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Let's Also Hope That the Labour Party Can Begin to Find its Voice Again

Posted: 09/10/2012 01:00

When David Cameron and George Osborne first coined the phrase "We are all in it together", I started counting the spoons. The idea that these multi-millionaire ex-Etonians, both of who have no experience of life at the sharp end should speak in such a glib manner was shocking enough. That many in the media would go along with this fiction, and also pretend that in this age of austerity 'welfare reform' could mean anything but 'welfare cuts' was even worse.

This week, as the prime minister and his Chancellor, George Osborne speak to their party conference in Birmingham, many in the media have picked up on a new refrain, asking the pair how both the rich and the poor can 'share the pain'. All of this in the same week that David Cameron ruled out a mansion tax for the very rich, but promised a further multi-billion cut in welfare spending for the poor.

We now learn that these new planned cuts will further impact young people aged under 25, whose access to housing benefit is likely to be axed. Their choice will increasingly be limited to living with their parents, or sleeping on the streets or in hostels. The idea that 'pain' is somehow shared between an unemployed, homeless youngster, and a wealthy businessman paying a little more tax is as ludicrous as it is grossly insulting.

But this is all before the current round of cuts starts to bite. In my borough of Tower Hamlets, which is one of the poorest and most overcrowded in the country, officers from the council and local housing associations are already planning to visit 1,500 social housing tenants and families in temporary accommodation to discuss how the welfare cuts are likely to impact them.

We believe that approximately 2,000 more private sector tenants are likely to be affected, which is why we have launched our 'Prepare and Act Now' campaign. For we know that many of the poorest in our borough have no idea how some of these welfare changes are likely to affect them. Some may be forced to move from the homes and areas they have known their whole lives. Children who had been expecting to start at a particular school may have to start thinking about taking a place somewhere entirely different, as what Mayor Boris Johnson of all people warned, could be the beginning of social cleansing on a grand scale.

You may well have noticed that the government, through the Department of Works and Pensions, is spending quite a chunk of taxpayer's money on television advertisements for the new work place pensions scheme. But then this is something that they would like the wider public to hear about, because it is good news. The bad news is of course conveniently buried. Unsurprisingly, they are spending next to nothing attempting to inform some of the poorest and most vulnerable as to how they will be impacted by the welfare changes. Which is why it is falling to us, and many in the third sector to bear the bad news and try and pick up the pieces of a collapsing welfare system.

Even before the latest swingeing cuts are announced, it may be worth reflecting for a minute on the scale of David Cameron and Nick Clegg's Coalition's broadside on the welfare state to date.

1. Cap on Benefits: From April 2013, the government is introducing a benefit cap of £500 a week. This includes the total amount given for Job Seekers Allowance, Child Benefit, and Housing benefit. If rent is £340 a week, which is a typical lower end market rent for a family with two or three children, it leaves about £160 a week to live on. The government says nobody will be disadvantaged when Universal Credit comes in in October 2013 - that's because the damage will already have been done by the introduction of the welfare cap.

2. Spare Rooms: In April 2013, all residents in receipt of housing benefit, and living in a property that the government says has more bedrooms than they need will lose some of their housing benefit. This doesn't include pensioners, but could have a significant impact on different types of 'care' provision including foster care provision, families with disabled children and disabled people living in adapted accommodation.

3. Non Dependent Deductions: Residents in receipt of housing benefit with non-dependent adults living with them will also see a reduction in their benefits. The amount will depend on whether or not those other adults are working - and the hours they are working. This will particularly impact on carers.

4. Disability Living Allowance (DLA): The government is to replace DLA with a new benefit called Personal Independence Payment (PIP). Guidelines are yet to be confirmed but it is expected around 500,000 disabled people will not qualify under the new guidelines. Awards will be shorter and assessments more frequent and stringent.

The government is also removing the Severe Disability Premium that used to be paid to a disabled person with no support at home or who was being looked after by a young carer.

5. Single, under 35s: If single people are renting in the private sector, 25-35-year-olds will lose eligibility for financial support to live in a one-bedroom property.

6. In part-time or low paid work: A range of low-income benefits and tax credits will be replaced by the Universal Credit (from October 2013) but the benefit cap will affect those who have less than 16 hours a week ( if single) and 24 hours a week (as a couple).

7. Carers and vulnerable adults: The Disability Living Allowance will be changed to the Personal Independence Payments - leading to a loss of entitlement following a review. This could have a multiple effect as the claimant would lose the exemption from the overall cap and loose other prior entitlements linked to the DLA award.

Now we know that these cuts were simply the start, and for all of his brave words, the Works and Pensions Minister, Iain Duncan Smith has caved in to more - as has the Deputy Prime Minister Nick Clegg. David Cameron and George Osborne have already cut the top rate of tax for the wealthy from 50% to 45%, in effect handing over an extra £40,000 a year to each and every millionaire in the land. The fig leaf for pushing the still growing burden of Britain's defict and an an austerity programme made in Downing Street, was supposed to be Nick Clegg's one off wealth tax and a mansions tax. But now we know that messrs Cameron and Osborne haven't the slightest intention of listening to their Coalition partner.

So let's end this fiction once and for all that somehow "we are all in together" or indeed that the "broadest shoulders will carry the most weight". Let's also hope that the Labour Party can begin to find its voice again and stand up for those who will be carrying the greatest burden - the poor, the young, the old, the disabled and the unemployed.

 
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11:25 PM on 10/16/2012
Yes Labour has been keeping strangely quiet over these savage welfare reforms instigated by a man (IDS) who would have been admired by a certain Mr A Hitler.
09:28 PM on 10/09/2012
is he still involved with the islamic forum of europe?
07:51 PM on 10/09/2012
"We now learn that these new planned cuts will further impact young people aged under 25, whose access to housing benefit is likely to be axed."
- and I certainly hope so. Can you name another country, preferably not in Europe, that gives free taxpayer's money to those who have not yet earned the right to it? I never got "housing benefit" I had to sleep in my car when I couldn't afford anywhere. Young people today have an absurd sense of entitlement. As for the "Labour" party, I do recall there being such a thing in my father's time, but it died with Harold Wilson. What we need today is a NEW political party, one for the 90% in the UK who aren't rich.
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06:46 PM on 10/09/2012
It is not its voice that the Labour Party need to find ....it is its calculator.
01:19 PM on 10/09/2012
Surely Mr Rahman forgets that every party makes sure the bad new is "conveniently buried." Alistair Campbell anyone?

The mansion tax idea was dropped because it would have gained very little and persecuted those who were gaining wealth, not those that already had it. By keeping the top tax rate to 45%, he's also attracted the wealthy French that are fleeing Paris in their droves to escape their coming 75% rate. Britain is actually making more by keeping those costs down.

The current benefits system is unsustainable, and is proven to be so. The poorest and worst off will remain unaffected, it is largely the middle class that will "suffer" and lose a few pounds a week out of their child benefits. Maybe one or two families will have to drop the movies package from their satellite television to make up for it, but life is tough in this economic climate.
08:45 AM on 10/10/2012
I keep hearing about the affluent french fleeing to england in droves....where is the statistical avidence
12:43 PM on 10/09/2012
Interesting to see that Mayor Rahman is concerned about the impact of the Welfare Reforms.

What he hasn’t mentioned is that he has just slashed the advice safety net in Tower Hamlets when people need it the most.

At last Wednesday’s Council Cabinet meeting, Lutfur Rahman, agreed huge cuts to the grants of the borough’s advice services.

As a result, advice agencies operating across the borough are facing cuts of up to 75%, at exactly the time their services are going to be essential to the thousands of people having their benefits cut by the Government.

This cut was NOT forced on the Mayor by Government it was his choice whether to fund this or not.

The overall grants budget stayed the same but he didn’t see these as worthy causes to fully fund.

Labour councillors have pledged to stand up for local residents, fighting to stop Rahman's unfair and unnecessary cuts to vital front-line services.

There is over £900,000 sitting unused in the Council’s grants fund which the Mayor refused to use to help the borough’s advice services.

Thousands of Tower Hamlets residents use these advice and volunteer services. This cut will mean less advisors, shorter opening hours and longer queues as well as the risk of closures.

With the Government’s planned changes to welfare and housing demand for advice services in the borough will only increase.
09:44 AM on 10/09/2012
Great article. I particularly like your point about the advertising currently taking place by DWP. If these changes to welfare are going to be made the very least that needs to be done is to help people understand how it affects them.
The only thing worse than cutting benefits to the most needy (as bad as that is) is for the most needy to not be told about it until it's too late.