Why Iain Duncan Smith needs to get his facts straight

The Work and Pensions Secretary insists that “almost everyone” can find work. The statistics tell a

Iain Duncan Smith, the Work and Pensions Secretary, is interviewed by Mary Riddell and Andrew Porter in the Daily Telegraph today.

Discussing the much-feted universal credit welfare reform, the article notes that there will be a "marked shift" away from Britain's generous welfare system to a "more punitive, American-style one" that punishes "those who refuse to work".

This is the passage that caught my attention:

"The message will go across; play ball or it's going to be difficult," he says.

Pressed on the penalty regime and the gradual taking away of benefits from the most recalcitrant, Mr Duncan Smith first offers lengthy and detailed explanations about why almost all people will get back into work if they can.

But some, he acknowledges, will refuse. What will happen to these people and how will the system come after them?

"I think most of the public think that progressively you send them signals. They have a bit withdrawn, then a bit more, then eventually [you] have to say you will eventually lose all your benefit.

"The signal will get round very quickly that you are serious about this. We may have to do it initially to some of the more recalcitrant people. But I have a view about human nature: most people, once you start to show them the right way out, I think most people move.

"Those who won't play get lost in the system at present and they infect everyone else."

Let's just recap on the facts here. There are currently just under 2.5 million people claiming Jobseekers' Allowance in the UK. Analysis by the TUC in the summer found that dole claimants outnumber job vacancies by five to one. In London, it's more like seven to one, and in some boroughs even higher – in Hackney, it's 24 to one.

The number of job vacancies across the country has fallen consistently over the past 12 months. It is unlikely this will change. The government itself estimates that about 490,000 public-sector jobs will be lost as a result of the cuts set out in the Spending Review.

While ministers suggest that this will be offset by growth in the private sector, there is no indication of why this would be the case. A report by PwC last month argued that cuts would hurt the private sector, too, and forecast a further 500,000 job losses here – bringing the total to one million. Another estimate this week put the figure as high as 1.6 million.

Sadly, the interview does not elaborate on the "lengthy and detailed explanations" that Duncan Smith gave as to why everyone can get back into work. Given these figures, I would certainly be interested to know: getting "on your bike" to find work is irrelevant if there are five people for every job – if not dramatically more, once the cuts hit.

If the new system is going to be, as the article says, more akin to the punitive American system, one need only look across the Atlantic to see that this is difficult to maintain in such straitened times. President Obama has had to extend the 99-week limit on claiming benefits several times because of the dearth of jobs in some states.

A simpler benefits system that doesn't trap people in a dependency cycle is a commendable aim. Yet the continued suggestion that people are "choosing" not to work in the present economic climate is not only unreasonable; it indicates a worrying view of the poor. It also shows a wilful misunderstanding of current times, given that many, many more people will soon be forced to claim state support, whether they want to or not.

Samira Shackle is a freelance journalist, who tweets @samirashackle. She was formerly a staff writer for the New Statesman.

Getty
Show Hide image

Donald Trump vs Barack Obama: How the inauguration speeches compared

We compared the two presidents on trade, foreign affairs and climate change – so you (really, really) don't have to.

After watching Donald Trump's inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama's address from 2009? 

Both thanked the previous President, with Trump calling the Obamas "magnificent", and pledged to reform Washington, but the comparison ended there. 

Here is what each of them said: 

On American jobs

Obama:

The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.

Trump:

For many decades we've enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.

One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.

Obama had a plan for growth. Trump just blames the rest of the world...

On global warming

Obama:

With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

Trump:

On the Middle East:

Obama:

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. 

Trump:

We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.

On “greatness”

Obama:

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned.

Trump:

America will start winning again, winning like never before.

 

On trade

Obama:

This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  

Trump:

We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.

Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland