Iain Duncan Smith: "Been there, done that" on £53 a week. He hasn't

IDS used the welfare state in his youth, and now he's pulling the ladder up behind him.

Iain Duncan Smith has doubled down on his claim that if he "had to" he could live on £53 a week, telling his local newspaper:

I have been unemployed twice in my life so I have already done this (lived on the equivalent of £53 a week). I know what it is like to live on the breadline.

He told the Daily Mail today about when he lost his job in 1992:

The company literally stopped working and like a number of people I was made redundant. I was shocked, but I had to go home and tell my wife that the wheels had come off the bus.

It took about three months to find a job. I picked up the paper every day, put a ring round all the job ads. I went to the library, looked up the stock market yearbook, wrote blind letters to people, used my Amstrad computer every day to look for work. Every bloody day I had to look for work. One of those blind letters got me in to an interview.

So I don’t need any lessons from people about living on a low income and making ends meet. I have done it twice and I know what it’s like to have to been made unemployed and to struggle. I’ve been there, done it.

He was also unemployed for a short period in 1981, after leaving the military.

Iain Duncan Smith has been unemployed for a short period twice. Both times, he made it through on not very much money, but always had the social safety net behind him if his savings ran out. Now he is safely in a career which will keep him well paid for life, he is claiming that that experience gives him the right to pull the ladder up behind him.

In 1981, unemployment benefit was £20.65 per week. In 1992, it was £43.10 per week. According to the Department for Work and Pensions, at April 2011 prices (deflated by RPI), those equate to £69.67 per week and £72.79 per week. When Iain Duncan Smith was unemployed for the first time, unemployment benefit was 18.7 per cent of average earnings. When he was unemployed for the second time, it was 14.1 per cent of average earnings.

At April 2011 prices, the £53 Iain Duncan Smith's department will be handing over is worth £50.17. That is 8.7 per cent of average earnings.

Iain Duncan Smith has not "been there, done that". When he went through his short periods of unemployment, 20 and 30 years ago, the social safety net was strong. The first time he was unemployed, he could have received almost a fifth of the average weekly earnings. The second time, he could have received a seventh. He's trying to claim that that experience means that he knows what it's like to live on less than a twelfth.

To put it another way, the value of what you can buy with unemployment benefit has remained pretty constant for the last 40 years. Iain Duncan Smith lived through a period when he could have that much – around £70 at 2011 prices – twice. He says that that means he has experience living on almost a quarter less again.

Iain Duncan Smith. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Geoffrey Howe dies, aged 88

Howe was Margaret Thatcher's longest serving Cabinet minister – and the man credited with precipitating her downfall.

The former Conservative chancellor Lord Howe, a key figure in the Thatcher government, has died of a suspected heart attack, his family has said. He was 88.

Geoffrey Howe was the longest-serving member of Margaret Thatcher's Cabinet, playing a key role in both her government and her downfall. Born in Port Talbot in 1926, he began his career as a lawyer, and was first elected to parliament in 1964, but lost his seat just 18 months later.

Returning as MP for Reigate in the Conservative election victory of 1970, he served in the government of Edward Heath, first as Solicitor General for England & Wales, then as a Minister of State for Trade. When Margaret Thatcher became opposition leader in 1975, she named Howe as her shadow chancellor.

He retained this brief when the party returned to government in 1979. In the controversial budget of 1981, he outlined a radical monetarist programme, abandoning then-mainstream economic thinking by attempting to rapidly tackle the deficit at a time of recession and unemployment. Following the 1983 election, he was appointed as foreign secretary, in which post he negotiated the return of Hong Kong to China.

In 1989, Thatcher demoted Howe to the position of leader of the house and deputy prime minister. And on 1 November 1990, following disagreements over Britain's relationship with Europe, he resigned from the Cabinet altogether. 

Twelve days later, in a powerful speech explaining his resignation, he attacked the prime minister's attitude to Brussels, and called on his former colleagues to "consider their own response to the tragic conflict of loyalties with which I have myself wrestled for perhaps too long".

Labour Chancellor Denis Healey once described an attack from Howe as "like being savaged by a dead sheep" - but his resignation speech is widely credited for triggering the process that led to Thatcher's downfall. Nine days later, her premiership was over.

Howe retired from the Commons in 1992, and was made a life peer as Baron Howe of Aberavon. He later said that his resignation speech "was not intended as a challenge, it was intended as a way of summarising the importance of Europe". 

Nonetheless, he added: "I am sure that, without [Thatcher's] resignation, we would not have won the 1992 election... If there had been a Labour government from 1992 onwards, New Labour would never have been born."

Jonn Elledge is the editor of the New Statesman's sister site CityMetric. He is on Twitter, far too much, as @JonnElledge.