Cameron is repeating the housing benefit myth

The statistic Cameron ignores: only one in eight claimants is unemployed.

Having long abandoned the pretence that "we're all in this together", David Cameron is preparing yet another raid on the welfare budget. In a speech today, he will announce plans to abolish housing benefit for under-25s and will indicate that the government is considering "time-limiting" Jobseeker's Allowance, reducing the new benefits cap to £22,000 and restricting payments for large families (specifically, limiting child benefit to three children, although this proposal will not be mentioned in the speech).

As previously signalled by George Osborne, the cuts are designed to save the government £10bn but so far Cameron hasn't chosen to focus on the alleged savings. Rather, he has argued that the plans are necessary to reverse a "culture of entitlement". In his pre-speech interview with the Mail on Sunday, Cameron claimed that housing benefit "discourages" young people from working:

A couple will say, 'We are engaged, we are both living with our parents, we are trying to save before we get married and have children and be good parents.'

But how does it make us feel, Mr Cameron, when we see someone who goes ahead, has the child, gets the council home, gets the help that isn't available to us?

One is trapped in a welfare system that discourages them from working, the other is doing the right thing and getting no help.

With those words, Cameron perpetuated the biggest myth about housing benefit: that it is a benefit for the unemployed. The truth is that just one in eight claimants is out of work (not a statistic that you'll find reported in most papers). The majority of those who claim housing benefit, including the under-25s, do so to compensate for substandard wages and extortionate rents. A recent study by The Building and Social Housing Foundation showed that 93 per cent of new housing benefit claims made between 2010 and 2011 were made by households containing at least one employed adult.

It is meaningless of Cameron to claim that the housing benefit budget is "too large" without considering why. The inflated budget, which will reach £23.2bn this year, is the result of a conscious choice by successive governments to subsidise private landlords rather than invest in affordable social housing. Yet rather than addressing the problem of stagnant wages and excessive rents, Cameron, in a bid to appease his querulous party, has chosen to squeeze the already squeezed. 

That he should do so by abolishing housing benefit for under-25s is particularly egregious. Of the 380,000 young people who claim the benefit, a significant number do so because they have been thrown out by their parents. As Shelter notes, "Last year nearly 10,000 households in priority need were recognised as homeless after they were thrown out by their parents. Many more won’t have shown up in the statistics and will have resorted to sofa surfing, hostels or at worst the streets."

Others may be unable to live at home after their parents divorced or downsized or, as Petra Davies previously noted on the site, may have been rejected due to their sexuality. As she noted, around 25 per cent of the young homeless population in urban areas is lesbian, gay, bisexual, or transgender. 

But such objections will do little to deter Cameron's drive to shrink the state. With his latest attack on the working poor, he has finally outed himself as a compassionless Conservative.

David Cameron has vowed to tackle what he calls "a culture of entitlement" in the welfare system. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Commons Confidential: Money for old Gove

Backstabbing Boris, a doctored doctorate, and when private schools come to Parliament.

Treachery is proving profitable for Michael Gove since his backstabbing of Boris Johnson led to the victim being named Foreign Sec and the knifeman carved out of Theresa May’s cabinet. The former injustice secretary was overheard giving it the big “I am” in the Lords café bar by my snout and boasting that he’ll trouser £300,000 on the political sidelines. I note a £150,000 Times column and £17,500 HarperCollins book deal have been duly registered. Speaking engagements, he confided to the Tory peer Simone Finn, will be equally lucrative.

Gove is polite (always says hello and smiles at me despite what I write) but it was insensitive to talk money when his companion was moaning. Finn, a Cameron crony, whined that she had been sacked as a spad and so is out of pocket. Perhaps he could lend her a tenner. And I do hope Mickey isn’t passing himself off as an “expert” to coin it.

While Nigel Farage’s successor-but-one Paul “Dr Nutty” Nuttall protests that he never doctored a CV with an invented university PhD, Ukip’s ritzy nonpareil continues to enjoy the high life. My informant spied Farage, the self-appointed people’s chief revolter, relaxing in first class on a British Airways flight from New York to Blighty. Drinking three types of champagne doesn’t come cheap at £8,000 one-way, so either the Brexit elitist is earning big bucks or he has found a sugar daddy. Nowt’s too good for the Quitters, eh?

Labour’s youngest MP, Lou Haigh, was popular in a Justice for Colombia delegation to monitor the Northern Ireland-inspired peace process there. At Normandia prison in Chiquinquira, after a five-hour drive to see Farc guerrillas cleared for release, inmates pushed past the British male trade unionists to greet the 29-year-old Sheffield Heeley tribune. What a change from parliament, where it is women who are treated as if they’re wearing Harry Potter-style invisibility cloaks.

The kowtowing is catching up with Tasmina Ahmed-Sheikh, the SNP party animal and onetime-Tory-turned-Labour. Better late than never, I hear, she delivered a masterclass in toadying to the Chinese at a Ditchley Park conflab. Ahmed-Grovel MP avoided discussion of human rights abuses and made much instead of the joys of Scotch whisky to Beijing, and Scotland as a gateway to the UK. I trust she kept her sycophancy secret from SNP colleagues jostling in parliament a short while back for photographs with Lobsang Sangay, head of the Tibetan government-in-exile.

John Bercow is concerned that private schools dominate visits to parliament. So a bit like the Commons chamber, where 32 per cent of MPs (48 per cent of Tories) come from establishments that teach 7 per cent of pupils in the UK. 

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump