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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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The Fire Brigades Union reaffiliates to Labour - what does it mean?

Any union rejoining Labour will be welcomed by most in the party - but the impact on the party's internal politics will be smaller than you think.

The Fire Brigades Union (FBU) has voted to reaffiliate to the Labour party, in what is seen as a boost to Jeremy Corbyn. What does it mean for Labour’s internal politics?

Firstly, technically, the FBU has never affliated before as they are notionally part of the civil service - however, following the firefighters' strike in 2004, they decisively broke with Labour.

The main impact will be felt on the floor of Labour party conference. Although the FBU’s membership – at around 38,000 – is too small to have a material effect on the outcome of votes themselves, it will change the tenor of the motions put before party conference.

The FBU’s leadership is not only to the left of most unions in the Trades Union Congress (TUC), it is more inclined to bring motions relating to foreign affairs than other unions with similar politics (it is more internationalist in focus than, say, the PCS, another union that may affiliate due to Corbyn’s leadership). Motions on Israel/Palestine, the nuclear deterrent, and other issues, will find more support from FBU delegates than it has from other affiliated trade unions.

In terms of the balance of power between the affiliated unions themselves, the FBU’s re-entry into Labour politics is unlikely to be much of a gamechanger. Trade union positions, elected by trade union delegates at conference, are unlikely to be moved leftwards by the reaffiliation of the FBU. Unite, the GMB, Unison and Usdaw are all large enough to all-but-guarantee themselves a seat around the NEC. Community, a small centrist union, has already lost its place on the NEC in favour of the bakers’ union, which is more aligned to Tom Watson than Jeremy Corbyn.

Matt Wrack, the FBU’s General Secretary, will be a genuine ally to Corbyn and John McDonnell. Len McCluskey and Dave Prentis were both bounced into endorsing Corbyn by their executives and did so less than wholeheartedly. Tim Roache, the newly-elected General Secretary of the GMB, has publicly supported Corbyn but is seen as a more moderate voice at the TUC. Only Dave Ward of the Communication Workers’ Union, who lent staff and resources to both Corbyn’s campaign team and to the parliamentary staff of Corbyn and McDonnell, is truly on side.

The impact of reaffiliation may be felt more keenly in local parties. The FBU’s membership looks small in real terms compared Unite and Unison have memberships of over a million, while the GMB and Usdaw are around the half-a-million mark, but is much more impressive when you consider that there are just 48,000 firefighters in Britain. This may make them more likely to participate in internal elections than other affiliated trade unionists, just 60,000 of whom voted in the Labour leadership election in 2015. However, it is worth noting that it is statistically unlikely most firefighters are Corbynites - those that are will mostly have already joined themselves. The affiliation, while a morale boost for many in the Labour party, is unlikely to prove as significant to the direction of the party as the outcome of Unison’s general secretary election or the struggle for power at the top of Unite in 2018. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.