Benefits

New Labour’s greatest failure

My friend and critic Jonathan Portes obviously took exception to my remarks about Keynesianism having been disproven. His entertaining rebuttal claims to have exposed my misreading of data. That’s not quite how I see it. I agree with him that the appalling build-up of out-of-work benefits happened before 1997. The Tories badly miscalculated incapacity benefit; thinking it would be a one-off way to help those affected by deindustrialization. But, in fact, it created a welfare dependency trap, and the 1992 recession caught too many people in it. John Major had an excuse: a recession. Tony Blair had no such excuse. I wasn’t joking about a quarter of Liverpool and Glasgow

Foodbank statistics present problems for the coalition – and for Labour

Despite the stream of very good economic news (as described by Fraser and James), you won’t catch ministers saying that the crisis in living standards is ‘over’ because there is plenty of evidence to the contrary. The Trussell Trust, the Christian charity, has today published new statistics on food bank use. The headline figure is shocking: “913,138 people received three days’ emergency food from Trussell Trust foodbanks in 2013-14 compared to 346,992 in 2012-13”. The trust says that this is merely ‘the tip of the iceberg’ because the figures do not account for other foodbank providers. There is also, the trust says, no way of estimating how many people are

It’s time Labour talked about universal benefits

For years the Nordic model has stood out as a beacon of universal welfare provision. But if you want evidence of how the global financial crisis has ripped up the political rulebook then look no further than Denmark, the country with the highest tax burden in the world and one that’s long prided itself on a highly developed system of welfare for all. Its current Social Democrat-led Government has cut welfare payments, raised the retirement age and started to means test college and university students for study grants. And, as of this year, they’ve cut access to child support for richer households. According to Danish Finance Minister Bjarne Corydon, this

I’m scared to admit to being a Tory in today’s C of E

[audioplayer src=”http://traffic.libsyn.com/spectator/TheViewFrom22_27_February_2014_v4.mp3″ title=”Ed West discusses political bias in the church” startat=640] Listen [/audioplayer]I am training for ordained ministry at a Church of England theological college. I am a trainee vicar, if you will. I am also a Conservative, which puts me in an extremely small minority and quite a tricky position. At my college, there are approximately 60 ordinands in full-time residential training. Of those 60, there are no more than three or four who would describe themselves as Conservative and the overwhelming majority would call themselves (proudly) socialist. There is also a sizable minority of Marxists. In recent weeks, our national press has seemed surprised that senior clergy in

Would ending unpopular benefits test contract really solve the problem?

What will happen to the much-maligned contractor that carries out the government’s work capability assessments which determine whether a sick or disabled person is fit for work or needs long-term disability benefit? Atos Healthcare is reported to be seeking an early end to its contract with the Work and Pensions department, which certainly won’t dismay ministers who have been privately unhappy with the company’s performance for a while. Although DWP isn’t commenting beyond the statement below, it now looks as though it won’t be difficult to end the contract mutually. ‘Atos were appointed the sole provider for delivering Work Capability Assessments by the previous government in 2008. In July last

Why bishops are useful for the Left – for now

Even though, as I said earlier, it makes sense for David Cameron to come out fighting in favour of his party’s welfare reforms after they were slammed by the Archbishop of Westminster, there’s a point worth considering about how useful these criticisms from leading lights both in the Catholic Church and Church of England are for the Left. Nichols has since said that the government’s cuts and reforms are ‘perfectly understandable’, but that ‘what is beyond my understanding is why a programme of reform needs to result in people who, when they are given some food, burst into tears because they haven’t eaten in three days’. This is precisely the stance

My experience of last night’s Benefits Street debate

I spent yesterday evening in Birmingham with the residents of ‘Benefits Street’, assorted pundits and politicians. It was a slightly rowdy debate for Channel 4, and can be seen here. Since a number of controversial things came up perhaps I can deal with them in order. ‘The programme shouldn’t have been made.’ I felt very uncomfortable at one point last night, watching both the opposition minister, Chris Bryant, government minister Mike Penning and various pundits including Mehdi Hasan of the Huffington Post and Owen Jones of The Independent saying that Channel 4 should not have made the series, should have made a different series, made a series about something else or

Explaining the IDS vs Osborne split on welfare

‘Do you know what they used to call us?’ asked Theresa May ten years ago. ‘The nasty party.’ No one used that phrase, but ‘they’ had a point. The Conservatives seemed to be a group of efficient mercenaries, useful for fighting the economic war that broke out in the 1970s. But in the good times they seemed robotic, Spock-like and heartless. The message was: if you work, we’re with you. If you shirk, you’re the enemy. This was summed up by Peter Lilley’s infamous ‘Little List’ skit, above. ANd again in George Osborne’s 2012 Tory conference speech, where he invited his audience to imagine the anger of a worker passing

The Tories’ hunger games

Last night I went to hear Chris Mould of the Trussell Trust speak at my local church. The scene appeared to confirm every myth Tories tell about themselves. Though it does not make a great noise about it, the Trust represents the Anglican conscience at its active best. On their own, without state support or any of those nanny bureaucracies the right so deplores, the churches have organised more than 400 distribution centres to provide emergency food aid to desperate people. The men and women, who check that clients are truly in need, and hand out food, nappies and sanitary towels, are volunteers, motivated by a concern for others rather

Demonising? Episode 2 of ‘Benefits Street’ flatters a very ugly picture

The Synthetic Outrage Squad has been out in force over Channel 4’s Benefits Street, dubbing the series ‘poverty porn’ that ‘demonises’ a vulnerable group of people. In fact, as someone who’s lived in the city depicted on the programme for most of my life, what I saw not only rings true but also paints a rather flattering picture of life at the bottom in Birmingham. The reality can be much worse. Those who watched the second episode looking for ‘poverty porn’ would have wondered what all the fuss is about. It did not ‘demonise’ the poor; what we saw was a mother trying her hardest to give her children a

George Osborne’s New Year speech on the economy

Earlier today the Chancellor gave a speech on the economy where he set up a choice for politicians: cut back on welfare, or hurt ‘hard working families’ with tax rises and cuts to services like the NHS. Here’s the full text and audio of his speech:- listen to ‘Osborne: ‘Cutting the welfare bill is the kind of decision we need to make’’ on Audioboo

David Cameron dodges questions on pensioner benefits

One of the most significant things about David Cameron’s Sunday Times interview today was something he didn’t say. The Prime Minister made maintaining the triple lock for pensions for the next Parliament ‘the first plank of the next general election manifesto’, but he didn’t make any ‘read-my-lips’ promises about anything else related to those of pensionable age. Why not? Did this mean the Conservatives are going to drop their support for universal pensioner benefits such as the winter fuel payment and free bus passes? His interview on Marr suggested that this could well happen. Here is the transcript of the relevant exchange: Andrew Marr: While we’re talking about life on

Cap child benefit? There are better ways to cut the welfare bill

David Davis is plainly right that the Tories are just testing the water to see how talk about capping child benefit to two children for people on the dole goes down with the punters. And the predictable result is that the water isn’t really all that cold.  The suggestion has gone down nicely with quite a few, especially those – no offence folks! – who sound off on the internet. Any restrictions on welfare are popular; we know that. And it’s all too easy to think of examples of egregious fecundity on the part of people who we would probably prefer not to be parents at all: the child-killer Mick

The government must prevent young people from falling into the benefits trap

Despite promises to be ‘tougher than the Tories’ with regards the welfare bill, shadow work and pensions secretary Rachel Reeves MP was today batting away headlines suggesting that Labour was considering plans to scrap benefits for the under-25s. Reeves’s insistence that neither she, nor the party, support a worthwhile report from the influential, left-of-centre think tank, the IPPR, should raise concern. Not least because the IPPR raised similar points to those of the Prime Minister in his speech at this year’s party conference. In it he outlined plans for an ‘earn or learn’ scheme and recommended that young people are taken out of the welfare system altogether. This is disappointing from a Labour

The ravelling and unravelling of the only policy in David Cameron’s speech

David Cameron’s speech to Tory conference yesterday was supposed to be policy-free so that the media would pick up his list of achievements because it had no other choice. The problem with this, though, was that the papers found a policy in the speech anyway, and if they did splash on the speech, they chose this policy, not the ‘finish the job’ line or any other (although the Mail used the ‘Land of Hope is Tory’ line). It was on housing benefits for the under-25s, but it wasn’t exactly ready to be a set-piece conference announcement, more a fleeting reference to gain more applause in the hall. Because the policy

Tories shift their plans on benefits for under-25s

Although David Cameron’s speech was deliberately light on policy, it did contain one hint about a manifesto commitment for the 2015 general election. The Prime Minister told the conference that ‘we should give young people a clear, positive choice: go to school. Go to college. Do an apprenticeship. Get a job. But just choose the dole? We’ve got to offer them something better than that.’ The party is clear this afternoon that this will be a fully fleshed-out pledge in the Conservative manifesto, and that it is linked to Cabinet Secretary Sir Jeremy Heywood’s review of training and education for under-25s. The benefits that could be docked for young people

Time’s up for today’s welfare state

Welfare as we know it is doomed to defeat. It looks like going down to defeat from three major challenges, and each challenge comes from the sea change that is now so marked in public opinion. First, welfare has moved from one based on the duty to contribute before the right to help was conceded. Increasingly benefits are provided only after a test of income. Voters do not approve of this significant change. The next challenge comes from an increasing reluctance by voters to pay an ever growing share of their income in taxes, of which the largest part goes to a form of welfare with which they strongly disagree

George Orwell’s lesson for Jamie Oliver

Jamie Oliver, eh, what a card? Why can’t Britain’s revolting poor eat better food? If they can afford televisions they can afford mussels and rocket too, don’t ya know? Something like that anyway. But instead they loaf in front of the goggle-box stuffing their fat faces with lardy ready-meals and fast food. What is to be done with them? And why can’t they be more like the Spanish or the Italians? Never mind that Italian children are more likely to be obese than British children. Never mind, too, that kids in impoverished southern Italy are more likely to be overweight than children in the wealthier north. Instead just fantasise about a

It’s time to be realistic about benefits. Wealthy pensioners need to be able to decline theirs

Universal pensioner benefits like the Winter Fuel Allowance (WFA) cost the Exchequer over £8 billion a year. This is not a massive sum compared to overall government expenditure but it is absurd that every pensioner gets WFA, even cash millionaires. We must face the fact that this is totally wrong. It is morally and economically wrong that lower-paid people are paying for the benefits of millionaires who are more than capable of paying their own fuel bills. In an ideal world we would stop handing out WFA to people who didn’t need it. But that’s not easy or cost-effective. So we need to look carefully at the WFA and other

Welfare failures that are costing us dear

I’m told there’s a joke that does the round in Whitehall, that to err is human, but if you really want to foul things up you need Iain Duncan Smith. I’m afraid a casual glance at DWP’s delivery record explains why. On every single one of DWP’s five big reforms things are going badly wrong. The human cost of this colossal bodge job is impossible to calculate. But the fiscal cost could be as high as £1.4 billion. Let’s start with reform of disability benefits. A vital reform that needs tremendous care. The test itself needs fast and fundamental reform (my speech on the subject is here). But the government’s