Category Archives: Inequality

Welfare Myths and Welfare Facts

Job Centre on Christmas Day
Ready to Work!
I am publishing here a paper on ‘Welfare Myths and Welfare Facts’ (pdf 65kb). This is a summary, but please read the complete paper.

The belief, held by nearly one third of the population according to polling figures, that at least half of welfare claimants are either fraudulent or are refusing suitable work when offered, is demonstrably wrong. It is clearly fuelled by misleading and misrepresentative information fed to us not only by most media outlets but by our own leaders, probably as a ‘divide and rule’ strategy.

The total cost of out-of-work benefits is much smaller than is frequently claimed, including by those who are in a position to know better. A significant proportion of out-of-work benefits are ultimately paid for by their recipients through their lifetime NI and tax contributions. The large majority of those actually receiving JSA are intent on finding work and actively seeking it, but a proportion of them are currently doomed to failure – some probably permanently – through no conscious decision of their own.

As a result, the lowering of benefits and the threat of benefit withdrawal is increasing hardship for many, while probably doing little more than increasing ‘churn’ in a sluggish labour market. Given the current low level of benefits in relation to a generally acceptable minimum income and the dubious fairness of an absolute obligation to work for others for a breadline wage, further downward pressure on benefits seems to have little justification morally, socially or even economically.

The only real way to see more of the long-term unemployed improve their own lives and their contribution to society is the provision of more and better-paid employment opportunities. Along with this will have to go resource-intensive engagement with those who are poorly equipped to support themselves, never mind to play a productive role in society.

Download the full paper: ‘Welfare Myths and Welfare Facts’ (pdf 65kb).

Equality of Voice and ‘Devo-localism’

Dependent Smurf
Don’t I get a say?

 

That’s where the real constitutional debate needs to be – around a radical constitutional option that puts Scotland back into the hands of its people: devo-local, if you like. Trevor Davies, The Scotsman 10/5/2012

 [Politicians] see themselves as propping up something which is tottering rather than letting citizens build anew something that is soundly based. Charles Moore, Daily Telegraph 13/7/2012

 

Power wielded from the centre is slow to react, inflexible and discriminates poorly. Yet political power at all levels has been steadily eroded as a consequence of the economic demands of global corporations and the economic strain on central government to provide for these corporations and mop up the damage they cause. No redistribution of political power from centre to periphery can be sustainable without addressing the centralisation of economic power. The willingness to address the latter is surely what will separate the left ‘devo-localist’ from the right. Continue reading Equality of Voice and ‘Devo-localism’

Unemployment and Policy

This post is on 2 pages. Please click on the appropriate page number at bottom of text to navigate.

There’s a very interesting take on UK unemployment trends in the July NIESR Review, written by the NIESR director Jonathan Portes. One should perhaps bear in mind that he has previously worked to formulate employment policy for the Blair and Brown governments.

His essential point is that while the overall UK 16-64 employment rate has remained steady for over 30 years, this has been combined with some major changes in the patterns of that employment. This has major implications for the likely outcome of current government policy towards those out of work and their benefits.

In this post I summarise Portes’s findings and analyse more closely two points his paper overlooked: the impact of increased part-time working and the discrepancy between a rising population, a steady employment rate and falling numbers of benefit recipients. The findings suggest that the situation may be rather more serious than Portes fears, with significant implications for social welfare and cohesion. Continue reading Unemployment and Policy

The Riots of August 2011

The riots that engulfed London and other cities in England began one year ago today. Just to hark back to my piece ‘Riots: Looking Deeper’ on this topic last year, written one week after they started. I think it’s fair to say that it was a reasonable analysis. In particular the Independent Panel set up to investigate their causes stated

Clearly the importance of those attributes becomes even more pronouncedwhen young people are faced with growing up in a time of austerity, a struggling job market and pervasive messaging telling them that criminality provides a fast track to achieving status among their peers. For example, while we know that most convicted rioters were not gang members, we also know that gangs operate in a large number of areas where the riots occurred. Some young people are exposed to imagery and attitudes associated with gang culture from an early age, which glamorise a life of criminality outside the system and which eschews any empathy for the victims of crime.

An article by Richard Wilkinson and Kate Pickett (of ‘The Spirit Level’ fame) on today’s Guardian CiF specifically blames inequality. You might care to look here at my general response to that thesis.

As Laura Wilkes, Policy Manager at the Local Government Information Unit, points out today on LabourList

…with local authority cuts set to continue the environment will become more challenging than ever before – if we are to avoid a repeat of 2011 councils need to have the funding to invest in key intervention programmes, community development and economic growth; all things that could help to prevent future riots. As things currently stand, government policy could threaten this.