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

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

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

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

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

1. The economy

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

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

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

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

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

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

2. Employment

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

2a. Zero-hours contracts

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

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

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

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

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

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

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

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

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

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

But there is an alternative.

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

Happy workers produce better results.

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

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

Wouldn’t that be better for everybody?

Well, wouldn’t it?

3. Welfare lies

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

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

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

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

4. In conclusion

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

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

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

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

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

Interesting, that.

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OH Insist: Atos bullies demand dismantling of critical Facebook sites

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allowance, Atos, Atos Miracles, benefit, benefits, Black Triangle, bully, campaign, company, dead, death, defamation, defame, defaming, Department, die, disability, disabled, dismantle, dismantling, disrespect, DWP, employment, ESA, evidence, Facebook, fact, fair comment, Group, hatred, health, IB, ill, Incapacity Benefit, incite, medical, member, Mike Sivier, mikesivier, mortality, opinion, Pensions, people, person, politics, sick, social security, staff, subject, support, uk statistics authority, Vox Political, vulnerable, WCA, welfare, Welfare News Service, work, work capability assessment

Disability campaign groups have started receiving threatening messages from OH Assist, the new face of Atos Healthcare.

The messages have been posted to Facebook pages belonging to the Welfare News Service, Black Triangle Anti-Defamation Campaign in Defence of Disability Rights, The People Vs Government, DWP and Atos and Atos Miracles (so far).

They state: “We ask kindly that you remove this page as it incites hatred towards our staff and members. Thank you.”

The wording carries an implicit threat of litigation, as an administrator on Atos Miracles explained: “They are threatening to take legal action on those allegedly defaming them, as it incites hatred towards their staff. So can we take legal action for how they’ve treated the sick/disabled and vulnerable?

“As someone said, you take one of us on, you take all of us on.”

The post continued: “We have a right to our opinions, just as they think they have a right to (in conjunction with the cowards at the DWP) bully, disrespect and shamefully and callously treat the genuinely sick/disabled!

“People have died at the above’s hands. That is the reality.

“So, OH Assist, Atos, or whatever name you will now practice under…

“See you in court.”

Vox Political has not received any messages from OH Assist or Atos – which is curious as the DWP, at least, reckons this blog is about a “‘cover-up’ of the number of Incapacity Benefit and Employment and Support Allowance claimants who have died” following Atos assessment.

Perhaps this is tacit admission of the validity of the articles on this site – who knows?

If that is true, it seems strange that they do not appear to have considered another fairly obvious conclusion – we all talk to each other.

Vox Political considers that any attack on sites that criticise Atos – under any of its many names – for the horrific results of its work capability assessment ‘medical’ tests is an attack on us all, and stands ready to assist any colleagues who come under such fire.

To OH Assist, we say: “What’s the matter, fellows? Aren’t you aware that UK law allows anyone to provide their opinion, or fair comment, on any subject, person or company, providing it is supported by factual evidence?

“If you were able to provide information that the number of deaths following Atos assessments dropped after November 2011 (the last month for which figures have been provided) you might have a leg to stand on. These figures would have to be verified by an independent source like, perhaps, the UK Statistics Authority in order to give them meaning.

“Why don’t you just come up with some evidence to show that you haven’t done what everybody believes?”

In other words:

Put up or shut up.

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Government descends into inter-departmental squabbling over Universal Credit

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Andrew Lansley, benefit, benefits, Cabinet Office, Coalition, Conservative, cost, delay, Department, DWP, francis maude, government, Health and Social Care Act, Iain Duncan Smith, internet, IT, Job Centre, leave, Mike Sivier, mikesivier, NHS, Pensions, people, politics, risk assessment, social security, squabble, staff, Tories, Tory, twin track, unemployment, Universal Credit, Vox Political, web, welfare, work

It seems there has been an argument between Iain Duncan Smith’s DWP and Francis Maude’s Cabinet Office, and now the much-troubled Universal Credit project has no IT experts working on it.

Good. It’s a terrible idea, designed to remove money from the people who need it most.

The project aims to update benefit claimants’ entitlements in ‘real time’, ensuring that they only ever receive what government regulations say they should. Sadly, there is no commitment to update the entitlement amounts in ‘real time’, so people will always be getting less than they need, as inflation boosts prices beyond their range.

Minutes of a Universal Credit ‘board meeting’, leaked to The Guardian, show that IT experts from the Cabinet Office are pulling out of the project and the DWP must now search for somebody else with the skills needed to take on the work.

This means more delays and an even greater cost. This is unlikely to bother Iain Duncan Smith, who sees the project as his legacy to the nation and will pay any amount to see it through – in sharp contrast to his attitude towards the benefit claimants for whose livelihoods his department is responsible.

It seems the argument arose because of Mr… Smith’s vanity – he insisted on a “twin-track” approach to the project, keeping current work going in order to make it possible for claimants to use Universal Credit before the 2015 election while also funnelling money and time into a purely web-based system that will not require Job Centre staff to fill in claimants’ details. One may presume that he will happily sack the excess Job Centre staff after that system is complete.

Those on the current version will be tranferred onto the digital system when it is ready, we are told.

A separately-leaked document made it clear that the withdrawal of the Cabinet Office expertise is one of the most serious problems facing the project because the DWP will now have to try to find people with the necessary skills in the market, and may not be able to afford the cost.

It is interesting that this document is a risk assessment. Does anybody remember the furore over the NHS risk assessment, when the Health and Social Care Act was working its way through Parliament like an unhappy bowel movement? Even though these documents are almost always publicly available, that one was jealously guarded by Andrew Lansley and still has not seen the light of day.

Of course the different government departments are claiming that nothing is wrong and all is going according to plan, and this might be true – if we’re discussing the kind of plan that changes with the wind.

Meanwhile, Universal Credit is increasingly becoming a symbol of the government creating it – not only is it monstrously expensive but it also doesn’t work.

Vox Political is nowhere near as expensive as Universal Credit.
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This benefits bully harasses the powerless but runs away from criticism

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allowance, annual report, Atos, benefit, benefit cap, benefits, bully, Coalition, committee, Commons, Conservative, court, coward, dead, death, Debbie Sayers, Department, Department for Work and Pensions, die, disability, Disability Living Allowance, disabled, DLA, DWP, employer, employment, Employment and Support Allowance, ESA, fabricate, false, fraud, Freedom of Information, George Osborne, government, Guardian, harass, health, HM Revenue and Customs, hmrc, Iain Duncan Smith, IDS, Information Commissioner, internet, intimidate, Ipsos Mori, Jayne Linney, Job Centre, John Major, law, liability, liar, Mandatory Work Activity, Mike Sivier, mikesivier, Parliament, Pensions, people, politics, Polly Toynbee, Public Interest Lawyers, regulation, retrospective, returned to unit, RTU, ruling, sick, social security, staff, statistics, support, Tories, Tory, unemployment, Universal Credit, vexatious, Vox Political, welfare, work, Workfare

Several months ago this blog accused Iain Duncan Smith of being a liar and a coward because, not only had he fabricated statistics on the number of people leaving benefits because of his new benefit cap, but he had also weaseled his way out of an appearance before the Commons Work and Pensions Committee to account for this behaviour.

The very next day, we had to apologise (to readers) and publish a correction saying that the man we call ‘Returned To Unit’ would be attending a follow-up meeting in September, at which the 100,000-signature petition calling him to account for the benefit cap lies, organised by Jayne Linney and Debbie Sayers, would also be presented to MPs.

Apparently the meeting was being timed to coincide with publication of the DWP’s annual report for 2012-13.

Now it is November, and we have still had no meeting with RTU. Nor have we seen the annual report, which is now almost eight months late. Meanwhile the calamities at the DWP have been mounting up.

The latest appears in a Guardian report published yesterday, about the ongoing disaster that is Universal Credit. You may remember, Dear Reader, that the Department for Work and Pensions has admitted it had to write off £34 million that had been spent on the scheme; it subsequently emerged that the total amount to be written off might actually be as high as £161 million.

The Guardian article appears to confirm this, adding £120 million to the £34 already written off if the DWP follows one of two possible plans to take the nightmarish scheme forward.

This would restart Universal Credit from scratch, creating a system based on the Internet – and reducing the need for Job Centre staff – and tends to confirm the suggestion that staff are seen as a liability in the government’s plan to cut back on benefit payments; despite being told to bully, harass and intimidate everyone who darkens their doors, they have an annoying inclination to help people claim the benefits due to them.

The other plan would attempt to salvage the existing system, and is understood to be favoured by the Secretary-in-a-State. The drawback is that it could lead to an even greater waste of taxpayers’ money (not that this has ever been a consideration for Mr… Smith in the past. He’ll waste millions like water while depriving people of the pennies they need to survive).

Universal Credit aims to merge six major benefits and tax credits into one, restricting eligibility for the new benefit in order to cut down on payouts. It relies on the government creating a computer programme that can synchronise systems run by HM Revenue and Customs, the DWP itself, and employers. So far, this has proved impossible and a planned rollout in April was restricted to just one Job Centre, where staff handled only the simplest claims and worked them out on paper. Later revelations showed that the system as currently devised has no way of weeding out fraudulent claims.

A leaked risk assessment says the web-based scheme is “unproven… at this scale”, and that it would not be possible to roll out the new system “within the preferred timescale”. Smith has continually maintained that it will be delivered on time and on budget but, as concerns continue to be raised by senior civil servants that systems are not working as expected and there are too many design flaws, it seems likely this is a career-ending claim.

Is this why he hasn’t deigned to account for himself before the Work and Pensions Committee?

Earlier this week, the government lost its appeal against a court ruling that its regulations for Workfare and other mandatory work activity schemes were illegal. Public Interest Lawyers, who handled the case against the government, has taken the view that anyone who fell foul of the regulations may now take action to get their money back. But the matter is complicated by the fact that the government unwisely passed a retrospective law to legalise the rules, in a bid to stop the 228,000 benefit claimants it had sanctioned after they refused to work for their benefits from demanding the money that ministers had – in effect – stolen from them. Iain Duncan Smith is the man behind this mess.

Is this why he hasn’t deigned to account for himself before the committee?

We have yet to learn why this man felt justified in claiming 8,000 – and then 12,000 – people had left benefits because of the £26,000 cap he introduced in April (he claimed it is equal to average family income but in fact it is £5,000 and change short of that amount as he failed to consider benefits that such families could draw). Information from polling company Ipsos Mori showed that the real number of people who had dropped their claims after hearing of the scheme was more likely to be 450 – just nine per cent of the figure he originally quoted.

Is this why he hasn’t put a meeting with the committee in his diary?

Perhaps we should not be surprised, though – it seems that RTU has never had a decent grip on the way his department works. For example, he allowed George Osborne to cancel Disability Living Allowance for one-fifth of claimants in 2010, claiming that the benefit had been “spiralling” out of control because it had 3.1 million claimants – triple the number since it was introduced in 1992. Smith said the rise was “inexplicable” but in fact the explanation is simplicity itself, as The Guardian‘s Polly Toynbee pointed out just two days ago:

“DLA is only paid to those of working age, but when they retire they keep it, so as more people since 1992 move into retirement, numbers rise fast. There has been no change in numbers with physical conditions, despite a larger population; back injuries have declined with the decline of heavy industry. There has been a real growth in numbers with learning disabilities: more premature babies survive but with disabilities, while those with Down’s syndrome no longer die young. More people with mental illness claim DLA now, following changes in case law: there has been no increase in mental illness, with 7% of the population seriously ill enough to be receiving treatment, yet only 1% claim DLA. Psychosis is the commonest DLA diagnosis, hardly a trivial condition. This pattern of disability mirrors the rest of the Organisation for Economic Co-operation and Development countries, with nothing exceptional here.”

In other words, from the moment he took over this hugely important government department, with its huge – and controversial – budget, Iain Duncan Smith had about as much understanding of its workings as a child.

It seems Sir John Major was exactly right when he expressed fears about the DWP Secretary’s ability last week, claiming his genius “has not been proven”.

Is this why we’ve seen neither hide nor … head of the Secretary of State?

Finally, Dear Reader, you will be aware that Vox Political submitted a Freedom of Information request to the DWP, asking for up-to-date statistics on the number of Employment and Support Allowance claimants who have died during a claim or while appealing against a decision about a claim – and that the request was dismissed on the indefensible grounds that it was “vexatious”. This was not good enough so the matter went to the Information Commissioner’s office and, according to an email received this week, will soon be brought to a conclusion.

Is this why Iain Duncan Smith is hiding?

Perhaps it’s time to drag him out of his bolt-hole and force some answers out of him.

Jayne (Linney), in her blog, has called on people who use Twitter to start tweeting demands for Smith to come forward, using the hashtags #whereisIDS and #DWPLateReview. This is good, and those of you who do so are welcome to use any of the information in this article as ammunition in such a campaign.

There is nothing to stop anyone writing to the press – local or national – to ask what is going on and why benefit claimants are being left in suspense about the future of their claims. People have to work out how they will pay their bills, and the continued uncertainty caused by Mr… Smith’s catalogue of calamities is causing problems up and down the country.

A short message to your MP might help stir the Secretary of State out of his slumber, also.

In fact, let’s use all the tools at our disposal to expose this man for what he is – just as this blog stated in July and in May: A liar and a coward who has committed contempt of Parliament and should be expelled – not just from public office, but from public life altogether.

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Why listen to naysayers when Labour has so many reasons to be cheerful?

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A strong hand: Ed Miliband has plenty of ammunition with which to hammer the Conservative-led Coalition this autumn – but using it would mean a break from his recent policy direction. Does he have the stomach for it or will he continue to ignore the majority of Labour supporters and favour an inner circle of advisers who have, so far, served him poorly?

Vox Political reblogged a post on the Skwawkbox blog yesterday, identifying a commonplace tactic used by members and supporters of the Coalition government.

It works like this: You make an assertion in the media that will harm your opponents, even though you have no evidence to back it up. You argue your case vehemently, refusing to accept any alternatives to what you are saying. And when the evidence comes in and it’s against you, you say it is a stitch-up and continue claiming both the moral and factual victory.

This is what the Conservative Party has been doing, loudly and continually. Look at its record on the NHS and on social security reforms and you’ll see that this assertion is supported by fact. Now, more factual evidence has arrived to undermine other Tory claims.

In spite of this, the Labour Party presents the appearance of an organisation torn by inner disagreement, after several high-profile figures broke ranks to criticise the leadership for failing to go on the attack during the summer, when the Conservative-led Coalition was vulnerable on any number of levels.

The BBC ran a story in which Labour’s Tessa Jowell warned that public criticism of Labour leader Ed Miliband by party colleagues creates an “unappealing sense of toxic disunity”.

We’ll come back to the BBC shortly, but for now it is enough to say the story quoted an article by Dame Tessa in the Observer, claiming that “disloyalty” of this kind risked handing the next election to the Tories.

She wrote: “There is… nothing constructive in publicly delivering ‘helpful advice’ that could be much better delivered quietly in private,” but for all we know, Mr Miliband’s critics had already done this, only for him to turn a deaf ear.

She is wrong, of course. Those people spoke up because they believed that their leader has been ignoring the mountain of evidence piling up against the Coalition – evidence that he could use to pummel David Cameron and Nick Clegg into the dust long before the next election; that Mr Miliband is unaccountably trying to avoid criticism from the likes of the Daily Mail and the Daily Express, in an attempt to court the right-wing readership of those papers; and that he would get more respect from those people – and win back disenchanted Labour voters – if he acknowledged and supported the evidence against the Coalition’s policies and set out opposing plans that mapped out a different course for the UK, one that might actually have a chance of success.

There are so many ways to strike against the web of so-called ‘myths’ (in fact outright lies) spread by the Conservatives since they came into office with the Liberal Democrats that it is hard to know where to start.

Let’s begin with the report by the international doctors’ organisation Medecins Du Monde (Doctors of the World), stating very clearly that the claim, by Health Secretary Jeremy Hunt, that health tourism is rife in the UK, is nonsense.

In a policy briefing, the organisation stated: “Seven years of data… shows that service users had, on average, been living in the UK for three years before they tried to access healthcare. Only 1.6 per cent of people using the service had left their country of origin for personal health reasons.”

Concentrating on one particular illness, “Research carried out by Terrence Higgins Trust and George House Trust found that people living with HIV using their services had been resident in England for between 12-18 months before testing positive for HIV. If access to HIV drugs had been their motivation for coming to England, they would have been unlikely to wait so long to become eligible for life-saving treatments.”

Therefore, “Research by Doctors of the World’s European network indicates no correlation between accessibility of healthcare to migrants and migration patterns.”

The government has made health tourism a major part of its anti-immigration campaign, claiming that it costs the taxpayer a fortune, but even this was rubbished by the professionals: “Current estimates vary greatly, although last year the NHS estimates it spent £33 million treating foreign nationals and wrote off £12 million of this sum. This represents about 0.01 per cent of the £107 billion NHS budget. These sums are considerably less than the net contribution made to the UK by migrants of 1.02 per cent of GDP, or £16.3 billion, according to the OECD.”

Just 0.01 per cent of the NHS budget is lost treating foreign nationals who do not pay – even less than the 0.7 per cent of the social security budget that is lost to fraud, according to DWP figures. But the government talks up these comparatively tiny amounts as though they will topple us all into bankruptcy (impossible).

One might almost believe there was an intention to distract us from something else. Remember, the Conservatives are well-practised at ‘bait-and-switch’ fraud, as mentioned in an earlier article. Perhaps they don’t want us examining their lackadaisical attempts at pretending to counter corporate tax avoidance that costs up to £120 billion per year? Or maybe they don’t want us thinking about what could have been done to restore respectability to our bankers after the financial crisis they caused.

Meanwhile, Tory claims that the Bedroom Tax – I said the BEDROOM TAX – would cut the Housing Benefit bill by £480 million have been destroyed after Labour MP Karen Buck retrieved figures from the House of Commons library, showing that the cost will in fact increase by £1.5 billion this year – and still further over the next three years.

The Mirror reported that this is because more than 40,000 more people have claimed HB since this time last year, with the biggest pressure coming from working people who need help with housing costs because their wages no longer cover them, especially since private landlords have increased rents by an inflation-busting three per cent over the last 12 months.

Meanwhile, councils have been forced to rehouse victims of the Bedroom Tax from cheaper social housing into more expensive private rented properties, creating more unwanted extra costs.

It was previously reported that larger social housing is going empty because people do not want to move in and then fall foul of the Bedroom Tax. I can’t currently find the reference for that, but if anyone can help out, please send in a comment with the link.

The SPeye blog has filed an alternative take on Housing Benefit, which claims that the current amount paid by the taxpayer on HB, at £23.77 billion, is £5.77 billion more than George Osborne predicted in 2010 when he said his changes to HB meant it would be “controlled and reduced” from £20 billion in that financial year to £18 billion by 2014-15.

This blog is highly critical of Labour’s reasoning, as reported in the Mirror story, but then comes up with an even greater loss to the taxpayer, caused by the Conservatives’ changes.

Back to the NHS now, where the Coalition government has spent £1.4 billion on redundancy payoffs, rather than care, since it came to power. This can be added to more than £3 billion that was spent on the pointless and unnecessary top-down reorganisation that David Cameron promised, prior to the 2010 election, would not take place.

The government has claimed that the redundancies will save £1.5 billion per year, which will be reinvested in patient care – but this will only bring annual spending back up to just above where it was when Labour left office, as it was revealed at the end of 2012 that annual spending on the NHS has dropped by nearly £1 billion. The government has stated that spending will have increased by £12.7 billion by 2014-15 which, in financial terms, is next year.

The Coalition lied when it said changes to the planning system would protect the Green Belt. This land, “intended to provide countryside access for urban dwellers and ensure conservation of nature, as well as maintaining agriculture and forestry” according to a BBC website article, is being eroded away with the help of new rules introduced by the Coalition, with planning applications on Green Belt land in England almost doubling from 81,000 homes in 2012 to 150,000 this year.

The government said protection was being maintained but the Council for the Protection of Rural England said the Green Belt was under threat. Who do you believe?

The announcement that the UK economy grew by 0.7 per cent, rather than 0.6, has been greeted rapturously by the Coalition, whose representatives have claimed that it shows the economy has moved “from rescue to recovery”. This is, of course, utterly ludicrous. There is no way an improvement of this kind – after years of economic flatlining thanks to Coalition policies – can be claimed as either evidence of a sustained recovery or evidence that Coalition policies are responsible for the improvement. The weakness of the upturn suggests the change brought on by conditions that would have arisen, whether the Coalition had tinkered with the economy or not.

Thankfully Michael Meacher has returned, after a brief holiday from blogging, to give us chapter and verse. “Today’s announcement by the ONS that its initial 0.6 per cent growth estimate for the second quarter of this year has now been upgraded to 0.7 per cent is insignificant when put into perspective against the recoveries of the five other UK recessions in the previous 100 years,” he writes.

“This time the economy still remains 3.3 per cent below its pre-crash level in 2008, while at the same stage of cycle (ie five years on from the crash) it was nearly FIVE per cent above the pre-crash level in the early 1980s, SIX per cent above pre-crash in the 1920s, SIX per cent above pre-crash again in the early 1930s, SEVEN per cent above pre-crash in the early 1970s, and nearly 10 PER CENT above pre-crash in the 1990s.” (Caps and italics mine)

“Come on, at this stage 0.7 per cent is to be apologised for – both historically and in comparison with other other economies emerging from recession this time round – Britain still three per cent down, but France one per cent down, Germany two per cent up, the US four per cent up and Canada six per cent up.”

The above stories emerged over the past couple of days. Look back over the rest of August and we have:

• The revelation that the upcoming Lobbying Bill will do nothing to prevent professional lobbyists from influencing Parliament unduly, but will attack your right to campaign politically in “an outrageous attack on freedom of speech”.
• The revelation that a ‘top ten’ list of benefit fraudsters, reported by right-wing newspapers, does not exist.
• Information that the government may be corruptly supporting fracking because several of its members have stakes in fracking firms.
• Home Office vans stirring up racism in London.
• Conservative plans to abolish the human rights of everybody in the UK, in order to inflict a dangerous and exploitative regime on working people that will amount to slavery.
• The revelation that recent attacks on the NHS for causing needless deaths have been blown out of proportion in order to make public opinion more receptive to further privatisation.
• The revelation that the DWP is spending £1.3 million on extra staff who have been calculating the government’s flagship benefits cap – perhaps its only popular policy – because the computer system needed to do the job has not yet been built. Ministers had no intention of admitting this and the information only became public after it was discovered by somebody else.
• And then there’s the fact that the fundamental claim of the Coalition government – that the financial crisis of five years ago happened because Labour overspent massively and mishandled the economy – was absolute and total groundless fabrication. Labour in fact handled the economy responsibly, even when the financial crisis hit.

That has to total more than 10 ways in which Labour could undermine the Coalition. All Mr Miliband has to do is open his mouth and tell people about them in ways that will be reported by the media.

And on that subject: If and when he does, and it is reported by the BBC, we can all be certain that right-wing commentators will claim that this is because the BBC is full of pinko left-wingers who support Labour. Let’s put that myth to rest as well.

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

Going into the autumn Parliamentary session, Ed Miliband has a strong hand to play – if he has the stomach for it. And if any of the media try to suppress his arguments, he can just point to the evidence of right-wing bias and tell them they need to clean up their act just as much as the Coalition.

‘Compassion bypass’ as Coalition puts the squeeze on benefits and wages

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The Nasty Parties’ (I include the Liberal Democrats now – let them all be tarred with the same brush) have voted to squeeze benefit increases to just one per cent for the next three years, after the third reading of the Benefits Uprating Bill in the House of Commons.

That Bill will now go to the House of Lords, where I sincerely hope it will receive a more intelligent examination than many Conservatives and Liberal Democrats gave it in the other place. To help them with that work, I wanted to highlight some of the issues raised by opponents to the Bill, during yesterday’s debate.

Firstly, the government is punishing people who are already hard-up for the failure of its own economic policy. As Stephen Timms said, we were promised that the policy would lead to steady growth and falling unemployment, but we got a double-dip recession, perhaps set to become triple-dip, depending on figures due this week. Unemployment is officially forecast to go up next year, so spending on unemployment benefits will go up, and borrowing will go up too.

The government’s response is to force down the incomes of those who already receive the least in order to cover the cost of its mistakes; the saving made by the Bill’s measures will be about the same as the increase in social security spending.

In April, the government will give a tax cut to everybody earning more than £150,000 per year, and for 8,000 people who earn over £1 million a year, that means a cut of around £2,000 a week. At the same time, someone receiving the adult rate of Jobseekers’ Allowance will get an extra 71p a week.

The change in the personal tax allowance will not help people in work on low incomes. Citizens Advice has pointed out that “any rise in net earnings leads to a reduction in housing benefit and council tax benefit.” In fact the improvement for people in low-income work was recorded by Helen Goodman: 13 pence per week.

Meanwhile, the average price of weekly grocery shopping has risen by 17 per cent and the energy companies have hiked up their prices by around 11 per cent.

The government lied when it said people in the support group of Employment and Support Allowance are protected – they are not. A lone parent with three children who is in the support group will lose £600 in 2015-16 because of the exponential way in which the Bill will grind down the incomes of people who are already hard-up. [CAB]

In fact the impact assessment tells us disabled households are more likely than others to be hit by the changes in the Bill.

Child poverty is set to skyrocket, thanks to the measures of the Nasty Government. The Institute for Fiscal Studies tells us that, taking account of everything that the Government announced before the autumn statement, child poverty was already set to increase by 400,000 by 2015 and 800,000 by 2020.

Although it was not mentioned in the autumn statement or the impact statement, and a question to the Minister has gone unanswered, the government has let it slip – in a statement by a different minister – that the three years of one-per-cent uprating will increase child poverty by 200,000 – on top of the increase that is already due.

That means that we are on track for one million more children below the poverty line by 2020 – reversing all the progress made during the 15 years since Labour came to power in 1997.

And that is only the figure the government has been prepared to acknowledge in relation to relative income. It has said nothing about the impact on absolute poverty, material deprivation or persistent poverty — measures to which it committed itself in the Child Poverty Act 2010.

The Children’s Society estimates that the following professions are also affected: 300,000 nurses and midwives in the NHS; 150,000 staff in primary and nursery schools; 1.14 million admin workers, secretaries and secretarial assistants; 44,000 electricians and electrical fitters; 510,000 sales assistants and cashiers; and 42,000 armed forces personnel.

“We certainly want it to be more worthwhile for people to be in work, but forcing down the incomes of those who are out of work is not the way to do it,” said Mr Timms. I have been saying that, here, for many months, and it did my heart good to see that it had been said in the House of Commons.

He said uprating should indeed be in line with inflation, as it always was in the past.

He continued: “The Bill was designed by the Chancellor to promote his party’s narrow interest.” Yes – the Conservatives are a minority-interest party. This Bill, and the tax cut for those earning more than £150,000 per year, prove it. They support the super-rich; you and I don’t get a look-in.

And he pointed out that the government did not need an Act of Parliament to restrict benefits upratings. “The Chancellor thought he could boost his party’s standing if he introduced a Bill, so we have one,” he said. Absolutely correct. The plan was to make the Labour Party, in opposing the plan, look like the party of scroungers and slobs. Instead, the Conservatives have confirmed themselves as the ‘Nasty Party’, oppressors of those who most need government help.

“Ministers still say that they are committed to eradicating child poverty,” said Mr Timms. “It says so in the coalition agreement. That commitment is clearly now fictitious. Ministers should stop pretending. They have given up on reducing child poverty. Now they are implementing policies that will force child poverty up.”

Let me draw your attention to the words of Toby Perkins, who tried to put the debate into proper context: “There is a particular irony in the Chancellor, who was a millionaire the day he was born, railing against the extravagance of those on £71 a week.”

I think I can sum up the government’s argument with the words of Charlie Elphicke, who said around five million people in the UK could work, but don’t. He said they need more of an incentive, including an economic incentive, and quoted the Chancellor, Gideon – sorry, George – Osborne: “Over the last five years, those on out-of-work benefits have seen their incomes rise twice as fast as those in work. With pay restraint in businesses and Government, average earnings have risen by about 10 per cent since 2007. Out-of-work benefits have gone up by about 20 per cent. That is not fair to working people who pay the taxes that fund them.”

In other words, he wants to shrink the state (the government’s own actions have created a hole in its finances; it wants to cut public spending to fill that hole) and he can’t do his maths. He compounded his foolishness with a well-repeated lie: “Money is tight in this country today. The reason for that is that [Labour] drove our economy off a cliff, overspending for years and displaying fiscal incontinence that was unparalleled in this country in the last century.”

That is absolutely untrue. Labour ran a lower deficit than the Conservatives throughout its years in power. The increases in the deficit and the national debt were caused by the banking crisis. Conservatives and Liberal Democrats are on record as having supported what the then-Labour government did to solve the mess that was created by high-earning bankers (about whom the current government has done nothing worth discussing). They would have done the same thing and created the same debt.

Fortunately, Ian Mearns was on hand to put Mr Elphicke right: “The hon. Member… forgot to mention that, while those on benefits have had their benefits uprated at twice the rate of those in work in percentage terms over the past five years, the actual increase in financial terms has been on average about £49 for those in work and about £12 for those on benefits.

“Percentages are meaningless; 50 per cent or 100 per cent of very little is still very little. Making comparisons in the way that he did demeans the debate.”

He added: “I think it is the ultimate insult to ordinary people’s intelligence to say that in order to incentivise those at the top end of the economy we have to pay them more, while incentivising people at the bottom end by paying them less. ‘We are all in this together’ — I don’t think.”

Lords, please take note. If any of you uses the argument about percentage increases, I sincerely hope to see others ask that person whether they will be supporting the government on the basis of something that has been proven – and is now known to the public at large – to be utter, meaningless nonsense.

A tale of two plans

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This person is building a conservatory. Are the Tories seriously suggesting that he is helping solve the financial crisis?

Both the Labour Party and the Conservatives have unveiled new plans to revive the UK economy, in the wake of last week’s deeply unimpressive Cabinet reshuffle. Let’s take a look at them.

Labour is offering us the impressively-titled ‘Pre-distribution’ – a system which asks employers to pay their staff more money in wages, in order to eliminate the need for the government to take higher taxes and then redistribute the wealth, thereby lessening the huge differences between the benefits enjoyed by the very wealthy and the privations suffered by the very poor.

Labour leader Ed Miliband, announcing the policy, called for firms to be responsible in their attitude to wages, and to focus on the long-term.

He said it would require a major shift in philosophy for the Labour Party, as many redistribution options – for example, increasing tax credits – will not be possible when Labour next returns to power, although redistribution of tax wealth will always be necessary.

He said pre-distribution – a term he has taken from US economist Jacob Hacker – is about lifting the UK away from being a low-wage economy, because this has made us unable to pay our way in the world. We must have higher wages – and therefore our workforce needs higher skills.

In fact, this is just an impressive title for something Labour has already spent a considerable period supporting – the ‘Living Wage’. The idea is that, while the minimum wage went some way towards lifting people out of poverty, it did not finish the job.

Consider workers who do 29 hours a week on minimum wage. They do not qualify for tax credits and the amount they earn may not cover their outgoings. How do they survive?

Under the current government, the only choice is to borrow, if they don’t have savings. So they go to richer family members and ask for a handout (a humiliating experience, made worse if a person is working full-time) or, much worse, they go to loan sharks.

Recent reports have indicated that people working full-time – 37 or more hours a week – are still not earning enough to cover their overheads and are having to do the same.

The current system therefore makes it possible for people to get into phenomenal amounts of debt, and we know that debt is what caused the global credit crisis of 2008. As more and more people go overdrawn, banks will fall into trouble. The amounts might not be as much – individually – but cumulatively they become a problem.

Also, consider the working atmosphere created by the current attitude to wages. Employers have enjoyed wage increases that have multiplied their earnings by – what is it – eight and a half times over the last 30 years. Employees have seen theirs rise by something like 27 per cent – less than the rate of inflation. Therefore their earnings have dropped in real terms, and that’s why we see the problems I have outlined above.

As a result of this, workers become demoralised. What’s the point of going to work for a business where the bosses make out like bandits and the people who actually create the wealth are treated like dirt? As a result, productivity slumps. Of course it does. Where’s the incentive to produce high-quality work at high speed? This leads to a drop in sales as orders fall off due to dissatisfaction. If the trend continues, the company fails. I have seen this happen to a major employer in the town where I live. It has been forced to remodel itself, cutting back and back, but still fell into receivership and may now be under its second new owner within 10 years. The problem for managers is they never decide to cut back on the source of the problem – poor managers who take too much of the profit; they always cut down the workforce, reducing their chance of profitability still further.

This is also what happened with my last employer – a newspaper company that is struggling because it is top-heavy. I left because bosses ignore my advice and went ahead with a plan that I knew would harm sales of the edition where I worked. Sure enough, within a few months it had merged with another edition. The solution from management? Cut down on anything other than management. Ridiculous.

And, by the way, British industrialists: A saving is not a profit. If you cut back one year in order to keep your head above water, what do you do when it doesn’t carry over into the next?

Labour’s alternative would pay workers enough money to have something left over, after they have covered their costs. They will have spending power. This means they will be able to buy more, invest more – they will have breathing space, and a sense of personal worth. From that will come a sense of pride in their work and a feeling that they are valued by their bosses. Productivity improves, as does the quality of the product. Orders increase. The company flourishes and is able to employ more workers. The cycle of growth then repeats itself.

Isn’t that better?

The plan also shows up the Conservatives’ lie that cutting benefits will ‘make work pay’. Forcing people off of a benefit system that doesn’t pay their costs and into a job that doesn’t pay their costs is no solution at all and any Tory who spouts this nonsense in the media is to be mocked and targeted for unseating at the next election (in my opinion).

In contrast, the Conservatives have announced that home owners will be allowed to build large conservatories and extensions without needing planning permission. The Tories hope a home improvements boom will stimulate the economy.

Don’t laugh; they’re serious.

They haven’t realised that this will only benefit those who, firstly, own their houses; secondly, have enough spare cash to pay for what has been described as a “large” extension to their dwelling and; thirdly, want one. Apparently there are around 200,000 applications a year – that’s a drop in the ocean when you live in a country of more than 60 million.

The relaxation of planning rules will only last until 2015, because the Tories want to persuade homeowners to get on and build these extensions as soon as possible – again, failing to realise that we are in the middle of a time of fiscal austerity, which they are enforcing, and we simply don’t have the cash.

Therefore, the solution proposed by the government is for private individuals to borrow more, in order to fund the scheme and pay the builders. Isn’t that what the Tories have been mocking Labour for proposing on a national level – even though Labour isn’t currently proposing that?

Also, what about the 20 per cent VAT that goes on home improvements?

And what about the increased aggro between neighbours, as our quiet leafy suburbs get turned back into construction sites?

So the choice seems to be: Pay workers more, see increased long-term productivity and less concern over debt; or get homeowners to put themselves in debt by borrowing to pay for home improvements they probably don’t need and create a short-term boost in the construction industry.

Which one gets your vote?