The war on welfare scroungers, part 94

Jobcentres are "tricking" people out of benefits to cut costs, says whistleblower.

He says that he will watch the banks "like a hawk" but allows bankers to walk away with taxpayer-funded, multimillion-pound bonuses. He says he cares about the poor but cracks down on welfare claimants. Such is our Prime Minister, David Cameron, the "compassionate Conservative".

In Prime Minister's Questions on Wednesday, Cameron said:

Far too much in our system is lost from fraud and error and I do not think that taxpayers go to work and work hard in order to fund benefits to which people are not entitled.

Yet, as I noted on Twitter at the time, tax evasion costs the UK exchequer more than 15 times as much as benefit fraud. Why do we not hear the PM condemning tax evasion with the same vigour and regularity with which he raises the subject of benefit fraud? Instead, Cameron kicked off PMQs by condemning and defaming the anti-tax-evasion group, UK Uncut.

The coalition's "war on welfare scroungers", however, continues unabated. Here is a shocking story from today's Guardian:

Rising numbers of vulnerable jobseekers are being tricked into losing benefits amid growing pressure to meet welfare targets, a Jobcentre Plus adviser has told the Guardian.

A whistleblower said staff at his jobcentre were given targets of three people a week to refer for sanctions, where benefits are removed for up to six months. He said it was part of a "culture change" since last summer that had led to competition between advisers, teams and regional offices.

"Suddenly you're not helping somebody into sustainable employment, which is what you're employed to do," he said. "You're looking for ways to trick your customers into 'not looking for work'. You come up with many ways. I've seen dyslexic customers given written job searches and when they don't produce them -- what a surprise -- they're sanctioned. The only target that anyone seems to care about is stopping people's money.

"'Saving the public purse' is the catchphrase that is used in our office . . . It is drummed home all the time -- you're saving the public purse. Feel good about stopping someone's money, you've just saved your own pocket. Its a joke."

The claims came as the big businesses handed contracts to get the long-term jobless into work today said the government should privatise jobcentres so that their firms could work with people who have been jobless for less than a year.

Statistics from the Department for Work and Pensions (DWP) show the total number of cases where people have lost their benefits has soared since the beginning of 2010 to 75,000 in October, the latest month available. The figures also reveal the number of claimants with registered disabilities being cut off has more than doubled to almost 20,000 over the same period.

This follows a change in the rules in April last year where sanctions were extended to claimants who were late for jobcentre interviews and other less serious offences.

So much for the "morality" and "Christian ethics" of the Work and Pensions Secretary, Iain Duncan Smith. This is a callous and cruel coalition government, engaged in a war on not just welfare "scroungers" but on the poorest and most vulnerable members of our society.

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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The Tories have missed a chance to show that they care about student debt

After condemning Jeremy Corbyn for his "betrayal", the government has still raised the top student interest rate to 6.1 per cent. 

For weeks, the Conservatives have assailed Jeremy Corbyn for his alleged betrayal over student debt. The Labour leader told NME during the campaign that he would "deal with" the issue. But he later clarified that this did not amount to a "commitment" to wipe out student debt (which would cost around £100bn) and that he had been "unaware of the size of it at the time". For this, the Tories have accused him of Clegg-style hypocrisy. 

There is little sign, however, that the attack has proved effective. Labour’s manifesto said nothing on the subject of student debt and Corbyn's language in the NME interview was ambiguous. "I’m looking at ways that we could reduce that [student debt], ameliorate that, lengthen the period of paying it off," he said. There is no comparison with the Liberal Democrats, who explicitly vowed not to raise tuition fees before trebling them to £9,000 as part of the coalition. Young voters still credit Corbyn for his vow to abolish tuition fees (were he to break this promise in power, it would be a different matter). 

A further problem for the Tories is that they have spotlighted a problem - student debt - without offering any solution. At present, graduates pay a marginal tax rate of 41 per cent on earnings over £21,000 (20 per cent income tax, 12 per cent national insurance and 9 per cent student loan repayment). This, combined with the average debt (£50,800), leaves them struggling to save for a home deposit, or even to pay the rent. The Conservatives, unsurprisingly, are unable to sell capitalism to voters with no capital. 

Yet rather than remedying this problem, the government has compounded it. The Department of Education has ruled out reducing the top interest rate on student loans from 6.1 per cent, meaning the average student will accrue £5,800 in interest charges even before they graduate.

By maintaining the status quo, the Tories have missed a chance to demonstrate that they have learned from their electoral humbling. Had they reduced student debt, or cut tuition fees, they could have declared that while Corbyn talks, they act. Instead, they have merely confirmed that for graduates who want change, Corbyn remains their best hope. 

George Eaton is political editor of the New Statesman.