Poverty figures: the real numbers

Tory-Politico gets it wrong

The right-wing blog Tory-Politico takes issue with a recent post of mine in which I pointed out:

"...I sit and gloomily digest the horrible prospect, in the midst of a recession, of Prime Minister David Cameron and Chancellor George Osborne announcing savage and severe cuts in public spending, accompanied by cuts in inheritance tax for the richest members of society....It will, as always, be the poorest, weakest and most vulnerable members of our society who suffer most under a Conservative government."

Tory-Politico (which says its aim is to "promote the Conservative Party") cannot contain its rage:

"Clearly the post author didn't bother to look at any facts before publishing.

Figures released earlier in the year by the Department for Work and Pensions shows that Britain under Tony Blair and Gordon Brown has become amore unequal country than at any time since modern records began in the early 1960s.

Since Tony Blair's third election victory, the poorest 10% of households have seen weekly incomes fall by £9 a week to £147 once inflation is accounted for.

The data showed that the second poorest 10% of households has also had to make do with less since 2005. Overall, the poorest 20% saw real income fall by 2.6% in the three years to 2007-08, while those in the top fifth of the income distribution enjoyed a rise of 3.3%. As a result, income inequality at the end of Labour's 11th year in power was higher than at any time during Margaret Thatcher's premiership."

Actually, the facts are on my side. This particular blogger chooses to highlight only the poverty stats since 2005 (why?), while overlooking the inroads made by this government since 1997. I too am outraged, and depressed, at the rise inequality under Blair and Brown, but that is a separate issue from poverty and the poor, who are always better off under Labour. Here are the actual facts, over the entire period, from the Department for Work and Pensions (DWP):

1. The latest figures on child, pensioner and working-age adult poverty can be found in Households Below Average Income (HBAI) 2007/08. HBAI figures can be downloaded from http://www.dwp.gov.uk/asd/hbai.asp along with a statistical press notice.

2. From 1998/9 - 2007/8 the number of children in relative poverty fell by 500,000, before housing costs are taken into account.

3. From 1998/9 - 2007/8 the number of children in absolute poverty fell by 1.7 million, before housing costs are taken into account.

4. From 1998/9 - 2007/8 the number of pensioners in relative poverty fell by 900,000, after housing costs are taken into account.

5. From 1998/9 - 2007/8 the number of pensioners in absolute poverty fell by 1.9 million, after housing costs are taken into account.

Fact: the government has failed on inequality but succeeded on poverty.

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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Labour must unite idealists and nativists to beat Ukip

The party has no coherent economic policy, says Labour donor John Mills. 

The heart of the dilemma faced by Labour is that, by and large, its working-class supporters think that you should look after your own first and everyone else afterwards, while its more idealistic middle-class supporters don’t share these nativist views. Add to this the fact that the Labour party nowadays is more middle class, more internationalist, more public sector-orientated, more metropolitan, more intellectual and less interested in winning elections than it has ever been before, and you can see why Ukip is a huge potential threat.

Ukip started by attracting mainly disaffected Conservative voters who thought their party was weak on the EU and who didn’t like David Cameron’s liberal approach to social issues. More recently, especially during the EU referendum, Ukip picked up a huge amount of Labour support. Of the 9.3m people who voted Labour in the 2015 general election, close to 3.5m of them voted for Leave – and half of these people say they are not going to vote Labour in future. Where are they going to go?

The crucial issue is whether Ukip, having gone through all its recent traumas, will get its act together to scoop up these footloose voters. Up to now, the glue which has held Ukip together has been hostility to the EU and distrust of the political establishment. It has lacked coherent policy. This leaves Ukip still essentially a protest operation rather than as a potentially governing party. But this could change. 

With Labour now increasingly idealistic rather than nativist, Ukip may pull together a string of policies that promise support for working-class solidarity, immigration restrictions, social conservatism and a reindustrialisation plan – very much the platform which won Donald Trump the US presidency. Such a manifesto could attract sufficiently widespread working-class support to make large numbers of Labour seats vulnerable. Ukip came second in 120 constituencies during the 2015 general election. There doesn’t have to be a very large swing for Ukip to start picking up enough seats to make the prospect of a future Labour government more and more remote.

Faced with this prospect, what can Labour do? Three key strategies suggest themselves. One is to avoid alienating potential Labour supporters by trying to persuade them that they should have voted Remain. On the contrary, the party must clearly accept the referendum result, and fight hard and constructively towards getting the best possible Brexit deal. 

Second, Ukip is weak on economic policy. It is all very well to promise reindustrialisation and better jobs, but how is Ukip going to fulfil them? Populism shades very easily into protectionism. There is a principled case for open markets to produce more prosperity - but this may only be possible if there are also changes to monetary and exchange rate policy to avoid unmanageable commercial competition. Ukip may, like the Labour party, find this a hard case to make.

Third, Labour needs to change its tone. There needs to be less talk of abstract universal values and more of concrete steps to improve people’s lives. Labour must celebrate working-class attitudes to self-help, trade unionism, mutual support, patriotism and solidarity. The party must build on the huge influx of members, not least because they are the cadres for the future, but it also must avoid alienating old supporters with many years of experience and commitment. It is up to the party leadership to create such a change.

As it stands, too many Labour people are still trying to derail Brexit. The party has no coherent economic policy and it still looks too London-centric, divorced from its working-class roots. Not a good place to be if Ukip pulls itself together. 

John Mills is a businessman and a Labour donor. He founded the group Labour Leave ahead of the EU referendum and has recently published the pamphlet "Why Trump Won"