Tag: Heidi Allen

Conservative MPs accuse citizens of ‘scaremongering stories’ about experiences of Universal Credit.

Conservative MP Wendy Morton says Universal Credit ‘helps’ people into work and criticises opposition MPs for ‘scaremongering.’ However, the new benefit has pushed people into debt and rent arrears, with some forced to rely on food banks to survive. It’s difficult to see precisely how a social security benefit that creates those circumstances could possibly help people into work.

The introduction of Universal Credit was aimed at ‘incentivising’ people into work and to work longer hours, by ensuring that for those needing to claim welfare support, the experience was as uncomfortable as possible. Under the Conservatives, social security has been transformed into a system that metes out discipline,  coercing citizens into compliance with state-defined economic outcomes, rather than serving as a national insurance-funded provision to meet people’s basic necessities, should they need it – which was the original intention behind the welfare state. 

The introduction of ordeals and harsh conditionality in the process of welfare administration was designed to ensure that no-one felt secure or ‘entitled’ to claim support. The Conservatives believe provision for meeting people’s basic survival needs when they experience financial disadvantage somehow produces ‘perverse incentives’ that make being out of work a more favourable option than looking for work.

However, much research – both historic and recent – has indicated that unless people are secure in being able to meet their basic needs – which requires having sufficient resources to cover the cost of fundamental necessities such as food, fuel and shelter consistently – then it is highly unlikely they will be able to fulfil higher level psychosocial needs, including looking for work. In short, absolute poverty limits human potential. It’s therefore simply not possible to  punish people out of being poor.  The problem of poverty is structural and material, it doesn’t arise because of some kind of moral, character or behavioural deficit on the part of poor people.

We learned this through the consequences of the punitive 1834 Poor Law, the research of Benjamin Seebohm Rowntree and the later work of Peter Townsend. Rowntree’s discovery was that poverty arises as the result of low wages, which went against the traditionally held view that poor people were somehow responsible for their own circumstances. The Conservatives view is a regressive one. 

The Government has claimed that disciplinary sanctions are a method of enforcing “cultural and behavioural change” of people claiming both in-work and out-of-work social security. This of course assumes that people’s behaviours are a problem in the first place.

Sanctions don’t address the decision-making of employers – who are ultimately responsible for establishing rates of pay and the hours of work for employees – nor do they address exploitation or structural problems, such as political decision-making that results in inequality, poverty, reduced access to opportunity and resources and a deregulated labour market that creates constraints for those looking for work.

Sanctions are one of the government’s draconian methods of ‘making work pay’. This is what Conservatives like Morton mean by ‘helping people into work. She means that people are being systematically punished into increasing their economic productivity, regardless of whether that actually ‘pays’ for them and alleviates poverty. It means that the Government has abdicated responsibility for the consequences of its own policy and decision-making regarding the UK’s socioeconomic organisation, choosing instead to scapegoat the casualties of those policies and decisions.

Furthermore, contrary to the government’s claims, international research has shown that generous welfare provision actually increases the likelihood that people will have a stronger work ethic and be much more willing and able to look for work. 

The Institute for Fiscal Study (IFS) carried out an independent study of Universal Credit and have estimated that the government’s social security reform will cut welfare spending by £2.7bn a year, and will hit working people on low incomes particularly hard. Single parents who work and two-parent households where both work are most likely to lose out, the study found. 

Robert Joyce, an associate director at the IFS and one of the report’s authors, said the long-run effect of the introduction of universal credit would be “to reduce benefits for working families on average – a reversal of the original [stated] intention”.

The Department for Work and Pensions claimed that Universal Credit was “transforming lives across the country, with claimants moving into work significantly faster and earning more than under the old system”. Universal credit would be in all jobcentres by the spring and once fully rolled out it would generate £6.7bn in economic benefit every year.”

It’s certainly changing lives. But not in the way it’s claimed to.

The government have never hidden the fact that they aim to make big savings through their systematic welfare ‘reforms’ (a word that has become a Conservative euphemism for cuts).

The road to tyranny

Last month, the leader of the House of Commons, Andrea Leadsom, was accused by senior Conservatives MPs of paving the way for tyranny, after the government whipped its MPs to abstain on a Labour motion on universal credit. Labour’s motion  passed unanimously despite the concerns of several Conservative rebels, but some Tory MPs were infuriated at being urged by their own party to ignore it.

Leadsom faced criticism from some Conservative MPs because she said the government was not bound by the resolution, which called for the rollout of the controversial welfare changes to be paused.

Valerie Vaz, the shadow leader of the house, pressed Leadsom on the government’s response. She said: “This is where we make the law. This is not a school debating chamber. This is a disorganised government, disrespectful to the house.”

“I know the government didn’t want to hear about people in rent arrears struggling to feed their families when they’re in work, but that’s the reality when government policy is failing.”

Conservative MP Heidi Allen broke down in the House of Commons during the emotional Labour-led debate on Universal Credit on Tuesday, where the government conceded it would finally release the ‘confidential’ reports into the impact of the welfare reform’s rollout. 

The debate came as the government pledged it will make universal credit reports from between 2012 and 2015 available to the select committee in a concession to Labour, but work and pensions secretary David Gauke said they should not be made public. A ruling in August was made by the information commissioner that five of the government’s reports should be released to campaigners because their publication would be in the public interest.

The Government have said they would continue to challenge the reports being released to the public, even though the reports will be given to the committee, after Labour used a parliamentary device called a ‘humble address’ to the Queen, requesting ministers release project assessment reviews conducted into the welfare reform. 

The Information Commissioner’s Office has already said the papers should be published publicly and in full.

Mind you, we are still waiting for the public release of the Health and Social Care risk register, and have been since 2012.

Perish the thought that the Government should value democratic transparency and accountability. Or that it should face the consequences of its own policies and decision-making.

Field had intervened to give Allen a chance to compose herself, saying: “I’m just amazed for the first time I’ve been able to report those events publicly without weeping. 

I’m so affected by them, I’m affected as she is. That’s the debate we’re really having – how do we represent here the desperateness of many of our constituents when many of us feel we can’t offer them hope,” he said.

Earlier Field had said, remarkably, that his constituents were being hit by the cumulative impact of reforms under both Labour and Conservative governments.

He said: “On my last surgery Friday, for the first time ever a gentleman rose after we had spoken, I had tried to persuade him not to commit suicide, such was the desperateness that he saw the future for himself, and I realised the hand that shook my hand was wet. He’d been crying. And the hand that shook my hand was the hand that wiped away those tears.” 

Field also recounted how a charity in his constituency had helped a family who brought in a child that was “crying with hunger”.

The family were so short of money that they had been invited to a funeral by their neighbours so that they could finish the food left by other guests.

Field said: “This is the background of growing destitution that I see in my constituency and against which we have to judge Universal Credit and the debate we’re having today.” 

Labour and some Conservative MPs have repeatedly voiced concern about the long wait faced by fresh claimants to be paid benefits once they apply for universal credit, originally six weeks but reduced to five in last month’s budget.

The concerns about Universal Credit arose because of the harrowing accounts of experiences that MPs have heard directly from their constituents. Charities have also fedback to MPs about the distress and hardship they have witnessed from people going through the system. For example, the Trussell Trust, a charity which provides food banks, said demand had risen in areas where Universal Credit was introduced.

It said at the House of Commons inquiry into Universal Credit: “In 2016-17 food banks in areas of full Universal Credit rollout saw a 16.85% average increase in referrals for emergency food, more than double the national average of 6.64%.” 

Newcastle Council have also said during the House of Commons inquiry: “We think that Universal Credit can place some vulnerable residents at risk of destitution and homelessness.” And the body which manages Newcastle’s council houses said Universal Credit claimants were more than £1 million in arrears on their rent.

Liverpool City Council reported “an increasing number of citizens contacting the service for assistance through local welfare provision, to provide funds for food and other essentials”. 

The council, already dealing with funding cuts, said it was “encountering significant financial losses” because it was having to provide temporary accommodation for people who had been made homeless.

The debate on Tuesday happened because some citizens are experiencing extreme distress and hardship and have reported their circumstances to their MPs. This is, after all, how a democracy works. MPs represent their constituents.

Now more than one Conservative MP has dismissed those citizens’ accounts as ‘scaremongering,’ which is an attempt to deny that those experiences are true, while also denying culpability.

Morton (Conservative MP for Aldridge Brownhills) said Universal Credit, which ‘replaces’ a range of existing benefits including Housing Benefit, was ‘helping’ people find work. However, Universal Credit doesn’t entirely replace the amount that the range of benefits provided to meet people’s basic needs. 

Speaking in the Commons debate about Universal Credit, she said: “It is this Government who are helping people, which is why I am disappointed to have sat through a lot of this debate and heard scaremongering stories from Opposition Members.

I flinch when I hear the government say they are going to ‘help’ people, especially when that ‘help’ is directed at marginalised social groups. Who among us really needs that draconian and Dickensian brand of help?

The Conservatives seem to think that their strictly class-based and ‘helpful’ punishment is somehow in people’s’ best interests. They claim with a straight face that the system of punishing sanctions being inflicted on the poorest citizens is ‘fair’. There isn’t a system in place that punishes people fairly who hoard their wealth offshore, however, causing such damage to the economy that the Government say they were somehow forced to impose austerity on the poorest citizens so the nation could ‘live within its means’. Well, some of the nation. For many don’t have the means to live, now.

It’s not poor people who need to change their behaviours. It is a Government that is happy to preside over growing inequality, increasing absolute poverty and social injustice. It is those very wealthy people who feel they are not obliged to contribute to a society that they have taken so much from. 

The Department for Work and Pensions has said no claimant needed to wait that long without funds, saying emergency payments to cover the period can be requested and received within three days and paid back over 12 months.

Speaking in the debate, Gauke also accused Labour politicians and the media of ‘scaremongering’, which he said was leading families to believe they had no way of accessing help.

However, they don’t have any way of accessing help.

Gauke spoke the language of despots fluently when he said that he was granting the request on an ‘exceptional basis’ and said the reports would only give a partial picture of the policy’s impact, given how it had subsequently ‘been revised.’ He also said he would consider redacting certain information, such as that which is ‘commercially sensitive’, while the documents were being handed over in exceptional circumstances and did not ‘set a precedent.’ 

Field was clearly uneasy about the condition that his committee keep the reports confidential, and said that he would seek guidance from Commons Speaker John Bercow  about “what sense of secrecy or of honour binds us” when the committee finally do get the documents.

Osborne’s tax credit omnishambles reveals the profound elitism of the Tories

Chancellor George OsborneI don’t know a single person on low pay that is happy about the Conservative proposals to cut their tax credits and subsequently, their living standards, further. This policy was deliberately left out of the Tory manifesto, and when asked directly if his government was going to cut tax credits, Cameron chose to lie and said no. Now the Conservatives are claiming that this policy, never declared before the election, is suddenly somehow a “central plank” of the budget. The claim that Conservatives had declared cuts to welfare doesn’t stand up to scrutiny, either, because they claim to be a party that is all about “making work pay”. 

The Conservatives are claiming that the cuts were “democratically voted” through in the House of Commons, yet their majority in the lower House may not have happened at all, had they been honest prior to the election and declared their intention to cut people’s tax credits. 

Furthermore, the cuts were presented in the form of secondary legislation – as a Statutory Instrument – which notoriously receive little scrutiny and very limited debate time in the Commons. Statutory instruments are intended to be used for simple, non-controversial measures, in contrast to more complex items of primary legislation (known as Bills.) The Government always ensure they have a majority on any Statutory Instrument committee and the MPs are chosen by Whips. This enables government to push through their legislative programme with very little scrutiny, exacerbating a lack of democratic transparency and accountability of the Executive.

The threats issued to the Upper House from the government arose because the Conservatives are facing probable defeat on what is an extremely unpopular reform, even amongst their own party ranks, and are truly remarkable, showing a contempt for democratic process and a lack of willingness to engage in genuine, transparent democratic dialogue.

Earlier this year, the Institute for Fiscal Studies (IFS) asked George Osborne to specify how he will reach targets announced in the budget, given that the poorest had been the hardest hit by draconian benefit cuts already. The IFS said that the worst of the UK’s spending cuts are still to come.

I said at the time that it’s not that Osborne can’t answer the IFS challenge: he won’t.

David Gauke, the Treasury secretary at the time was pressed repeatedly on the BBC’s Daily Politics to explain if the Tories would detail their planned welfare cuts beyond the £3billion previously specified.

He replied: “We will set it out nearer the time which will be after the election.”

Pre-general election television comments have exposed Prime Minister David Cameron’s lies about his party’s proposal to reduce child tax credits. During a special episode of BBC’s Question Time, aired in April, presenter David Dimbleby asks: “There are some people that are worried about you cutting child tax credits, are you saying absolutely as a guarantee that you’d never have it?”

To which the Prime Minister responds: “First of all child tax credit we increased by 450 pounds…” Dimbleby interjects: “And it’s not going to fall?” to which the PM clearly replies: “It’s not going to fall.”

As Simon Szreter, Professor of history and public policy at the University of Cambridge, points out about the party claiming “A Britain that rewards work” as its slogan:

It is a measure of just how much George Osborne’s post-election attack on tax credits represents an assault of genuinely historic proportions on Britain’s poor that his PM has made reference to the 1911 Parliament Act in his railing against popular protest and his fear of blocking measures in the House of Lords. Let us remember why the act was brought in by the Liberal government of Asquith and Lloyd George.

The landed wealth elite, including men such as George Osborne’s direct ancestors, the Anglo-Irish baronets of Ballentaylor, dominated the House of Lords. They rejected the elected government’s policy – democratically tested at the bar of two general elections in 1910 – to impose new progressive forms of taxation on the super-wealthy to help fund such basic social security measures for the working poor as pensions and the first National Insurance Act.

He goes on to say:

Mr Cameron is darkly mentioning the Parliament Act of 1911 to cow the House of Lords into compliance because the upper chamber is no longer exclusively the club of the wealth elite as it was in 1911. The alternative, as Mr Cameron’s timely recollection of the 1911 Parliament Act reminds us all, is for parliament to ensure that the financial elite pay their way more fully in our society, a case that is all the more compelling considering their undisputed role in punching a hole in the nation’s finances in 2008.

The problem today is not control over the House of Lords. Today’s financial elite have found that it is much more efficient to exert their control over the House of Commons itself. This they do though a Tory party that is almost entirely funded by them and whose administration is safely in the hands of a chancellor who fully appreciates the importance of looking after the interests of the nation’s wealth elites. After all, he is the future 18th baronet of Ballentaylor.

Even Conservative MPs, such as Heidi Allen, have pointed out the hypocrisy of the proposed tax credit cuts. But as I’ve pointed out previously, the slogan “making work pay” has a lot in common with the 1834 Poor Law principle of less eligibility, rather than it being a genuine statement of intent from the Tories. Unless of course, you ask “Making work pay for whom?”

Further cuts to provisions, services and welfare – support for the poorest – is unthinkable and untenable, especially when there are other choices that the government could have made.

For example, the prime minister made it clear that lavish tax cuts for the better off will be the £7bn prize for returning him to Downing Street. This came after a £48bn in public service cuts, the like of which the country has never known.

“The people whose hard work and personal sacrifices have got us through these difficult times should come first,” Cameron said.

So who exactly worked hardest and took the heaviest burdens – and what exactly will be their reward? Certainly not those who made most sacrifices – the same low earners whose working tax credits and benefits George Osborne will happily cut again by another £12bn.

ed wealthRelated

Tax Credits Cuts ‘Will Widen The Gap In Inequalities’

Cuts To Tax Credits Could Breach Children’s Rights, Warns Commissioner

Follow the Money: Tory Ideology is all about handouts to the wealthy that are funded by the poor

There is no such thing as a ‘one nation’ Tory: they always create two nations

Conservatism in a nutshell

The word “Tories” is an abbreviation of “tall stories”

Osborne’s tax credit cuts omnishambles

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The Chancellor, George Osborne, has recently announced that the Conservatives are a true “workers party”  – claiming that his opponents, the Labour Party, represent the unemployed. But the Conservatives are attempting to re-write history: the Labour Party grew from the Trade Union Movement, and have a strong tradition of supporting worker’s rights and fair wages, and of course the Unions have retained close institutional links with the Labour Party.

Osborne has argued, somewhat absurdly, that reducing tax credit payments to people in low paid jobs would give them “economic security” by reducing the Government’s spending deficit. Labour argues that the richest should pay to cut the deficit, and has identified cuts to tax avoidance and corporate subsidies that could replace cuts to the lowest paid. Osborne’s priorities reflect a traditional Conservative ideology.

As Richard Murphy, from Tax Research UK, points out:

“… the government is forcing the burden of risk bearing onto those least able to bear it in society – that is those with the lowest income. So just as we now know inequality, especially concerning wealth, is rising rapidly, insecurity is also increasing exponentially as risk is being passed from those with the capacity to bear it to those who have not.”

Osborne’s “long-term economic plan” isn’t without controversy. According to many economists, during recessions, the government can stimulate the economy by intentionally running a deficit. The budget deficit is the annual amount the government has to borrow to meet the shortfall between current receipts (tax) and government spending.

Of course, last year, serious doubts were raised regarding Osborne’s deficit targets after the treasury met a significant tax revenue shortfall. Osborne’s obsession with deficit cutting and the Conservative small-state ideology has clearly overlooked the problems created by poor pay and high living costs, which has impacted detrimentally at both a micro and macro level, creating an economic spiral of cuts and stagnation. And it has widened inequality significantly.

In order to keep his promises on further future tax cuts for higher earners, Osborne will invariably make even more cuts to public services, public sector pay and the social security safety net that are so deep they will severely damage both the economy and potentially, the fabric of our society.

The Institute for Fiscal Studies (IFS) have recently criticised George Osborne’s proposed tax credit cuts, because it is “at odds” with wider Conservative stated aims to “support hardworking families”.

Research conducted by the IFS calculated that only around quarter of money take from families through tax credit cuts would be returned by the new National “Living Wage”.

Tax credits are payments made by the Government to people on lower incomes, most of whom are in work.

It was announced today that the Work and Pensions Committee is holding an urgent evidence gathering session on the proposed reforms to the tax credit system on Monday 26 October. The Committee will question representatives of respected independent think tanks that have analysed the impact of the Conservative plans, including the IFS and the Resolution Foundation, who revealed that the planned welfare cuts will lead to an increase of 200,000 working households living in poverty by 2020, and that almost two-thirds of the cut would be borne by the poorest 30 per cent of households, whilst almost none of the cuts will fall upon the richest 40 per cent of households.

A Labour motion calling on the government to rethink the controversial tax credit cuts has been defeated in the Commons. But despite Labour losing the vote today, the debate saw a number of Tory MPs attack the proposed changes, too.

In her maiden speech today, Tory MP Heidi Allen said that her party risks betraying its values, as she voiced her opposition to tax credit cuts.

She suggested ministers were losing sight of the difficulties of working people in their “single-minded determination to achieve a [budget] surplus”. She also said that the tax credit changes do not pass the “family test”, warning that the pace of the reforms is “too hard and too fast”.

The opposition day motion called for a reversal of the policy but MPs voted against it by 317 to 295 – a government majority of just 22. Next week, the vote in the House of Lords was set to be far closer, with the very real possibility that on Monday, Peers would  vote to block the changes. Because the tax credit cut proposals were not in the Tory manifesto, it means they are not bound by the usual Salisbury convention that prevents the peers from blocking election promises.

Also, the tax credit cuts were not included in the Finance Bill, which normally enacts a Budget, and the opposition have used the opportunity to seize on the fact that a Statutory Instrument can be halted by a single House of Lords vote.

Mr Cameron effectively ruled out cutting the benefit before the election, telling a voters Question time that he “rejected” proposals to cut tax credits and did not want to do so.

The cuts are part of £12bn cuts to the social security budget that the Government is to make – the details of which the Conservatives refused to announce before the election.

However, in an unprecedented move, the Conservatives have threatened a constitutional “showdown”, and have refused to engage in dialogue with peers that want kill off the proposed Tory cuts. The government warned the House of Lords it would trigger a full-scale constitutional crisis by pressing ahead with their plans.

Despite the fact that the chancellor faces a growing rebellion against the cuts among Tory MPs, the government told the group of crossbench peers that they also “risked” a renewed push to weaken the powers of the upper house if they refused to back down.

The threats from the government that came because it was facing probable defeat on what is an extremely unpopular reform, even amongst their own party ranks, are truly remarkable, showing a contempt for democratic process and a lack of willingness to engage in transparent dialogue. They came after Lady Meacher, a crossbencher who is the former chair of the East London NHS Trust, threatened to table a “fatal motion” to kill off the cuts to tax credits.

The Tories do not have a majority in the Lords and faced defeat after Labour and the Liberal Democrats said they would support Lady Meacher.

It is understood that Meacher withdrew her fatal motion on Tuesday night and announced she would table a motion calling on the government to deliver a report responding to the warning by the Institute for Fiscal Studies that 3 million families would lose over £1,000 a year.

Meacher told the Guardian today:

My plan at the moment is to put down a motion which will prevent this regulation being approved on Monday, which will require the government to produce a report responding to the IFS analysis and consider mitigating action before bringing it back. This gives time to the House of Commons to go on doing what they are doing. There are Tory MPs horrified by this.

So we are giving the government time to think again, but the word fatal would not be appropriate. This is causing a great deal of consternation at government level and we are trying to find a way through which will ensure that the government revisits these regulations

This move will also allow time for the Work and Pensions Committee to gather further evidence to present to the government, too. The Committee have stated that they will ask representatives questions on the following topics;

  • The impact of the April 2016 tax credit cuts (in isolation and in the context of other welfare measures in the Summer Budget), and the National Living Wage
  • The winners and losers and their characteristics
  • The extent to which the National Living Wage will compensate individuals receiving lower tax credit payments
  • The distributional impact of these measures, individually and combined
  • The scale of the financial gains/losses to households and what influences this
  • The quality of the analysis produced by the Government to support their proposals
  • Other options for achieving savings from the tax credit system that will mitigate the impact on the least well off
  • The implications for work incentives and the Government’s wider objectives in welfare reform

Select Committees work in both Houses of parliament. They check and report on areas ranging from the work of government departments to economic affairs. The results of these inquiries are made public and the Government must respond to their findings.

A select committee is a cross-party group of MPs or Lords given a specific remit to investigate and report back to the House that set it up. Select committees are one of the key ways in which Parliament makes sure the Government is adequately scrutinised, held to account, and has to explain or justify what it is doing or how it is spending taxpayers’ money.

Committee findings are reported to the Commons, printed, and published on the Parliament website. The government then usually has 60 days to respond to the committee’s recommendations.

The Osborne omnishambles is far from done and dusted yet.

555114_453356604733873_1986499794_nPictures courtesy of Robert Livingstone