How the Autumn Statement hit "the strivers"

Sixty per cent of welfare cuts made in this parliament will fall on the working poor.

For a Chancellor who prefaced his Autumn Statement with a declaration that he was "on the side of these who want to work hard and get on", George Osborne has made some rather inconsistent announcements yesterday.

Consider, for example, his decision to uprate tax credits at below-inflation levels for the next three years. Both working couples and lone parents look set to lose over £23 of their working tax credit (WTC) in 2013-14 as a result of this move. Not so bad, one might think, but remember that this comes on top of a prior freeze in value of other key elements of WTC which will remain in place, and which will shave an additional £60 off a working family’s entitlement next year.

The changes being made to the personal tax allowance will do little to offset this shortfall. Extending the threshold potentially leaves basic rate taxpayers £47 better off in 2013-14. But for low-income working families, much of this gain evaporates as other forms of support are tapered away in response to their higher post-tax income. While those further up the income scale will keep the full £47, a working family eligible for both housing and council tax benefit will gain only 13p a week extra as a result of extended allowances.

Osborne is fond of the notion that there is a group of hard working "strivers" out there who throw "those with their blinds down" into sharp relief. In truth, the vast majority of those who rely on benefits and tax credits for part of their income have worked, are in work, or will be back in work very shortly in the future.

And with estimates suggesting that around 60 per cent of welfare cuts made in this parliament will hit the working poor, the Chancellor must do much more to show he understands the problems that those on low incomes face. Rather than glib words, Osborne needs to start providing real, rather than merely rhetorical, support for hard-pressed working families and individuals.

Work and Pensions Secretary Iain Duncan Smith leaves 10 Downing Street on 5 December, 2012. Photograph: Getty Images.

Alison Garnham is chief executive of the Child Poverty Action Group

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Watch Ian Paisley Jr thank Martin McGuinness for partnership that "saved lives"

The son of Ian Paisley said he "humbly" thanked the man who was both his father's enemy, and then friend. 

Northern Irish politics started 2017 at a low point. The First Minister, the Democratic Unionist Arlene Foster, is embroiled in scandal - so much so that her deputy, Sinn Féin's Martin McGuinness, resigned. Then McGuinness confirmed speculation that he was suffering from a serious illness, and would be resigning from frontline politics altogether. 

But as Ian Paisley Jr, the son of the Democratic Unionist founder Ian Paisley and a DUP politician himself, made clear, it is still possible to rise above the fray.

Paisley Sr, a firebrand Protestant preacher, opposed the Good Friday Agreement, but subsequently worked in partnership with his old nemesis, McGuinness, who himself was a former member of the IRA. Amazingly, they got on so well they were nicknamed "The Chuckle Brothers". When Paisley Sr died, McGuinness wrote that he had "lost a friend".

Speaking after McGuinness announced his retirement, Paisley Jr wished him good health, and then continued: 

"The second thing I'm going to say is thank you. I think it's important that we actually do reflect on the fact we would not be where we are in Northern Ireland in terms of having stability, peace and the opportunity to rebuild our country, if it hadn't been for the work he did put in, especially with my father at the beginning of this long journey.

"And I'm going to acknowledge the fact perhaps if we got back to some of that foundation work of building a proper relationship and recognising what partnership actually means, then we can get out of the mess we're currently in."

Questioned on whether other unionists "dont really get it", Paisley Jr retorted that it was time to move on: "Can we please get over that. Everyone out there has got over it. We as the political leaders have to demonstrate by our actions, by our words, and by our talk that we're over that."

He said he was thanking McGuinness "humbly" in recognition of "the remarkable journey" he had been on. The partnership government had "not only saved lives, but has made lives of countless people in Northern Ireland better", he said. 

 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.