The welfare system is already stacked against the young

The decision to remove housing benefit from the under-25s is just another item on the list of ways our welfare system is penalising the young.

David Cameron wants to take housing benefit away from under-25s, arguing the move would save £2bn a year. Housing benefit is mainly claimed by those in work, with 93 per cent of new claimants and 80 per cent of total recipients in a job, so the plan would largely be a redistribution from young low-wage workers to elsewhere.

Thirteen major charities have attacked the proposal, arguing it would take a vital safety net away from young people. What is rarely mentioned is that the welfare state is already stacked against young people in other areas, with the housing benefit plan simply another item on a list.

Working tax credit

Low wage workers over the age of 25 can get their wages topped up by working tax credit by as much as £1,450 a year. This wage subsidy makes working more attractive, and allows businesses to pay a lower rate; these combined means it probably has a positive effect on employment. But despite much political disquiet about record-high youth unemployment, which is bucking the slight downward general unemployment trend, young workers are exempt from this subsidy, leaving many jobs paying very little.

National Minimum Wage

Though now largely forgotten, when the National Minimum Wage was introduced some argued it might have an impact on jobs. While successive governments have been happy to exclude young workers from Working Tax Credit despite the possible resulting unemployment, the opposite is true with the NMW. So, a 20 year old worker only has a wage floor of £4.98, compared to £6.19 for a 21 year old, while those who leave school at 16 and go into work can expect to be paid as little as £3.68 – nearly 60 per cent less than the adult rate. 

Work Programme

When questioned on their strategy to tackle youth unemployment, the Government points to its Work Programme, which Jobcentres usher young people onto three months before their older peers. What is not usually brought up is that the Work Programme is structured in a way that values youth jobs less than jobs for older people, with fewer incentives for providers to find under-25s work. The total payment made to providers who find work for someone over-25 is £4,400, while each young person found a job only nets them £3,800, a full £600 less per case: providers have a built-in financial incentive to focus on helping older claimants, which could help explain why young people are disproportionately unemployed.

Jobseekers’ Allowance

If someone under 25 finds themselves out of work, as nearly a million across the country do today, they don’t get the £71-a-week JSA payment afforded to those over 25 – instead they get £56.25, a full 20 per cent less. Since the amount of money paid from JSA doesn’t cover anything more than subsistence levels, and prices in shops are the same for everyone regardless of age, this almost certainly affects the standard of living of the young unemployed who have to fend for themselves.

Defenders of the set-up might argue that young people are less likely to have a family or other commitments and so have lower costs. But the welfare system already takes these things into account through situational payments like child benefit. Moreover, it would be difficult to imagine such restrictions imposed solely on the basis of age at the top end. It’s not clear that further sanctions on the young is consistent with the Government’s claim to want to share the pain of austerity equally, when they already get significantly less out of the system.

Under-25s on Jobseekers' Allowance receive a full 20 per cent less. Photograph: Getty Images

Jon Stone is a political journalist. He tweets as @joncstone.

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Just you wait – soon fake news will come to football

No point putting out a story saying that Chelsea got stuffed 19-1 by Spurs. Who would believe it, even if Donald Trump tweeted it?

So it is all settled: Cristiano Ronaldo will be arriving at Carlisle United at the end of the month, just before deadline day. It all makes sense. He has fallen in love with a Herdwick sheep, just as Beatrix Potter did, and like her, he is putting his money and energy into helping Cumbria, the land of the Herdwick.

He fell out with his lover in Morocco, despite having a private plane to take him straight from every Real Madrid game to their weekly assignation, the moment this particular Herdwick came into his life. His mother will be coming with him, as well as his son, Cristiano Ronaldo, Jr. They want to bring the boy
up communing with nature, able to roam free, walking among the lakes and fells.

Behind the scenes, his agent has bought up CUFC and half of Cumbria on his behalf, including Sellafield, so it is a wise investment. Clearly CUFC will be promoted this year – just look where they are in the table – then zoom-zoom, up they go, back in the top league, at which point his agent hopes they will be offered megabucks by some half-witted Chinese/Russian/Arab moneybags.

Do you believe all that? It is what we now call in the trade fake news, or post-truth – or, to keep it simple, a total lie, or, to be vulgar, complete bollocks. (I made it up, although a pundit on French TV hinted that he thought the bit about Ronaldo’s friend in Morocco might not be too far-fetched. The stuff about Beatrix Potter loving Herdwicks is kosher.)

Fake news is already the number-one topic in 2017. Just think about all those round robins you got with Christmas cards, filled with fake news, such as grandchildren doing brilliantly at school, Dad’s dahlias winning prizes, while we have just bought a gem in Broadstairs for peanuts.

Fake news is everywhere in the world of politics and economics, business and celebrity gossip, because all the people who really care about such topics are sitting all day on Facebook making it up. And if they can’t be arsed to make it up, they pass on rubbish they know is made up.

Fake news has long been with us. Instead of dropping stuff on the internet, they used to drop it from the skies. I have a copy of a leaflet that the German propaganda machine dropped over our brave lads on the front line during the war. It shows what was happening back in Blighty – handsome US soldiers in bed with the wives and girlfriends of our Tommies stuck at the front.

So does it happen in football? At this time of the year, the tabloids and Sky are obsessed by transfer rumours, or rumours of transfer rumours, working themselves into a frenzy of self-perpetuating excitement, until the final minute of deadline day, when the climax comes at last, uh hum – all over the studio, what a mess.

In Reality, which is where I live, just off the North Circular – no, down a bit, move left, got it – there is no such thing as fake news in football. We are immune from fantasy facts. OK, there is gossip about the main players – will they move or will they not, will they be sued/prosecuted/dropped?

Football is concerned with facts. You have to get more goals than the other team, then you win the game. Fact. Because all the Prem games are live on telly, we millions of supplicant fans can see with our eyes who won. No point putting out a story saying that Chelsea got stuffed 19-1 by Spurs. Who would believe it, even if Donald Trump tweeted it?

I suppose the Russkis could hack into the Sky transmissions, making the ball bounce back out of the goal again, or manipulating the replay so goals get scored from impossible angles, or fiddling the electronic scoreboards.

Hmm, now I think about it, all facts can be fiddled, in this electronic age. The Premier League table could be total fiction. Bring back pigeons. You could trust them for the latest news. Oh, one has just arrived. Ronaldo’s romance  with the Herdwick is off! And so am I. Off to Barbados and Bequia
for two weeks.

Hunter Davies’s latest book is “The Biscuit Girls” (Ebury Press, £6.99)

Hunter Davies is a journalist, broadcaster and profilic author perhaps best known for writing about the Beatles. He is an ardent Tottenham fan and writes a regular column on football for the New Statesman.

This article first appeared in the 12 January 2017 issue of the New Statesman, Putin's revenge