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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Air pollution: 5 steps to vanquishing an invisible killer

A new report looks at the economics of air pollution. 

110, 150, 520... These chilling statistics are the number of deaths attributable to particulate air pollution for the cities of Southampton, Nottingham and Birmingham in 2010 respectively. Or how about 40,000 - that is the total number of UK deaths per year that are attributable the combined effects of particulate matter (PM2.5) and Nitrogen Oxides (NOx).

This situation sucks, to say the very least. But while there are no dramatic images to stir up action, these deaths are preventable and we know their cause. Road traffic is the worst culprit. Traffic is responsible for 80 per cent of NOx on high pollution roads, with diesel engines contributing the bulk of the problem.

Now a new report by ResPublica has compiled a list of ways that city councils around the UK can help. The report argues that: “The onus is on cities to create plans that can meet the health and economic challenge within a short time-frame, and identify what they need from national government to do so.”

This is a diplomatic way of saying that current government action on the subject does not go far enough – and that cities must help prod them into gear. That includes poking holes in the government’s proposed plans for new “Clean Air Zones”.

Here are just five of the ways the report suggests letting the light in and the pollution out:

1. Clean up the draft Clean Air Zones framework

Last October, the government set out its draft plans for new Clean Air Zones in the UK’s five most polluted cities, Birmingham, Derby, Leeds, Nottingham and Southampton (excluding London - where other plans are afoot). These zones will charge “polluting” vehicles to enter and can be implemented with varying levels of intensity, with three options that include cars and one that does not.

But the report argues that there is still too much potential for polluters to play dirty with the rules. Car-charging zones must be mandatory for all cities that breach the current EU standards, the report argues (not just the suggested five). Otherwise national operators who own fleets of vehicles could simply relocate outdated buses or taxis to places where they don’t have to pay.  

Different vehicles should fall under the same rules, the report added. Otherwise, taking your car rather than the bus could suddenly seem like the cost-saving option.

2. Vouchers to vouch-safe the project’s success

The government is exploring a scrappage scheme for diesel cars, to help get the worst and oldest polluting vehicles off the road. But as the report points out, blanket scrappage could simply put a whole load of new fossil-fuel cars on the road.

Instead, ResPublica suggests using the revenue from the Clean Air Zone charges, plus hiked vehicle registration fees, to create “Pollution Reduction Vouchers”.

Low-income households with older cars, that would be liable to charging, could then use the vouchers to help secure alternative transport, buy a new and compliant car, or retrofit their existing vehicle with new technology.

3. Extend Vehicle Excise Duty

Vehicle Excise Duty is currently only tiered by how much CO2 pollution a car creates for the first year. After that it becomes a flat rate for all cars under £40,000. The report suggests changing this so that the most polluting vehicles for CO2, NOx and PM2.5 continue to pay higher rates throughout their life span.

For ClientEarth CEO James Thornton, changes to vehicle excise duty are key to moving people onto cleaner modes of transport: “We need a network of clean air zones to keep the most polluting diesel vehicles from the most polluted parts of our towns and cities and incentives such as a targeted scrappage scheme and changes to vehicle excise duty to move people onto cleaner modes of transport.”

4. Repurposed car parks

You would think city bosses would want less cars in the centre of town. But while less cars is good news for oxygen-breathers, it is bad news for city budgets reliant on parking charges. But using car parks to tap into new revenue from property development and joint ventures could help cities reverse this thinking.

5. Prioritise public awareness

Charge zones can be understandably unpopular. In 2008, a referendum in Manchester defeated the idea of congestion charging. So a big effort is needed to raise public awareness of the health crisis our roads have caused. Metro mayors should outline pollution plans in their manifestos, the report suggests. And cities can take advantage of their existing assets. For example in London there are plans to use electronics in the Underground to update travellers on the air pollution levels.

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Change is already in the air. Southampton has used money from the Local Sustainable Travel Fund to run a successful messaging campaign. And in 2011 Nottingham City Council became the first city to implement a Workplace Parking levy – a scheme which has raised £35.3m to help extend its tram system, upgrade the station and purchase electric buses.

But many more “air necessities” are needed before we can forget about pollution’s worry and its strife.  

 

India Bourke is an environment writer and editorial assistant at the New Statesman.