Memo to Cameron: 93% of new housing benefit claimants are in work

The PM described it as a benefit for the unemployed. But most new claims are made by in-work households.

Is David Cameron a fool or a knave? Challenged by Today presenter James Naughtie on his plan to abolish housing benefit for the under-25s (including the 204,500 claimants with children), the Prime Minister implied that it could only be claimed by the unemployed. He said:

We should ask this question about housing benefit: if you're a young person and you work hard at college, you get a job, you're living at home with mum and dad, you can't move out, you can't access housing benefit.

And yet, actually, if you choose not to work, you can get housing benefit, you can get a flat. And having got that, you're unlikely then to want a job because you're in danger of losing your housing benefit and your flat. We have to look at the signals we send and I think we should have a system where we say 'you shouldn't be better off out of work than in work'. The system doesn't work today, so we need to reform it.

The truth, as I've noted before, is that just one in eight claimants is out of work, the remainder being employed, retired or registered disabled. Indeed, years of falling living standards mean that housing benefit is increasingly a subsidy for the working poor. Of new claims between 2010 and 2011, 93 per cent were made by households containing at least one employed adult.

If Cameron really wants to reduce the welfare bill, he should seek to lower rents and increase wages (when did you last hear him speak of a "living wage"?). Punitive cuts to housing benefit might win the Tories favourable headlines in the right-wing press, but this approach will do nothing to help "the strivers" that Cameron purports to support.

David Cameron listens to William Hague deliver his speech at the Conservative Party conference. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The economics of outrage: Why you haven't seen the end of Katie Hopkins

Her distasteful tweet may have cost her a job at LBC, but this isn't the last we've seen of Britain's biggest troll. 

Another atrocity, other surge of grief and fear, and there like clockwork was the UK’s biggest troll. Hours after the explosion at the Manchester Arena that killed 22 mostly young and female concert goers, Katie Hopkins weighed in with a very on-brand tweet calling for a “final solution” to the complex issue of terrorism.

She quickly deleted it, replacing the offending phrase with the words “true solution”, but did not tone down the essentially fascist message. Few thought it had been an innocent mistake on the part of someone unaware of the historical connotations of those two words.  And no matter how many urged their fellow web users not to give Hopkins the attention she craved, it still sparked angry tweets, condemnatory news articles and even reports to the police.

Hopkins has lost her presenting job at LBC radio, but she is yet to lose her column at Mail Online, and it’s quite likely she won’t.

Mail Online and its print counterpart The Daily Mail have regularly shown they are prepared to go down the deliberately divisive path Hopkins was signposting. But even if the site's managing editor Martin Clarke was secretly a liberal sandal-wearer, there are also very good economic reasons for Mail Online to stick with her. The extreme and outrageous is great at gaining attention, and attention is what makes money for Mail Online.

It is ironic that Hopkins’s career was initially helped by TV’s attempts to provide balance. Producers could rely on her to provide a counterweight to even the most committed and rational bleeding-heart liberal.

As Patrick Smith, a former media specialist who is currently a senior reporter at BuzzFeed News points out: “It’s very difficult for producers who are legally bound to be balanced, they will sometimes literally have lawyers in the room.”

“That in a way is why some people who are skirting very close or beyond the bounds of taste and decency get on air.”

But while TV may have made Hopkins, it is online where her extreme views perform best.  As digital publishers have learned, the best way to get the shares, clicks and page views that make them money is to provoke an emotional response. And there are few things as good at provoking an emotional response as extreme and outrageous political views.

And in many ways it doesn’t matter whether that response is negative or positive. Those who complain about what Hopkins says are also the ones who draw attention to it – many will read what she writes in order to know exactly why they should hate her.

Of course using outrageous views as a sales tactic is not confined to the web – The Daily Mail prints columns by Sarah Vine for a reason - but the risks of pushing the boundaries of taste and decency are greater in a linear, analogue world. Cancelling a newspaper subscription or changing radio station is a simpler and often longer-lasting act than pledging to never click on a tempting link on Twitter or Facebook. LBC may have had far more to lose from sticking with Hopkins than Mail Online does, and much less to gain. Someone prepared to say what Hopkins says will not be out of work for long. 

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