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.

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Stability is essential to solve the pension problem

The new chancellor must ensure we have a period of stability for pension policymaking in order for everyone to acclimatise to a new era of personal responsibility in retirement, says 

There was a time when retirement seemed to take care of itself. It was normal to work, retire and then receive the state pension plus a company final salary pension, often a fairly generous figure, which also paid out to a spouse or partner on death.

That normality simply doesn’t exist for most people in 2016. There is much less certainty on what retirement looks like. The genesis of these experiences also starts much earlier. As final salary schemes fall out of favour, the UK is reaching a tipping point where savings in ‘defined contribution’ pension schemes become the most prevalent form of traditional retirement saving.

Saving for a ‘pension’ can mean a multitude of different things and the way your savings are organised can make a big difference to whether or not you are able to do what you planned in your later life – and also how your money is treated once you die.

George Osborne established a place for himself in the canon of personal savings policy through the introduction of ‘freedom and choice’ in pensions in 2015. This changed the rules dramatically, and gave pension income a level of public interest it had never seen before. Effectively the policymakers changed the rules, left the ring and took the ropes with them as we entered a new era of personal responsibility in retirement.

But what difference has that made? Have people changed their plans as a result, and what does 'normal' for retirement income look like now?

Old Mutual Wealth has just released. with YouGov, its third detailed survey of how people in the UK are planning their income needs in retirement. What is becoming clear is that 'normal' looks nothing like it did before. People have adjusted and are operating according to a new normal.

In the new normal, people are reliant on multiple sources of income in retirement, including actively using their home, as more people anticipate downsizing to provide some income. 24 per cent of future retirees have said they would consider releasing value from their home in one way or another.

In the new normal, working beyond your state pension age is no longer seen as drudgery. With increasing longevity, the appeal of keeping busy with work has grown. Almost one-third of future retirees are expecting work to provide some of their income in retirement, with just under half suggesting one of the reasons for doing so would be to maintain social interaction.

The new normal means less binary decision-making. Each choice an individual makes along the way becomes critical, and the answers themselves are less obvious. How do you best invest your savings? Where is the best place for a rainy day fund? How do you want to take income in the future and what happens to your assets when you die?

 An abundance of choices to provide answers to the above questions is good, but too much choice can paralyse decision-making. The new normal requires a plan earlier in life.

All the while, policymakers have continued to give people plenty of things to think about. In the past 12 months alone, the previous chancellor deliberated over whether – and how – to cut pension tax relief for higher earners. The ‘pensions-ISA’ system was mooted as the culmination of a project to hand savers complete control over their retirement savings, while also providing a welcome boost to Treasury coffers in the short term.

During her time as pensions minister, Baroness Altmann voiced her support for the current system of taxing pension income, rather than contributions, indicating a split between the DWP and HM Treasury on the matter. Baroness Altmann’s replacement at the DWP is Richard Harrington. It remains to be seen how much influence he will have and on what side of the camp he sits regarding taxing pensions.

Meanwhile, Philip Hammond has entered the Treasury while our new Prime Minister calls for greater unity. Following a tumultuous time for pensions, a change in tone towards greater unity and cross-department collaboration would be very welcome.

In order for everyone to acclimatise properly to the new normal, the new chancellor should commit to a return to a longer-term, strategic approach to pensions policymaking, enabling all parties, from regulators and providers to customers, to make decisions with confidence that the landscape will not continue to shift as fundamentally as it has in recent times.

Steven Levin is CEO of investment platforms at Old Mutual Wealth.

To view all of Old Mutual Wealth’s retirement reports, visit: www.oldmutualwealth.co.uk/ products-and-investments/ pensions/pensions2015/