Tag Archives: uprating

Are the Tories signing the death warrants of expat pensioners?

Pensioners living in EU countries could be facing double jeopardy if the UK leaves the EU without a withdrawal agreement, as the Conservatives seem to be planning.

Not only are they likely to lose the “triple lock” system to ensure their pensions rise every year, but those with complex health needs are likely to lose their NHS-supported healthcare.

The EU has repeatedly stated that nothing is agreed until everything is agreed – and nothing has been agreed at the moment. So the triple-lock – ensuring that the UK state pension rises with the rate of inflation, earnings, or at the rate of 2.5 per cent, whichever is higher – and payments from the UK to an EU bank account may be at risk.

There are concerns that this would end with Brexit, meaning pensions for expat Brits would be frozen and they would become poorer in real terms every year.

The DWP has claimed that it is committed to uprating pensions across the EU in 2019 and 2020. After that, it seems, if you’re a pensioner in the EU, you’ll be living on the same money for the rest of your natural life.

UPDATE: I am grateful to commenters (see below) who have pointed out what may be inaccurate information in the original version of this article. I wrote that a commenter on the Vox Political Facebook page pointed out, “There are many British pensioners with complex health needs living in the EU, whose health conditions are supported in their countries of residence under the EHIC [European Health Insurance Card].

“On October 31, if no deal goes through, those people are going to lose their health care. That means they’re either going to have to buy expensive insurance in their countries of residence, bring their health burdens home to the NHS, or die.

“Many of them will die because they have complex health needs and won’t be able to just up-sticks and return to the UK.”

It seems that EHIC is only valid for two years and if a UK citizen is a permanent resident of an EU country, they must sign on for that country’s healthcare scheme, in whatever form it takes.

This means they could still be out of pocket as these schemes cost money. With pensions frozen – and the value of the pound plummeting to a point where some expats are already encountering difficulties – matters could become much worse, very quickly.

Boris Johnson doesn’t seem to care.

So it seems the government could be literally signing UK residents’ death warrants.

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Do you know the horrifying facts about your own MP?

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Don’t let the appearance of serious concern fool you – Roger Williams has done more harm than good in the last five years. Can you say that your MP hasn’t?

You can tell there’s an election on the way when the dreaded Liberal Democrat Block Graph appears in your letterbox.

“Only Roger Williams MP and the Lib Dems can stop the Tories here in Brecon & Radnorshire!” today’s leaflet screamed, while the graph pointed to a 10 per cent turnout for Labour (highlighted in orange – isn’t that the Lib Dems’ colour?) from 2010 to illustrate its point.

But 2010 was a long time ago. Since then, Roger has betrayed us all in Parliamentary votes many times.

Are you upset about the funding cuts to local government services? Roger voted for those cuts.

Struggling to pay your council tax? Roger voted strongly to make councils responsible for helping people pay – and for reducing the amount spent on that support.

Are you unemployed, sick or disabled? Roger voted strongly for cuts to welfare benefits, and for the uprating cap that means benefits don’t rise in line with prices.

He voted against investing public money in guaranteed jobs for young people who have spent a long time out of work.

He voted to increase VAT, but not to increase taxes for the immensely rich – and he fully supported cutting the rate of corporation tax, so rich firms became even richer.

Remember the bankers who caused the financial crisis? Roger voted against clawing back money from them. He refused to support the bankers’ bonus tax.

Remember the botched privatisation of the Royal Mail? Roger fully supported it.

He voted very strongly in favour of ending financial support for people aged 16-19 in training and further education.

He voted very strongly in favour of restricting access to justice so that only the rich can get a fair hearing in court, by restricting the scope of Legal Aid – and he voted for the creation of so-called ‘secret courts’.

He is in favour of the waste of money known as Police and Crime Commissioners, against restricting rises in rail fares, very strongly for selling off England’s state-owned forests and against green energy.

Oh – and he voted for the Bedroom Tax too.

He also voted very strongly in favour of the Tories’ creeping privatisation of the National Health Service.

His leaflet states: “The Tories want to cut pay for Llandrindod Wells’ nurses and teachers. Who can stop them?

Not Roger Williams, obviously. His record shows he has been cheering them on.

This writer actually helped vote Roger Williams into his Parliamentary seat, back in 2001. Admittedly it was a tactical choice, to make sure that the constituency did not go to a Conservative candidate.

Now I know that, given the chance, Roger won’t act in the best interest of the people, but in those of whoever gives him his orders that day.

But never mind my MP – how has yours behaved? You can find out on theyworkforyou.com

What you discover may surprise you!

And Llandrindod Wells’ nurses and teachers?

I would rather rip Roger’s throat out with my own teeth than make him responsible for their pay and conditions.

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Iain Duncan Smith’s new plan to prolong child poverty

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Iain Duncan Smith wants to talk about child poverty – but how can we take him seriously when he starts the discussion with a lie?

“Recent analysis reveals that children are three times as likely to be in poverty in a workless family and there are now fewer children living in workless households than at any time since records began, having fallen by 274,000 since 2010,” according to the Department for Work and Pensions’ press release on the new consultation.

Oh really?

According to the Joseph Rowntree Foundation (JRF), child poverty will rise from 2.5 million to 3.2 million during the 2010-2015 Parliament – around 24 per cent of all the children in the UK. By 2020, if the rise is not stopped, it will increase to four million – around 30 per centof all children in the UK.

Under the Coalition government, the number of people in working families who are living in poverty – at 6.7 million – has exceeded the number in workless and retired families who are in poverty – 6.3 million – for the first time.

The Joseph Rowntree Foundation has measured poverty, using several indicators, for more than 15 years; its figures are far more likely to be accurate than those of the government, which is still defining poverty as an income of less than 60 per cent of median (average) earnings. Average earnings are falling, so fewer people are defined as being in poverty – but that doesn’t make the money in their pockets go any further.

“The previous government’s target to halve child poverty by 2010 was not achieved,” states the DWP press release. Then it comes out with more nonsense: “The government is committed to ending child poverty in the UK by 2020 and the draft child poverty strategy sets out the government’s commitment to tackle poverty at its source.” From the JRF figures alone, we know that government policy is worsening the situation – or has everyone forgotten that 80,000 children woke up homeless last Christmas morning?

shame

Let’s look at the government’s plans.

The DWP claims “reforming the welfare system through Universal Credit… will lift up to 300,000 children out of poverty, and cover 70 per cent of childcare costs for every hour worked”. But we know that Universal Credit is effectively a benefit cut for everyone put onto it; they won’t get as much as they do on the current benefits, and the one per cent uprating limit means falling further into poverty every year. Also, we found out this week that the housing element will be subject to sanctions if people in part-time jobs cannot persuade their employers to give them more hours of work. The claim is ridiculous.

The DWP claims the government will will increase investment in the Pupil Premium, provide free school meals for all infant school children from September this year, improve teacher quality, fund 15 hours of free early education places per week for all three- and four-year-old children and extend 15 hours of free education and care per week to two-year-olds from low income families. None of these measures will do anything to “tackle poverty at its source”. Tackling poverty at its source means ending the causes of poverty, not putting crude metaphorical sticking-plasters over the effects – which could be removed at any time in the future.

The DWP claims the government will cut tax for 25 million people by increasing the personal tax allowance, and cut income tax for those on the minimum wage by almost two-thirds. This means people will have more money in their pocket – but will it be enough, when benefit cuts and sanctions are taken into account? Will their pay increase with the rate of inflation? There is no guarantee that it will. And this move means the government will collect less tax, limiting its ability to provide services such as poverty-reduction measures.

The DWP claims the government will reduce water and fuel costs, and attack housing costs by building more homes. The first two measures may be seen as responses to aggressive policy-making by the Labour Party, and the last will only improve matters if the new dwellings are provided as social housing. Much of the extra spending commitment is made for 2015 onwards, when the Conservative-led Coalition may not even be in office.

These are plans to prolong poverty, not end it.

It is notable that the DWP press release repeats many of the proposals in an attempt to pretend it is doing more. Take a look at the list and count for yourself the number of times it mentions fuel/energy bills (three times) and free school meals (twice).

In fact, the only measures that are likely to help reduce the causes of poverty are far down the list: Increasing access to affordable credit by expanding credit unions and cracking down on payday lending (at the very bottom – and we’ll have to see whether this really happens because payday lenders are generous donors to the Conservative party); and reviewing – mark that word, ‘reviewing’ – the national minimum wage, meaning that the government might increase the minimum wage in accordance with Low Pay Commission recommendations.

The DWP press release quotes Iain Duncan Smith, who said the consultation re-states the government’s commitment to tackle poverty at its source, “be it worklessness, family breakdown, educational failure, addiction or debt”.

The measures he has proposed will not improve anybody’s chance of finding a job, nor will they prevent family breakdown, or addiction. The plans for education have yet to be tested and may not work. The plan for debt involves annoying Conservative Party donors.

The JRF has responded to the consultation diplomatically, but there can be no mistaking the impatience behind the words of Chris Goulden, head of poverty research. He said: “Given that it has been over a year since the initial consultation on child poverty measures, we are disappointed that the government is now going to take even longer to agree what those indicators will be.

“With one in four families expected to be in poverty by 2020, a renewed strategy to address child poverty is vital. Any effective strategy should be based on evidence and contain measures to reduce the cost of living and improve family incomes. However, until those measures are agreed, it is difficult to see how the government can move forward.”

Don’t be too concerned about moving forward, Chris.

This government is backsliding.

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Coalition to impose sanctions on housing benefit

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Part-time workers who are judged to be doing too little to find full-time work could have their Housing Benefit sanctioned by the government when Universal Credit comes into full force, according to Inside Housing.

The revelation is the latest in a long line of benefit betrayals to be inflicted on the poor by the Coalition government. The new development also means landlords stand to lose out.

The Department for Work and Pensions has confirmed to Inside Housing that under Universal Credit, where a tenant is working less than 35 hours per week at minimum wage and is not eligible for JSA or ESA, then the housing element can be sanctioned instead.

It seems clear that the government is determined that it should be able to take income away from everyone who is not being properly paid by their employer. Does this seem fair to you?

Under the present system, Housing Benefit is paid direct to landlords, meaning sanctions against tenants can only be applied to out-of-work benefits like Jobseekers’ Allowance or Employment and Support Allowance. The aim is to use Universal Credit to spread the threat of sanctions so that it covers people in low-paid work as well. Would you consider any government that did this to be standing up “for hardworking people”?

The article quotes a DWP spokesperson who said: “It is only right that people claiming benefits should be aware that not sticking to the rules can have a consequence.”

This, of course, assumes that a person is breaking the rules if their employer refuses to improve their working conditions… but we know that the government has altered working conditions to ensure that employers are under no pressure to do so; the benefit cap, and the one per cent limit on the annual uprating of benefits have ensured that people without jobs will become continually worse-off, so those who are in work cannot demand pay increases for fear of being handed their P45s and told that someone else will do their job for less.

Are these the actions of a government that believes we are “all in it together”?

If anybody thinks they can find justification for this behaviour, please get in touch.

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What you’re not being told about Europe’s verdict on social security

140130inadequate

“Manifestly inadequate” are words that should ring in Iain Duncan Smith’s ears for some time to come.

They are the Council of Europe’s verdict on the UK’s social security system of payments for jobseekers, pensioners and recipients of both short- and long-term incapacity benefit.

The Council, an international organisation promoting co-operation between all countries of Europe in legal standards, human rights, democratic development, the rule of law and cultural co-operation, is home to the European Court of Human Rights.

The finding was made in an annual review of the UK’s adherence to the council’s European Social Charter. If the UK’s Conservative and Liberal Democrat Coalition government takes no action to rectify the situation, then the Council of Europe’s Committee of Ministers may address a recommendation to the UK, asking it to change the situation in law or in practice. This is clearly a weak way of handling a situation that could affect the well-being of many millions of people.

But Council officials say national courts refer to these international standards when deciding on relevant cases, meaning benefit claimants could try to use the Council’s ruling to boost their case for a higher award.

In response, our ever-more-right-wing government could decide to withdraw from its dealings with the Council altogether, meaning our citizens would no longer have recourse to the European Court of Human Rights. Many Tories – like Philip Davies – have long held this desire!

The Daily Mail, of all rags, appears to have done its homework on this, stating: “JSA, ESA (both £67 a week) and pension (about £102) all fall well below the £138 a week, or £596 a month, that the Eurocrats have set as the benchmark.

“Because all three are below a second threshold of £110 a week, they are rated ‘manifestly inadequate’.”

The UK has signed treaties in which it has promised to adhere to the provisions of the European Social Charter, so the Council’s claim that its conclusions are legally binding are accurate.

But the Coalition government has never been one to accept rules made by anybody else, and the DWP – one of the worst offenders (see previous articles on Workfare, work capability assessments for people with mental health problems, and the Bedroom Tax) is trying to claim that the findings must only be “taken into account” (meaning they would be noted, but ignored).

In his own response, Iain Duncan Smith appears to have completely misunderstood the meaning of the judgement, providing yet another example of why he is rightly considered one of the Coalition government’s leading dunderheads.

“This government has made great strides in fixing the welfare system so that spending is brought under control. It’s lunacy for the Council of Europe to suggest welfare payments need to increase when we paid out £204 billion in benefits and pensions last year alone.”

He simply does not understand that talking about the whole amount paid by the government is irrelevant when it is the amount paid on a regular basis to individuals that is at issue.

The Council of Europe states that 40 per cent of the Eurostat median equivalised income is the level at which the benefits should be paid and, as a treaty signatory, the UK has agreed to meet this requirement. RTU’s opinion is of no consequence at all. He is in breach of an international treaty.

The ruling also undermines his claim that many people have made a lifestyle choice to live in comfort on the dole, and his party’s claim that foreign nationals have been immigrating to Britain for purposes of benefit tourism – income levels are too low for anyone in their right mind to consider it.

What nobody is telling you is that this report does not even take account of the changes to the UK’s social security system that were ushered in by RTU’s (we call him that in honour of his ignominious army career – it stands for Returned To Unit, the fate of officer candidates who didn’t make the grade) hopelessly ignorant and hideously draconian Welfare Reform Act.

These are conclusions based on the system before the Bedroom Tax, before the benefit cap, before the flat-rate state pension, and before the one per cent limit on benefit uprating.

The report states: “The Committee notes that these legislative developments (the Welfare Reform Act and the State Pension Reform) are outside the reference period. Therefore, it asks the next report to indicate how these have affected the personal coverage of social security risks – ie the percentage of the covered persons out of the total active population as well as the minimum levels of income-replacement benefits (unemployment, sickness, maternity and old-age).”

In particular, it singles out Employment and Support Allowance: “The Committee of Ministers observed that there was a toughening of the qualifying conditions for the entitlement to ESA on the one hand and a drastic reduction of its duration on the other, which could result in an outright reduction of protection offered by the sickness benefit.

“The Committee of Ministers invited the Government to show in its next report … that the obligations and sanctions under the work-related activity regime are of such a nature as not to unduly limit the protection afforded … to sick persons after the 13th week of sickness.”

That’s going to be tricky for RTU – the last figures his department deigned to release showed that an average of 73 people a week were dying after going through his ideologically-motivated work capability assessment.

As stated at the start of this article, “manifestly inadequate” are words that should ring in Iain Duncan Smith’s ears for some time to come.

They describe the performance of his department in looking after the needs of British taxpayers who have fallen on hard times due to unemployment or illness – and also its treatment of pensioners.

They also describe, in the opinion of objective outsiders, his own performance as a British government minister.

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The Coalition is creating serious problems and distracting you with phantoms

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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.

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Poverty: The situation’s bleak, but the future looks worse!

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We all owe a debt of thanks to the Joseph Rowntree Foundation for its work to reveal the depth of poverty in British society today.

The Foundation’s latest report reveals that – even by standards that have slipped since the Coalition government came into office – in-work poverty has galloped ahead of that suffered by those in workless and retired families – proving once and for all that, under the Tories and Liberal Democrats, work doesn’t pay!

But the situation is actually worse than the figures suggest, because the poverty line is always 60 per cent of average (median) income – and incomes in the UK have been dropping. Some say the average is now seven per cent lower than in 2010; others say nearly 10 per cent.

This means that, if we add in the people in working families who would be below the poverty line if it had remained at, say, 2008 levels, another two million people would be considered to be in poverty. These people are no better-off than they were before the poverty level slipped; they can’t buy more than they could before – in fact, their money goes a lot less far because inflation, even at 2.7 per cent, has hugely outstripped pay increases.

Add in the number of workless and retired families who are also in poverty – 6.3 million – and we have 15 million people in poverty in the UK today. That’s a quarter of the population of the seventh largest economy in the world.

And George Osborne wants us to congratulate him for his achievements over the past three years. Well done, George. You have conclusively proved that you are the worst Chancellor in British history – heading up the worst government in British history.

Let’s look at some of his successes:

The fall in average incomes in the last two years alone has wiped out all the gains made by Labour in the previous decade – and George has another year and a half to put people in even more serious trouble.

Worse still, incomes for the poorest 10 per cent of the population have been falling since 2004/5, because the neoliberal New Labour government did not protect them. These are the people for whom the four ‘D’s – debt, destitution, desperation and despair – will hit hardest.

The proportion of low-paid jobs increased in 2012. Remember that, when the government tells you that more people are in work than ever before. They are not telling you that these jobs keep people in poverty. They are not telling you the fact that, under the Coalition, work most certainly does not pay.

Among those in work, the number paid less than the living wage rose from 4.6 million to five million in 2012. This means 400,000 more working people are having to claim benefits to make ends meet. Work does not pay. The five million figure is one-sixth of the total workforce and includes two million people who had never previously claimed.

Meanwhile, those in benefit are being pushed into very deep poverty by sanctions, the effect of overlapping changes to social security benefits – which the government has again and again refused to measure, and the falling value of benefits due to the Chancellor’s one per cent uprating cap.

More sanction referrals were made on the unemployed between 2010 and 2012 than there are people currently claiming Jobseekers’ Allowance (1.6 million, against 1.48 million claimants) – and 800,000 benefit stoppages or reductions were approved. This impacts on the government’s jobless figures, which do not include the number of jobseekers under sanction. Think about it – 800,000 is more than half the number that official figures show are out of work. Also, we know that Workfare is being stepped up, in order to fiddle the figures even more seriously.

The Bedroom Tax and council tax benefit cuts have hit 400,000 families, of whom around 267,000 families were already in poverty.

It is in this context that Iain Duncan Smith feebly attempted to distract attention away from the damning facts by telling the Telegraph that 50 families were each earning around £70,000 in benefits before his benefit cap (the £26,000-per-year, not the one per cent uprating limit) was brought in.

While this may be a shocking figure for some people, he did not provide the full details. How many people are we discussing, per family? Will the cap push them below the poverty line? Considering the facts laid out above, would a job relieve poverty for these families – or make it worse?

Smith – or ‘RTU’, as we call him here (it stands for ‘Returned To Unit’, a reference to his dismal Army career) – has yet again insisted that his diabolical changes are making the system “fair”. Anybody who repeats an assertion such as this, as often as he has, knows that nobody believes it.

Today, he is due to go before the Commons Work and Pensions Committee to account for his persistent interference with the statistics. Expect bluster and bravado but do not expect the facts.

For example, he will never admit how many people have died from the poverty caused by his assessment regime for Employment and Support Allowance.

That figure alone could bring down this government.

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New benefit plan has no heroes – only zeroes

Shall we play a game? This one’s called join-the-dots. I didn’t really like it when I was younger and I doubt that you will, after you see the picture we’ll be creating.

We’ll start here: The government wants to cut another £10 billion from the welfare budget – that’s the bit of public spending that keeps millions of people off the streets, if only on the breadline. The government could, alternatively, try stimulating the economy to make that money in taxes, but policy seems to be pushing hard the other way, as we’ll see shortly.

So: cuts are coming. How to perform them? Draw a line to where the government announces it wants to break the link between benefits and inflation, and link them to average earnings instead.

George Osborne thinks this is a good idea because inflation hit 5.2 per cent last September, much higher than rises in earnings – remember, the man who won’t do what his initials demand (GO) has kept public sector wages frozen for the last few years and private sector wages are also stagnant. As a result, Gideon has been paying out more than he thinks he should to people who, honestly, deserve a break from his miserly administration.

Now draw a line to the results of the NatCen survey that came out earlier this week, stating that people do not want to see more money being spent on welfare than is being spent already. This is the excuse that Mr Osborne wants to use – he can say there is polling evidence that puts significant numbers in support of an end to so-called benefits uprating. Never mind that only 3,000 people were asked or that none of the main parties ever intended to increase the proportion of government spending that goes on welfare; this is his justification and he’s sticking to it.

I wonder what will happen if wages start to rise faster than inflation? Will the Nasty Party write a new clause into the contract, that benefits should rise along with inflation or wages, depending on which is lower? Officials have already stated that they do not want a huge increase in benefits if wages start to climb sharply, so they are already working on ways to ‘fix’ the linking mechanism. Evil, isn’t it?

Never mind; the current plan uses wages, so now draw a line to this: The government still wants to introduce regional pay settlements for the public sector. The Tories – sorry, the Coalition – believe that national pay settlements inflate public sector wages in certain parts of the country far beyond what their private sector counterparts can manage. They also believe that forcing regional settlements on us will save them a fortune in salaries.

Think what this will achieve: The ghettoisation of much of the UK. With regional pay deals, people will have less money available for things other than necessities, meaning fewer trips to the shops (which have already suffered thanks to the idiotic VAT increase to 20 per cent, which cut a large chunk of growth out of the economy). What happens then? The shops shut and their suppliers go out of business too. More people end up on benefits and looking for work.

You see, this right-wing government does not accept the simple fact that welfare benefits help keep the economy stable. Yes, government spending increases as payments are made, but businesses keep their customers, the economy stays afloat and the country as a whole avoids a terminal spiral of decline.

Cutting welfare, thereby reducing the incomes of society’s poorest, creates fiscal hindrance. As billions of pounds (£10 billion in this case) are taken from the active economy, businesses lose customers and lay off staff.

In a recession, increased welfare spending benefits national income so that each pound is worth £1.60 when it has worked its way through shop tills and paycheques. When welfare is cut, this works in reverse, so cutting £10 billion from benefits will increase the UK’s recession by more than one per cent.

This means a longer recession, a larger deficit and more debt. (The above information courtesy of the False Economy website, which has produced a handy factsheet for you to download, keep, and show to anyone spouting Tory propoganda)

Now draw a line to: The government wants to cut more money from the welfare budget.

Look at what you’ve drawn. A big, fat zero.

This is what the government’s plan will achieve for the people, and economy, of Britain.