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Laurie Penny on the human cost of welfare reform

The scandal is that no one is prepared to make a moral case for welfare provision.

The scandal is that no one is prepared to make a moral case for welfare provision.

Who will stand up for the welfare state? Not the Conservative Party, whose mantra - "Making work pay" - has turned out to be a cruel euphemism for slashing already meagre welfare payments and steering the long-term sick into the magical land of jobs. Not Labour, which declined a second reading of the Welfare Reform Bill; after all, its attacks on disability and sickness benefits when in power laid the groundwork for the coalition's planned destruction of the Attlee settlement. And it won't be the press.

With most official statistics indicating that gutting welfare on the brink of a second recession will leave millions in penury, the government has resorted to stoking tabloid hysteria, feeding the weekend papers a ready-boxed scare story tied with a thick ribbon of prejudice. Details of the most ersatz claims used by fraudulent welfare claimants have been distributed to build the growing consensus that the poor are simply not worth looking after. This is a consensus that nobody in opposition seems to have the guts to challenge.

In reality, benefit fraud rates remain stubbornly low, at 1 per cent. For every person who claims that a fear of ladders prevents them from cleaning windows, there are 99 others for whom incapacity or unemployment benefits are a vital lifeline. So vital that staff at jobcentres have been issued a six-point plan for how to deal with rejected claimants at risk of suicide. The government appears relaxed about the human cost of welfare reform.

The headline figure is that benefit fraud costs taxpayers £1.6bn each year. That figure is a fabrication. According to statistics from the Department for Work and Pensions, this includes over £600m in "official" and customer errors. Factoring out pension scams, the figure is just £250m. To put that number in its proper context, the most conservative estimates hold that corporate tax avoidance costs the Treasury £25bn per year: 100 times the cost of benefit fraud.

Moral case

Threatening the workless with destitution may make good headlines but it is no way to increase employment when there are no jobs to go to. Unemployment in Britain stands at 2.5 million, including almost a million under-25s. The employment minister, Chris Grayling, wants us to believe that the private sector will provide jobs for these people, as well as another million public-sector workers and welfare recipients who will soon be joining the dole queue. Unfortunately, private-sector employment has flatlined, there are six dole claimants for every vacancy and Father Christmas is just your dad faffing about in a nylon suit.

There used to be a liberal consensus that it was the government's responsibility to provide employment and ensure that those unable to work were entitled to a minimum standard of living. As the Welfare Reform Bill oozes unchallenged through the Commons, the real scandal is not that the government is lying through its teeth in order to justify its evisceration of the welfare state. The scandal is that no one in Westminster is prepared to make a moral case for welfare provision as the honest heart of social democracy.

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

This article first appeared in the 06 June 2011 issue of the New Statesman, Are we all doomed?

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Calum Kerr on Governing the Digital Economy

With the publication of the UK Digital Strategy we’ve seen another instalment in the UK Government’s ongoing effort to emphasise its digital credentials.

As the SNP’s Digital Spokesperson, there are moves here that are clearly welcome, especially in the area of skills and a recognition of the need for large scale investment in fibre infrastructure.

But for a government that wants Britain to become the “leading country for people to use digital” it should be doing far more to lead on the field that underpins so much of a prosperous digital economy: personal data.

If you want a picture of how government should not approach personal data, just look at the Concentrix scandal.

Last year my constituency office, like countless others across the country, was inundated by cases from distressed Tax Credit claimants, who found their payments had been stopped for spurious reasons.

This scandal had its roots in the UK’s current patchwork approach to personal data. As a private contractor, Concentrix had bought data on a commercial basis and then used it to try and find undeclared partners living with claimants.

In one particularly absurd case, a woman who lived in housing provided by the Joseph Rowntree Foundation had to resort to using a foodbank during the appeals process in order to prove that she did not live with Joseph Rowntree: the Quaker philanthropist who died in 1925.

In total some 45,000 claimants were affected and 86 per cent of the resulting appeals saw the initial decision overturned.

This shows just how badly things can go wrong if the right regulatory regimes are not in place.

In part this problem is a structural one. Just as the corporate world has elevated IT to board level and is beginning to re-configure the interface between digital skills and the wider workforce, government needs to emulate practices that put technology and innovation right at the heart of the operation.

To fully leverage the benefits of tech in government and to get a world-class data regime in place, we need to establish a set of foundational values about data rights and citizenship.

Sitting on the committee of the Digital Economy Bill, I couldn’t help but notice how the elements relating to data sharing, including with private companies, were rushed through.

The lack of informed consent within the Bill will almost certainly have to be looked at again as the Government moves towards implementing the EU’s General Data Protection Regulation.

This is an example of why we need democratic oversight and an open conversation, starting from first principles, about how a citizen’s data can be accessed.

Personally, I’d like Scotland and the UK to follow the example of the Republic of Estonia, by placing transparency and the rights of the citizen at the heart of the matter, so that anyone can access the data the government holds on them with ease.

This contrasts with the mentality exposed by the Concentrix scandal: all too often people who come into contact with the state are treated as service users or customers, rather than as citizens.

This paternalistic approach needs to change.  As we begin to move towards the transformative implementation of the internet of things and 5G, trust will be paramount.

Once we have that foundation, we can start to grapple with some of the most pressing and fascinating questions that the information age presents.

We’ll need that trust if we want smart cities that make urban living sustainable using big data, if the potential of AI is to be truly tapped into and if the benefits of digital healthcare are really going to be maximised.

Clearly getting accepted ethical codes of practice in place is of immense significance, but there’s a whole lot more that government could be doing to be proactive in this space.

Last month Denmark appointed the world’s first Digital Ambassador and I think there is a compelling case for an independent Department of Technology working across all government departments.

This kind of levelling-up really needs to be seen as a necessity, because one thing that we can all agree on is that that we’ve only just scratched the surface when it comes to developing the link between government and the data driven digital economy. 

In January, Hewlett Packard Enterprise and the New Statesman convened a discussion on this topic with parliamentarians from each of the three main political parties and other experts.  This article is one of a series from three of the MPs who took part, with an  introduction from James Johns of HPE, Labour MP, Angela Eagle’s view and Conservative MP, Matt Warman’s view

Calum Kerr is SNP Westminster Spokesperson for Digital