Duncan Smith in the firing line over benefit sanction targets

After new evidence that job centres are being set targets, the Work and Pensions Secretary stands accused of misleading Parliament.

Ministers have consistently denied that jobcentres are being set targets for benefit sanctions in order to drive down welfare spending. On Tuesday, employment minister Mark Hoban told MPs: "There are no league tables in place. We do not set targets for sanctions."

But today's Guardian provides the clearest evidence yet that the practice has become endemic in the benefits system. In a leaked email, Ruth King, a manager at a Walthamstow jobcentre, is shown warning staff that they will be disciplined unless they increase the number of claimants referred to the "Stricter Benefits Regime", which could mean losing their payments for six months. Noting that Walthamstow is "95th in the league table out of only 109", she writes: "Guys, we really need to up the game here. The 5% target is one thing – the fact that we are seeing over 300 people a week and only submitting six of them for possible doubts is simply not quite credible."

Her advice to staff includes: "Do not accept the same job search every week, do not accept 'I dropped off CV to shops like Asda or Sainsbury's', listen for telltale phrases 'I pick up the kids', 'I look after my neighbours children/my grandchildren' or just 'I am busy' – all of which suggest that the customer may not be fully available for work, even cases where a parent shares custody can be considered."

Iain Duncan Smith has today responded by telling MPs that "There are no targets, there will be no targets and anybody caught imposing a target will themselves be dealt with." But with all evidence suggesting that the reverse is true, Labour is seeking to call the Work and Pensions Secretary to account. In a statement issued last night, Liam Byrne, Duncan Smith's shadow, said:

This explosive letter lays bare the climate of fear in Job Centres as league tables and threats of disciplinary action are used to perpetrate a culture of sanctioning innocent people to hit targets. That is just plain wrong and must be stopped – now.

I asked ministers to assure the House on Tuesday that there were no sanctions targets and no league tables. Either Ministers have no grip on their department or they misled Parliament. Either way they must now face the consequences.

He has now written to Duncan Smith asking him to guarantee that the independent review promised by the government "will get to the bottom of every sanction issued by a job centre where targets were in operation".

After Labour's much-criticised decision to abstain in this week's vote on the coalition's workfare bill (which saw 43 MPs defy the whip to vote against it), the row is an opportunity for Byrne to strengthen his position. The promise of an independent review into the sanctions regime was one of the arguments he made for not voting against the legislation. He declared last night: "This is why we took difficult decisions on the Jobseekers' Bill to secure an independent review of sanctions. We knew there were sanctions targets and now we've secured an independent report to Parliament to put right a regime in Job Centres that's running out of control."

Work and Pensions Secretary Iain Duncan Smith arrives for a cabinet meeting at 10 Downing Street in 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.