Do YOU feel as prosperous as you were before the crisis?

Tags

austerity, BBC, benefit, borrowing, bubble, David Cameron, dead, death, deficit, die, economy, Ed Balls, EU, Europe, exchange rate, expensive, export, food bank, G7, GDP, government, groceries, grocery, Gross Domestic Product, grow, Guardian, help to buy, housing, Huffington Post, Iain Duncan Smith, IMF, inflation, International Monetary Fund, Investment Partnership, John Mills, Keith Joseph, Lynton Crosby, Mandatory Work Activity, manufacture, manufacturing, Margaret Thatcher, national Statistics, neoliberal, Nicholas Ridley, office, ONS, peak, pre-crisis, prosper, purge, re-balance, sanction, shopping, Transatlantic Trade, TTIP, unemployment, union, Universal Credit, Workfare

[Image: David Symonds for The Guardian, in February this year.]

Britain has returned to prosperity, with the economy finally nudging beyond its pre-crisis peak, according to official figures.

Well, that’s a relief, isn’t it? Next time you’re in the supermarket looking for bargains or mark-downs because you can’t afford the kind of groceries you had in 2008, you can at least console yourself that we’re all doing better than we were back then.

The hundreds of thousands of poor souls who have to scrape by on handouts from food banks will, no doubt, be bolstered by the knowledge that Britain is back on its feet.

And the relatives of those who did not survive Iain Duncan Smith’s brutal purge of benefit claimants can be comforted by the thought that they did not die in vain.

Right?

NO! Of course not! Gross domestic product might be up 3.1 per cent on last year but it’s got nothing to do with most of the population! In real terms, you’re £1,600 per year worse-off!

The Conservatives who have been running the economy since 2010 have re-balanced it, just as they said they would – but they lied about the way it would be re-balanced and as a result the money is going to the people who least deserve it; the super-rich and the bankers who caused the crash in the first place.

You can be sure that the mainstream media won’t be telling you that, though.

Even some of the figures they are prepare to use are enough to cast doubt on the whole process. The UK economy is forecast to be the fastest-growing among the G7 developed nations according to the IMF (as reported by the BBC) – but our export growth since 2010 puts us below all but one of the other G7 nations, according to Ed Balls in The Guardian.

And it is exports that should be fuelling the economy, according to JML chairman John Mills in the Huffington Post. He reckons the government needs to invest in manufacturing and achieve competitive exchange rates in order to improve our export ability.

“Since most international trade is in goods and not in services, once the proportion of the economy devoted to producing internationally tradable goods drops below about 15 per cent, it becomes more and more difficult to combine a reasonable rate of growth and full employment with a sustainable balance of payments position,” he writes.

“In the UK, the proportion of GDP coming from manufacturing is now barely above 10 per cent. Hardly surprising then that we have not had a foreign trade surplus balance since 1982 – over thirty years ago – while our share of world trade which was 10.7 per cent in 1950 had fallen by 2012 to no more than 2.6 per cent.”

All of this seems to be good business sense. It also runs contrary to successive governments’ economic policies for the past 35 years, ever since the neoliberal government of Margaret Thatcher took over in 1979.

As this blog has explained, Thatcher and her buddies Nicholas Ridley and Keith Joseph were determined to undermine the confidence then enjoyed by the people who actually worked for a living, because it was harming the ability of the idle rich – shareholders, bosses… bankers – to increase their own undeserved profits; improvements in working-class living standards were holding back their greed.

In order to hammer the workers back into the Stone Age, they deliberately destroyed the UK’s manufacturing and exporting capability and blamed it on the unions.

That is why we have had a foreign trade deficit since 1982. That is why our share of world trade is less than one-third of what it was in 1950 (under a Labour government, notice). That is why unemployment has rocketed, even though the true level goes unrecognised as governments have rigged the figures to suit themselves.

(The current wheeze has the government failing to count as unemployed anyone on Universal Credit, anyone on Workfare/Mandatory Work Activity and anyone who whose benefit has been sanctioned – among many other groups – for example.)

You may wish to argue that the economy is fine – after all, that’s what everybody is saying, including the Office for National Statistics.

Not according to Mr Mills: “The current improvement in our economic performance, based on buttressing consumer confidence by boosting asset values fuelled by yet more borrowing, is all to unlikely to last.”

(He means the housing bubble created by George Osborne’s ‘Help to Buy’ scheme will burst soon, and then the economy will be right up the creek because the whole edifice is based on more borrowing at a time when Osborne has been claiming he is paying down the deficit.)

Ed Balls has got the right idea – at least, on the face of it. In his Guardian article he states: “We are not going to deliver a balanced, investment-led recovery that benefits all working people with the same old Tory economics,” and he’s right.

“Hoping tax cuts at the very top will trickle down, a race to the bottom on wages, Treasury opposition to a proper industrial strategy, and flirting with exit from the European Union cannot be the right prescription for Britain.” Right again – although our contract with Europe must be renegotiated and the Transatlantic Trade and Investment Partnership agreement would be a disaster for the UK if we signed it.

But none of that affects you, does it? It’s all too far away, controlled by people we’ve never met. That’s why Balls focuses on what a Labour government would do for ordinary people: “expanding free childcare, introducing a lower 10p starting rate of tax, raising the minimum wage and ending the exploitative use of zero-hours contracts. We need to create more good jobs and ensure young people have the skills they need to succeed.”

And how do the people respond to these workmanlike proposals?

“You intend to continue the Tories’ destructive ‘austerity’ policies.”

“The economy isn’t fixed but you broke it.”

There was one comment suggesting that all the main parties are the same now, which – it has been suggested – was what Lynton Crosby told David Cameron to spread if he wanted to win the next election.

Very few of the comments under the Guardian piece have anything to do with what Balls actually wrote; they harp on about New Labour’s record (erroneously), they conflate Labour’s vow not to increase borrowing with an imaginary plan to continue Tory austerity policies… in fact they do all they can to discredit him.

Not because his information is wrong but because they have heard rumours about him that have put them off.

It’s as if people don’t want their situation to improve.

Until we can address that problem – which is one of perception – we’ll keep going around in circles while the exploiters laugh.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Buy Vox Political books!
Health Warning: Government! is now available
in either print or eBook format here:

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

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:

Advertisements

Tories are using the poor for medical experimentation

Tags

approve, chemical, chemist, companies, company, Conservative, deprived, drug, experiment, firm, guinea pig, health, ill, Jeremy Hunt, licence, life, live, market, medical, medicine, national, office, ONS, pharmaceutical, poor, profit, secretary, short, statistics, Tories, Tory, trial

Seal of approval: We asked TV doctor House MD whether he foresaw any problems with the Early Access to Medicines scheme. “Nuh-uhrr,” he replied.

Concern has been raised over a plan announced by Health Secretary (and misprint) Jeremy Hunt to give new medicines to people who are severely ill, years before they are licensed.

In comparison, little has been said about findings by the Office for National Statistics (ONS) showing that people in deprived areas live shorter lives and spend more of those lives in poor health.

There is an obvious conclusion to be drawn from this:

If poorer people spend more time in ill health, then they are more likely to be given experimental drugs before those treatments are clinically proven.

In other words, the Conservative-led government is using the poor as guinea pigs for drug trials.

The BBC quoted Mr Hunt: “What patients want is sometimes to try medicines that may not be clinically proven to be effective but are clinically safe. We are streamlining the process so these medicines can be used much earlier – particularly if they have early promise – and that is something which will bring hope to a lot of patients.”

How does he know these medicines are safe? How does he know that people want them? How does he know that they’ll do what they say? He doesn’t.

This shows what he wants – to make the UK a profitable place for pharmaceutical companies by giving them a market for drugs that could be completely useless – or could have unforeseen effects.

It’s more marketisation for our once-great NHS.

Long-term readers will be aware that Mrs Mike has been receiving treatment from the NHS in England, including injections to alleviate the severe back pain from which she suffers.

I asked her if this announcement was worrying for her – as a poor person who has spent much of her life in ill-health.

“Nuh-uhrr,” she said. That seemed conclusive, so I threw her lunchtime slab of raw meat into the cage and locked the door before she could reach me.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political really 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 the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

Cameron’s ‘mission’ is morally bankrupt

Tags

allowance, attack, bankrupt, benefit, bishop, catholic, claimant count, Coalition, Conservative, Customs, David Cameron, death, debt, deficit, Department, destitute, destitution, dole, DWP, employment, ESA, evidence, expense, fraud, government, health, HM Revenue, hmrc, holiday, hope, hunger, Iain Duncan Smith, IB, IDS, Incapacity Benefit, Job Centre Plus, jobseeker, long term economic plan, Mike Sivier, mikesivier, mission, moral, mortality, national Statistics, office, ONS, opportunity, overpaid, overpayment, pension, Pensions, people, politics, punitive, purpose, Reform, responsibility, returned to unit, right, RTU, safety net, sanction, self employ, social security, support, Tories, Tory, travel, Universal Credit, Vincent Nichols, Vox Political, welfare, Westminster, work, Workfare, Working Tax Credit

When David Cameron stands up in all his hypocrisy and tells you that tearing apart the basic safety net that guaranteed people would not be left in hunger or destitution is part of his “moral mission”, even die-hard Tories should agree that the country has taken a turn for the worse.

When he defends an administration that has become so punitive that applicants who don’t get it right have to wait without food for months at a time, by claiming he is doing “what is right”, even die-hard Tories should agree that the man who claims he is Prime Minister has diverged from reality.

That is precisely what he has done, and you can bet that the Tory diehards will quietly go along with it because they think it is far better for other people to lose their lives than it is for their government to lose face.

Cameron has been responding after the Catholic Bishop of Westminster, Vincent Nichols, delivered a vehement attack on the social security “reforms” being forced on the country’s most vulnerable people by Iain Duncan Smith.

In the Daily Telegraph, Cameron smarmed: “Our long-term economic plan for Britain is not just about doing what we can afford, it is also about doing what is right… Nowhere is that more true than in welfare. For me the moral case for welfare reform is every bit as important as making the numbers add up.

“We are in the middle of a long and difficult journey turning our country around,” Cameron said. “That means difficult decisions to get our deficit down, making sure that the debts of this generation are not our children’s to inherit.

“But our welfare reforms go beyond that alone – they are about giving new purpose, new opportunity, new hope – and yes, new responsibility to people who had previously been written off with no chance.

“Seeing these reforms through is at the heart of our long-term economic plan – and it is at the heart too of our social and moral mission in politics today.”

Drivel. Any evidence-based analysis will find the exact opposite. Where are the opportunities in Workfare schemes that pay only benefits, meaning travel expenses alone put claimants out of pocket, and then send jobseekers back to the dole queue so rich companies can profit further by taking on more claimants on the same terms?

How can anyone derive hope from taking responsibility for their job search, when DWP staff at Jobcentre Plus are ordered to ignore their own responsibilities in favour of harsh sanctions for invented infringements of the Jobseeker’s Agreement?

And how is encouraging people to say they are self-employed, even though they have little chance of earning enough to support them and none of enjoying a holiday or a pension, different from writing them off with no chance?

Look at the new employment figures from the Office for National Statistics – the Coalition government has been making a song and dance about them ever since they came out. On the face of it, they seem reliable: In December 2013, 30.15 million people were in work of some kind, up by 396,000 from the same time the previous year; there were 2.34 million unemployed, down 161,000 from December 2012; and the Claimant Count (those on Jobseekers’ Allowance) was 1.22 million in January, down 327,000 from a year earlier.

However, the number of people marked as self-employed has rocketed to a record level, totalling one in seven of the workforce. That’s 4,370,000 – up 150,000 on the previous year. This is extremely suspicious, as the increase in the previous year totalled 25,000 – just one-sixth of this week’s figure.

Some of these people might be genuinely self-employed and making their new business work – but all of them? In an economy where productivity hasn’t increased since the Coalition took office? You’d have to be stupid to believe that.

Assuming the amount of real self-employment has increased in line with economic growth (at 1.9 per cent), that’s an extra 25,475 in 2013, leaving 124,525 in limbo. Are these really self-employed? Or were they told by Jobcentre advisors to say so and claim working tax credits (as we’ve seen in the past), leading to a huge debt when HMRC tells them they have been claiming fraudulently and have been overpaid?

How many of the unemployed have been wiped off the books due to sanctions? We don’t know, because we don’t have figures up to December 2013. We do know that 897,690 sanctions were enforced in the year to September 2013. We don’t know how many were for one month, how many for three months or how many for three years, but we do know that the rate was six per cent of jobseekers per month in the three months to the end of September 2013. Assuming that rate stayed solid, it suggests that 73,200 were off-benefit due to sanctions in December and should be added to the Claimant Count to give a more accurate figure.

How many of the unemployed have been wiped off the books due to Workfare? We don’t know. How many are unemployed but on Universal Credit, which isn’t included in the Claimant Count? We don’t know – 3,610 were on it at the end of November last year, but the DWP has not divided them into those in work and those without.

David Cameron has access to all of this information, and he doesn’t care. He also has access to the mortality figures for claimants of Incapacity Benefit/Employment and Support Allowance, that the DWP has been withholding from the rest of us, probably for fear of sparking an international outcry. He doesn’t care about that either.

His comments are therefore doubly outrageous – not only is he claiming that his Coalition’s changes are having a beneficial effect when the figures demonstrate the opposite, but he is also claiming the moral high ground when his actions are more appropriate to the populace of the Pit.

In terms of his morality, there can be only one description for him and his cronies:

Bankrupt.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political is an independent political blog.
We don’t receive any funding other than contributions from readers.
Vox Political cannot continue without YOUR help.
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:

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

Tags

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

[Image from a post on Facebook]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

This was deliberate, premeditated disinformation.

Now the deception has been uncovered, they are unrepentant.

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

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political deplores criminal activity – especially by the government.
But the site needs funds if it is to continue exposing this behaviour.
In short: Vox Political cannot continue without YOUR help.
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:

Workers blamed for sinking wages by Tory-controlled BBC

Tags

BBC, blame, Coalition, Conservative, cost of living, David Cameron, Democrat, drop, earning, economy, employment, fall, fiscal, government, House of Commons Library, IFS, inflation, Institute, Jonty Bloom, Lib Dem, Liberal, manufacturing, Mike Sivier, mikesivier, national, office, ONS, part-time, people, plausible deniability, politics, real, self-employed, service, statistics, Studies, Tories, Tory, Vox Political, wage, work, worker, zero hours

Congratulations are due to BBC business body Jonty Bloom, who should get an award for the bilge he blathered to justify the fact that the Conservatives and Liberal Democrats have engineered the longest drop in wages for 50 years.

He blamed employees, saying that they weren’t productive enough.

The Office for National Statistics had reported that real wages have fallen by 2.2 per cent every year since David Cameron took over as Prime Minister in 2010 and, as the Tory’s mass-media mouthpiece, the BBC seem to have tasked Mr Bloom with finding plausible deniability for the Coalition, so that ministers won’t have to take responsibility.

Real wages are worked out by taking the rising cost of living into account while calculating the value of earnings.

The ONS report followed one from the Institute for Fiscal Studies on Thursday, suggesting that a mid-range household’s income between 2013-14 was six per cent below its pre-crisis peak.

Both of these reports were latecomers to this particular party, though. A Labour Party report from August 2013 stated that prices had risen faster than wages in all but one month of Cameron’s premiership – April 2013, when he cut taxes for millionaires and bank bonuses soared. The overall fall in annual real wages was £1,350 at the time that report was written.

The Labour report went on to say that figures from the House of Commons Library forecast that, after inflation, wages will be £1,520 lower in 2015 than in 2010, meaning working people, on average, will have lost £6,660 in real terms during the Coalition Parliament.

You’ll notice the BBC report only provides percentages. Interesting, that.

Over at the BBC, Mr Bloom tried to convince us that “workers have, on average, been working fewer hours during the downturn and that in turn has meant that they are earning less.

“The wage an employer pays… will be based on the productivity of the employee. So if a firm’s output falls, it will respond by reducing either the level of wages or the number of people employed in order to maintain its viability… Many firms seem to have held on to staff but output per hour worked fell, putting downward pressure on wages.”

He also suggested that a shift from higher-paid manufacturing jobs to lower-paid service jobs had contributed.

Sadly for Mr Bloom, we can punch holes through all of his arguments. Firstly, this is the government that insisted private sector jobs growth would outweigh the loss of public sector jobs it was going to inflict on the country. That claim alone suggests that ministers may have pressurised firms to keep employees in-post.

But the downturn meant there was less demand for firms’ products. How could they remain viable? Answer: Cut the hours worked by employees. Could this be the reason part-time and zero-hours contracts have exploded during the course of this Parliament? Part-time workers have fewer holiday entitlements and do not cost employers as much in National Insurance. Zero-hours workers are only called when they are needed and therefore the firm’s overheads are hugely reduced. Bosses benefit while workers go without.

Could this also be why firms have hired outside contractors on a self-employed basis, paying them a set amount per job, no matter how long it takes, in order to bypass the minimum wage law? Contractors earn less than the minimum wage but work far longer hours (without upsetting Mr Bloom’s average).

The productivity of a worker depends on how long they are working; part-time or zero-hours employees work for less time and therefore their productivity cannot be anything but lower than a full-time worker. Self-employed contractors’ pay is fixed in companies’ favour from the start. Mr Bloom’s argument is based on a wages fiddle.

Oh, and that shift from manufacturing to the service industries? Isn’t that something the Conservative-led Coalition has vowed vehemently to reverse, while doing spectacularly little about it? I think it is.

One personal note: My own experience as an employee suggests that firms’ financial woes have far more to do with the idiotic decisions made by executives than with the output of employees. Changes in the market do not lead to inventive and innovative responses; instead, the workers are penalised with lower wages or unemployment. This puts firms in a slow death spiral as continual erosion of the workforce makes managers increasingly less able to cope with the challenges that, unaddressed, rack up against them.

So congratulations, Jonty. You carry on blaming the workers if you want. It won’t make a scrap of difference because the real problems lie with the decisions made by company execs, responding to stupid Tory policies.

What a shame you can’t say anything about that because your employers are so utterly under the Tory thumb.

Vox Political works to ensure YOU read the facts.
But this cannot be done without funds.
That’s why Vox Political needs YOUR help to continue.
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:

Victims tell how they were unfairly knocked off sickness benefits

Tags

allowance, bedroom tax, benefit, Centre, CESI, Conservative, contribution-based, David Cameron, debt, Department, disability, disabled, DWP, economic, employment, ESA, fuel, government, housing benefit, Iain Duncan Smith, IDS, Incapacity, Inclusion, income related, Income Support, Jobseeker's Allowance, married, Mike Sivier, mikesivier, minimum wage, national, office, ONS, Pensions, people, politics, poverty, sick, social, social security, statistics, Steven Dix, support, tax credits, Tories, Tory, unemployment, victim, Vox Political, welfare, Wonga, work, working

‘Have 230,000 sick and disabled people been wrongly knocked off-benefit and forgotten?’ That was the question posed on this blog just two days ago, based on an analysis of statistics from the ONS and CESI. Without more input from the Department for Work and Pensions it is impossible to answer the question – but two former claimants have come forward with stories that support the allegation.

“I’m one of them!” wrote Steven Dix on Twitter. “My wife and I are now £400 a month worse off, with IDS’ ‘help’!”

He explained: “When I was on Incapacity Benefit it was indefinitely – then came ESA.”

Mr Dix was put on contribution-based ESA totalling £97 per week – but this only lasts for a year. After that, “I was told that my wife, who is on minimum wage at Asda, earns too much for me to get income-related ESA.

“We were told we could only apply for Working Tax Credits, but guess what? Because I got ESA in the tax year 2013/14 we don’t get anything until tax year 2014/15 when we will have to apply again, and we can’t have anything backdated until then!

“We married on September 3, 2013; we did not qualify for housing benefit between then and December 25, 2013 and so now have £400 rent arrears to make up, and I have to find another £68 for overpayment of housing benefit (the bedroom tax) to pay back for that period too!”

Mr Dix stated that he had been made to feel like a criminal. “My crimes? I’m disabled and got married!

“The government keep on about how they’re helping working taxpayers and how they are helping married couples like my wife and I, but I really am wondering how much worse things would be if we weren’t getting David Cameron’s ‘help’!

“Now of course I have no independant income, I’m unable to work, and only have £168 DLA at the lower rate per month, half of which goes to Wonga.com!”

So this victim clearly deserves sickness benefit because he is unable to work, but has been denied it because of the arbitrary 365-day limit on contribution-based ESA; his low-paid wife can’t claim Working Tax Credits because of a legal loophole and so they have had to take money from a payday loan firm – the one that famously contributes to Conservative Party funds.

How convenient for Wonga.com and the Tories. How devastating for Mr Dix and his wife.

On Facebook, a person going by the moniker Nomine Deus tells us: “I was kicked off-benefit (long term Incapacity) in 2012.

“I am not eligable for Jobseekers [Allowance] or Income Support as my wife works and is paid just over the qualifying amount for one and works too many hours for the other. I live out in the sticks and would be forced to travel to sign on at my own expense and then put onto workfare etc, again at my own expense (or rather my wifes expense). I am forced, therefore, not to sign on at all.

“We are already in fuel poverty and struggling financially. I am still suffering my original condition. I believe there must be many like myself out there.”

These are only two stories of people who have fallen through the holes Iain Duncan Smith has created in what used to be the safety net of social security.

Who can doubt that there are many, many more?

Vox Political does not get benefits!
The site needs YOUR help to continue.
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:

Duncan Smith weighs in with support for Tory bid to impose right-wing bias on BBC

Tags

BBC, bedroom tax, bias, Capital Gains Tax, Cardiff University, Conservative, Corporation Tax, Damian Green, Department, DWP, Grant Shapps, Iain Duncan Smith, immigration, Inheritance Tax, Mike Sivier, mikesivier, minister, national, office, ONS, Pensions, returned to unit, right-wing, RTU, secretary, social housing, social security, spare room subsidy, statistics, tax avoidance, tenant, Tories, Tory, under occupy, unemployment, Vox Political, welfare, window tax, work

The Secretary-in-a-State about Work and Pensions, Iain Duncan Smith, has joined Grant Shapps in attacking the BBC with entirely fictitious claims that it has a left-wing bias.

Smith, affectionately known as ‘RTU’ or ‘Returned to Unit’ by this blog because of doubts about his achievements in the Army, is a serial spreader of falsehood, as has been documented here many times.

It seems he missed his true vocation and should have been a farmer; he spreads muck so vigorously.

And this is the case today. The Daily Mail has reported in its usual bombastic style that RTU is angry because the BBC keeps describing his charge on social housing tenants who the government deems to be “under-occupying” their homes as a “bedroom tax”.

His “furious” letter states that the corporation has been misleading viewers because the phrase is “innately politically and indeed factually wrong”.

Oh, is it, Iain?

Let’s have a look at his reason for saying this: “A tax, as the Oxford English Dictionary makes clear, is a ‘compulsory contribution to state revenue, levied by the  government on workers’ income and business profits, or added to the cost of some goods, services and transactions’.”

That’s right – and the state under-occupation charge (to give it it’s correct title) is a compulsory contribution to state revenue, added to the cost of a service. In this case, the service is rental of a dwelling. There can be no doubt that the contribution is compulsory, and it is clearly the state that receives (or rather, keeps) the money.

It is a tax. And we can say that, since the number of spare bedrooms in a dwelling is used to apply the charge, it is a bedroom tax. It’s the same principle as was used to describe the ‘Window Tax’ of the 19th century or thereabouts.

Some pundits have stated that it cannot be a tax because it is not paid by everybody, but this is also nonsense. Does everybody pay Inheritance Tax, or Capital Gains Tax? No. Even the corporations don’t pay Corporation Tax any more, according to all the reports we hear about tax avoidance!

And it may also be stated that the BBC is simply reflecting public parlance in its use of the phrase. People do not talk about the “underoccupation charge” or the “removal of the spare room subsidy” – they talk about the Bedroom Tax.

So RTU can whine all he likes; the BBC is factually correct in using the phrase, and it also reflects public custom in doing so.

His letter continues by claiming the BBC has adopted the language of the Opposition, stating, “We do not believe it is the job of the BBC to use misleading terms and promote the views of the Labour Party.”

Again, he is wrong to claim that the BBC has a left-wing bias. You may get tired of reading this, Dear Reader, but research by Cardiff University has shown that “The BBC tends to reproduce a Conservative, Eurosceptic, pro-business version of the world, not a left-wing, anti-business agenda”. Read the report for yourself.

The Daily Mail goes on to report that former Immigration Minister Damian Green has been unhappy with the Beeb’s reporting of immigration data, saying it was “mystifying” that a 36,000 drop in migration was described as “slight”.

But it is Mail readers who should be mystified at this claim. Didn’t they read, only last month, that more than two million immigrants have been given British passports since 2000 – one every two and a half minutes? Was this not accurate? In comparison to that figure, 36,000 is indeed “slight”.

And Mr Green might have had a little more sympathy for the BBC report if he had bothered to read the latest information on immigration by the Office for National Statistics, which stated that a drop of 39,000 long-term migrants between December 2011 and December 2012 was “not a statistically significant fall”. This is the information used by his government.

Of course we all know the reason for this latest round of BBC-bashing – the Tories are putting out a ‘marker’ for the general election.

They are telling the BBC, in no uncertain terms: “Behave. We don’t want any trouble from you in the run-up to May 2015 – just nice stories saying how great we are. Otherwise it will go badly for you after the election.”

Considering the evidence that the BBC already has a right-wing, Conservative-supporting viewpoint, it would be perfectly understandable if any high-ranking member of the corporation, receiving that message, did the exact opposite.

These Tories are ungrateful. They should know it is impossible for the BBC to hide the vast amount of cock-ups, miscalculations and intentional harm they have inflicted on the nation in the last three years. Attempted intimidation can’t alter the facts.

But then, threats are a part of the Tory way of life – especially for Iain Duncan Smith.

That is clear to anyone who has spent a few months signing unemployed at a Job Centre.

If the economy is in recovery, why does it still feel like recession?

Tags

BBC, benefit, benefits, bubble, build, Coalition, compassionate, Conservative, construction, corporate, corporation, cost of living, debt, deficit, Department, Department for Work and Pensions, DWP, economy, Ed Balls, evict, financial crisis, food bank, George Osborne, Gideon, government, Graeme Leach, help to buy, house, inflation, Institute of Directors, manufacturing, Mike Sivier, mikesivier, mortgage, national, office, ONS, Pensions, people, politics, production, prosperity, recession, recovery, repossess, retail, services, statistics, tax, tax haven, Tories, Tory, Vox Political, wage, work, Workfare

Path to prosperity? If the economy has been growing for the last nine months, why has food bank use almost tripled during the last year?

No doubt Gideon George Osborne will spend the next few days (if not weeks and months) crowing about the figures from the Office for National Statistics that say the British economy has grown for a third successive quarter.

He has already tweeted, “This shows that Britain’s hard work is paying off & the country is on the path to prosperity.”

The construction industry has grown by 2.5 per cent on the previous quarter, with house builders buoyed up by Gideon’s Help to Buy scheme, which offers (unsupported) mortgage guarantees to buyers and lenders. He has promised to divert £12 million to this, but has not said where he will find the money.

Critics have warned that this is simply creating another housing-fuelled debt bubble that will burst in a couple of years’ time, leaving even more people in debt than after the financial crisis hit us all.

Has this growth generated work for electricians, plumbers, plasterers, roofers? If so, are they being paid fairly? These are the people who will take their disposable income back into the wider economy, for the benefit of other businesses.

Production (including manufacturing) and services are both on the up as well. The BBC report says nothing about retail. But if this good news is true, why is the Department for Work and Pensions determined to expand its Workfare scheme, as laid out in a Conservative conference announcement and by an article reblogged here.

Shadow Chancellor Ed Balls welcomed the signs of growth in the ONS report but warned: “For millions of people across the country still seeing prices rising faster than their wages, this is no recovery at all.”

He is right, of course. Look at the rise and rise of food banks, which have seen a massive rise in attendances from even working people – whose wages simply don’t cover the cost of living. Benefits are, of course, being cut back by our “compassionate” Conservative-led government.

They say there’s no money for it but – if the economy is surging back into growth – where are all the tax receipts from the big corporates that are profiting?

Oh yes – they’re safely closeted in the tax havens that Mr Osborne kindly opened up for them. Ordinary, working, and poor people have to use their own limited funds to pay off a Conservative-run national deficit, presumably because Tories think the rich, who caused the problem, shouldn’t have to pay for services they don’t use.

And the Institute of Directors’ chief economist, Graeme Leach, warned that there are “strong headwinds” restricting the possibility of further growth, including “debt and inflation” which are “rising faster than earnings”.

That’s right. Only yesterday, Yr Obdt Srvt was talking with a gentleman who – despite having a full-time job – has fallen so severely into debt that he has had to cut his expenditure down to nothing but taxes, the vital utility bills (water but not heating), and rent. He has no budget for food and faces the possibility of having his belongings, such as his car, repossessed – and even eviction.

Is he on the path to prosperity, Mr Osborne? Of course not. This report is merely further proof that you were lying when you said, “We’re all in it together” – as you did (again) at the Conservative conference.

It’s prosperity for the greedy few, and austerity for the rest of us.

Maybe you have a different opinion, but ask any average worker on the street and they will tell you that continued wage depression and price inflation, the expansion of the Workfare regime that gives free employment to firms that don’t need it while the workers themselves have to survive on benefits, massive growth in food bank use, and the threat faced by thousands of eviction and the repossession of their belongings are not milestones on the path to prosperity.

UK Treasury changes title to ‘Department of Clutching At Straws’

Tags

'Starve the Beast', agriculture, BBC, budget, construction, David Cameron, debt, deficit, economy, expansionary fiscal contraction, fund, George Osborne, Gideon, growth, IMF, international, manufacturing, Michael Meacher, Mike Sivier, mikesivier, Monetary, national, NHS, OBR, office, ONS, playing field, politics, privatisation, privatise, responsibility, Royal Mail, sell, service, statistics, student loan, Treasury, Vox Political

The economy is growing: The Coalition government will claim credit but there is no reason to believe it has anything to do with current government policy – quite the opposite, in fact.

All right, the Treasury hasn’t really changed its name – but it might as well have, after the joy that greated this week’s meagre growth figures.

The Office for National Statistics is reporting growth in construction, manufacturing, services and agriculture in an estimate based on 44 per cent of actual data on economic activity during the second quarter of 2013 (April-June). That’s less than half of the evidence.

We live in times when the whole of the evidence means a great deal – for example, information on Q1 of 2012 that put growth at a standstill – neither up nor down – meant the UK did not enter a double-dip recession, even though the economy contracted in the periods immediately before and after. In real terms we were backtracking – but on paper, no.

Let’s remember, also, that the organisations that record our economic fortunes are liable to revise their predictions down as well as up – remember when the Office of Budget Irresponsibility changed its mind about the growth figures for 2012? It had predicted growth of 2.5 per cent for that year. In fact, once we iron out the ups and downs, the economy really only bumped along at a roughly steady state.

The International Monetary Fund had predicted a more conservative 1.6 per cent growth for 2012 – but in January of that year revised this down to 0.6 per cent. You get the picture.

The 0.6 per cent figure was in line with market expectations, though – and that is a good sign. But 0.6 per cent is a very fragile figure and the prospects for the rest of the year are “highly uncertain”, as market analyst Richard Driver said in the BBC News website’s report.

We all knew that the economy would start turning upwards again at some point. That it has taken five years to do so indicates the severity of the banker-induced crash – and also the lack of any investment in recovery.

In the past, the upturns arrived comparatively swiftly – but there had been a willingness on the part of both government and businesses to put money into it. The current government has been sucking money out of the economy in the pursuit of Gideon‘s nonsensical “expansionary fiscal contraction” and getting the deficit down – meaning that all the effort has been put into cutting spending and none into actually making a buck or two. Meanwhile, it has been estimated that businesses have been sitting on fortunes totalling six or seven per cent of GDP – around £775 billion, according to Michael Meacher.

In his blog, Mr Meacher said he expected the announcement to be “milked by Cameron-Osborne for all it’s worth” and he was not to be disappointed.

“These figures are better than forecast,” said Osborne in the BBC report – claiming credit for something that had nothing to do with him. “Britain is holding its nerve, we are sticking to our plan, and the British economy is on the mend – but there is still a long way to go.”

What will he say if a later revision knocks the figure down again?

Mr Meacher’s blog stated that the growth figures had been inflated “by being talked up by the finance sector”, and stimulated by Osborne’s Help to Buy scheme “which has ploughed taxpayers’ money into mortgages but without increasing the number of houses being built, which can only push up property prices… igniting yet another housing bubble which is the last thing the economy needs”.

He added that the real essentials of recovery are still missing – “an expansion of manufacturing and exports”.

We may have to wait for another government before that happens; the Coalition is too busy exploiting our current economic fragility as an excuse to sell off the family silver – those parts of the NHS it thinks nobody will notice, the Royal Mail, school playing fields, student loans…

I could mention ‘Starve the Beast’ again – but by now you should be on intimate terms with that expression.

(The first Vox Political collection, Strong Words and Hard Times, is now available and may be ordered from this website)

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

Tags

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

We can blow a few myths out of the water:

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

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

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

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