's, Coalition, compassionate, conservatism, Conservative, cut, David Cameron, david willetts, Department for Work and Pensions, DWP, fraud, government, health, Iain Duncan Smith, Jeremy Hunt, Jobseeker's Allowance, Jobseekers, Lib Dem, Liberal, Liberal Democrat, Michael Gove, Mike Sivier, mikesivier, Nick Clegg, nurse, nursery, observer, Parliament, pay, pension, people, politics, primary, regional, secretary, society, soldier, state, tax credit, teacher, Telegraph, Tories, Tory, unemployment, Vox Political, welfare, work


 

David Cameron, pictured in the Telegraph article: "I want to go on," he says, neglecting to add, "harming the honest, the hard-working, the strivers and the tryers of the UK. I want to go on rewarding the tax-dodgers, the bankers, the exploiters and Parliamentary scroungers. I want to go on deceiving the easily-led into believing that my way is the only way, and duping my Coalition partners into supporting my extreme right-wing policies until I can sling them into the gutter in 2015". Does that seem about right to you?

David Cameron, pictured in the Telegraph article: “I want to go on,” he says, neglecting to add, “harming the honest, the hard-working, the strivers and the tryers of the UK. I want to go on rewarding the tax-dodgers, the bankers, the exploiters and Parliamentary scroungers. I want to go on deceiving the easily-led into believing that my way is the only way, and duping my Coalition partners into supporting my extreme right-wing policies until I can sling them into the gutter in 2015”. Does that seem about right to you?

Apparently ‘Compassionate Conservatism’ doesn’t extend to people in certain professions.

According to a new analysis by The Children’s Society published in The Observer, almost half a million soldiers, teachers and nurses will lose hundreds of pounds every year when the Coalition’s latest benefit cut comes into force.

The cap of one per cent on benefit and tax credits upratings over the next three years means up to 40,000 soldiers will be worse-off: A second lieutenant in the army with three children, earning £470 a week and whose wife does not work will lose £552 per year.

Around 150,000 primary and nursery school teachers will lose out: A couple with two children where the sole earner is a primary school teacher earning £600 per week will lose £424.

But the majority of losers in the professions will be nurses – 300,000 of them. A lone-parent nurse with two children, earning the profession’s average of £530 per week, will lose £424 per year.

For a government that likes to state “We love the NHS”, the Coalition seems to really enjoy attacking nurses and trying to cover it up. By December 13 last year, 7,134 nursing posts had been lost since the Coalition came into power, 943 in the previous month alone. But when the issue was raised in Parliamentary debate, Health Secretary and gynaecological slang-term Jeremy Hunt did his level best to avoid giving a straight response. “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 didn’t tell us how many nurses had lost their jobs. So we got: “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.”

Perhaps there’s some deep-seated childhood trauma affected all the members of the Coalition government, that makes them want to persecute nurses and then try to cover it up? Whatever the case, I’m sure the facts would form the skeleton of a terrific little crime thriller.

Don’t be fooled by the fact that the government will be debating an increase of one per cent in benefits this year. With inflation at 2.7 or 3.2 per cent, depending on which system you use, that’s a real-terms cut of two per cent every year for the next three years.

I’d like to draw your attention to the fact that these figures were compiled by The Children’s Society, meaning they relate only to working parents. The one per cent cap on benefit rises will hit single working people as well – we just don’t have the figures for them yet.

The figures make a nonsense of Iain Duncan Smith’s increasingly desperate claims that his policy of cuts and persecution to achieve lower take-up of welfare benefits is fair.

The Tories have now alienated working people and those on benefits. Who’s next, do you think? I reckon pensioners had better prepare for the worst!

Remember last week, when he trotted out a roll of fabricated figures to make it seem that the tax credit system had run out of control under Labour (tax credits are among the benefits to be capped at one per cent)? It turns out that all his figures were wrong, with his claims about fraud – which stands at less than one per cent of total claims – spectacularly inaccurate.

How about the very next day, when he was dribbling about the relative percentage rises in Jobseekers’ Allowance and private sector salaries, claiming that the unemployed were getting a far better deal than workers – only to be rebuffed when we all checked how much this was in real money, found out that workers were still making far more (although not enough – remember many employers pay so little that people working full-time still have to claim state benefits, so that’s a subsidy for private companies, being paid out of our taxes). The amount paid in benefits as a proportion of average wages has stayed the same, as it should. The Work and Pensions Secretary is hell-bent on breaking that link in order to inflict real harm on Britain’s poorest.

Does anybody remember the Tory slogan “Broken Britain”? What they didn’t tell us was that they were the ones who wanted to break us!

And now David Cameron has told the Telegraph he wants to be Prime Minister for another full term, from 2015 to 2020. If he manages that feat, he will no doubt face pressure from some of his own cabinet members to inflict further harm on those receiving benefits.

For example, a group of 70 Tory MPs including Michael Gove and David Willetts have published an agenda of policies that one minister has already – according to the Torygraph – described as a “blueprint” for the party’s next general election manifesto.

It includes plans to lengthen the school day “to help working parents” – how do you like that, all you teachers who are losing benefits this year? You can rest assured that your pay won’t increase to cover the extra hours!

And it calls for benefits to be cut for people who live in the North, and other parts of the country where the cost of living is lower. They love regional pay, don’t they? And they WILL drive it through, no matter how much of the population oppose it!

For a representative selection of citizens’ opinions about this, I suggest you visit the MSN news site’s version of this story where (when I looked last night) the Comment column was unanimously opposed to Cameron continuing. That’s something like 20-odd pages of people demanding that he be ousted at the first opportunity.

It did my heart good to see that.

The sad truth is that none of the above will change the result of the debate and vote on benefits uprating, due to take place in the House of Commons on Tuesday.

As long as the Tories have the support of Nick Clegg’s Liberal Democrats, they have a majority and can vote through any ludicrous and harmful policies they please.

The only thing I can suggest is that you all email your MPs in advance of the debate and put pressure on them to do the right thing – or account for their decision if they vote with the government – especially if you live in the North, or in rural areas!

As ever, you can find your MP’s contact details here: http://www.parliament.uk/get-involved/contact-your-mp/

Follow me on Twitter: @MidWalesMike

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