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Tag Archives: subsidy

Atos’ childcare contract: The most lucrative ‘work experience’ ever?

20 Thursday Mar 2014

Posted by Mike Sivier in Benefits, Business, Children, Education, Politics, Public services, UK

≈ 23 Comments

Tags

allowance, Atos, benefit, benefits, care, child, Coalition, Conservative, contract, Democrat, Disability Living Allowance, DLA, employment, ESA, government, IB, Incapacity Benefit, Lib Dem, Liberal, Mike Sivier, mikesivier, minister, people, Personal Independence Payment, PIP, politics, social security, subsidy, support, Tories, Tory, Vox Political, welfare, work capability assessment


Atos: Welcome to Hell

When I heard that the contract to provide the government’s new childcare subsidy scheme had been awarded to Atos, I had a heretical thought.

“Perhaps they’ll be quite good at it,” I speculated.

Thanks in no small part to blogs like Vox Political, Atos is now infamous as the company that cocked up the assessment of claims for incapacity and disability benefits. It is possible that tens of thousands of people have died as a result.

It can be no surprise, then, that the announcement of this latest contract has had people up in arms.

But consider this: The Atos work capability assessment was pilloried because it was a tick-box system that required people to provide simple “yes” or “no” answers to quite complicated questions about their physical and mental health. Start explaining how your condition varies and your assessor would invariably have some kind of mental breakdown, as demonstrated in the number of successful appeals against bad decisions.

Isn’t a simple, tick-box, “yes” or “no” system all that is needed to make the childcare subsidy work?

Ask yourself: What sort of questions would the government need to ask, beyond a couple’s personal details, before handing out the cash?

“Delete as applicable: Are both parents in work? YES NO”

“Is the aggregate income of both parents greater than £300,000 per year? YES NO”

That’s about it.

There would be a need to check applicants’ employment and childcare details with the relevant organisations, but that isn’t particularly onerous. A school pupil on work experience could manage it.

The next question that occurred was: How much will Atos be paid to manage this system?

The work capability assessment fiasco cost the taxpayer more than £100 million each year. If a similar amount is being paid for this scheme, it would be the most lucrative period of work experience ever.

At this point, I discovered that Atos will not be involved in eligibility testing. The company will be involved only in making payments to claimants.

I’m not willing to blame Atos for this decision; we can lay it at the door of the Coalition government. Faced with a choice between giving Atos a contract for something it can do or asking it to manage something it can’t – and with a 50/50 chance of getting it right – ministers have blundered.

But there is good news!

Apparently the assessment contract has been awarded to a consortium of school pupils.

They’ll be doing it as part of their work experience.

Follow me on Twitter: @MidWalesMike

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Why make a fuss over childcare subsidy for the very rich?

19 Wednesday Mar 2014

Posted by Mike Sivier in Children, Conservative Party, Cost of living, Liberal Democrats, Media, People, Politics, Poverty, UK

≈ 3 Comments

Tags

care, child, Coalition, Conservative, Democrat, government, Lib Dem, Liberal, Mike Sivier, mikesivier, parent, people, politics, subsidy, Tories, Tory, Vox Political, work


[Image: BBC]

[Image: BBC]

If ever there was a government guilty of false advertising, it is the Conservative-Liberal Democrat Coalition.

Yesterday the TV news was full of a childcare subsidy scheme that, we are told, is worth up to £2,000 per family.

The only problem: You have to be paying £10,000 or more to get the full amount as only 20 per cent of the care cost is refunded.

The subsidy is available to working parents – not only poor working parents who need the help, but to any couple whose aggregate earnings are anything up to £300,000 per year.

How many of your friends (who are parents) earn that much?

How many of them spend £10,000 a year on childcare? For most of the families I know, that amount would make it their greatest expense – around one-third of their total income.

The impression I get is that most people have been forced to come to their own arrangements with family or friends. This subsidy will not change that. It doesn’t provide enough.

Up to 1.9 million families with children under 12 may well benefit from this – but most of them will get pennies, not thousands of pounds.

The average amount available to each family from the £750 million fund is £400, but with some taking thousands, most will get much less.

The real beneficiaries will be the very rich; the highest earners who do not need any subsidy at all. But the scheme has been dressed up as a gift for everyone.

By May next year, most families will be more than £6,000 per year worse-off.

This is an attempt to distract you from that distressing fact.

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How national cuts are crippling local services

06 Thursday Feb 2014

Posted by Mike Sivier in Benefits, Cost of living, Economy, Employment, Health, Housing, Immigration, Justice, Law, People, Politics, Poverty, Powys, Public services, UK

≈ 10 Comments

Tags

AEG, Aggregate External Grant, austerity, authority, benefit, CAB, Chancellor, change.org, Citizens Advice Bureau, Coalition, Conservative, consult, council, county, cut, debt, deficit, Democrat, employment, Exchequer, George Osborne, government, health, housing, Lib Dem, Liberal, local, Mike Sivier, mikesivier, national, National Health Service, NHS, people, petition, politics, Powys, public, puppet, subsidy, survey, Tories, Tory, unfair dismiss, Vox Political, Westminster


140206crippling

How many more underhanded ways can our underhanded Coalition government find to sneak crippling damage to public services in by the back door?

A particularly vile method has just been uncovered here in my own county of Powys, involving the collusion of councillors who are supposed to be independent (but you will see that their political colours are more blue than anything else).

The Coalition government has cut back its Aggregate External Grant to local authorities for next year – its subsidy to councils – by many millions of pounds. This means that councils need to cut huge sums of money from their budgets if they are to balance their books. In Powys, the total that must go is £20 million – around one-eleventh of the total budget.

The council launched a public consultation, asking residents for their views on which services should be cut and giving (in the broadest possible terms) examples of areas that could be changed. The total amount to be saved if constituents agreed to all the cuts was £16 million, with the rest to be taken from reserves – so there was no way to balance the books without making all the cuts listed in the document.

Hardly anybody was made aware of the survey in advance, and many have complained that they only found out about it after it had ended.

One of the “possible” cuts listed was to the Citizens Advice Bureau in Powys. The consultation document said all funding to advice services (£93,500 to the CAB, £36,500 to independent centres) would be cut, with alternative funding found from other budgets. This proved untrue.

As a trustee of the Powys CAB, I was told this week that the county council has no other budget that could be used, and that the intention is to cut the money no matter what the public consultation shows.

This means citizens advice services in Powys would be wiped out from the beginning of April.

You might think that’s not the end of the world. After all, who takes advantage of the services provided by this charity anyway – a few people with benefit problems and a few more who are in debt?

Wrong! Thousands of people go to Citizens Advice every year – and the numbers are increasing exponentially because of Tory and Liberal Democrat “savings” that were inflicted without consideration of the true cost on real people in our communities.

Not only will those seeking help with benefit entitlement and debt have nowhere to go, but those seeking advice because they are unemployed, have been unfairly dismissed, have housing concerns and the full range of advice that CAB provides through its proven quality advice will also have to struggle on their own.

There is a proven benefit to individuals’ health through the provision of advice; that’s why advice in Powys is provided through a number of GP surgeries. But that too will end, putting a greater burden on the National Health Service here in Wales (which is already under attack from the Tories in Westminster).

CAB brings millions of pounds into the county through ensuring benefit entitlement; there is also a considerable sum gained through renegotiated debts – the total comes to more than £11 million per year. This money benefits everyone in the Powys economy as it has been shown that it is generally spent locally – so there is a fiscal multiplier that can be added to it, meaning the total boost to the Powys economy could be as much as £20 million.

That’s the same amount as the county council wants to take out of the economy by cutting its budget. The total loss may therefore be said to be almost £40 million, just because a cut of less than £100,000 has been included in the council’s plans – 1/200 of the total amount of cuts.

If there is a similar knock-on effect attached to all the other cuts, the effect will be devastating.

You may think that it would be easy to seek advice elsewhere, but the nearest alternative bureaux are around 100 miles from the centre of Powys, in any direction – and they are already overburdened with their own clients.

You might think that councillors should be able to provide the necessary advice (especially considering they want to cut off the current source). Could you provide the kind of specialist expertise necessary to deal with difficult legal issues? No? Then you should not expect your councillors to manage it – they are lay people like yourself; they don’t have any training in these matters.

A petition has been launched to stop the county council from withdrawing its funding. If you are a Powys resident, I strongly urge you to sign it and ask your friends to sign as well. If you can’t be bothered, just ask yourself who will help you when the Coalition turns the screw again and you are the victim of its attack.

If you are not a Powys resident, consider this to be a warning. Is your own council planning to cut services? Will it launch a public consultation on what will go? And will that be as much a sham as the survey in Powys seems to have been?

Here’s the link: http://www.change.org/en-GB/petitions/powys-county-council-do-not-withdraw-any-grant-funding-to-powys-citizens-advice-bureau?share_id=annKPtMTpV&utm_campaign=signature_receipt&utm_medium=email&utm_source=share_petition

Above all, remember: This would not be happening if not for the Coalition government’s crippling programme of austerity-driven cuts which have had almost no effect in reducing the national deficit, even though we are told that is what it is for.

With its AEG, the government controls councils’ spending. Your local authorities are being used as puppets by the Westminster government, who can then wash their hands of the whole affair by saying the decisions were made elsewhere. And for what?

The deficit has dropped by a total of seven billion pounds – from £118 billion to £111 billion – in the time George Osborne has been Chancellor of the Exchequer.

You are suffering all the pain for absolutely no gain at all.

Why are you putting up with it?

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Another Cameron lie: Energy companies’ profits are unaffected by his changes – and we still pay

02 Monday Dec 2013

Posted by Mike Sivier in Business, Conservative Party, Cost of living, Economy, Liberal Democrats, People, Politics, Poverty, Television, UK, Utility firms

≈ 20 Comments

Tags

'Big Six', average, bill, boss, carbon, Caroline Flint, change, Coalition, Conservative, David Cameron, Democrat, eat, economy, energy, freeze, FTSE 100, fuel, general taxation, government, green levy, greenhouse gas, heat, household, income, IPPR, Labour, Lib Dem, Liberal, market, Mike Sivier, mikesivier, overcharge, overcharging, Parliament, pay, people, policy, politics, poverty, price, profit, re-order, subsidy, tax, thinktank, Tories, Tory, Vox Political


Cost shock: Even the Conservative-supporting Daily Telegraph has been complaining about high energy prices - as demonstrated by this cartoon from 2012.

Cost shock: Even the Conservative-supporting Daily Telegraph has been complaining about high energy prices – as demonstrated by this cartoon from 2012.

To borrow a favourite David Cameron phrase: Let us be clear on this – any savings on your fuel bills as a result of the Coalition government’s policy change will be added to general taxation in another way and you will still pay.

Energy firms’ profits, which have tripled since 2010, will be unaffected. Cameron’s plan is akin to shifting deckchairs on the Titanic (to borrow another well-known saying).

Why on Earth does he think anybody is going to be deceived by this silliness?

Even with the changes in place, prices will still rise by an average of around £70, at a time when people were already being forced to choose between (let’s have yet another now-tired phrase) heating and eating. Average household incomes have dropped by nine per cent since David Cameron made himself Prime Minister by the back door three years ago.

Average pay for bosses of FTSE-100 companies has risen by 20 times the rate of pay growth for most workers, just in the last year. And let’s not forget that they were getting much higher than average pay already!

It should surprise nobody that all of the ‘Big Six’ energy firms are part of the FTSE-100 – or were, before foreign takeovers.

This means average pay for these companies’ bosses should be around £2,321,700, while profits have risen to £2 billion – up 75 per cent on last year (according to the Independent reports).

None of this will be changed by David Cameron’s measures, which were hastily cobbled together in a bungled bid to regain the initiative from Labour, whose plan to freeze energy prices and re-order the energy market has captured the public imagination.

Instead Cameron – who once campaigned under the slogan ‘Vote Blue – Go Green’ – will postpone green policy targets to a later date, cutting the so-called ‘green levy’ on the energy firms accordingly. This means the UK will be forced to rely on greenhouse gas-producing carbon fuels for longer.

Subsidies for people in fuel poverty will be moved into general taxation, meaning we pay for them rather than the energy firms who should.

“Even after these changes to levies, energy bills are still rising and the average household will still be paying £70 more for their energy than last winter,” said Labour’s Shadow Energy and Climate Change Secretary, Caroline Flint. “Any help is better than none, but you can judge this Government by who they’re asking to pick up the tab – the taxpayer. The energy companies have got off scot-free.

“This shows why nothing less than a price freeze and action to reset the market to stop the energy companies overcharging again in the future will do.”

She was expected to tell the IPPR thinktank today: “If David Cameron and Nick Clegg think just doing what the energy companies ask of them is the answer to bills being too high, they are wrong.

“Energy bills have gone up by £120 this winter alone, so even with a £50 cut in levies, people’s bills will still be higher this winter than last year. The real reason bills are rising year on year without justification is because the energy market is broken.

“Instead of bailing out the energy companies, David Cameron should stand up to them and stop them overcharging people.”

But we all know that David Cameron never stands up to his corporate masters, don’t we?

(Vox Political‘s Mike Sivier will be talking about the energy scandal, along with the continuing cover-up of DWP-related deaths on Sonia Poulton Live today. You can see it by visiting www.thepeoplesvoice.tv, starting at 5pm.)

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Let’s make abuse of power a crime and Lord Freud the first to be prosecuted

20 Thursday Jun 2013

Posted by Mike Sivier in Benefits, Conservative Party, Crime, Housing, People, Politics, Poverty, UK

≈ 29 Comments

Tags

abuse, authorities, authority, avoidance, bedroom, benefit, bully, classify, Coalition, Conservative, council, Customs, Department for Work and Pensions, designated, DWP, government, haven, hm, hmrc, housing, inconsistency, inspector, local, Lord Freud, Mike Sivier, mikesivier, non, office, offshore, people, politics, power, re, rent, Revenue, rich, robbery, social security, subsidy, tax, Tories, Tory, Treasury, UK, Vox Political, welfare


Face of evil: Because of creatures like Lord Freud, Parliament should legislate against a new crime - abuse of power. (Picture by Black Triangle)

Face of evil: Because of creatures like Lord Freud, Parliament should legislate against a new crime – abuse of power. (Picture by Black Triangle)

Lord David Fraud – sorry, Freud. That was a Freudian slip – the man who said “People who are poorer should be prepared to take the biggest risks; they’ve got least to lose”, has been at it again.

According to Inside Housing this man, whose principles allowed him to take Labour’s money and provide that government with his duff advice before running off to join the Tories as soon as it looked as though they would be in office after the 2010 election, wants to bully councils out of an entirely legal way to help their tenants avoid paying the punitive and unfair bedroom tax.

The tax, as we all should know by now, affects people living in social rented accommodation with more bedrooms – as defined by the rent agreement (if I recall correctly) – than the government last year arbitarily decided they need. The options are to give up 14 per cent of your housing benefit if you have one ‘extra’ bedroom, 25 per cent if you’ve got two – or move to smaller accommodation which does not, in the vast majority of cases, exist.

Out of 600,000 affected families, 582,000 have nowhere else to go. So this is a thinly-veiled robbery, from people who can do nothing to prevent it.

It is a tax that has offended many councillors in local authorities across the UK, and some came up with the novel idea that rooms within the properties they own may be reclassified as offices or ‘non-designated’ rooms, thereby avoiding the need to pay the tax. After all, a room is just an enclosed space within a building, right? If it doesn’t have a bed in it, why should it be classified as a bedroom?

Lord Fraud – sorry! Freud – doesn’t see it that way. He wants that cash and couldn’t care less that people in social housing need it to keep a roof over their heads. He has been spending the last month or so (since the councils started re-classifying) trying to put a stop to it and now, it seems, he thinks he has found a way.

In a letter to council chief executives yesterday (Thursday), he has said redesignating properties without reducing their rent to reflect the loss of a bedroom creates an inconsistency for housing benefit and rent purposes.

“Blanket redesignations without a clear and justifiable reason and without reductions in rent, are inappropriate and do not fall within the spirit of the policy,” his letter states [italics mine].

“If it is shown properties are being redesignated inappropriately this will be viewed very seriously.” Meaning: The DWP will commission an independent audit to “ascertain whether correct and appropriate procedures have been followed”. Redesignation without reducing rent would lead to incorrect housing benefit subsidy claims being submitted to the DWP, he stated, adding, “Where it is found that a local authority has redesignated properties without reasonable grounds and without reducing rents, my department would consider either restricting or not paying their housing benefit subsidy.”

The flaw, of course, is this: The size of these properties will have remained the same, therefore so should the rent. But a room without a bed in it is not a bedroom.

Let’s move on to another tax avoidance issue. Since we’re discussing actions that are “inappropriate and do not fall within the spirit of the policy“, what about tax avoidance schemes that are used by very rich individuals, in order to avoid paying the full amount they owe to the UK Treasury?

This has been going on for more years than any of us can remember and the total currently parked offshore, where the tax inspector can’t get at it, is estimated at £21 trillion (it might actually be dollars, but either way it’s a heckuva lot of money).

If the turncoat Lord Freud’s new Conservative friends had been quick off the mark in dealing with this aspect of tax avoidance, he might have been justified in his own hasty behaviour, but they haven’t. Even now, there is no guarantee that the Treasury will get anything back from the tax havens, despite all its posturing and sabre-rattling. There’s just no interest. And by the time anyone gets around to actually taking action, the offenders will have had plenty of opportunity to move their capital elsewhere.

But the actions of the individual taxpayers who have chosen to put their money out of HMRC’s reach is no closer to the spirit of UK tax policy than the actions of the councils who have chosen to protect their tenants.

The difference is that one set of individuals is acting in selfish self-interest, while the other is taking action to help others.

Freud, by his own actions, has shown us all exactly where his loyalties lie. He’s not against tax avoidance, as long as it’s his kind of people doing it. And he loves to bully the little people. He really gets a kick out of threatening them, and he’s not above bending – or changing – the law to do it.

That’s why I say any new government coming into office after 2015 needs to enact a law that criminalises abuse of power – being any legislation or act by a government member that unfairly punishes any named individual or group within British society.

So for example here, it could be applied because Freud wants to penalise hundreds of thousands of people with a tax they can’t pay, when there is no alternative because they have nowhere else to go (except to be thrown out onto the streets, and then the question to be asked is, who takes over the properties after they have gone?) – and is now threatening to punish any attempt legally to avoid paying that unfair tax with another unfair punishment, because others who also legally avoid paying a – fair – tax are being allowed to do so.

As a criminal offence it should involve the sternest penalties possible – stripping the guilty of any titles and privileges, and all property, alongside a lengthy prison sentence involving the hardest labour to which prisoners may be put. Anyone who is willing to deprive the defenceless of everything they own should be made to lose everything as well.

So Lord Freud, for example, would have to kiss goodbye to his luxury mansion in Kent, and everything in it. When he finally came out of clink, he’d be living in council accommodation – and if nowhere could be found that didn’t have more bedrooms than he needed, he’d have to pay his own bedroom tax which would be poetic justice.

I know. It will never happen. Politicians look after their own.

But it should – and you know it.

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How the hated bedroom tax could help us tackle the hated offshore tax-avoiders

04 Tuesday Jun 2013

Posted by Mike Sivier in Benefits, Conservative Party, Housing, Justice, Law, Liberal Democrats, Politics, Tax, UK

≈ 13 Comments

Tags

accommodation, avoidance, avoider, bedroom, box, charge, Coalition, Conservative, council, Democrat, Department, district, DWP, government, housing, housing association, Human Rights Act, judge, Liberal, list, Mike Sivier, mikesivier, non specific, offshore, order, Pensions, possession, rent, room, social, spare, state, study, subsidy, tax, tenant, Tories, Tory, under occupation, Vox Political, waiting, work


Hugely unpopular: Thousands of people have demonstrated against the bedroom tax on the poor since it was first announced by our government of millionaires - this one was in Glasgow.

Hugely unpopular: Thousands of people have demonstrated against the bedroom tax on the poor since it was first announced by our government of millionaires – this one was in Glasgow.

Has your council or housing association re-designated any so-called “spare bedrooms” into box rooms, studies or non-specific rooms yet, to help you avoid paying the bedroom tax?

If not, you have to ask yourself, why not?

It’s only around two months since the so-called ‘state under-occupation charge’ became the law of the land, forcing social housing tenants to lose 14 per cent of their housing benefit if they have one ‘spare’ room, and a quarter of their benefit if they have two or more rooms going ‘spare’ – according to the Coalition government’s definitions, which are, of course, unjust.

Already, thousands of people are sinking into debt, according to a Daily Mirror report today (June 4).

The report states that 1,120 of New Charter Housing’s 1,600 households affected by the bedroom tax – 70 per cent – are in arrears, with tenants losing up to £88 in benefits every month.

Brighton councillors have chosen not to evict tenants who fall into arrears because of the bedroom tax, although some other councils have said this is unrealistic.

And some district judges have stated they would refuse to grant possession orders, if bedroom tax cases came to their courts, citing the Human Rights Act

The Department for Work and Pensions claims that the tax is far (it would, wouldn’t it?) and will either “encourage” or “persuade” families it claims are “over-occupying” to move out, freeing space for others on the housing waiting list, which the Tory-led Coalition has allowed to become hugely over-subscribed due to its failure to invest in building new social housing stock.

The reality is that these families have nowhere to go – for precisely the same reason (lack of social housing stock). They could move into private rented accommodation, but that is more expensive, even for smaller properties, so they would, again, face going into arrears and eventually losing their homes.

A homeless family is, of course, far more expensive for a local authority, as it must then pay to put them up in temporary accommodation – usually a bed and breakfast establishment – at much greater cost then letting them live in council or housing association homes. This is just one reason why the bedroom tax is a waste of taxpayers’ money.

But it doesn’t have to get that far.

Councils in Leeds, Nottingham and North Lanarkshire have been re-classifying spaces in their housing stock as box rooms, studies or non-specific rooms, to help tenants avoid paying the tax. Edinburgh, Birmingham and York councils have been considering the same action.

An e-petition has been launched to get Sheffield Council to re-classify bedrooms as non-specific rooms, and may be signed here.

And what’s to stop councils and housing associations from simply cutting their rents by the 14 or 25 per cent necessary to let people continuing paying the same amount? It’ll be cheaper in the long term!

Some might say that this behaviour is cheating – that it is, in essence, tax avoidance.

Tax avoidance is perfectly legal, of course – and the government has been dragging its heels about changing the law ever since it came into office back in 2010. Could this because they and their rich friends are among the worst tax avoiders, and their money is a major part of the £21 TRILLION currently sitting in offshore bank accounts, helping to ensure the economy stays stagnant and justify the government’s pointless austerity scheme?

Let’s have some uniformity: Rather than have a patchwork of re-classifications across the UK, turning the bedroom tax into a postcode lottery, let’s call on EVERY council to take this step.

When the government complains, the response should be that councils will reverse the step, after the government puts an end to all the income tax avoidance it has been allowing and collects all the money that we, as a nation, are owed.

After that, there won’t be a need for the bedroom tax and so that law can be repealed.

Postscript: There will be naysayers who’ll respond to this by saying it’ll never happen and it can never work. Their principle purpose in doing so is to discourage people from trying.

There is a response to this, as follows: Why not? IF YOU DON’T ASK, YOU DON’T GET!

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Cameron’s crocodile tears over social housing

27 Wednesday Feb 2013

Posted by Mike Sivier in Benefits, Conservative Party, Housing, Politics, Tax, UK

≈ 15 Comments

Tags

bedroom tax, benefit, benefits, Coalition, Conservative, council, David Cameron, disability, disabled, government, house, housing, housing benefit, Labour, landlord, Mike Sivier, mikesivier, occupant, Parliament, people, politics, sick, social, social security, state, subsidy, tax, tenant, Tories, Tory, under occupation, unemployment, Vox Political, Wayne David, welfare


The face is red but the heart is black: Cameron's strategy is to say one thing and do something entirely different.

The face is red but the heart is black: Cameron’s strategy is to say one thing and do something entirely different.

Neither Caerphilly MP Wayne David nor the rest of the Labour Party should take seriously David Cameron’s posturing over social housing, as demonstrated in Prime Minister’s Questions today.

Mr David raised the serious question of a disabled couple who have been living in the same house for 26 years, and who will have to pay the government’s ‘bedroom tax’ on the property, starting in April. He asked: “What justification can there be for this?”

Mr Cameron’s initial response was predictable: “This is not a tax; a tax is when someone earns money, it is their money, and the government takes some of it away.”

He’s wrong. A tax is a compulsory contribution to state revenue, levied by the government against a citizen’s person, property or activity, to support government policies. So the ‘state underoccupation subsidy’ – a phrase only coined within the last few months and a measure that will only come into force in April – is a tax, as it is levied against property occupied by citizens of the UK to support government policies.

Let’s see if he fared any better with his next comment: “The party opposite has got to engage in the fact that housing benefit now accounts for £23 billion of government spending – that is a 50 per cent increase over the last decade.”

That is the financial argument – and the fact is, this is no laughing matter. But dreaming up a way of taking money from the poor, simply for the privilege of continuing to live in their own homes, is treating the symptom and not the cause. Mr Cameron makes no attempt to ask why the government is having to spend more on housing benefit because that might reflect badly on his government, its policies, and the fatcat business executives it supports.

Housing benefit is paid to people who are unemployed or disabled. Why are they unemployed? Because of a recession that followed a global economic crash, caused by high-paid banking executives, perhaps. Has Mr Cameron’s government penalised the banking executives? No. Their bonuses are secure.

Housing benefit is also paid to people who are in work but on low incomes. More than nine-tenths of all new housing benefit claims are made by citizens who fall into this category. This means they aren’t being paid enough by their employers to cover all their costs. Isn’t this an indictment against Britain’s business leaders – that they are not willing to pay a living wage for an honest day’s work? Has Mr Cameron’s government stepped in to seek better pay for employees? No. The comedy Prime Minister takes great pleasure in crowing about employment increases but refuses to examine the damaging small print.

And housing benefit, ultimately, does not go to the occupant but goes to the landlord instead – and landlords will continue to receive their full rent, no matter how unjustified the amount or unfit the accommodation. Social landlords, as I have learned to my own cost, are particularly poor at resolving problems. The bedroom tax therefore cruelly impoverishes people who are already on the bread line, using the threat of eviction as the stick with which to beat them. Has the government done anything to dissuade landlords from charging rents that are too high on properties that are not up to scratch – like capping rents? No. This government believes that such action would be unjustified interference in the market.

Mr Cameron concluded: “And we have to address the fact – as well – that we have 250,000 families in overcrowded accommodation and we have 1.8 million people waiting for a council house.”

This is probably the most misleading of all his comments as it attempts to hide a policy his own government is actively pursuing at the moment, and vigorously – the sale of social housing.

According to the BBC, more than 2,000 tenants took up the government’s Right to Buy discount scheme during the last three months of 2012, after the government quadrupled the discount to a maximum of £75,000.

Mr Cameron is selling off social housing and then complaining that there isn’t enough!

It’s typical of Conservative Party policy: Say one thing – do another.

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Britain’s worst idlers – the MPs who wrote Britannia Unchained

20 Monday Aug 2012

Posted by Mike Sivier in Business, Economy, People, Politics, UK

≈ 8 Comments

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bailing, banker, benefit, benefits, borrow, Britannia, Britannia Unchained, British, Cameron, Chris, comic, commerce, commercial, constituencies, constituency, Dandy, David, debt, director, directorship, disabled, dividend, Dominic Raab, economy, effort, elite, Elizabeth, employment, Enterprise, executive, expense, failure, financier, Free, Free Enterprise Group, GDP, government, graft, grant, Group, humour, hypocrite, idlers, industry, Kwarteng, Kwasi, laziness, leave, lie-in, manager, mismanage, MP, Patel, pay, pension, political, price, Priti, promotion, propoganda, reckless, remuneration, resettlement, reshuffle, right-wing, risk, salaries, salary, senior, share, shareholder, sick, Skidmore, slacker, something-for-nothing, subsidise, subsidy, tax, Tory, Tory-led, Truss, Unchained, unemployment, vacation, workers


I have been saddened to learn of two events that will take place in the near future: The death of The Dandy, and the publication of Britannia Unchained.

The first needs little introduction to British readers; it’s the UK’s longest-running children’s humour comic, which will cease publication (in print form) towards the end of this year, on its 75th anniversary. The second appears to be an odious political tract scribbled by a cabal of ambitious right-wing Tory MPs, desperate to make a name for themselves by tarring British workers as “among the worst idlers in the world”.

The connection? Even at the end of its life, there is better and more useful information in The Dandy than there will be in Britannia Unchained.

The book’s authors, Priti Patel, Elizabeth Truss, Dominic Raab, Chris Skidmore, and Kwasi Kwarteng, all members of the Free Enterprise Group of Tory MPs, argue that British workers are “among the worst idlers in the world”, that the UK “rewards laziness” and “too many people in Britain prefer a lie-in to hard work”.

They say the UK needs to reward a culture of “graft, risk and effort” and “stop bailing out the reckless, avoiding all risk and rewarding laziness”.

Strong words – undermined completely by the authors’ own record of attendance at their place of work.

Chris Skidmore’s Parliamentary attendance record is just 88.1 per cent – and he’s the most diligent of the five. Kwasi Kwarteng weighs in at 87.6 per cent; Elizabeth Truss at 85.3 per cent; and Priti Patel at 81.8 per cent. Dominic Raab is the laziest of the lot, with Parliamentary attendance of just 79.1 per cent.

To put that in perspective, if I took more than a week’s sick leave per year from my last workplace, I would have been hauled up before the boss and serious questions asked about my future at the company. That’s a 97.9 per cent minimum requirement. Who are these slackers to tell me, or anyone else who does real work, that we are lazy?

Some have already suggested that these evil-minded hypocrites are just taking cheap shots at others, to make themselves look good for promotion in an autumn reshuffle. Maybe this is true, although David Cameron would be very unwise to do anything but distance himself from them and their dangerous ideas.

I think this is an attempt to deflect attention away from the way the Tory-led government has mismanaged the economy, and from its murderous treatment of the sick and disabled. As one commentator put it: “They get a token Asian, a token African, a token Jew, mix in the middle class/grammar school rubbish propaganda, and suddenly they are just ordinary people? No they are not; they are stooges for the ruling elite.”

Britain doesn’t reward laziness among its working class. What it rewards is failure by managers, directors of industry, financiers. These people continually increase their salaries and other remuneration while their share prices fall, their dividend payments are lacklustre and shareholder value is destroyed. What have they given shareholders over the past 10 years? How many industrial or commercial leaders have walked off with millions, leaving behind companies that were struggling, if not collapsing? Does the criticism in Britannia Unchained apply to senior executives and bankers?

Our MPs are as much to blame as big business. They vote themselves generous pay, pensions and extended vacations (five months per year). They never start work before 11am, never work weekends (or most Fridays, when they are supposed to be in their constituencies, if I recall correctly). They enjoy fringe benefits including subsidised bars, restaurants and gyms. They take part-time directorships in large companies which take up time they should be using to serve the public. Only a few years ago we discovered that large numbers of them were cheating on their expense claims. They take more than £32,000 in “Resettlement Grant” if we kick them out after one term – which, in my opinion, means all five authors of Britannia Unchained should be applying for it in 2015.

These are the people who most strongly represent the ‘something-for-nothing’ sense of entitlement the book decries.

Have any of them ever worked in a factory or carried out manual labour? I’ll answer that for you: With the exception of Elizabeth Truss, who did a few years as a management accountant at Shell/Cable and Wireless, none of them have ever done anything that could be called real work.

In fact, the people they accuse work very long hours – especially the self-employed. When I ran my own news website, I was busy for 12-14 hours a day (much to the distress of my girlfriend). Employees also work long hours, get less annual leave, earn less and pay more – in prices for consumer goods, taxes and hidden taxes – than most of Europe. Average monthly pay rates have now dropped so low that they are failing to cover workers’ costs, leading to borrowing and debt.

Are British workers really among the laziest in the world? Accurate information is hard to find but it seems likely we’re around 24th on the world league table. On a planet with more than 200 sovereign nations (204 attended the London Olympics), that’s not too shabby at all.

Interestingly, the European workers clocking on for the fewest hours are German. Those lazy Teutons! How dare they work so little and still have the powerhouse economy of the continent?

If so many are reluctant to get up in the morning, why are the morning commuter trains standing room only? Or have the Britannia Unchained crowd never used this form of travel?

It seems to me that Britannia Unchained is just another attempt by the Tory right to make us work harder for less pay. The Coalition is currently cutting the public sector and benefits to the bone, while failing to introduce policies that create useful employment, and trying to boost private sector jobs. The private sector has cut wages and pensions. The result is higher unemployment and benefits that cannot sustain living costs, creating a working-age population desperate for any kind of employment at all (even at the too-low wages already discussed).

And let’s remember that Conservatives want to remove employment laws to make it easier to dismiss employees. In other words, they want a workforce that will toil for a pittance, under threat of swift dismissal and the loss of what little they have.

Why do they think this will improve the UK’s performance?

We already work longer hours and have less protective legislation than in Europe (such as the European Time Directive). But we are less productive in terms of GDP than their French and German counterparts, who work fewer hours and are protected by the likes of the ETD.

France is more unionised than we are, yet its production per employee is higher.

The problem is poor management and bad leadership. Poor productivity is almost always due to poor investment and poor training. Workers are abused when they should be treated as an investment. They lose motivation and when managers get their decisions wrong, they blame the workers.

Working class people are sick of grafting for low pay and in poor working conditions, to be exploited by the types of people represented by the authors of Britannia Unchained.

Is it any wonder we feel de-motivated?

I started this article by linking The Dandy to Britannia Unchained, noting that one was coming to the end of its life in print while the other was about to be published for the first time. I’ll end by pointing out a quality they have in common.

The Dandy is closing because it represents ideas that are now tired and out-of-date. Britannia Unchained should never see publication – for the same reason.

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