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Laurie Penny: A response to Alex Callinicos

Deregulating resistance will mean deregulating the organisations that control resistance.

Let me say right from the start that I know I shouldn't do this. Arguing strategy with revolutionary leftist parties in a public forum is a little like discussing venereal disease at a children's birthday party: half the people there won't know or care what you're on about and the other half will start trying frantically to shush you in case you inadvertently reveal some oozing detail that relegates you to pariah status. Last week, however, I wrote an article for the Guardian that appears to have got me into trouble with the Socialist Workers Party and I'd like to respond to the ensuing brouhaha.

In the article, I wrote that the old organisational structures of revolution -- far-left parties, unions and splinter groups -- are increasingly irelevant to the movement that is building across Europe. The organisational structures, not the organisations themselves. The fact that there remains, in most communities in Britain, a small but dedicated group of left-wing activists with gloriously unreconstructed socialist sentiments and an inexhaustible energy for leafleting is just one more thing that makes me proud to live on this bitter little island. Some of their ideas, like the notion that one can truly change the world by standing on the corner of every demonstration selling copies of the party newspaper, are a little antique but the essential idea of revolution and resistance is never going out of style. When students and young people say that the unions and far-left parties will have to follow our energy rather than seeking to lead and control it, we're not saying that the notion of a people's revolution isn't trendy anymore because it's somehow not 2.0 enough for us.

Alex Callinicos is right: students can't do it alone. Of course they can't. Nor can schoolkids or workers or people who are unemployed. That's what class solidarity is all about and solidarity has been the watchword of these protests. The structures of labour and power and information distribution have changed irrevocably since the 1980s, however, which is why the structures of solidarity and revolution have to change, too. The power of organised labour was undercut across the world by building in higher structural unemployment and holding down wages, by atomising workers, outsourcing and globalising production while keeping working people tied to increasingly divided and suspicious communities. Thatcher, Reagan and Blair deregulated oppression. In order to be properly effective, rebels have to deregulate resistance.

Deregulating resistance will mean deregulating the organisations that control resistance, making them more anarchic, more inclusive and more creative. The function of the SWP over the course of these protests is an important example of how this can work. SWP activists are the street-fighting men and women of the far left and their energy and skill sets are vitally useful -- they have, accordingly, been involved in many of the high-profile actions that have taken place this winter, but they have not been leading from the front. SWP members have been most effective in conjunction with school pupils, anarchists, students and unaffiliated members who adapt their organic techniques to the changing nature of the whole. They have been least useful when trying to sell copies of the Socialist Worker to children running away from horses.

The question of the paper is fantastically indicative. The notion of a communistic worker's revolution developed smack in the middle of the golden age of newspapers, which is why Lenin's ideas about the function of a party paper -- that it ought to be a key organising tool produced for the edification of the masses by an influential vanguard of radicals -- were and remain so important to many radicals who see themselves as the inheritors of Marx and Lenin. At the time, Lenin was advocating revolution that utilised the structures of the most cutting-edge technology anyone had available to them. This new wave of unrest is happening at a similar turning point in the history of communications technology. New groups can exchange information and change plans via Twitter and text message in the middle of demonstrations. It's no longer about edicts delivered by an elite cadre and distributed to the masses, or policy voted on at national meetings and handed down by delegates. It's not the technology itself so much as the mentality fostered by that technology that is opening up new possibilities for resistance.

The Socialist Workers Party and other far-left organisations do not have a monopoly on class consciousness. Many organisers of this year's student revolutions have a background in far-left agitation and many more do not -- but nearly all of us know precisely what's at stake. If any one group tries to claim ownership or exert control over this new movement, they will have missed the point entirely. Nobody can own this revolution: not the unions, not the far left, not the Labour Party and not the students. It's far bigger than that.

As the sun went down over the Whitehall kettle and the icy winter wind began to bite, an extraordinary thing happened somewhere behind the police lines. I was huddled with a group of school kids and stiff, bewildered protesters around a dying fire made from exercise books and ripped-up bits of placard. We had hours yet before the police would let us free and nothing left to burn and, as we watched the embers fade away with mounting panic, a young man approached and asked if any of us would like to buy a copy of the Socialist Worker.

We rounded on him in desperation. None of us had any money but we were all freezing and we needed paper -- not to read but to burn. We begged him to give us even one paper and join us at the fire. A slew of emotions chased across the SWP seller's face as he considered this dilemma. Finally, he agreed to give us two copies, if, and only if, any of us could sing at least two verses of the Internationale. So we did -- me, some Neets and schoolkids from the slums of London -- our voices shaking a little from the chill. He handed over the papers with a smile and shuffled into the circle to warm up.

Ultimately, I'm not interested in whether you're a Leninist or a liberal or a Blairite or a Brownite or an anarchist or a concerned member of the public with no time for ideological flim-flammery. I'm interested in whether or not you're going to join me at the fire. I want to know if you're up for a fight. I want to know if you are prepared to put your body on the line to battle social oppression and fight the machinations of a dissembling government working to protect profit at the expense of the people. Because this is the future, not some cultish Petrograd-enactment society where we all dress up as revolutionaries and shout at each other for hours and then go home before anyone gets hurt. This is the future, it's happening now, and innocent people have already been hurt. The question is, are you prepared to stand with the tens of thousands on the street and stop injustice in its tracks?

Laurie Penny is a contributing editor to the New Statesman. She is the author of five books, most recently Unspeakable Things .

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Q&A: What are tax credits and how do they work?

All you need to know about the government's plan to cut tax credits.

What are tax credits?

Tax credits are payments made regularly by the state into bank accounts to support families with children, or those who are in low-paid jobs. There are two types of tax credit: the working tax credit and the child tax credit.

What are they for?

To redistribute income to those less able to get by, or to provide for their children, on what they earn.

Are they similar to tax relief?

No. They don’t have much to do with tax. They’re more of a welfare thing. You don’t need to be a taxpayer to receive tax credits. It’s just that, unlike other benefits, they are based on the tax year and paid via the tax office.

Who is eligible?

Anyone aged over 16 (for child tax credits) and over 25 (for working tax credits) who normally lives in the UK can apply for them, depending on their income, the hours they work, whether they have a disability, and whether they pay for childcare.

What are their circumstances?

The more you earn, the less you are likely to receive. Single claimants must work at least 16 hours a week. Let’s take a full-time worker: if you work at least 30 hours a week, you are generally eligible for working tax credits if you earn less than £13,253 a year (if you’re single and don’t have children), or less than £18,023 (jointly as part of a couple without children but working at least 30 hours a week).

And for families?

A family with children and an income below about £32,200 can claim child tax credit. It used to be that the more children you have, the more you are eligible to receive – but George Osborne in his most recent Budget has limited child tax credit to two children.

How much money do you receive?

Again, this depends on your circumstances. The basic payment for a single claimant, or a joint claim by a couple, of working tax credits is £1,940 for the tax year. You can then receive extra, depending on your circumstances. For example, single parents can receive up to an additional £2,010, on top of the basic £1,940 payment; people who work more than 30 hours a week can receive up to an extra £810; and disabled workers up to £2,970. The average award of tax credit is £6,340 per year. Child tax credit claimants get £545 per year as a flat payment, plus £2,780 per child.

How many people claim tax credits?

About 4.5m people – the vast majority of these people (around 4m) have children.

How much does it cost the taxpayer?

The estimation is that they will cost the government £30bn in April 2015/16. That’s around 14 per cent of the £220bn welfare budget, which the Tories have pledged to cut by £12bn.

Who introduced this system?

New Labour. Gordon Brown, when he was Chancellor, developed tax credits in his first term. The system as we know it was established in April 2003.

Why did they do this?

To lift working people out of poverty, and to remove the disincentives to work believed to have been inculcated by welfare. The tax credit system made it more attractive for people depending on benefits to work, and gave those in low-paid jobs a helping hand.

Did it work?

Yes. Tax credits’ biggest achievement was lifting a record number of children out of poverty since the war. The proportion of children living below the poverty line fell from 35 per cent in 1998/9 to 19 per cent in 2012/13.

So what’s the problem?

Well, it’s a bit of a weird system in that it lets companies pay wages that are too low to live on without the state supplementing them. Many also criticise tax credits for allowing the minimum wage – also brought in by New Labour – to stagnate (ie. not keep up with the rate of inflation). David Cameron has called the system of taxing low earners and then handing them some money back via tax credits a “ridiculous merry-go-round”.

Then it’s a good thing to scrap them?

It would be fine if all those low earners and families struggling to get by would be given support in place of tax credits – a living wage, for example.

And that’s why the Tories are introducing a living wage...

That’s what they call it. But it’s not. The Chancellor announced in his most recent Budget a new minimum wage of £7.20 an hour for over-25s, rising to £9 by 2020. He called this the “national living wage” – it’s not, because the current living wage (which is calculated by the Living Wage Foundation, and currently non-compulsory) is already £9.15 in London and £7.85 in the rest of the country.

Will people be better off?

No. Quite the reverse. The IFS has said this slightly higher national minimum wage will not compensate working families who will be subjected to tax credit cuts; it is arithmetically impossible. The IFS director, Paul Johnson, commented: “Unequivocally, tax credit recipients in work will be made worse off by the measures in the Budget on average.” It has been calculated that 3.2m low-paid workers will have their pay packets cut by an average of £1,350 a year.

Could the government change its policy to avoid this?

The Prime Minister and his frontbenchers have been pretty stubborn about pushing on with the plan. In spite of criticism from all angles – the IFS, campaigners, Labour, The Sun – Cameron has ruled out a review of the policy in the Autumn Statement, which is on 25 November. But there is an alternative. The chair of parliament’s Work & Pensions Select Committee and Labour MP Frank Field has proposed what he calls a “cost neutral” tweak to the tax credit cuts.

How would this alternative work?

Currently, if your income is less than £6,420, you will receive the maximum amount of tax credits. That threshold is called the gross income threshold. Field wants to introduce a second gross income threshold of £13,100 (what you earn if you work 35 hours a week on minimum wage). Those earning a salary between those two thresholds would have their tax credits reduced at a slower rate on whatever they earn above £6,420 up to £13,100. The percentage of what you earn above the basic threshold that is deducted from your tax credits is called the taper rate, and it is currently at 41 per cent. In contrast to this plan, the Tories want to halve the income threshold to £3,850 a year and increase the taper rate to 48 per cent once you hit that threshold, which basically means you lose more tax credits, faster, the more you earn.

When will the tax credit cuts come in?

They will be imposed from April next year, barring a u-turn.

Anoosh Chakelian is deputy web editor at the New Statesman.