Five reasons why "smart cards" for benefits claimants are a bad idea
Iain Duncan Smith's latest proposal betrays a lack of understanding of the real problems faced by "troubled families".
By Frances Ryan Published 19 October 2012 10:44
"Troubled families" could receive their welfare payments on smart cards, rather than in cash. In a move close to satire, Iain Duncan Smith has asked his Work and Pensions officials to see if certain groups should be legally barred from spending their benefits on alcohol and cigarettes.
By being given a "card", the 120,000 families dubbed "troubled" earlier this year would only be able to use welfare to buy things like food, clothing, and housing.
As the Telegraph points out, this would require a change in the law. The government cannot currently stipulate how people spend their benefits. There's probably a reason for that. In fact, I've come up with five.
1. Paternalistic
Explaining his thinking, Duncan Smith has said:
I am looking at the moment at ways in which we could ensure that money we give them to support their lives is not used to support a certain lifestyle. I am certainly looking at it – I am going through that in some detail… With the use of cards, we are looking at that to see if we can do something.
The language is pretty telling. Welfare isn’t an entitlement but something the government "gives"; pocket money bestowed to the children by a patient (and increasingly strict) father. A troubled family is one who spends what they’re given on a "certain lifestyle"; one deemed inappropriate.
What’s interference for the rich is assistance for the poor.
Putting to one side the morality of dictating what people spend their benefits on, it’s an idea that only encourages the dehumanising effect of the "troubled family" categorisation. Already deemed the problem element at the bottom rung of society, they’re now not even capable of making their own decisions. Conservative insistence on "responsibility" is abandoned for the group who need chaperoning to spend money. And why shouldn’t they? These people use their children’s food money to buy vodka.
2. "Troubled" equals poor or disabled
In fact, the government has always seemed unsure who these people are. According to its own guidelines, a "troubled family" is one that meets five out of seven criteria: having a low income; no one in the family who is working; poor housing; parents who have no qualifications; where the mother has a mental health problem; one parent has a long-standing illness or disability; and where the family is unable to afford basics, including food and clothes.
This seems rather different to "people who are using benefits to fund a habit and [their] children are going hungry", Duncan Smith is said to be targeting. It’s because the definition of "troubled family" conflates poverty, ill health, unemployment and criminality. Duncan Smith talks about drug addicts and alcoholics but one look at the government’s definition means he’s referring largely to the poor and disabled. His proposal to deal with people who don’t buy their children food because they’re drug addicted would in fact target people who don’t buy food because they can’t afford it.
3. No understanding of the problem
Even if "troubled families" were households where a parent was an addict, changing the way their benefits are paid is unlikely to change that. The belief that it would reflects not only a poor understanding of addiction but the wider thinking behind the entire "troubled family" initiative: the problem is one of individual failure and the government is not there to provide help.
Despite what conservative rhetoric about the "deserving" and "underserving" poor rhetoric suggests, there’s rarely a clean divide between the problems that affect people’s lives. Someone who is sick, funnily enough, can also be an addict.
4. No understanding of disability
Due to the practicality of monitoring what’s in people’s trolleys, it’s unlikely that a "welfare card" will be accepted everywhere. Many people with a disability or long-term health problem use online shopping (often, in fact, a stipulation of their care plan in order to cut costs of providing assistance). Others are only able to use their local shop because of transport problems. Putting controls on what disabled people can buy can make it difficult for them to buy anything.
5. Oh, and no understanding of the facts
The government aren’t just unsure who "troubled families" are. Fact checks show they’re not sure how much they’re costing the state or how many there are.
This may partly be because the original policy, designed to deal with 120,000 families, was based on interviews conducted with 16 families. It may also be because the much used 120,000 number is a figure drawn from one piece of research conducted eight years ago. It's not just the mortality of the policy that's flawed, then, but the data it’s born from.
It seems telling someone how to spend their benefits meets at least five criteria of "troubled." By Duncan Smith’s own thinking, that means we’ve got a problem.
Frances Ryan is a freelance writer and political researcher at the University of Nottingham.
She tweets as @frances__ryan.
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24 comments
I've got to laugh. I know many people who use tax credits to fund their kids private education. They will just spend it on the basics from the smart card and use the excess to fund private education.
Nevan - No, in America it's separate from and on top of other benefits, and a major reason they don't have a starvation problem. It's VERY different from this proposal.
This *replaces* the benefits themselves. It, note, requires recipients to identify themselves to the people they are renting from, which will lead to many rapidly becoming homeless. Only some shops will take it, if nobody in your area does, then what? Additional travel costs.
Oh, only one local bus company takes it? Well....
A fast track to the creation and maintenance of the next official underclass, one could argue. People will buy and sell stuff whether it's legal or illegal. The capitalist system as it is still seems to thrive on co- dependence ( lately being flogged as co-operation), on an " in " crowd and and excluded lot.
Or it could be a way to provide not only welfare benefits, but free public services too to all members of the public, with absolutely NO forms of co-payments.( NHS prescriptions could be abolished completely) Things like public baths and schooling courses could be free to everyone wigh the card.. for example, truly free public transport for the young and the old and the disabled or even temporarily out of work, we could have free school meals.. free public conveniences generally like libraries and toilets.
Why we don't have free travel for those looking for work already I don't know, and I'd also extend it for 1-3 months after they get a job, so that first month isn't damn near impossible.
At present, you can earn £5 before it affects your benefits, meaning that unless you can get a job that gets you off benefits, working still pays less than not working. By which I mean, you might get that extra £5 aweek, but you'll need to pay out 5 return travel tickets a week.
I'm on JSA, after having been magically 'cured' by ATOS, and I really have to think about whether I can afford to travel to the nearest town, as it's £4 out of my 71 per week.
Also, how do we pay for things like bills on a card? Yes I have basic internet (not a lavish virgin or sky package,), which I use for looking for work, without that I'd be expected to do 20 hours jobseeking a week, which would involve at least 4 trips to my nearest jobcentre and library, costing me another £16 a week.
Note that this is going up to 35 hours a week in the near future, ensuring employers are barraged by useless applications from people desperate to prove that they're looking for work even tho they know they can't do the job. I'm in favour of making sure people are looking, but 35 hours a week is going to be demoralising in the extreme, and a waste of time for the jobseeker, employers, and the DWP combined.
Most importantly tho, it punishes the jobseeker for being unlucky enough to be unemployed, and that's really what it's all about, making sure the poor know their place.
Why we don't have free travel for those looking for work already I don't know, and I'd also extend it for 1-3 months after they get a job, so that first month isn't damn near impossible.
At present, you can earn £5 before it affects your benefits, meaning that unless you can get a job that gets you off benefits, working still pays less than not working. By which I mean, you might get that extra £5 aweek, but you'll need to pay out 5 return travel tickets a week.
I'm on JSA, after having been magically 'cured' by ATOS, and I really have to think about whether I can afford to travel to the nearest town, as it's £4 out of my 71 per week.
Also, how do we pay for things like bills on a card? Yes I have basic internet (not a lavish virgin or sky package,), which I use for looking for work, without that I'd be expected to do 20 hours jobseeking a week, which would involve at least 4 trips to my nearest jobcentre and library, costing me another £16 a week.
Note that this is going up to 35 hours a week in the near future, ensuring employers are barraged by useless applications from people desperate to prove that they're looking for work even tho they know they can't do the job. I'm in favour of making sure people are looking, but 35 hours a week is going to be demoralising in the extreme, and a waste of time for the jobseeker, employers, and the DWP combined.
Most importantly tho, it punishes the jobseeker for being unlucky enough to be unemployed, and that's really what it's all about, making sure the poor know their place.
Are these benefits or expenses? What about the poor persons' tax - VAT? Has IDS heard of Draco?
Codswallop
In Rusholme, Manchester there was a system at the DHSS where they would give instead of money, vouchers that they could only exchange for food at Low-Cost, indeed you could not go to another shop to get better food.
But what the claimants did after getting their second lot of money after their first lot had been stolen, was to go into Low-Cost and then buy tins of food and go around the pubs to sell them for the monies needed for drugs and beer.
So yes they had their first money in a giro, and the second lot in this voucher for food only. They used to get their second payment voucher, go and ask pensioners what they wanted and then knock 10-15% of the cost of the goods.
In Rusholme, Manchester there was a system at the DHSS where they would give instead of money, vouchers that they could only exchange for food at Low-Cost, indeed you could not go to another shop to get better food.
But what the claimants did after getting their second lot of money after their first lot had been stolen, was to go into Low-Cost and then buy tins of food and go around the pubs to sell them for the monies needed for drugs and beer.
So yes they had their first money in a giro, and the second lot in this voucher for food only. They used to get their secong payment voucher, go and ask pensioners what they wanted and then knock 10-15% of the cost of the goods.
This is my problem with this, and the ridiculous witchhunt the Govt and ATOS has inflicted on the sick and disabled.
Those who want to scam the system have the knowledge, the will and the skill, and will keep on doing so. It's those who are too weak to fight the system for what they're entitled to who will lose out, and those people far outnumber the fraudsters.
Short of demanding bank statements to see where the money goes, I can't see a reasonable way of watching what people spend their money on. It's such a pittance that maybe we should be concentrating elsewhere anyway.
How about letting us see what IDS's finances are like? Wonder if he spends every penny sensibly, after all, he's living off the taxpayer too.
Repost: Welfare Reform version of Martin Niemöller with latest addition by me:
When they came for the 'Troubled Families', I did not speak up, for I was not in a troubled family!
"When they came for the disabled, I did not speak up, for I was not disabled.
When they came for the single mothers, I did not speak up, for I was not a single mother.
When they came for the unemployed, I did not speak up, for I was not unemployed.
When they came for the union members, I did not speak up, for I was not a union member.
When they came for the poor, I did not speak up, for I was not poor.
When they came for the low-paid, I did not speak up, for I was not low-paid.
When they came for me, there was no-one left to speak out for me."
and so on . . .
Love, Light & Laughter
Starlord
Of course the 120,000 families will merely serve as guinea pigs for this 'smart card' project and it will eventually extend to all benefit claimants - as I believe is the state of affairs in America and Australia, and will inevitably lead to more poverty and hardship for people. Its only purpose is to further stigmatise and criminalise claiming benefits.
Gareth, why am i not surprised to find someone on the left being a condscending arse? The idea is only to target problem families.It is NOT for everyone on welfare as you quite ludicrously imply.
Have you ever lived in a shitty deprived area and had to witness anti social behaviour again and again and again? hev you ever been on the receiving end? have you ever tried to do anything about it and found that the Police can do next to nothing, if they even bother to show up? I have and let me tell you it is soul destroying for the people on the receiving end who are often left feeling depressed and helpless. You can guarantee that more often than not alcohol is involved so the idea of not allowing these aresholes, and lets be clear because that's what they are, to use benefit for booze is a good one.
So, let me ask you again. Why are you on the side of anti social louts and problem families as opposed to the folk whose lives are blighted by them? The time has come to say enough is enough and if people who cause crime and social problems, along with the idiotic out of touch left and libtards, do not like it then frankly its tough shit. I bet when the next poll is done this gets a huge level of support, and rightly so. Oh, and i know plenty about welfare claimants, i have been working with them for over 20 yrs!
Firstly, being rude is not the same as making a convincing argument. Secondly, your assertion that I'm "on the side of anti social louts" still fails to engage with the main point that I made, that situations of this nature are usually more complicated than the 'goodies vs baddies' scenario that you paint.
You ask (in effect) whether I have experienced areas of social deprivation and anti social behaviour: yes, I've spent a considerable amount of time researching, interviewing and analysing the life histories of drug and alcohol abusers. It's very frequently the case that such behaviours are a response to significant traumatic episodes with which the individual has failed to cope. While they may inflict a great deal of distress on those around them, it is the addicts themselves who invariably pays the greatest cost of their substance abuse. While heavy-handed authoritarian gestures such as IDS's Smart Card proposal may sound appealing, if they fail to address the underlying trauma, they will achieve little for either the addict or anyone affected by their addiction.
Explain how being disabled or having a long term illness is one of the criteria for being troubled then. Why is one of the criteria the MOTHER having a mental health problem? It is not going to be the people you describe that suffer, surely they will just steal and crime will actually go up? The police are being cut so not much help there. The sick and disabled however will suffer even more than they are now.
Seems to be no limit to IDS pursuit of disabled people. He can rest assured that there will be queue of people ready to challenge this under anti discrimination legislation
This is a fantastic idea and long overdue but only the hysterical left could oppose something that could potentially make a difference to the many people whose lives are blighted and made a misery by anti social problem families. Why do you always side with the underclass criminals who cause such problems and never the ordinary folk so badly affected by their behaviour?
Alcohol exacerbates these problems so not allowing them to use benefit to buy it seems a great idea. It might not entirely stop them but it will makle it difficult and benefit should not be used for alcohol anyway. Those idiots saying why dont we ban biscuits and cakes mught take note that eating biscuits does not increase crime and anti social behaviour, like alcohol. Biscuits also have some nutritional value whereas cigarettes do not!
Yet again, the large majority of the public will be for this but the libtards will look down their noses as usual and oppose common sense in order to stand up for people who do not deserve it. Unbelievable.
Your argument is as follows:
Alcohol(ism) is bad.
IDS's proposal takes away alcohol.
Therefore the proposal is good.
It has no degree of nuance or understanding of the issues and challenges faced by the "anti social problem families", "underclass criminals", or "people who do not deserve it" that you mention. You might think me "hysterical" for disagreeing, but I would say that you've swallowed a shallow, unrepresentative and warped picture of welfare claimants. It may suit the Tories' political aim to paint claimants in this light in order to justify making significant cuts to welfare, but the picture is much more complicated than this. 5.9 million working age claimants; it would take you ten weeks just to read out a list of their names, let alone to understand their individual circumstances, needs and problems. You may be happy to support a government who makes their policy decisions on the back of an envelope, but I'm not. This proposal, like so many from the current government, is ill-informed and potentially damaging to the most vulnerable in our country.
Francis Ryan seems to have grip on the realities of everyday life. Pity the government don't and if they don't what the Hell are they doing in Westminster?
We really should be asking how they got there. Nobody I know voted for them...
Why single out cigarettes and alcohol? What about cake and biscuits, chocolate, ice cream, crisps. hell anything that the government deem to be unneccessary or bad for you? Its a small step to having a list of govt approved expenditure. Footwear and clothing, no fancy trainers and track suits. Travel - bus only etc etc. This really smacks of an overly authoritarian state.
How the hell did this bunch of ill-informed and bigoted morons get put in charge of the welfare state?
I would say IDS is using the 10% who are trouble to their areas to paint the 90% which is just not right. Where do these so-called trouble families live, do the local authorities, land lords, social housing groups have complaints against them.
One other thing but what is addiction, but an illness.
My last point comes back to the fact it says both parents are out of work, why is that is the question. There a few possible reasons for that, they might not have decent qualifications because the schooling failed them, like it did me. Is their address black listed which from my previous job with a company who help the long term unemployed get back into work has been told to me. One woman sent hundreds of job applications out and never got a reply back but the moment she shifted her address she started to receive replies and interviews.
There are a lot of possible reasons for two parents being unemployed and until those are investigated and fixed all the plans from IDS and the government are pretty much going to fail to bring them out of poverty and into employment.
Good points made by Francis Ryan and commenter.Mike Cobley is particular correct in his last point.That this is the case may be seen by the "making work pay" mantra applied to those not under any conditionality due to sickness/disability and/or caring responsibilities and in receipt of CA(who may also of course be in work and receive it).Largely unmentioned is the removal of statutory entitlement to social security and the power(and stated intention ) of a S of S to increase conditionality without recourse to Parliament.The hypocrisy is sickening whereas the relinquishing of employment to care for people is lauded for them,it is a lifestyle choice for the "plebs".I am ashamed of my Country.
You've missed the point - pre-paids are i) accepted online, ii) accepted in stores, and iii) accepted at ATMs should you want to withdraw cash.
Universal credit has its flaws but surely this is a good way forwards. Cash is not great - think of all the firms that penalise users for paying in cash (e.g. direct debit discounts for utilities). What about when people loose cash - or get mugged? If you lose a plastic- you just get a new one and the indemnity is on the bank.
And they have no understanding of the creativity of the black market - rest assured that ways would be found to exchange the approved goods for cash money, and at some exchange rate benefiting the black marketeer, thus leaving the claimant more poverty stricken than before. Besides which, the article has it right - "What’s interference for the rich is assistance for the poor." These proposals are just another piece of the puzzle, slotting neatly in beside the various sanctions now applicable to anyone claiming a state benefit; what was intended to be a safety net ensuring that noone would be left to starve on the street, has been turned into an authoritarian system hedged around with coercion and punishment. This has nothing to do with making work pay, but everything to do with making the benefit system so unpleasant and onerous that people will start to fear using it.
Entirely true, I've recently been put on JSA, from Incapacity, and I'm finding it very difficult, and despite doing a lot of job seeking, I still find myself dealing with a lot of anxiety and sleeplessness over the worry that they'll find some arbitrary reason to 'sanction' me, and leave me with nothing.
There seems to be no feeling of support, just a grinding sensation of 'do it, look for a full time job, you're worthless until you get off our list, you scum.' I'm struggling with mental health issues, and I'm applying for volunteer work and part time work, but I've been told they don't count for anything, despite them being an obvious stepping stone towards returning to full employment. I'm still expected to do 20 hours a week jobseeking on top of everything else, which, if you've got any skill in typing or internet use at all, is excessive, to check the local papers and an hour a day to check online sites.