Tag Archives: RPI

Unemployment figures are a sanction-based stitch-up, research shows

Iain Duncan Smith: He's proud of the sanctions regime he introduced, in which Job Centre staff are expected to use possibly-fraudulent means to push people off benefits - and he doesn't care how many people they harm.

Iain Duncan Smith: He’s proud of the sanctions regime he introduced, in which Job Centre staff are expected to use possibly-fraudulent means to push people off benefits – and he doesn’t care how many people they harm.

The Coalition government will be crowing about the latest drop in unemployment today – according to official statistics. What a shame it’s all a load of bunk.

New research by Oxford University and the London School of Hygiene & Tropical Medicine has shown that only around one-fifth (20 per cent) of people who have been sanctioned off of Jobseekers’ Allowance have actually found work, leaving 1.6 million in limbo; they’re off the benefits system but researchers can only surmise that they are relying on food banks.

(Isn’t the Coalition government desperate to discredit food banks? Are ministers determined to drive the out-of-work population to starvation?)

This suggests that official Office for National Statistics figures are inaccurate. The latest batch – out today (January 21, 2015) – claim that unemployment dropped by 58,000 in the three months to November last year, when it totalled 1.91 million.

How can we trust these figures when it has been claimed there’s a sanction-based stitch-up going on?

The new figures are from the same ONS that is claiming wages are rising above inflation. Oh really? The figures show average earnings (excluding bonuses) rose by 1.8 per cent, which is more than the CPI rate of inflation – but not more than RPI, which is a more accurate measure of the costs affecting households.

What happens to those figures when executive pay is taken out of them? What’s the average for employees?

The revelation that sanctions have created a huge underclass of people – who have been refused benefits by Iain Duncan Smith’s homicidal system – casts all the ONS statistics into doubt.

If 1.6 million people are being denied benefits, that doesn’t stop them being unemployed.

Therefore the true unemployment figure should be almost twice as high as stated, at a massive 3.51 million.

That’s before other elements, such as the Work Programme, have been taken into account!

And what about the hidden cost of sanctions – to other taxpayer-funded services?

Professor David Stuckler of Oxford University explained this to The Guardian: “If, as we’re finding, people are out of work but without support – disappeared from view – there’s a real danger that other services will absorb the costs, like the NHS, possibly jails and food support systems, to name a few. Sanctions could be costing taxpayers more.”

Debbie Abrahams is a member of the House of Commons Work and Pensions committee, which was due to take evidence on benefit sanctions today. She told the paper: “This government has developed a culture in which Jobcentre Plus advisers are expected to sanction claimants using unjust, and potentially fraudulent, reasons in order get people ‘off-flow’. This creates the illusion the government is bringing down unemployment.”

[Image: The Void.]

[Image: The Void.]

Finally, there is the revelation that “physical punishment is now built into the benefit system, with sanctions both known and intended to cause a deterioration in health, says the DWP rule book”. Visit the Void blog for further details.

The evidence is stacking up, and shows that the Coalition government has falsified the figures to a shocking extent.

Any new government entering office after the general election will face an uphill struggle simply to uncover the depth of the depravity currently taking place.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
If you want to support this site
(
but don’t want to give your money to advertisers)
you can make a one-off donation here:

Donate Button with Credit Cards

Buy Vox Political books so we can continue
demonstrating the lies that undermine official figures.

Health Warning: Government! is now available
in either print or eBook format here:

HWG PrintHWG eBook

The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:

SWAHTprint SWAHTeBook

Economy slowing as growth is revised down: So what?

141223economic-growth-uk-ons-quarter1

The BBC is reporting that the UK economy has grown by 2.6 per cent in the last year – less than the 3 per cent originally thought. In the third quarter of 2014 the increase was 0.6 per cent.

“So what?” you’re probably asking. “Isn’t 2.6 per cent enough?” Well, it’s certainly much better than the limbo days of 2011-13 when the economy was in and out of the red and Ed Balls’ claim that it had “flatlined” was literally true.

The lower growth has been attributed to smaller government and business investment than had previously been expected, and higher imports.

There’s nothing to be done about the increase in the balance of payments deficit (that’s the difference between import costs and export takings) to 27 billion – especially if both government and business investment is down; it seems that Britain simply has nothing to sell.

So much for the “nation of shopkeepers” as Napoleon Bonaparte (among others) famously described us!

Perhaps George Osborne has restricted government investment in order to meet his (revised-revised – and probably revised again) deficit reduction target for 2014-15. If so, he’s even more of a short-sighted fool than we all thought because this will cause greater harm in the long run.

And there’s also the impending crash when the property bubble created by Osborne’s artificially-engineered housing boom pops. Help to Buy and Funding for Lending stimulated the economy when the private sector ignored Gideon’s call for help, but won’t go on forever.

But what does all this mean for the average person on the street?

Not much, it turns out.

All this talk of economic improvement may sound good – indeed, it is intended to do so. But it hasn’t translated into any improvement in living standards. They’ve been plummeting ever since the Conservative-led Coalition government took office.

Tories are bad for the nation’s living standards. So are Liberal Democrats.

Household incomes have dropped by a massive £1,600 every year – a huge amount for the poorest to bear and a considerable inconvenience for those of middle incomes as well.

Pay rises have been non-existent or below the level, even of CPI inflation – which doesn’t take into account all the costs that households must bear. That’s why the Tories and Liberal Democrats switched to using it as their main indicator back in 2010.

Where are all the new full-time jobs?

The only people to benefit from any economic upturn have been the corporate bosses and the Conservative Party (thanks to donations from the corporate bosses).

This means that, instead of asking, “So what? Isn’t 2.6 per cent enough?” you would be better-advised to ask:

“So what? When do I get my share?”

The answer is: “Under the Conservatives and Liberal Democrats?

“Never.”

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
If you want to support this site
(
but don’t want to give your money to advertisers)
you can make a one-off donation here:

Donate Button with Credit Cards

Buy Vox Political books so we can continue
advising you about what economic changes really mean to you.

Health Warning: Government! is now available
in either print or eBook format here:

HWG PrintHWG eBook

The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:

SWAHTprint SWAHTeBook

Tories miscalculate welfare savings. No rich people affected

[Image: Institute for Fiscal Studies.]

[Image: Institute for Fiscal Studies.]

Public spending on benefits has fallen by just £2.5 billion, despite cuts aimed at saving nearly eight times as much (£19bn) – because the silly unqualified Conservative career politicians who dreamed them up had no idea of the knock-on effects of their plans.

The miscalculations have not affected any Tory donors or rich people likely to vote Conservative, so it seems unlikely the government will care.

The BBC reported that the Institute for Fiscal Studies (IFS) has said the reasons for the increased spending included a rise in the cost of pensioner benefits (yet another BBC inaccuracy – the rise was in the cost of state pension payments) and an increase in housing benefit spending.

Let’s look at that.

The IFS said the £5 billion increase in state pensions was due to the “more generous” entitlements of a new generation of pensioners who had recently retired. This is entirely predictable and should have been included in the Conservative Party’s calculations before the Tories ever got anywhere near the Department for Work and Pensions. It is an avoidable mistake that they didn’t avoid. And they’re financially reliable?

Switching from measuring inflation using RPI – which shows a higher rate – to CPI (in order to pretend that the cost of living isn’t rising quite as fast as it really is) hasn’t saved the £4 billion the government expected. This relates more to pensions than any other benefits, as these are linked to inflation. The government was hoping to save billions because CPI inflation rises more slowly than RPI – but it hasn’t happened, for reasons stated in the paragraph immediately above. The Tories should have known this; they didn’t. Stupid Tories.

The BBC reported: “There had been an ‘unanticipated’ rise in housing benefit spending of £1bn, despite cuts of £2bn, which was down to the growth of the private rental sector, rising rents and slow earnings growth.

Are the Conservatives seriously trying to tell us that they didn’t realise the Bedroom Tax would lead to an increase in Housing Benefit claims on privately-rented properties? What did they think was going to happen? Oh no, wait… That was the plan! Tip people out of social housing on the pretext that they are under-occupying, and send them off to rent from private landlords. But private landlords always – always – charge more and the Conservative Party, many of whose members happen to be private landlords, would know that. So we have an increase in the amount of public money being spent on rents that are charged by Conservative-voting landlords. What a handy way of getting money into the pockets of your rich voting base! Let’s conclude that this particular bit of extra spending was in the plan from the start.

Rising rents are a logical consequence of an influx into the private rented sector from social housing. Suddenly there’s a squeeze on space and private landlords are able to hike rents. Again, Tory-voting landlords get a boost from the government.

Slow earnings growth was also planned by the Conservative Party, and is connected to spending on unemployment benefits. The benefits uprating cap of one per cent per year means an increase in social insecurity, intended to force people to seek work of any kind, no matter how low-paid. It’s not so much about making work pay as it is about making it the better of two bad options. The knock-on effect is that there is no job security any more. Anyone agitating for higher wages can be told there are hundreds of people willing to work for less. That will shut them up. The Tories planned this. It seems bizarre that they did not realise people would have to claim in-work benefits in order to make ends meet. That’s why spending on tax credits has fallen by less than expected. So – again – this should have been included in Tory calculations before they got into the DWP. It is another nail in the coffin of their financial reliability.

Here’s a personal favourite: “‘Significant delays’ in the replacement of Disability Living Allowance with the ‘less generous’ Personal Independence Payment had led to a £1.6 billion increase in spending, rather than a £1.2 billion cut.” It seems the Conservatives did not reckon on the people they’re trying to rob doing all they can to stop their money being taken away.

More seriously, this means that all the cuts to the social security budget should never have happened – nor should the thousands of deaths due to the increased pressure placed on claimants by the DWP on the order of its ignorant secretary of state, Iain Duncan Returned-To-Unit Smith.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
If you want to support this site
(
but don’t want to give your money to advertisers)
you can make a one-off donation here:

Donate Button with Credit Cards

Buy Vox Political books so we can continue
pointing out the idiocy of Conservative economic policy!

Health Warning: Government! is now available
in either print or eBook format here:

HWG PrintHWG eBook

The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:

SWAHTprint SWAHTeBook

The Coalition is creating serious problems and distracting you with phantoms

140124earnings

According to the beauty industry, women must now start deodorising under their breasts.

I kid you not – it was in The Guardian.

Columnist Jill Filipovic hit the nail on the head when she wrote: “I can already hear your objections: ‘But the area under my boobs doesn’t stink!’ or ‘What kind of marketing genius not only came up with the term “swoob,” but actually thought half the world’s population might be dumb enough to buy into it?’ or simply, ‘This is a dumb product aimed at inventing an insecurity and then claiming to cure it.’

“You would be correct on all three points.

“In fact, inventing problems with women’s bodies and then offering a cure – if you pay up – is the primary purpose of the multi-billion dollar beauty industry.”

The simple fact is that you don’t really need to worry about smells down there – a good old soapy flannel will cure any such problems.

That’s not the point, though. The aim is to get you thinking about it and devoting your energy to it, rather than to other matters.

Now let’s translate that to politics.

We already know that all the scaremongering about Romanian and Bulgarian immigrants storming the country from January 1 was a crock. That bastion of good statistics, The Now Show, told us last week that the total number of Bulgarian immigrants in the last couple of weeks was “around two dozen so far”, according to their ambassador. In the first three months after our borders were opened to Croatians, 174 turned up.

Yet the government wanted you to believe they would flood our immigration service in their millions, “taking benefits and yet simultaneously also taking all the jobs”.

My use of language such as “storming” and “flood” is not accidental. By far the more serious threat to the UK in the early days of 2014 was the weather – and, guess what, not only was the government unprepared for the ferocity of the storms that swept our islands, the Coalition was in fact in the process of cutting funding for flood defence.

This would have gone unnoticed if the weather had behaved itself, because we would all have been distracted by the single Romanian immigrant who was ensnared by Keith Vaz in a ring of TV cameras at Heathrow Airport.

Now the Tories are telling us that our take-home pay is finally on the rise for all but the top 10 per cent of earners, with the rest of us seeing our wages rise by at least 2.5 per cent.

The government made its claims (up) by taking into account only cuts to income tax and national insurance, using data leading up to April last year, according to the BBC News website.

This kind of nonsense is easily overcome – New Statesman published the above chart, showing the real effect of changes to weekly income for people in various income groups, and also provided the reason for the government’s mistake (if that’s what it was).

“The data used … takes no account of the large benefit cuts introduced by the coalition, such as the real-terms cut in child benefit, the uprating of benefits in line with CPI inflation rather than RPI, and the cuts to tax credits,” writes the Statesman‘s George Eaton.”

He also pointed out that other major cuts such as the bedroom tax, the benefit cap, and the 10 per cent cut in council tax support were introduced after April 2013 and were not included in the Coalition figures.

Once all tax and benefit changes are taken into account, the Institute for Fiscal Studies has shown that almost all families are worse off – and the Coalition also appears to have forgotten the five million low-paid workers who don’t earn enough to benefit from the increase in the personal allowance.

Skills and enterprise minister Matthew Hancock compounded the mistake in an exchange on Twitter with Jonathan Portes, director of the National Institute of Economic and Social Research (NIESR). Asked why his analysis “ignores more than four million people in work (the self-employed)”, Mr Hancock tweeted: “Analysis based on ONS ASHE survey of household earnings data”.

Wrong – as Mr Portes was quick to show: “Don’t you know the difference between household and individual earnings?”

Apparently not. ASHE (Annual Survey of Hours and Earnings) is a survey of employed individuals using their National Insurance numbers – not of households or the self-employed.

So the Coalition – and particularly the Tories – were trying to make us all feel good about the amount we earn.

That’s the distraction. What are we supposed to be ignoring?

Would it be David Cameron’s attempt to bribe councils into allowing shale gas companies to frack their land? Councils that back fracking will get to keep all the business rates collected from the schemes – rather than the usual 50 per cent.

He has also claimed that fracking can boost the economy and encourage businesses into the country, in a further bid to talk down dissent.

Or is it the growing threat of a rise in interest rates, which may be triggered when official unemployment figures – which have been fiddled by increased sanctions on jobseekers, rigged reassessments of benefit claimants, a new scheme to increase the number of people and time spent on Workfare, and the fake economic upturn created by George Osborne’s housing bubble – drop to seven per cent?

It seems possible that the government – especially the Tory part of it – would want to keep people from considering the implications of an interest rate rise that is based on false figures.

As Vox Political commenter Jonathan Wilson wrote yesterday: “If the BOE bases its decisions on incorrect manipulated data that presents a false ‘good news’ analysis then potentially it could do something based on it that would have catastrophic consequences.

“For example if its unemployment rate test is reached, and wages were going up by X per cent against a Y per cent inflation rate which predicted that an interest rate rise of Z per cent would have no general effect and not impact on house prices nor significantly increase repossessions (when X per cent is over-inflated by the top 1 per cent of earners, Y per cent is unrealistically low due to, say, the 50 quid green reduction and/or shops massively discounting to inflate purchases/turnover and not profit) and when it does, instead of tapping on the breaks lightly it slams the gears into reverse while still traveling forward… repossessions go up hugely, house prices suffer a major downward re-evaluation (due to tens of thousands of repossessions hitting the auction rooms) debt rates hit the roof, people stop buying white goods and make do with last year’s iPad/phone/tv/sofa, major retail goes tits up, Amazon goes to the wall, the delivery market and post collapses… etc etc.

“And all because the government fiddled the figures.”

Perhaps Mr Cameron doesn’t want us thinking about that when we could be deodorising our breasts instead.

Show your support for Vox Political!
The site needs YOUR help to continue.
You can make a one-off donation here:

Donate Button with Credit Cards

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

SWAHTprint SWAHTeBook

How can unemployment be dropping at the same time as claims for joblessness are rising?

Today, the government was very pleased to announce, on the BBC and in all the usual right-wing rags, that the number of people out of work in the UK has fallen to its lowest total for more than a year – 2.51 million or 7.8 per cent of the working-age population.

But the claimant count – which tracks the number of people receiving Jobseekers’ Allowance and is the most timely measure of employment – rose by 10,100 last month, the largest increase since September 2011, as reported by the BBC and The Guardian.

Both figures were released by the Office for National Statistics, which seems to be treading on territory that is practically owned by the Office of Budget Irresponsibility.

Are you as confused as I am?

How can unemployment be down when more people are claiming for it?

No explanation.

It’s interesting that long-term unemployment has increased by 12,000, meaning those out of work for over a year now number 894,000.

Part-time employment rose by 49,000 to 8.1 million, more than a quarter of the workforce and close to a record high.

The fall in unemployment has been attributed to a reduction in youth unemployment, but that still leaves 963,000 people, aged between 16 and 24, looking for work.

Most tellingly, average incomes rose by 1.8 per cent for the year to date, while inflation measured according to CPI is now 2.7 per cent. According to RPI, it’s 3.2 per cent. That means the spending power is falling.

Economists say the job market is worsening, possibly as people who were hired for the Olympics, and other summer events, come off firms’ books.

Bank of England supremo Mervyn King said the figures suggested the labour market was “pretty strong” but said it was hard to reconcile this with the economy’s weak growth.

I’ve got a pretty good idea about that, Mervyn.

The economy is growing slowly because the vast majority of people aren’t being paid reasonably by their employers. Wages have grown by almost (or more than, depending which yardstick you use) a whole percentage point less than inflation. People don’t have the money to spend!

If the economy is to enjoy real growth, then the government needs to launch a major attack on tax avoidance and tax havens, get that money back into the UK Treasury where it belongs, and then use it to invest in British infrastructure and British business. That way, firms can get back on their feet and will have no excuse not to pay a living wage to workers. Then working-class people – the vast majority of the population – will have a higher disposable income and therefore more spending power (they’ve hardly got any to spare at the moment). They will use that money; it will go around the system again, and the economy will grow again.

If I can see that – and I’m no economist – why can’t you? Why can’t Gideon George Osborne?

I think we all know the answer to that. He can.

But it suits his purposes to ignore it.

Inflation rise will increase the agony for those on benefits

This is what ‘money’ looks like. Enjoy the sight because you’ll probably be seeing increasingly less of it in reality from now on.

How many different ways can the Coalition find to shoot itself in the foot?

Today, inflation is the cause of the embarrassment. Just one month after it dropped to its lowest level in three years, the pace of price rises leapt up by half a percentage point, which is well above expectations.

And what’s the reason for this unexpected turnaround? Why, it’s because of the sharp rise in university tuition fees!

They rose by 19.1 per cent after the cap on charges was lifted by the government to £9,000 from £3,375.

In response, the Consumer Price Index rose from 2.2 per cent to 2.7, while the Retail Price Index went from 2.6 to 3.2 per cent.

What does it mean for you?

Well, it’s still September’s rise that is the important one, because it is those figures that part-time Chancellor Gideon George Osborne uses to work out the rise in benefits, starting next April. He’ll announce the amounts in December, but he’ll be guided by the September CPI rate.

These include Jobseekers’ Allowance, Income Support, disability benefits, maternity benefits, Incapacity Benefit, Child Tax Credit, Working Tax Credit and Child Benefit.

With inflation rising again, those on benefits are likely to suffer an even greater squeeze on their wallets than is already expected – remember, the bedroom tax and the ‘Pickles Poll Tax’ are both being imposed on us in April 2013.

Energy bill increases, water bill increases, food price rises, and the increase in fuel duty that members of the Coalition dutifully and brainlessly supported only yesterday will add to the agony for the many.

Mr 0 has already announced an intention to squeeze Jobseekers’ Allowance, as he is keen for those in work to see greater reward than those on the dole. Notice that he doesn’t say anything about whether that reward will be adequate to their needs. The living wage is not a factor in this Chancellor’s thinking!

Even last month, when inflation fell, TUC general secretary Brendan Barber warned that real wage drops mean families have been getting poorer every month for the last three years.

It’s not all bad, though!

Pensions – which are drawn by those who are most likely to vote (and most likely to vote Conservative) – are protected by a government guarantee, and will therefore rise by 2.5 per cent.

How cynical.

Get your votes out, lads and lasses!

Is the government is right to maintain benefits to older people, whatever their financial situation, while cutting benefits to more vulnerable people?

This was the popular issue on BBC radio’s Any Questions/Any Answers this week – popular because it highlighted the contrast between pensioners, who influence governments, and youngsters, who don’t.

The simple fact – nailed by a tweeter – is that old people vote more than young people. Therefore, it is the choice they make that can decide who forms the next government. Therefore any party (or parties) in power will pander to them and try to ensure that they take as few hits as possible during a time of cuts.

Remember the old adage that, if you don’t vote Tory when you’re old, you’ve got no brains? They try to look after their support base.

So pensions stop being linked to RPI and get linked to CPI instead, meaning a drop of 0.4 per cent in their annual rise (which was 5.2 per cent last year – well above average pay increases). They get a Christmas bonus. They get winter fuel payments whether they need them or not. Free TV licence.

Meanwhile, youth services are cut hard. Student tuition fees are tripled. The number of young adults out of work skyrockets and they are faced with crippling sanctions on their Jobseekers’ Allowance if they don’t comply with slave-labour Workfare schemes. The Universal Credit will cap the amount of benefit they receive to keep them in poverty. The Localism Bill will bring in county-based council tax relief schemes instead of Council Tax Benefit, which will push low-earners (traditionally the young) out of their homes to look for accommodation in less-desirable areas.

The government can get away with this because young people don’t vote – so they are no threat.

Of course, we’ve all heard the naysayers banging on that there’s no point in voting because it won’t change anything; whatever happens, you’ll end up with a politician representing you. We’ve all heard that sort of tripe. Their point – that politicians are no different from each other; that they’re all in it to line their own pockets, may seem valid. But just look at the evidence of the last century in Britain alone and you will see that it is not true.

Was Aneurin Bevan lining his own pockets when he set up the NHS? Of course not – but Andrew Lansley and many other MPs are lining theirs by breaking it up. And that’s just the obvious example.

So, young people of the UK – and in that I count anybody from 18 up to retirement age – it’s time to start thinking seriously about your situation.

Do you really want to be a Conservative politician’s helpless pawn? Do you want to be consigned to poverty, to a life of endlessly being shifted from one inadequate set of digs to another? From one Workfare placement to another?

Or will you take charge of your own political life and make it clear that you won’t be pushed around like that?

There are more of you than there are pensioners. You can choose a government that is fair; that actually wants to help you. Remember, the government that formed the NHS did it when there was supposed to be “no money left”, and in a time of far worse proportionate debt. And it wasn’t a Tory government. Or a Liberal Democrat one.

So get your votes out.