A Hain in the neck

As Peter Hain's agony continues, bloggers scramble to uncover further political funding scandals

Following a proud week for the NS, as Derek Pasquill was cleared of breaching the Official Secrets Act, messages of congratulations were posted at Harry’s Place. But the case leads Spyblog to query: “What other politically embarrassing revelations are [the government] keeping secret from the British public?”

While, Obsolete believes the case highlights the injustice of last year’s leaked al-Jazeera memo trial.

In case you’ve missed Peter Hain’s week from Hell, Mark Pack supplies an overview.

Alex Hilton at Labourhome makes a case for the Labour Party to learn from the funding scandals and puts forward a list of eight suggestions for the party to adopt if it is to avoid getting into similar scrapes.

Guido Fawkes suggests the blame goes right to the top. Having received donations totalling £215,705, Gordon Brown must - under Labour Party rules - pay 15% (or £32,335) into central party funds. This he hasn’t yet done, according to the Electoral Commission. Fawkes states this is why Brown has offered his support to Hain, Harriet Harman and Wendy Alexander.

The accusations against Brown mounted. Dizzy Thinks believes he has stumbled upon another failure on Brown’s part to reveal non-cash donations to the Electoral Commission for a website registration and domain name. All of which is angrily refuted by Chris Paul.

As reports emerged of a potential Tory funding scandal, Kerron Cross is quick to drew comparisons between the two parties, for which he is criticised by posters on his own blog.

Anthony Wells at UK Polling Report chronicles the past month in the polls, which makes depressing reading for Labour.

Meanwhile, Hain’s opposite number, Chris Grayling, has been receiving praise from unexpected quarters. Paul Walter at Liberal Burbling notes: “Grayling is the only Conservative politician who does not send me into a rage-fuelled high blood pressure crisis. I actually feel the man might actually be talking some sense and that he's not just saying what he says because he thinks he ought to.

"And of course, he is a member of the organisation of which I am the proud Life Patron - the BOGS (Bald Old Gits' Society).”

Owen Walker is a journalist for a number of titles within Financial Times Business, primarily focussing on pensions. He recently graduated from Cardiff University’s newspaper journalism post-graduate course and is cursed by a passion for Crystal Palace FC.
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In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”