Why BT should have got Mandy naked

"Please enter your pin now, and don't pull the chain"

Yesterday BT sent a letter to Lord Mandelson threatening legal action if he follows through with his plans for broadband liberalisation, but today it lightened the mood somewhat with daring real-life tales of people conducting conference calls in their birthday suit.

BT handles roughly 15 million audio conferences a year. It has now conducted research which finds that 68 per cent admit they have dialled in to a conference call while wearing pyjamas: the most common colour or style is not recorded. But presumably those 68 per cent are among those people who are able to work from home, rather than those who take their conference calls at the office. Not least because nearly half say they have joined conference calls in their undies, and 20 per cent say they have joined a conference call starkers.

The telecoms giant said the growth in the use of conference calls (the number of people using BT audio conferencing was up almost 20 per cent year on year) has led to calls being conducted not just in the nude, but in some rather odd places, too.

The most popular place to hold a conference call was in bed (you see, the wearing of pyjamas is actually rather sensible, given the circumstances), followed by the toilet.

Why so many conference calls should be taken in the smallest room in the house is open to debate. When you've gotta go, you've gotta go, one supposes. But there is also the fact it's often the only room in the house with a lock. And with children, pets and partners around, people might want others on the call to have at least the illusion that they are focused on work, and not merely skiving off to play with the kids/dogs/PlayStation. (Another recent study found that one in four men has pulled a "sickie" in order to stay at home and play video games, the dweebs.)

With many respondents telling BT that they had been disturbed while on a conference call by babies crying, cats miaowing, dogs barking, or kettles boiling, you can see why so many people head to the bog when about to "face" their colleagues on a conference call.

This is not without its dangers, though -- many respondents said a conference call had been interrupted by the sound of a toilet flushing, which is surely bad call etiquette in anyone's book. Those taking the call in the smallest room could at least save their flush until the call has ended?

But BT is trying to make a serious point too, natch.

It says that in 2008, using conferencing helped it to cut out more than 700,000 face-to-face meetings and 1.4 million journeys, saving 53,000 tonnes of CO2. Which is certainly not to be sniffed at (and anyway, CO2 is odourless, unlike the atmosphere on many conference calls, judging by the research).

But perhaps all these naked, loo-based conference callers could soon become an endangered species, as the analyst firm Ovum says that 26 per cent of conferences will be held by video by 2012.

So perhaps, instead of sending Mandy a "letter before action" about his broadband liberalisation plans, BT should have got him on a naked conference call. It might have been our last chance to see whether he's a conference call flusher.

Jason Stamper is the New Statesman technology correspondent and editor of Computer Business Review


Jason Stamper is editor of Computer Business Review

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Q&A: What are tax credits and how do they work?

All you need to know about the government's plan to cut tax credits.

What are tax credits?

Tax credits are payments made regularly by the state into bank accounts to support families with children, or those who are in low-paid jobs. There are two types of tax credit: the working tax credit and the child tax credit.

What are they for?

To redistribute income to those less able to get by, or to provide for their children, on what they earn.

Are they similar to tax relief?

No. They don’t have much to do with tax. They’re more of a welfare thing. You don’t need to be a taxpayer to receive tax credits. It’s just that, unlike other benefits, they are based on the tax year and paid via the tax office.

Who is eligible?

Anyone aged over 16 (for child tax credits) and over 25 (for working tax credits) who normally lives in the UK can apply for them, depending on their income, the hours they work, whether they have a disability, and whether they pay for childcare.

What are their circumstances?

The more you earn, the less you are likely to receive. Single claimants must work at least 16 hours a week. Let’s take a full-time worker: if you work at least 30 hours a week, you are generally eligible for working tax credits if you earn less than £13,253 a year (if you’re single and don’t have children), or less than £18,023 (jointly as part of a couple without children but working at least 30 hours a week).

And for families?

A family with children and an income below about £32,200 can claim child tax credit. It used to be that the more children you have, the more you are eligible to receive – but George Osborne in his most recent Budget has limited child tax credit to two children.

How much money do you receive?

Again, this depends on your circumstances. The basic payment for a single claimant, or a joint claim by a couple, of working tax credits is £1,940 for the tax year. You can then receive extra, depending on your circumstances. For example, single parents can receive up to an additional £2,010, on top of the basic £1,940 payment; people who work more than 30 hours a week can receive up to an extra £810; and disabled workers up to £2,970. The average award of tax credit is £6,340 per year. Child tax credit claimants get £545 per year as a flat payment, plus £2,780 per child.

How many people claim tax credits?

About 4.5m people – the vast majority of these people (around 4m) have children.

How much does it cost the taxpayer?

The estimation is that they will cost the government £30bn in April 2015/16. That’s around 14 per cent of the £220bn welfare budget, which the Tories have pledged to cut by £12bn.

Who introduced this system?

New Labour. Gordon Brown, when he was Chancellor, developed tax credits in his first term. The system as we know it was established in April 2003.

Why did they do this?

To lift working people out of poverty, and to remove the disincentives to work believed to have been inculcated by welfare. The tax credit system made it more attractive for people depending on benefits to work, and gave those in low-paid jobs a helping hand.

Did it work?

Yes. Tax credits’ biggest achievement was lifting a record number of children out of poverty since the war. The proportion of children living below the poverty line fell from 35 per cent in 1998/9 to 19 per cent in 2012/13.

So what’s the problem?

Well, it’s a bit of a weird system in that it lets companies pay wages that are too low to live on without the state supplementing them. Many also criticise tax credits for allowing the minimum wage – also brought in by New Labour – to stagnate (ie. not keep up with the rate of inflation). David Cameron has called the system of taxing low earners and then handing them some money back via tax credits a “ridiculous merry-go-round”.

Then it’s a good thing to scrap them?

It would be fine if all those low earners and families struggling to get by would be given support in place of tax credits – a living wage, for example.

And that’s why the Tories are introducing a living wage...

That’s what they call it. But it’s not. The Chancellor announced in his most recent Budget a new minimum wage of £7.20 an hour for over-25s, rising to £9 by 2020. He called this the “national living wage” – it’s not, because the current living wage (which is calculated by the Living Wage Foundation, and currently non-compulsory) is already £9.15 in London and £7.85 in the rest of the country.

Will people be better off?

No. Quite the reverse. The IFS has said this slightly higher national minimum wage will not compensate working families who will be subjected to tax credit cuts; it is arithmetically impossible. The IFS director, Paul Johnson, commented: “Unequivocally, tax credit recipients in work will be made worse off by the measures in the Budget on average.” It has been calculated that 3.2m low-paid workers will have their pay packets cut by an average of £1,350 a year.

Could the government change its policy to avoid this?

The Prime Minister and his frontbenchers have been pretty stubborn about pushing on with the plan. In spite of criticism from all angles – the IFS, campaigners, Labour, The Sun – Cameron has ruled out a review of the policy in the Autumn Statement, which is on 25 November. But there is an alternative. The chair of parliament’s Work & Pensions Select Committee and Labour MP Frank Field has proposed what he calls a “cost neutral” tweak to the tax credit cuts.

How would this alternative work?

Currently, if your income is less than £6,420, you will receive the maximum amount of tax credits. That threshold is called the gross income threshold. Field wants to introduce a second gross income threshold of £13,100 (what you earn if you work 35 hours a week on minimum wage). Those earning a salary between those two thresholds would have their tax credits reduced at a slower rate on whatever they earn above £6,420 up to £13,100. The percentage of what you earn above the basic threshold that is deducted from your tax credits is called the taper rate, and it is currently at 41 per cent. In contrast to this plan, the Tories want to halve the income threshold to £3,850 a year and increase the taper rate to 48 per cent once you hit that threshold, which basically means you lose more tax credits, faster, the more you earn.

When will the tax credit cuts come in?

They will be imposed from April next year, barring a u-turn.

Anoosh Chakelian is deputy web editor at the New Statesman.