Category: Conservatives

Financial advisors and millionaires are preparing for a Labour government led by Corbyn

30 years of plutocracy have brought un-representative democracy

Back in 2013, I wrote an article, together with Richard Murphy, director of Tax Research UK, which was about a chilling proto-fascist document written by JP Morgan – it can be accessed here: The Euro Area Adjustment—About Half-Way There.

Firstly, the authors said that ‘financial measures’ are ‘necessary’ to ensure that major investment houses such as JP Morgan can continue to reap huge profits from their speculative activities in Europe.

Secondly, the authors maintain, it is necessary to impose ‘political reforms’ aimed at suppressing opposition to the massively unpopular austerity measures being imposed at the behest of the banks and financial sector. 

The authors write: “The political systems in the periphery were established in the aftermath of dictatorship, and were defined by that experience. Constitutions tend to show a strong socialist influence, reflecting the political strength that left-wing parties gained after the defeat of fascism [following world war 2].

“Political systems around the periphery typically display several of the following features: weak executives; weak central states relative to regions; constitutional protection of labour rights; consensus-building systems which foster political clientalism; and the right to protest if unwelcome changes are made to the political status quo. The shortcomings of this political legacy have been revealed by the [eurozone] crisis.”

Whatever the historical inaccuracies in their analysis, there can not be the slightest doubt that the authors of the JP Morgan report are arguing for governments to adopt authoritarianism to complete the process of social counterrevolution to austerity that is already well underway across Europe.

What JP Morgan is making very clear is that anything resembling ‘socialism’, representative ‘democracy’, collectivism, trade unionism or inclinations towards the left of the spectrum must be removed from political structure: localism must be replaced with strong, central authority; labour rights must be removed, consensus (democracy) and the right to protest must be curtailed.

In short, JP Morgan are calling for extremely authoritarian measures to suppress the working class and wipe out its social gains since the post-war settlement. This is the proto-fascism and reflects the unadulterated antisocial voice of  neoliberalism, which is incompatible with human rights, social liberalism and democracy.

JP Morgan are not a lone voice making such demands. In the UK, savage welfare cuts have driven some disabled individuals to fear for their lives. But the austerity programme also has a few winners. Cutting or eliminating publicly funded support programmes that support the poorest citizens, those who fall on hard times, has long been an ideological goal of Conservatives.

Doing so also generates a tidy windfall for the corporate class, as the ‘business friendly’ government services are privatised and savings from austerity pay for tax cuts for the wealthiest citizens. The liberalisation that the financial class demand – what bankers call deregulation – is the process that caused the financial crash.

Many of us have said over the last eight years that austerity is not an economic necessity or ‘in the national interest’ as was claimed in 2010, and it is more like a tool of ‘statecraft’ and radical socioeconomic re-engineering, driven entirely by ideology and not economic requirements. 

You can read my 2013 article here.

Now for more of the same

In a truly nauseating article in the Financial Times (FT) titled How to hedge your finances against a future Corbyn governmentfinancial ‘advisors’ are cowering in outraged ‘fear’ at the prospect of a Labour government. They are very worried that a few millionaires may face a capital gains tax rise, property taxes and other erosions to the generous privileges they have become accustomed to over the last few years.

Gosh, fancy that, having to contribute a fair amount of tax towards maintaining a country that the rich have taken so much from. Yet they don’t want to contribute anything to the society that has benefited them so much. 

I can really empathise with their ‘fears’. I mean, that’s almost as bad as having to join the foodbank queue because your wage doesn’t meet the cost of living, or even your most fundamental survival needs. I can see why they would be left cowering in fear behind their hoarded wealth. 

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This despicable class of people, who regard most of their fellow human beings as disposable commodities, have had their own way for far too long. They have institutionalised their power through law, media, and corrupt political rituals, and have become habituated to the status quo.

The FT says “They might be considered unlikely to vote for Jeremy Corbyn, but the rising popularity of the Labour leader is rapidly moving up the agenda in conversations between the UK’s wealthiest and their financial advisers. In the event that he came to power, what impact might future Labour policies have on their wealth? And secondly, what financial planning measures — if any — could be considered to mitigate these?

Well you could be less controlling and anally retentive. Less pathological about wealth defense. You just let go and stop hoarding obscene amounts of money. You could care about the suffering inflicted on others so that you can stash your cash offshore, leaving a black hole in the economy and our public services on the point of collapse, because of ever-circling vulture capitalist parasites like you.

George Bull of RSM, the accountancy firm, says: “these fears are well-founded, as Labour’s 2017 manifesto mentioned wealth taxes as one option for easing the care cost crunch.”

Oh, the sheer horror of it. I mean fancy having to give a shit for the people who have been brutally dispossessed by the state in order to fuel the accumulation of even more wealth for the already very very wealthy. How outrageous. 

The article goes on to say:  “Should a mis-step in the Brexit negotiations topple the existing administration, this could prompt a fresh election which many believe Mr Corbyn could win.”

Yes, and your very worst fear has been realised. The PM’s Brexit deal was rejected by 230 votes – the largest defeat for a sitting government in history. It takes a very special sort of skill to unite so many people against your proposals. Dis may.

Yet curiously, despite the vote of no confidence tabled by Corbyn, the BBC are claiming that the Pound rises after ‘meaningful’ Brexit vote and crashing defeat for the PM.

The BBC then claim the “vote opens up a range of outcomes, including no deal, a renegotiation of May’s deal, or a second referendum.” However, the BBC don’t mention the rather obvious other possibility – a General Election, which is more than a little short sighted of them.

Even if we assume that a no confidence motion may not force an election , it would be prudent to consider Wednesday’s vote as the start of a process. The shadow international trade secretary Barry Gardiner has suggested the PM could face a series of confidence votes in the coming weeks. In fact that is highly likely, since she does not command a majority and will struggle getting anything through parliament.

Apparently, sterling rose 0.05% to $1.287 after declines of more than 1% earlier in the day. The currency slumped 7% in 2018 reflecting uncertainty about the terms of the UK’s exit from the European Union. 

“A defeat has been broadly anticipated in markets since the agreement with the EU was closed in November 2018 and caused several members of the government to resign,” said Richard Falkenhall, senior FX strategist at SEB. The BBC says that “business groups said their members’ patience was wearing thin.”  

On Friday, hedge fund manager Crispin Odey, a major donor to the Brexit campaign, said he now expected the project to be abandoned altogether and that he is “positioning for the pound to strengthen.”

The real culture of entitlement

The very wealthiest are likely to find ways to circumvent increased taxes on those on the highest incomes. I guess rich  people don’t like  ‘progressive’ tax , well-funded and functioning and effective public services 

Bull continues: “There is no certainty as to what people might do.

“However, we hear far greater interest about lifetime tax planning — for example, gifts of assets to children being made sooner rather than later — so that parents’ asset values are reduced before a wealth tax or land value tax takes force.”

“The favourable inheritance tax status of defined contribution pensions, which can currently be passed tax free to heirs in some circumstances, is something many advisers fear the current government will scrap, let alone a Labour one. Higher-rate tax relief on pensions contributions is another obvious area of vulnerability, advisers say.”

Vulnerability? I guess that’s pretty relative. Ask those people targeted by austerity policies from 2010, which saw them lose their lifeline support while at the same time, the chancellor handed out £107,000 each per year to millionaires in the form of a tax cut. People have died because the government’s austerity policies. Get a grip.

My favourite part was this:  

“The Labour party has also signalled its intention to close various loopholes and tax breaks, as well as ending “the social scourge of tax avoidance”. It has signalled that it would make public the tax returns of those earning more than £1m a year and double the number of HMRC staff investigating wealthy tax avoiders.

“It might also increase the insurance premium tax on private healthcare. The rate of corporation tax would be restored to 26 per cent. In addition, a Labour government might tackle tax planning that takes advantage of the gap between income and corporate tax rates, such as the practice of holding investments within a company.

“One possibility is that the undistributed profits of “ close” companies— those controlled by five or fewer people — could be taxed as though they had been distributed to shareholders. 

“Labour has said it wants to see the public disclosure of trusts, which it describes as “a key vehicle for tax avoidance and illicit financial flows”. The industry says HMRC already has access to this information and making it public would put beneficiaries in a vulnerable position. 

“People avoiding tax by using trusts would fear “trial by media”.

“It would be a witch hunt. People might want to consider unwinding those structures.”

My heart bleeds. Like the ‘trial by media’ that unemployed and disabled people faced in the run up to the brutal and uncivilised cuts to the social security that the overwhelming majority of them had paid into via taxes? And all to justify a transfer of wealth from public funds to a few private bank accounts, a proportion of those being offshore.

The hysteria continued: “Labour’s plans to nationalise railways, water, energy and Royal Mail would take a toll on those segments of the market. And Mr Corbyn’s aim to intervene more heavily in areas such as energy could drag on the dividends paid by those companies and investment funds.”

But it would benefit the public. You know, the many, not the few.

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Job Curtis, a Henderson fund manager, says: “We are already beginning to see weakness in companies involved in passenger transport and water utilities. United Utilities — a water company covering the north west of England, has experienced a large share price fall in the last year partly because of the increased likelihood of a Labour government under Corbyn.”

“Sectors including utilities and energy companies are high dividend payers and whether it’s nationalisation or increased regulation and price caps, the outlook for higher and sustainably high dividend incomes looks under threat under a Corbyn government,” says Mr Stevenson. 

But many of us will be able to afford our utility bills.

Henry Pryor, an independent buying agent, whines the prospect of a Labour government is “frightening” for the owners of large, expensive assets. I think Henry should really try to expand his understanding of the word “frightening”.

I suggest he asks citizens for some insights, perhaps those with severe illness who are forced to claim disability support after a lifetime of working and paying social insurance via taxes, then he should go through mandatory review and the appeal process. That’s fear. Or perhaps he should spend a year on the streets, without the safety of his wealth and assets. 

 That said, perhaps the pitchforks really are coming…

Nick Hanauer is a rich guy, an unrepentant capitalist — and he has something to say to his fellow plutocrats: Growing inequality is about to push our societies into conditions resembling pre-revolutionary France.

 

You can sign the petition (here) to register your own no confidence in Theresa May’s government, and demand a general election. Only 557 more signatures are needed, as the response overnight has been overwhelming. 


 

My work is unfunded and I don’t make any money from it. This is a pay as you like site. If you wish you can support me by making a one-off donation or a monthly contribution. This will help me continue to research and write independent, insightful and informative articles, and to continue to provide support others who are affected by the welfare ‘reforms’. 

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A motion of no confidence in the government is just the start of a wider process

The Press Association has provided this helpful guide to the motion of no-confidence, tabled by Jeremy Corbyn in an attempt to bring about a general election. The vote is scheduled to be held tomorrow afternoon.

It is the first time the procedure has been used under the provisions of the Fixed Term Parliaments Act, passed by the coalition government under David Cameron.

This is how it will work:

Mr Corbyn will move the motion tabled in his name as Leader of the Opposition and will speak first in the debate scheduled for Wednesday afternoon.

The Prime Minister will then speak for the government and at the end of proceedings at 7pm, MPs will vote.

If the government wins there will not be a general election and ministers will carry on in office.

If the government loses, the Act states there must be an “early” election unless the government can regain the confidence of the House by winning a confidence vote within 14 days.

During that two-week period there is no statutory limit on how many times a confidence motion can be brought forward and voted on.

In the course of that period the opposition may seek to form alliances within the Commons to demonstrate that they are the party most likely to command the confidence of the House and therefore should be given the opportunity to form a government.


The shadow international trade secretary Barry Gardiner has already suggested that the PM could face a series of confidence votes in the coming weeks.

Scotland’s first minister, Nicola Sturgeon, has said the SNP supports Jeremy Corbyn’s confidence motion. Describing the vote as “a defeat of historic proportions for the prime minister and her government”, Sturgeon said:

It has been crystal clear for months that the prime minister’s approach was heading for a crushing defeat. Instead of facing up to that fact, she wasted valuable time with her postponement of the meaningful vote in December. There is no more time to waste.

It’s almost certain that all of the other opposition parties will support the motion. But the DUP have already stated that they will support the government tomorrow, which was expected.

Here are the figures for how the parties voted on Theresa May’s deal:

 

You can sign the petition (here) to register your own no confidence in Theresa May’s government, and demand a general election.


 

My work is unfunded and I don’t make any money from it. This is a pay as you like site. If you wish you can support me by making a one-off donation or a monthly contribution. This will help me continue to research and write independent, insightful and informative articles, and to continue to provide support others who are affected by the welfare ‘reforms’. 

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Amber Rudd seems confused about the difference between ‘compassion’ and ‘conscious cruelty’

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Image courtesy of Getty Images.

Last week, Amber Rudd made the claim that Universal Credit is “delivered with professionalism and care and compassion.”

However, it is clear – in the words of the public accounts committee, last year – that there is a very real “culture of indifference” within the Department for Work and Pensions and wider government.

Quite often, that “indifference” spills over into conscious cruelty – the term coined by  filmmaker Ken Loach for the UK social security system, during the filming of I, Daniel Blake.

In December, Amber Rudd appeared to strike a conciliatory tone, in in her first appearance before the work and pensions select committee, saying she was enthusiastic about Universal Credit but would not rush the rollout of the new system simply to meet ‘arbitrary timetables.’ Although she acknowledged concerns about the often devastating impact of the social security cuts on the most vulnerable citizens, she said her aim was to ‘restore public confidence’ in Universal Credit.

The problem is that ministers such as Amber Rudd are rather more concerned that Universal Credit has proved politically toxic for the government as a result of policy and design flaws, such as a five-week wait for an initial payment that have left thousands of people in debt, suffering from depression, and reliant on food banks, rather than the devastating impacts an chaos it is wreaking on citizens.

The government is in a weakened position, and is looking to secure support from the opposition for Theresa May’s Brexit deal. The PM has even recently phoned  union leaders to try and garner their support, which is an unprecedented move for a Conservative leader. So it’s unlikely that the ‘conciliatory’ tone is sincere or likely to last beyond the threats to power that the government currently faces. 

Rudd was responding to MPs’ concerns that up to 1 million ill and disabled claimants are at risk of destitution and isolation when they are transferred on to universal credit over the next three years, at the time.

Let’s not forget that last November, Rudd has used her first appearance in the House of Commons as work and pensions secretary to condemn an independent UN inquiry into poverty in the UK, over what she claimed was the “extraordinary political nature” of its language. Her response was about damage limitation to the government’s reputation rather than about engaging with the empirical evidence and recommendations presented in Philip Alston’s report.

The UN’s rapporteur on extreme poverty and human rights said the government had inflicted poverty on people through austerity and called levels of child poverty “not just a disgrace but a social calamity and an economic disaster”. He also heavily criticised Universal Credit, which had been beset by ‘problems’ since its inception.

Asked about the tone of the UN report, May’s spokesman said: “We strongly disagree with the analysis.” However, it was a meticulously evidenced ‘analysis.’ The evidence for the report was provided by many people who have been adversely affected – and some people’s lives have been utterly devastated –  by austerity and the Conservative’s welfare ‘reforms’.

However, Rudd has nonetheless publicly promised to deliver “a fair, compassionate and efficient benefits system”, claiming that it has “good intentions” at its heart. 

What ‘good intentions are those?’

Dr Heather Wetherell, a GP, posted the following on Twitter last year:

Dear @DWP,

When a distraught mother has lost her young daughter, please can you tell me why you wont accept “grief reaction” as a sick note diagnosis? Telling a grieving mum this is not an illness is extremely insensitive. You have also wasted NHS time.

She added: “3 days after her daughter died, she got call from the DWP saying did she realise she couldn’t claim Attendance Allowance anymore & had to sign on Job Seekers. Mother panicked & found herself at a job interview the following week – at which she broke down in tears.

“She phoned me in a state on way home from the interview. I was horrified they had put her through this. I’m so upset by it all.”

Wetherell says that when her patient informed the Department for Work and Pensions (DWP) of her bereavement and she was told,  “that’s not an illness… You need to go to your doctor and get a proper/better diagnosis” (she can’t recall exactly which word they used, but remembers feeling totally humiliated and felt they thought she was a fraud.)

Last year, Kirsty Scott told how her 19-year-old son and husband died within 18 months of each other. However, despite suffering physical and mental health conditions with a severely disabled son to look after, she was refused Personal Independence Payment (PIP) and Employment and Support Allowance (ESA).

She said: “Getting into the workhouse would have been an easier option.

“When my letter was sent to refuse me ESA it did not reflect what had gone on in the assessment.

“The language used was disgusting – things like ‘it is a lifestyle choice not to get out of bed’ or ‘the death of two close family members did not impact on my life enough’.

“I had lost my son and my husband, I was caring for a disabled son. Half of my family gone and they thought it was ok to say these things to me?

“I can’t tell you what it felt like when I got that letter, the desperation. It was like they thought I lied.

“There was no humanity in it whatsoever. My mental health went downhill.”

Clearly, the UK’s social security system does not facilitate people’s human rights, nor does it protect their dignity. DWP staff don’t practice safeguarding or even recognise a trauma informed approach to protect vulnerable citizens. It seems that callousness and cruelty have become habituated within the administrative structure, entrenched in policy designs within an ideological framework that has normalised the intended ‘hostile environment’.

Government policies are expressed political intentions regarding how our society is to be organised and governed. They have calculated social and economic aims and consequences. In democratic societies, citizens’ accounts of the impacts of policies ought to matter.

However, in the UK, the way that policies are justified and implemented is being increasingly detached from their aims and consequences, partly because democratic processes and basic human rights are being disassembled or side-stepped, and partly because the government employs the widespread use of linguistic strategies and techniques of persuasion to intentionally divert us from their aims and the consequences of their ideologically (rather than rationally) driven policies.

Furthermore, Conservative policies have become increasingly detached from public interests and needs.

Over the last 8 years, the Conservatives have coldly conceived society as a hierarchy of human value, from the pinnacle of supremicism, self-appointed authority and from behind their fact proof ideological screen. They have historically cast the poorest and the most vulnerable citizens as the putative “enemies of civilization.” Social Darwinism is written in bold throughout their policies.

There has never been a clearer contrast between the values and approach of the two main political parties: the Conservatives are authoritarian, they plainly imply that some people’s lives don’t matter – the food bank debate and the bedroom tax debate are further examples of cruelty, and of how Conservatives have reduced human subjects to objects of derision.

While Labour MPs spoke out in the debates about the terrible difficulties that vulnerable families in their constituencies are facing, we were faced with the unedifying spectacle of Tory MPs laughing, jeering and shouting their spiteful glee at the plight of those people that this government have intentionally impoverished – after all, policies are plain and legislated statements of intent.

By contrast, the Labour Party have fostered a counter-narrative that is decent, democratic, inclusive and centralises the fundamental equal worth of each human life. Labour’s policies are intentionally founded on a strong commitment to human rights – without which there can be no meaningful social justice and democracy.

The Conservatives have always been stunted in their vision for society by their own elitism and  preoccupation with the superficial characteristics and taxonomic ranking of human beings – the emphasis being on “what” we are  rather than the rather more important “who” we are. Because of this lack of social intelligence, the government has undermined our progress as a society, stifled human potential and failed to value human diversity and failed to recognise the equal worth of every citizen’s life, because of their own assembled fantasy of corrosive, elitist ideological myths.

I would like to thank Tom Pride for his article DWP tells grieving mother to find job 3 days after death of young child: “grief is not an illness”, which has informed some of this one. 


 

My work is unfunded and I don’t make any money from it. This is a pay as you like site. If you wish you can support me by making a one-off donation or a monthly contribution. This will help me continue to research and write independent, insightful and informative articles, and to continue to provide support others who are affected by the welfare ‘reforms’. 

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Amber Rudd’s masterclass in Doublespeak

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Yesterday, heartless Amber Rudd was accused of shrugging off ‘heartbreaking’ Universal Credit experiences and stories by suggesting they are about only “one or two” people. 

This is a government who tell us with a straight face that inflicting absolute poverty on the poorest citizens is somehow going to make them less poor. This ideological framework is also imposed upon people in low paid work, struggling to meet their basic living costs. So the government slogan “making work pay” is meaningless Orwellian tosh, as is the Conservative’s longstanding ‘culture of dependency’ thesis and ideological justification narrative for inflicting devastating cuts on those who can least manage to get by. 

The Work and Pensions Secretary made the outrageous comments after being confronted by the Mirror about flaws in Universal Credit.

For years many of us have published articles ranging from flaws in the social security system, affecting millions, to struggling readers who’ve been forced to food banks, as well as administrative ineptitude and bullying that has often had catastrophic consequences. The roll out of Universal Credit has caused hunger, destitution, deaths and suicides, let’s be frank and pay some attention to the empirical evidence, rather than expedient ideological soundbites.  

Amber Rudd told the Mirror: “Some of the criticisms that have come from various publications have been based on one or two particular individuals where the advice hasn’t worked for them.”

That statement flies in the face of empirical evidence. On this site alone there are MANY individual accounts of the harms arising as a result of Universal Credit. And to claim the reason for these harms is because “the advice hasn’t worked or them” is a serious and disgusting trivialisation of the psychological distress and trauma, the deaths, suicides, rising numbers of those facing hunger, hardship, and destitution that Universal Credit, combined with such systematic government denial and indifference, is causing.

She added: “But in the vast majority of cases, and I would urge everybody who hasn’t to take the opportunity to speak to work coaches, the sort of support that individuals get is a completely different approach to what they had previously.”

Yes. It’s not actually support. It’s a programme of discipline, coercion and punishment.

However it isn’t work coaches who have to live with the consequences of a system that was designed to be an increasingly standardised Conservative hostile environment. The government seem to believe that publicly funded public services should serve as a deterrent to people needing support from the public services they have paid into. 

What matters most is the accounts of citizens, which tell their experiences of the system, not of those administrating it. But citizens’ voices are being intentionally stifled, edited out and worse, their accounts are being re-written by politically expedient civil servants and government ministers. This presentation of ideological fictions and the use of gaslighting techniques is usually the preserve of totalitarian regimes, it’s not the behaviour one would expect of a democratic government in a so-called liberal society. 

Governments with such limited social intelligence don’t lie very convincingly, but they do tend to be hard faced and tenacious. The real horror is their utter indifference and lack of responsiveness: that they really don’t care. They continue to demand our suspension of belief and dizzying cognitive dissonance. The relationship between citizen and state is one of abuse, founded on gaslighting strategies.

Rudd added: “And it is delivered with professionalism and care and compassion.”

Sure. The kind of “professionalism, care and compassion” that leaves a terminally ill man without sufficient support to meet his most basic needs, or that leaves a pregnant mother in extreme hardship, homeless, and resulting in the loss of her unborn child. Or one that pushes people towards suicide.

There is very little empirical evidence of the “professionalism, care and compassion” that Rudd claims. Furthermore, the trivialisation and persistent denials of the harm, distress and extreme hardship that is being inflicted on people because of government policies are all utterly unacceptable behaviours from a government minister, reflecting a profound spite within policy design, a profound lack of political accountability and a profound indifference for the consequences of these behaviours on the lives of ordinary people.

In fact, former Universal Credit staff reveal call targets and ‘deflection scripts, which means staff having to block or deflect vulnerable claimants, telling them that they would not be paid, or would have to submit a new claim, or have a claim closed for missing a jobcentre appointment, or be sanctioned – a penalty fine for breaching benefit conditions – or go to the food bank.

One whistleblower said that her role often felt adversarial. She said: “It was more about getting the person off the phone, not helping.” That’s a very strange kind of “compassion.”

As researchers have concluded, Universal Credit is a complicated, dysfunctional and punitive’ system that makes people increasingly anxious, distressed, with some of the most vulnerable citizens in the UK being pushed to consider suicide, and it ‘simply doesn’t work.’ (See Universal Credit is a ‘serious threat to public health’ say public health researchersfor example).

devastating National Audit Office report last year about Universal Credit concluded that the DWP was institutionally defensive and prone to dismissing uncomfortable evidence of operational problems. Welfare secretary at the time, Esther McVey, felt the need to make a speech in July in which she promised that where problems arose in future the department would “put our hands up, [and] admit things might not be be going right”.

It’s also clear – in the words of the public accounts committee – that there is a “culture of indifference” within the DWP and wider government.

It’s time that government ministers started to listen to citizens’ voices, to service users – as well as campaigners, researchers, charities and the opposition Parties. And the United Nations – instead of presenting denials that policies are seriously harming people. But there is every indication that they won’t. 

Universal Credit’s malign effects are obvious to anyone who actually looks, and is willing to listen to the voices of those affected by this punitive, mean-spirited and fixated, theory-laden, ideologically driven, miserly provision, that was, at the end of the day, paid for by the very public who are claiming it.

Labour MP Maria Eagle flatly stated that Rudd’s comments are “not true” and are “out of touch”.

She said: “The entire design of the system puts people in debt and the benefit cuts accompanying its introduction have made it far worse.” 

Rudd was questioned by the Mirror after she said yesterday: “Maybe things that were  proposed previously weren’t effective or weren’t compassionate in the way that I want them to be.”

Mirror journalists asked if she could, ‘hand on heart’, say it was “compassionate” to double UC claimants this year, keep the two-child limit and keep the benefit freeze until 2020.

Rudd did not respond to the question, instead replying: “The overall product that is Universal Credit is absolutely compassionate.”

Product? That’s a very odd word to use for lifeline support – the public services that are our social insurance which people have paid into for those times when they need it. 

And using key words from a government strategic comms crib sheet – James Cleverly among others has also opted for the word ‘compassionate’ to describe the welfare ‘reforms’ – does not make those narratives the reality experienced by citizens who need to access support from public services. Saying it does not make it real. This is something the Conservatives seem to have overlooked – that their narratives don’t match people’s realities. That’s the problem with telling lies – the empirical evidence catches up with you sooner or later.

Starving people and leaving them in destitution is not ‘compassionate’. Using a publicly funded public service to deliver punitive and a blunt, coercive, authoritarian behavioural modification programme is not ‘compassionate’. These are the actions and narratives of a government dipping a toe into the realms of totalitarianism.

Rudd claimed that UC needs to be ‘improved’, including to make it fairer to woman, but also said it was a “vital reform delivering a fair and compassionate welfare system”, “by far the most important and crucial reform” and a “force for good”.

Yesterday, the high court concluded that the Universal Credit assessment is illegal. The first judicial review verdict of Universal Credit found that the cutting of severe disability premiums from those who had previously claimed ESA was discriminatory.  How many more legal changes will it take to make the government act with some decency and observe basic laws and human rights?

Ideological mythologies

Rudd went on to claim, somewhat incoherently, that the ‘old system’ was “broken”, “not a utopia that we should return to” and under Labour someone unemployed could receive “£100,000 housing benefit per year.”

The charity Fullfact submitted a freedom of information (FoI) request to the DWP in 2012, following the same claims from David Freud, among other Conservative minsters, that people claiming social security support were receiving £100,000 housing benefit per year. The figures in the response showed that over four out of every five Housing Benefit claims are below £100 per week (the equivalent of £5,200 per year) according to the September 2010 figures, while only 70 out of over 4.5 million recipients claimed over £1000 per week, around 0.001% of the total.

Even this is likely to overstate the number claiming £100,000 per year however, as a family would need to claim over £1,900 per week to hit this total. Previous FoI responses from the Department have suggested around five families were awarded this amount.

Ministers and the media repeatedly failed to highlight what is such a small number of the total, and printed screaming and misleading headlines that were inaccurate, without putting this into a wider context. While the evidence suggests that there are a small number of Housing Benefit claims of more than £100,000 per year –  around five – these cases are very much the exception rather than the rule. Focusing exclusively on these outliers without first putting them into context, where over 80% of claims are below £100 per week, has [intentionally] distorted the debate about welfare, aimed at de-empathising the public and providing a justification narrative for cuts.  

Other information drawn from the FoI request found that larger claims tended to come from larger families, and the average household size for people claiming over £40,000 was six. For more details, do check out the numbers in the request itself, which is available here.

People weren’t suffering profound distress, hunger, destitution, suicide ideation and dying because of the ‘old system’.

Perhaps ‘utopias’ are relative. What we are currently witnessing is not “compassionate” or a “force for the good”: it is the dystopic system of an authoritarian state inflicting punishment, discipline and coercion on our most vulnerable citizens.

It’s a state programme that dispossesses citizens, with catastrophic human costs, to fund the tax cuts demanded by a handful of powerful and wealthy vultures, who live lavishly within a culture of entitlement, while the rest of us are increasingly impoverished.

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Amber Rudd claims that Universal Credit is ‘compassionate’. She must have been taking lessons in Doublespeak again.

 

I originally published this as part of a larger article. 

 


My work is unfunded and I don’t make any money from it. This is a pay as you like site. If you wish you can support me by making a one-off donation or a monthly contribution. This will help me continue to research and write independent, insightful and informative articles, and to continue to provide support others who are affected by the welfare ‘reforms’. 

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The DWP left a terminally ill man penniless until after he died

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Jill Fennell and her partner Mark Scholfield. She says: “The benefits system is barbaric and inhumane.” (Image: Jill Fennell/Facebook).

A man who was terminally ill with cancer was forced to spend his final days penniless as he waited for a Universal Credit payment that cruelly arrived the day after he died.

Mark Scholfield was made to endure an eight-week delay for the social security payment before he died, aged just 62, of mouth cancer.

Mark’s partner, Jill Fennell, who was with him for 23 years, said: “When you’ve been given a devastating blow, being told you have terminal cancer, money is the last thing anyone should be worrying about.

“The benefits system is barbaric and inhumane.”

Jill, also 62, said self-employed musician, Mark, was unable to work for two months before he had his diagnosis in February 2017. He was told his condition was terminal, she said, and initially, he was  encouraged to apply for fast-track Employment Support Allowance (ESA) to help him meet the costs of living and pay bills.

However, because he lived in Camberwell, South London, where the government’s controversial flagship failure – Universal Credit – was being rolled out, he was told that he did not qualify for ESA.

Instead he had to apply to Universal Credit (UC). The Department for Work and Pensions (DWP) often use Credit Reference Agencies to verify the identity citizens making a claim, but Mark had never had credit, and he was told that must visit a Jobcentre with ID.

Jill said that despite his failing health and diagnosis of terminal cancer, Mark was forced by the DWP to go through a health and work assessment over the phone. She  said that she was distraught, and  left “screaming hysterically down the phone”, asking “did they realise he was dying?”

After five weeks Mark received his first payment, which just about covered rent and council tax, but left him with little to live on. But for the next eight weeks he did not receive any more money, and died on July 19, 2017.

It was only after Mark’s death that Jill discovered an ESA payment had been made a day later, as well as a UC payment.

She said: “Mark had needed the money while he was alive to live his final months in some level of comfort and dignity, but he was denied that.”

A DWP spokesperson said: “Our thoughts are with Mr Scholfield’s friends and family.

“While Mr Scholfield was receiving Universal Credit, we are extremely sorry for the delay in his ESA payment which should have been fast-tracked.”

That response is simply unacceptable. Because this kind of glib, standardised apology for an apology is happening far too frequently, it to reflect any shred of sincerity, meaning, reflection or learning on the part of the DWP.  

Linguistic behaviourism: cruelty is compassion, indifference is care

Yesterday, heartless Amber Rudd was accused of shrugging off ‘heartbreaking’ Universal Credit experiences and stories by suggesting they are about only “one or two” people. 

This is a government who tell us with a straight face that inflicting absolute poverty on the poorest citizens is somehow going to make them less poor. This ideological framework is also imposed upon people in low paid work, struggling to meet their basic living costs. So the government slogan “making work pay” is meaningless Orwellian tosh, as is the Conservative’s longstanding ‘culture of dependency’ thesis and ideological justification narrative for inflicting devastating cuts on those who can least manage to get by. 

The Work and Pensions Secretary made the outrageous comments after being confronted by the Mirror about flaws in Universal Credit.

For years many of us have published articles ranging from flaws in the social security system, affecting millions, to struggling readers who’ve been forced to food banks, as well as administrative ineptitude and bullying that has often had catastrophic consequences. The roll out of Universal Credit has caused hunger, destitution, deaths and suicides, let’s be frank and pay some attention to the empirical evidence, rather than expedient ideological soundbites.  

Amber Rudd told the Mirror: “Some of the criticisms that have come from various publications have been based on one or two particular individuals where the advice hasn’t worked for them.

That statement flies in the face of empirical evidence. On this site alone there are MANY individual accounts of the harms arising as a result of Universal Credit. And to claim the reason for these harms is because “the advice hasn’t worked or them” is a serious and disgusting trivialisation of the psychological distress and trauma, the deaths, suicides, rising numbers of those facing hunger, hardship, and destitution that Universal Credit, combined with such systematic government denial and indifference, is causing.

“But in the vast majority of cases, and I would urge everybody who hasn’t to take the opportunity to speak to work coaches, the sort of support that individuals get is a completely different approach to what they had previously.”

Yes. It’s not actually support. It’s a programme of discipline, coercion and punishment.

However it isn’t work coaches who have to live with the consequences of a system that was designed to be an increasingly standardised Conservative hostile environment. The government seem to believe that publicly funded public services should serve as a deterrent to people needing support from the public services they have paid into. 

What matters most is the accounts of citizens, which tell their experiences of the system, not of those administrating it. But citizens’ voices are being intentionally stifled, edited out and worse, their accounts are being re-written by politically expedient civil servants and government ministers. This presentation of ideological fictions and the use of gaslighting techniques is usually the preserve of totalitarian regimes, it’s not the behaviour one would expect of a democratic government in a so-called liberal society. 

Governments with such limited social intelligence don’t lie very convincingly, but they do tend to be hard faced and tenacious. The real horror is their utter indifference and lack of responsiveness: that they really don’t care. They continue to demand our suspension of belief and dizzying cognitive dissonance. The relationship between citizen and state is one of abuse, founded on gaslighting strategies.

There is very little empirical evidence of the “professionalism, care and compassion” that Rudd claims. Furthermore, the trivialisation and persistent denials of the harm, distress and extreme hardship that is being inflicted on people because of government policies are all utterly unacceptable behaviours from a government minister, reflecting a profound spite within policy design, a profound lack of political accountability and a profound indifference for the consequences of these behaviours on the lives of ordinary people.

Rudd added: “And it is delivered with professionalism and care and compassion.”

Sure. The kind of “professionalism, care and compassion” that leaves a terminally ill man without sufficient support to meet his most basic needs, or that leaves a pregnant mother in extreme hardship, homeless, and resulting in the loss of her unborn child. Or one that pushes people towards suicide.

And former Universal Credit staff reveal call targets and ‘deflection scripts, which means staff having to block or deflect vulnerable claimants, telling them that they would not be paid, or would have to submit a new claim, or have a claim closed for missing a jobcentre appointment, or be sanctioned – a penalty fine for breaching benefit conditions – or go to the food bank.

One whistleblower said that her role often felt adversarial. She said: “It was more about getting the person off the phone, not helping.” That’s a very strange kind of “compassion.”

As researchers have concluded, Universal Credit is a complicated, dysfunctional and punitive’ system that makes people increasingly anxious, distressed, with some of the most vulnerable citizens in the UK being pushed to consider suicide, and it ‘simply doesn’t work.’ (See Universal Credit is a ‘serious threat to public health’ say public health researchersfor example).

A devastating National Audit Office report last year about Universal Credit concluded that the DWP was institutionally defensive and prone to dismissing uncomfortable evidence of operational problems. Welfare secretary at the time, Esther McVey, felt the need to make a speech in July in which she promised that where problems arose in future the department would “put our hands up, [and] admit things might not be be going right”.

It’s also clear – in the words of the public accounts committee – that there is a “culture of indifference” within the DWP and wider government.

It’s time that government ministers started to listen to citizens’ voices, to service users – as well as campaigners, researchers, charities and the opposition Parties. And the United Nations – instead of presenting denials that policies are seriously harming people. But there is every indication that they won’t. 

Universal Credit’s malign effects are obvious to anyone who actually looks, and is willing to listen to the voices of those affected by this punitive, mean-spirited and fixated, theory-laden, ideologically driven, miserly provision, that was, at the end of the day, paid for by the very public who are claiming it.

Labour MP Maria Eagle flatly stated that Rudd’s comments are “not true” and are “out of touch”.

She said: “The entire design of the system puts people in debt and the benefit cuts accompanying its introduction have made it far worse.” 

Rudd was questioned by the Mirror after she said yesterday: “Maybe things that were  proposed previously weren’t effective or weren’t compassionate in the way that I want them to be.”

Mirror journalists asked if she could, ‘hand on heart’, say it was “compassionate” to double UC claimants this year, keep the two-child limit and keep the benefit freeze until 2020.

Rudd did not respond to the question, instead replying: “The overall product that is Universal Credit is absolutely compassionate.”

Product? That’s a very odd word to use for lifeline support – the public services that are our social insurance which people have paid into for those times when they need it. 

And using key words from a government strategic comms crib sheet – James Cleverly among others has also opted for the word ‘compassionate’ to describe the welfare ‘reforms’ – does not make those narratives the reality experienced by citizens who need to access support from public services. Saying it does not make it real. This is something the Conservatives seem to have overlooked – that their narratives don’t match people’s realities. That’s the problem with telling lies – the empirical evidence catches up with you sooner or later.

Starving people and leaving them in destitution is not ‘compassionate’. Using a publicly funded public service to deliver punitive and a blunt, coercive, authoritarian behavioural modification programme is not ‘compassionate’. These are the actions and narratives of a government dipping a toe into the realms of totalitarianism.

Rudd claimed that UC needs to be ‘improved’, including to make it fairer to woman, but also said it was a “vital reform delivering a fair and compassionate welfare system”, “by far the most important and crucial reform” and a “force for good”.

Yesterday, the high court concluded that the Universal Credit assessment is illegal. The first judicial review verdict of Universal Credit found that the cutting of severe disability premiums from those who had previously claimed ESA was discriminatory.  How many more legal changes will it take to make the government act with some decency and observe basic laws and human rights?

Rudd went on to claim, somewhat incoherently, that the ‘old system’ was “broken”, “not a utopia that we should return to” and under Labour someone unemployed could receive “£100,000 housing benefit per year.”

The charity Fullfact submitted a freedom of information (FoI) request to the DWP in 2012, following the same claims from David Freud, among other Conservative minsters, that people claiming social security support were receiving £100,000 housing benefit per year. The figures in the response showed that over four out of every five Housing Benefit claims are below £100 per week (the equivalent of £5,200 per year) according to the September 2010 figures, while only 70 out of over 4.5 million recipients claimed over £1000 per week, around 0.001% of the total.

Even this is likely to overstate the number claiming £100,000 per year however, as a family would need to claim over £1,900 per week to hit this total. Previous FoI responses from the Department have suggested around five families were awarded this amount.

Ministers and the media repeatedly failed to highlight what is such a small number of the total, and printed screaming and misleading headlines that were inaccurate, without putting this into a wider context. While the evidence suggests that there are a small number of Housing Benefit claims of more than £100,000 per year –  around five – these cases are very much the exception rather than the rule. Focusing exclusively on these outliers without first putting them into context, where over 80% of claims are below £100 per week, has [intentionally] distorted the debate about welfare, aimed at de-empathising the public and providing a justification narrative for cuts.  

Other information drawn from the FoI request found that larger claims tended to come from larger families, and the average household size for people claiming over £40,000 was six. For more details, do check out the numbers in the request itself, which is available here.

People weren’t suffering profound distress, hunger, destitution, suicide ideation and dying because of the ‘old system’.

Perhaps ‘utopias’ are relative. What we are currently witnessing is not “compassionate” or a “force for the good”: it is the dystopic system of an authoritarian state inflicting punishment, discipline and coercion on our most vulnerable citizens.

It’s a state programme that dispossesses citizens, with catastrophic human costs, to fund the tax cuts demanded by a handful of powerful and wealthy vultures, who live lavishly within a culture of entitlement, while the rest of us are increasingly impoverished.

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Amber Rudd claims that Universal Credit is ‘compassionate’. She must have been taking lessons in Doublespeak again.


 

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Amber Rudd admits link between Universal Credit and rise in people needing for food banks

Yesterday I wrote an article about housing minister James Brokenshire’s Christmas Eve revelation that the increase in homelessness ‘may’ be linked with government  policies. 

Now it seems that Amber Rudd has also admitted that the Government’s flagship Universal Credit policy has been responsible for driving record numbers of people to food banks, however, she still insists the new benefit is “a force for good”.

Call me a cynic, but perhaps this apparent softening from the Conservatives, a move away from the usual position of rigid denial of harm caused by their punitive welfare policy regime may be rather more an indication of a possible early General Election, rather than revelation because of a visit by the ghost of Christmas present.

The new Work and Pensions Secretary, who took over the role from Esther McVey, made the comments during a visit to a Jobcentre in Longton, Staffordshire, on a ‘fact-finding tour.

Rudd resigned from her previous role when it became apparent that the Home Office had designed a hostile environment, making deportation threats to the children of Commonwealth citizens. Despite living and working in the UK for decade, and being given indefinite leave to remain in the UK in the 1970s, UK Windrush citizens have been told they are living here ‘illegally’ because of a lack of ‘official paperwork’. Some of the Windrush generation have been denied health care, housing and employment as a consequence.

The Home Office did not keep a record of those granted leave to remain or issue any paperwork confirming UK citizenship – meaning it is difficult for Windrush citizens to prove they are in the UK legally.

And in 2010, landing cards – proof of identity – belonging to Windrush migrants were destroyed by the Home Office.

Rudd has stepped into another role which has seen the creation and maintenance of a hostile environment, which has been designed to ‘disincentivise’ people from claiming social security, ‘nudging’ people into work. The ‘nudge’ comprises of  conditionality: a series of coercive ordeals that are designed to ensure no one feels comfortable or secure claiming lifeline support.

Given that most people have worked, contributing taxes to pay for their social insurance, it’s controversial, to say the least, that citizens are being subjected to such a punitive system, which is about ‘discouraging’ them from claiming the support they have paid into. 

The visit to the jobcentre in Longton was part of what she described as a “nationwide tour” to promote Universal Credit, which has, since its introduction, faced widespread criticism from both MPs and charities alike.

She said: The purpose of me coming here, as part of a nationwide tour, is to see what’s happening on the ground, to reassure myself that Universal Credit is working and also to find out what we can do better.

Work and Pensions Secretary Amber Rudd

Amber Rudd, the Department for Work and Pensions secretary.

“I recognise that there have been problems as it [Universal Credit] has been taken forward.

“That has made people fearful of it, and so one of the reasons I’m visiting different Jobcentres is to speak to the work coaches, and to clients as well, to find out what has been working well for them, as well as what hasn’t been.

“There have been issues previously, when Universal Credit started, with the time it took to get people the money that they needed, and we have addressed some of those.” 

Rudd then claimed: “First of all, the vast majority of people, around 84 per cent, get the money they are expecting on time. I want to continue the improvement on that. It wasn’t like that when it first started.

“I’ve been told that in this office, there were three people on the Friday before Christmas who were able to get advanced payments on their application that day.

“It was those elements, of getting the money into people’s hands earlier, which were critical to stop the growth in food banks.

“I regret the growth there has been in food banks and I hope that these changes will stop that.”

However, Rudd said she still believes Universal Credit “is a force for good”, that delivers “better outcomes for people” than the benefits it replaces. However, any advance in payment is subsequently deducted from the ongoing award, which means people are still not receiving payments for the first five weeks of their claim – the advance is a loan to cover the period where no support is awarded. Repayment of the advance is deducted from the amount people get monthly, when their award is finally made, often leaving people more short of money to make ends meet.

She said: “It offers what we seek it to offer, which is to be a safety net and also to help people into work, without the terribly huge tax rate that there used to be.”

She clearly needs to consider her use of the phrase “safety net” here, since many people claiming Universal Credit are unable to meet the costs of their most basic  needs. This has led to the rise of absolute poverty in the UK, at levels not seen since the 1930s. People not having enough to eat is an example of absolute poverty.

Rudd also said that she was struck by the ‘huge enthusiasm’ of Jobcentre staff in Longton.

However, surely what matters are the views of service users, rather than those administering it. After all, many a despotic regime has been administered by ‘enthusiastic’ jobsworths.

In November last year, the UK’s largest food bank network – the Trussell Trust -published figures showing a 13% increase in users between April and September 2018.

The charity attributed the rise to the minimum five-week wait for new Universal Credit claims before people they receive an initial payment.

Chief Executive Emma Revie commented: “We created systems like our national health service, fire service and benefits system because we’re a country that believes in protecting each other.

“Our benefits system is supposed to anchor any of us from being swept into poverty, but if Universal Credit is to do that, we need to see urgent changes.

“It’s not right that people are being forced to use food banks after weeks of waiting for Universal Credit payments.”

“We’re seeing soaring levels of need at food banks”, she added. “The time to act is now.”

“If the five-week wait isn’t reduced, the only way to stop even more people being forced to food banks this winter will be to pause all new claims to Universal Credit, until funding is in place to reduce the five week wait.

“Food banks cannot continue to pick up the pieces – we have to make sure our benefits system can protect people from hunger.”

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The government prioritises corporate welfare at the expense of social welfare

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The welfare ‘reforms’: public policies for private profit

It’s widely assumed that public services are organized and delivered for the benefit of citizens. The reality, however, is very different. The more we scrutinise the role and function of different government departments and programmes, the clearer it becomes that they are being redesigned to bring direct and indirect benefits to private businesses.

In 2014, Aditya Chakrabortty wrote in the Guardian: “[…] as the Tory faithful cheered on George Osborne’s cuts in benefits for the working-age poor, a little story appeared that blew a big hole in the welfare debate. Tucked away in the Guardian last Wednesday, an article revealed that the British government had since 2007 handed Disney almost £170m to make films here. Last year alone the Californian giant took £50m in tax credits. By way of comparison, in April the government will scrap a £347m crisis fund that provides emergency cash for families on the verge of homelessness or starvation.

“Benefits are what we grudgingly hand the poor; the rich are awarded tax breaks. Cut through the euphemisms and the Treasury accounting, however, and you’re left with two forms of welfare. Except that the hundreds given to people sleeping on the street has been deemed unaffordable. Those millions for $150bn Disney, on the other hand, that’s apparently money well spent –whoever coined the phrase “taking the Mickey” must have worked for HM Revenue.”

Ministers have admitted this week that more than 4,500 disabled people were wrongly stripped of their benefits despite having a good reason for missing reassessments. The Department for Work and Pensions has now acknowledged the ‘blunder’ – more than one year after a court ruling that the disability living allowance (DLA) payments should not have been stopped. The grossly unfair withdrawal of support happened when disabled people were being transfered from DLA to the government’s cost cutting replacement benefit, personal independent payments (PIP). Disabled people had their lifeline payments stopped entirely.

“We expect around 4,600 people to gain as a result of this review exercise,” a statement from Sarah Newton to MPs says.

But those disabled people are not “gaining” anything. They are simply being paid what they should have been paid.

The admission was slipped out as MPs left Westminster for their Christmas break, as one of a dozen last-day announcements. The disability equality charity Scope described it as “deplorable”.

The latest mistake comes in the wake of the DWP admitting to £970m of underpayments to people being migrated onto Employment and Support Allowance (ESA) between 2011 and 2014. Ministers were accused of creating a “hostile environment for sick and disabled people” following the blunder, which occurred when claimants were transferred onto the main sickness benefit, ESA.

Both PIP and DLA are designed to help people with the extra costs of disability, or long-term health conditions, yet any award is reluctantly made, and all too often people have to go to court to challenge extremely inaccurate assessment reports and enormously unfair decision-making.

If the British public are to fund corporations, they should expect and demand that those businesses observe certain conditions of basic fairness. It’s difficult, however, to challenge what is hidden from view.

In his article, Chakraborrty discusses the work of Kevin Farnsworth, a senior lecturer in social policy at the University of York, who has spent the best part of a decade studying corporate welfare – delving through Whitehall spreadsheets and others, and poring over Companies House filings. He’s produced the first ever comprehensive audit of the British corporate welfare state.

Chakrabortty says: “Farnsworth has achieved something extraordinary: he has yanked into the open an £85bn subsidy that big business and the government would rather you didn’t know about.

“Thinking over this giant corporate bung, two responses immediately suggest themselves. First, it shows up the stupidity of all those newspaper spreads and BBC discussions constantly demanding “What would you cut?”, like some middlebrow ransom note (“Choose now: or the lollipop lady gets it”). It’s a question you’ll be hearing more and more in the run-up to the election. Perhaps next time, as well as mentioning schools, fire services and benefits, some brave Radio 4 presenter will mention the business coaching and marketing and advocacy services provided by the Department for Business (annual cost: nearly £5bn).”

But it was more a case of “choose now and disabled people still got it.” The cuts to the welfare support for the poorest citizens – paid for by the public FOR the public – were carefully planned and coordinated. Private companies were hired to fulfil a role of  discrediting disabled people’s accounts of their disability, and to engage in very bad report writing, with an ultimate aim of resource gatekeeping. At the same time, legal aid was withdrawn to prevent citizens from accessing justice and seeking redress.

Meanwhile, the government and media constructed a narrative to demonise and condemn the poorest citizens, labelling them as undeserving “scroungers” and would be “fraudsters.”

The state’s costly private gatekeepers of public funds

The government has awarded at least £1.4billion of outsourcing contracts linked to the roll-out of Universal Credit and other welfare reforms since 2012.

As Universal Credit continues to be rolled out, forcing the poorest citizens into debt, food poverty and rent arrears, new data has shown the  private companies that have profited from implementing the government’s social security reforms.

The data, which was obtained by HuffPost UK,  was generated by searching Department for Work and Pensions (DWP) public contract tenders for Universal Credit and related keywords. It reveals the vast sums the DWP has spent carrying out health and disability assessments on disabled people claiming support.

The information has prompted mental health and disability charities to call for the DWP to urgently review the failing system of assessment.

Among the companies that have won contracts are global consultancy giants. Some of the firms’ names are known to the public, but details of the awarded contracts are not.

A huge £595million contract was awarded to American consultancy group Maximus to provide health and disability assessments, the largest single DWP contract related to welfare reform since 2012, according to the data.

Atos and Capita also won contracts totalling £634million to carry out assessments for Personal Independence Payments (PIP), a disability benefit.

Consultancy firm Deloitte was awarded a £750,000 contract for work to support the Universal Credit programme and a £3million deal was signed with IT firm Q-Nomy to develop an appointment booking service for the social security payment, which is intended to simplify working-age benefits.

Recap: “Deloitte were responsible for advising Carillion’s board on risk management and financial controls, failings in the business that proved terminal. Deloitte were either unable to identify effectively to the board the risks associated with their business practices, unwilling to do so, or too readily ignored them.” Frank Field

Another £60,000 contract was awarded for the purchase of MacBooks for Universal Credit to Software Box Limited.

Vicki Nash, head of policy and campaigns at mental health charity Mind, told HuffPost UK: “Despite the vast amounts the government spends on benefits assessments – delivered by companies like Atos, Capita and Maximus – we hear every week from people with mental health problems who get the wrong decision, leaving them without support.

“We’ve long been calling for an overhaul of benefits assessments so that they work for those being put through them. For many people with long-term mental health problems, there’s no need to be put through the stress and pressure of repeated reassessments.”

Geoff Fimister, of the Disability Benefits Consortium, which represents 80 charities, added: “These are very large amounts of public money to be spending on services that are falling short.”

The DWP has awarded 76 separate contracts related to welfare reform since 2012, totalling £1.4billion.

But it is estimated that the true figure will be higher as prior to 2015 some government procurement tenders were not published publicly. This changed from 2015 onwards when new rules under the Public Contracts Regulations 2015 meant all tenders had to be made public.

Four of the contracts also show a £0 value and do not include the contract amount.

Tussell’s figures show the DWP has awarded £4.7billion in outsourced contracts across all areas of its work since 2012.

It is clear from the information publicly available that contracts relating to Universal Credit and Personal Independence Payments (PIP) constitute the vast majority of the DWP’s sub-contracting pre-2015. 

But from 2015 onwards, when the data is more robust, this trend was reversed.

Since January 2015, only about 2% (£66million) of DWP contract awards relate to Universal Credit or other welfare reforms of a total £2.8billion bill.

The most valuable contract since 2015 was an £8.2million award to Serco to manage a call centre for claimants of the disability benefit PIP.

The second was a £6million award to Advanced Personnel Management Group to provide healthcare staff to help conduct work capability assessments for Universal Credit and Employment Support Allowance. 

Also included are multiple contracts awarded in 2017 regarding Phase 2 of the New Enterprise Allowance scheme, which offers support to those claiming Universal Credit to become self-employed and start businesses.

A contract of £8.2million has been awarded to Serco to deliver a new claims telephony service for Personal Independence Payments.

Gus Tugendhat, founder of Tussell, said: “With the controversial rollout of Universal Credit still very much a work in progress, contract notices analysed by Tussell provide insight into some of the challenges the government is facing, including with IT systems and recruiting healthcare professionals for assessments.

“While the challenges are many, the government deserves credit for its transparency which we hope to see maintained.”

Universal Credit is being introduced to replace six existing benefits with one monthly payment and the government says it is a more streamlined system that will ‘help move people into work.’ 

But it is rather more expensive to deliver.

The DWP said that technical support was vital to carry out a digital delivery on the scale of Universal Credit and said the department operates within strict procurement guidelines to ensure maximum value for money.

The DWP claim that while Universal Credit will cost £1.7billion to deliver, the new system will bring about £8billion a year in economic benefits when fully rolled out. 

A DWP spokeswoman told HuffPost UK: “This is a random selection of some of our contracts spanning six years covering a range of DWP services and benefits, used by hundreds of thousands of people, that offer support to jobseekers to move into work, while having the right care in place for those that cannot work.”

The 10 highest value contracts awarded by DWP linked to Universal Credit and welfare reforms since 2012

  • £595million to Maximus People Services Ltd for health and disability assessment services. 
  • £207million to Atos for Personal Independence Payments assessment service Lot 1 contract extension (Lot numbers refer to different geographical areas)
  • £184million to Atos for Personal Independence Payments assessment service Lot 3
  • £122million to Capita for Personal Independence Payments assessment service contract extension Lot 1
  • £122million to Capita for Personal Independence Payments assessment service contract Extension Lot 2
  • £90million to Atos for a medical services IT contract
  • £8.2million to Serco to deliver a new claims telephony service for Personal Independence Payments
  • £6million to Advanced Personnel Management Group to provide healthcare staff to conduct work capability assessments for Universal Credit and Employment Support Allowance
  • £3.9million to Pinnacle People Limited for Phase 2 of the New Enterprise Allowance Scheme in the north east to support people into self-employment and to start their own businesses
  • £3.3million to Ixion Holdings (Contracts) Limited for Phase 2 of the New Enterprise Allowance Scheme in London and the home counties

Source: Tussell

Farnsworth’s research should have triggered a public debate about the size and uses of the corporate welfare state.

In his article about corporate welfare, Aditya Chakrabortty goes on to say “[…] what you get on the issue is silence. A very congenial silence for the CBI and other business lobby groups, who can urge ministers to cut benefits for the poor harder and faster, knowing their members are still getting their bungs.

“An agreeable silence for Osborne and David Cameron, who still argue that the primary problem in Britain is that the public sector “crowds out” private enterprise, without ever acknowledging how much the public subsidises business.”

Most of all, a silence at the very centre of our democracy.

Personally, I agree with Chakrabortty’s conclusion: I’ll believe we’re getting somewhere when Channel 4 puts on Corporate-Benefits Street – with White Dee replaced by the likes of Amazon founder and inveterate tax-dodger Jeff Bezos, or the sweatshop  king pension-swindling crook, Philip Green.

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