Who benefits from disability cuts?

Tax evasion, not disability benefit fraud, is the real scandal.

We all like badgers don’t we? Well, most of us do. They look cute and cuddly (I assume; I’m going off hazy memories of picture books), they are beautiful, defenceless, wild creatures and there’s something quintessentially British about them. They go with cucumber sandwiches and pocket-watches.

They’ve had a good press, badgers have.

But they’re facing death: the badgers of the British imagination will undergo a major cull this autumn. So no surprise perhaps that the petition against the cull has attracted so much support – as I write, it has achieved 42,566 signatures over the 100,000 threshold needed to be considered in Parliament.

There is, however, another petition which fights against death – and you may not have heard of this one. This is because the species facing death in this case doesn’t have such a good press. Not only this, but the specific sectors of this species that the petition addresses are all but invisible, save the occasional negative mention in certain media outlets.

I am, of course, talking about human beings – specifically, those which are disabled and therefore rely to a greater or lesser extent on state support. These humans are the ‘”net drain” on society, the dregs, the unmentionables, untouchables and expendables.

And they are dying.

No, not in such great numbers as badgers and no not as part of a deliberate government cull, but make no mistake: these deaths are on the hands of the government. And they will be on our hands too unless we act.

Under Labour, the welfare bill increased by 30 per cent; under the coalition’s “belt-tightening” policies, this is painted simplistically as A Bad Thing. It fits neatly into the rhetoric that an economically incompetent Labour “got us into this mess” from which the no-nonsense coalition will save us. Labour money bad; Coalition cuts good.

But of course rises in costs are rarely that simple – and these are no exception. If they were, we would expect the welfare system to be, in Iain Duncan Smith’s words, “riddled with abuse and fraud”. But it’s not. It’s not, and he knows its not, because the figures on this “abuse” come from his own department, and they stand at 0.3 per cent – not perfect, but hardly riddled. Hardly riddled, and way below the coalition’s projected cut of 20 per cent – and this is actually expected to be exceeded.

And yet the government is pushing on with its plans, with 55 per cent of those who have undergone the Work Capability Assessment (WCA) being found fit for work. Is this cause for celebration? Have disabled people all over the country been magically healed by the Coalition Touch?

Hardly. According to a report by the Guardian, incorrect WCA decisions are costing the government £50m a year, with tribunals having to sit on Saturdays and increase staff by 30 per cent to deal with the backlog of appeals. The government’s own figures estimate successful appeals at at least 30 per cent, although the Guardian cites “a staggering 80-90 per cent” success rate “if the appellant seeks the help of an experienced adviser.”

And the cost is not just financial; in the mad dash for euphemistic terms like “flexibility” and “streamlined”, people, real people are getting left behind. Stories are emerging of suicides over cut support, while between January and August last year, 32 people a week died after being declared fit for work. That’s around 1184 mothers, fathers, sons, daughters, sisters and brothers who successfully stopped being a “net drain” in the space of six months.

The Guardian writes, “the WCA is so consistently failing to recognise those who are in dire need of support that it is hard to understand why society is not in uproar.” But when we consider the disingenuous nature of Duncan Smith’s remarks about welfare abuse, that went unchallenged in the Telegraph article in which they were reported, is it so hard to understand? When we consider the repeated insinuations made by the Daily Mail that the majority of disabled people are “scroungers” who “take advantage” of the system, is it any surprise that by September last year two-thirds of disabled people had experienced hostility and taunts, up from 41 per cent four months before? And in this climate of mistrust of the disabled, is it any wonder the badgers are winning our compassion by miles?

Of course, some will be reading this thinking that this is all very well, but we all have to suffer – after all, “we’re all in this together”. And to those people I say that firstly, there’s tightening your belt, and there’s dying. But secondly, and just as importantly, we certainly are not in this together. That’s the line that we’ve been expertly sold. But the reality is that there are plenty of people who aren’t feeling the pinch. And these people don’t even need to feel the pinch – they just need to make their own fair contribution to the society in which they live, and from which they benefit.

Tax evasion currently costs this country £25bn a year; tax avoidance – that is, large companies and wealthy individuals who “take advantage” of the system – cost us £70bn a year. In addition to this, £26bn is going uncollected, adding up to a staggering £121bn in total – or, to put it in context, three-quarters of the annual deficit. To put it in yet more context, the amount lost to disability fraud is estimated at £1bn – and this figure should be considered in the context of benefit underpayment, which consistently saves more than the fraud costs. This does not of course excuse fraud, but it does make a mockery of the coalition’s claims that abuse of the system is costing money that they will save by being “efficient” – another euphemism.

So what can we do about this iniquitous inequity? We can make our voices heard. We can hoist the coalition on its own e-petition petard: sign the petition against disability cuts. They are dishonest and damaging, and, most of all, they are unnecessary. And if anyone knows of a petition demanding for corporation tax to be enforced and tax-dodging loopholes for the rich to be closed, sign me up.

Caroline Criado-Perez has just completed at degree in English Language & Literature at Oxford as a mature student, and is about to start a Masters in Gender at LSE. She is also the founder of the Week Woman blog and tweets as @WeekWoman. A version of this post first appeared on her blog here

Disabled protestors demonstrate outside the Houses of Parliament about cuts to disability benefit. Photograph: Getty Images

Caroline Criado-Perez is a freelance journalist and feminist campaigner. She is also the co-founder of The Women's Room and tweets as @CCriadoPerez.

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR