The poll that shows Labour can win the argument over benefits

The better educated people are about the benefits system, the less likely they are to support the coalition's reforms.

At first glance, the latest poll on the government's benefit cuts might appear discouraging for opponents of the coalition's approach. YouGov's survey for the TUC found that 48 per cent of people support George Osborne's plan to cap benefit increases at 1 per cent for the next three years, with 32 per cent opposed. However, their support is based on the false belief that the unemployed will be most affected by the move (64 per cent believed they would be). When informed that the cap will also affect low-paid workers receiving in-work benefits (60 per cent of the cut falls on working families), support for the policy falls to 30 per cent and opposition rises to 40 per cent.

Ahead of next Tuesday's vote on the government's Welfare Uprating Bill, which will enshrine in law Osborne's plan to raise benefits by 1 per cent, rather than in line with inflation (which currently stands at 2.7 per cent), the poll should stiffen the resolve of Labour, which has vowed to oppose the legislation. The clear evidence is that the better educated people are about the benefits system, the less likely they are to support the coalition's reforms. The moral and political duty for Labour is to raise the public's level of understanding. The poll reveals how widespread ignorance about the welfare system is:

  • On average, people think that 41 per cent of welfare spending goes on benefits to the unemployed. The actual figure is three per cent.
  • People believe that 27 per cent of benefits are claimed fraudulently. The goverment's own figure is 0.7 per cent.
  • On average, people think that almost half (48 per cent) of those who claim Jobseeker's Allowance do so for more than a year. The true figure is 27.8 per cent.
  • People guessed that an unemployed couple with two school-aged children would receive £147 a week in Jobseeker’s Allowance. They would actually receive £111.45.

Significantly, the poll found that while 53 per cent of those who gave the least accurate answers believe that benefits are too generous, less than a third (31 per cent) of those who gave the most accurate answers think that they are. As TUC general secretary Frances O'Grady says, it's not surprising that voters generally favour punitive welfare cuts - "They think the system is much more generous than it is in reality, is riddled with fraud and is heavily skewed towards helping the unemployed, who they think are far more likely to stay on the dole than is actually the case."

But as long as Labour continues to emphasise that the main victims of the real-terms cut will be the working poor, while also reminding the public that the majority of the unemployed have worked or will work again soon, there is good reason to believe that it can win the argument.

British musicians Miss Dynamite (5th L) and Charlie Simpson (6th L) join unemployed young people as they stand in line outside a job centre in central London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.