This infographic appeared on Twitter yesterday. At a time when it has been revealed that the richest people in the UK doubled their income between 2009 and 2014, proving that the Coalition government lied about sharing the burden equally, it seems appropriate to share it.
Supporting information on the £120 billion figure can be found here and here.
The HMRC figure is harder to pin down but a claim that it amounted to £32 billion can be found here.
The claim that £16 billion in benefits goes unclaimed every year seems to date from 2010 and may be lower than the actual amount.
Benefit fraud and error is enumerated in this DWP report which shows that the infographic is mistaken about overpayments due to error – these stand at £2.4 billion, not £1.4 billion.
Information showing that the 1,000 richest people in the UK doubled their incomes between 2009 and 2014 can be found here.
David Cameron has vowed (yet again) to crack down on tax avoidance. A report is here…
But you can safely leave any words he has to say on the subject here:
There’s more than a little of the piscine about the fact that our Conservative-led has set debt collection agencies onto poor families who have been overpaid tax credit due to errors made by HM Revenue and Customs.
Firstly, the move undermines the principle behind the tax credit system – that it is there to ensure that poorly-paid families may still enjoy a reasonable living standard. Tax credits are paid on an estimate of a person’s – or family’s – income over a tax year and the last Labour government, knowing that small variances could cause problems for Britain’s poorest, set a wide buffer of £25,000 before households had to pay anything back.
By cutting this buffer back to £5,000, the Conservatives have turned this safety net into a trap. Suddenly the tiniest overpayment can push households into a debt spiral, because their low incomes mean it is impossible to pay back what the government has arbitrarily decided they now owe.
And the sharks are circling. Instead of collecting the debt on its own behalf, HMRC has sold it on to around a dozen debt collection agencies who are harassing the families involved with constant telephone calls, mobile phone messages and letters to their homes.
In total, HMRC made 215,144 referrals to debt collectors in 2013-14. Of the working families involved, 118,000 earned less than £5,000 per year.
This takes us to our second area of concern. Remember how the Department for Work and Pensions has been encouraging people – particularly the disabled – to declare themselves as self-employed in order to avoid the hassle and harassment that now go hand in hand with any benefit claim? You know – the refusal of benefits based on arbitrary ‘descriptors’ that were originally devised by a criminal insurance company as a means to minimise payouts, and the constant threat of sanctions that would cut off access to benefits for up to three years unless claimants manage to clear increasingly difficult obstacles.
Both of these circumstances are likely to lead to a verdict of overpayment by HMRC, as the self-employment reported by these people is likely to be fictional, or to provide less than required by the rules – either in terms of hours worked or income earned.
Suddenly their debt is sold to a collection agency and they are suffering government-sponsored harassment, alarm and distress (which is in fact illegal) far beyond anything they received from the DWP; debt collection agencies are not part of the government and, as Dame Anne Begg pointed out in the Independent article on this subject, “The tactics they use to collect the debt are not tactics a government should use.”
Maybe not. So why employ such tactics?
Let’s move on to our third, and final, worry. By setting sharks on the hundreds of thousands of minnows caught in the government’s trawler-net (that was formerly a safety net – and I apologise for the mixed metaphor), the Tory-led administration is creating a handy distraction from the huge, bloated, offshore-banking whales who donate heavily into Conservative Party funds and who are therefore never likely to be pursued for the billions of pounds in unpaid taxes that they owe.
The government has promised to clamp down on tax evasion and avoidance, but ministers would have to be out of their minds to attack the bankers and businesspeople who pay for their bread and butter.
When David Cameron stands up in all his hypocrisy and tells you that tearing apart the basic safety net that guaranteed people would not be left in hunger or destitution is part of his “moral mission”, even die-hard Tories should agree that the country has taken a turn for the worse.
When he defends an administration that has become so punitive that applicants who don’t get it right have to wait without food for months at a time, by claiming he is doing “what is right”, even die-hard Tories should agree that the man who claims he is Prime Minister has diverged from reality.
That is precisely what he has done, and you can bet that the Tory diehards will quietly go along with it because they think it is far better for other people to lose their lives than it is for their government to lose face.
Cameron has been responding after the Catholic Bishop of Westminster, Vincent Nichols, delivered a vehement attack on the social security “reforms” being forced on the country’s most vulnerable people by Iain Duncan Smith.
In the Daily Telegraph, Cameron smarmed: “Our long-term economic plan for Britain is not just about doing what we can afford, it is also about doing what is right… Nowhere is that more true than in welfare. For me the moral case for welfare reform is every bit as important as making the numbers add up.
“We are in the middle of a long and difficult journey turning our country around,” Cameron said. “That means difficult decisions to get our deficit down, making sure that the debts of this generation are not our children’s to inherit.
“But our welfare reforms go beyond that alone – they are about giving new purpose, new opportunity, new hope – and yes, new responsibility to people who had previously been written off with no chance.
“Seeing these reforms through is at the heart of our long-term economic plan – and it is at the heart too of our social and moral mission in politics today.”
Drivel. Any evidence-based analysis will find the exact opposite. Where are the opportunities in Workfare schemes that pay only benefits, meaning travel expenses alone put claimants out of pocket, and then send jobseekers back to the dole queue so rich companies can profit further by taking on more claimants on the same terms?
How can anyone derive hope from taking responsibility for their job search, when DWP staff at Jobcentre Plus are ordered to ignore their own responsibilities in favour of harsh sanctions for invented infringements of the Jobseeker’s Agreement?
And how is encouraging people to say they are self-employed, even though they have little chance of earning enough to support them and none of enjoying a holiday or a pension, different from writing them off with no chance?
Look at the new employment figures from the Office for National Statistics – the Coalition government has been making a song and dance about them ever since they came out. On the face of it, they seem reliable: In December 2013, 30.15 million people were in work of some kind, up by 396,000 from the same time the previous year; there were 2.34 million unemployed, down 161,000 from December 2012; and the Claimant Count (those on Jobseekers’ Allowance) was 1.22 million in January, down 327,000 from a year earlier.
However, the number of people marked as self-employed has rocketed to a record level, totalling one in seven of the workforce. That’s 4,370,000 – up 150,000 on the previous year. This is extremely suspicious, as the increase in the previous year totalled 25,000 – just one-sixth of this week’s figure.
Some of these people might be genuinely self-employed and making their new business work – but all of them? In an economy where productivity hasn’t increased since the Coalition took office? You’d have to be stupid to believe that.
Assuming the amount of real self-employment has increased in line with economic growth (at 1.9 per cent), that’s an extra 25,475 in 2013, leaving 124,525 in limbo. Are these really self-employed? Or were they told by Jobcentre advisors to say so and claim working tax credits (as we’ve seen in the past), leading to a huge debt when HMRC tells them they have been claiming fraudulently and have been overpaid?
How many of the unemployed have been wiped off the books due to sanctions? We don’t know, because we don’t have figures up to December 2013. We do know that 897,690 sanctions were enforced in the year to September 2013. We don’t know how many were for one month, how many for three months or how many for three years, but we do know that the rate was six per cent of jobseekers per month in the three months to the end of September 2013. Assuming that rate stayed solid, it suggests that 73,200 were off-benefit due to sanctions in December and should be added to the Claimant Count to give a more accurate figure.
How many of the unemployed have been wiped off the books due to Workfare? We don’t know. How many are unemployed but on Universal Credit, which isn’t included in the Claimant Count? We don’t know – 3,610 were on it at the end of November last year, but the DWP has not divided them into those in work and those without.
David Cameron has access to all of this information, and he doesn’t care. He also has access to the mortality figures for claimants of Incapacity Benefit/Employment and Support Allowance, that the DWP has been withholding from the rest of us, probably for fear of sparking an international outcry. He doesn’t care about that either.
His comments are therefore doubly outrageous – not only is he claiming that his Coalition’s changes are having a beneficial effect when the figures demonstrate the opposite, but he is also claiming the moral high ground when his actions are more appropriate to the populace of the Pit.
In terms of his morality, there can be only one description for him and his cronies:
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Those of you who have been following the excellent exposure of English NHS scandals as attempts to soften up the public for mass privatisation of the NHS (oh yes they are) over on the Skwawkbox blog may be saddened to learn that it is happening over here in Wales, also.
What this – together with the situation in England – tells us is that we have allowed successive governments to turn the NHS on its head. Instead of being a medical service providing timely healthcare that is free at the point of use because it is funded by taxation, this function is now carried out in name only.
The NHS seems now to be a cover for office workers who have nothing to do with medicine and yet are happy to cancel operations due to lack of money, while being massively overpaid for doing so.
The question that arises in everybody’s mind should be: Why are we paying these people anything at all, when that money could be funding the operations they keep cancelling?
Now take this a step further. We should all be aware that the NHS is coming under heavy fire because we have a government that is ideologically devoted to the privatisation of healthcare. The claim is that, under Coalition plans, the health service would remain free at the point of use – but we know that huge amounts of taxpayers’ money would be siphoned off as profit for private companies and would not be used for medical purposes.
So this gives rise to a second question: What possible benefit may be gained from swapping one system – where healthcare is secondary to the payment of office workers – for another system in which exactly the same conditions apply, but even less of our money goes toward treatment?
I say: Sack ’em all. Whole hospitals could be run far more efficiently with a single accountant employed to keep the books straight.
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