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.

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The tale of Battersea power station shows how affordable housing is lost

Initially, the developers promised 636 affordable homes. Now, they have reduced the number to 386. 

It’s the most predictable trick in the big book of property development. A developer signs an agreement with a local council promising to provide a barely acceptable level of barely affordable housing, then slashes these commitments at the first, second and third signs of trouble. It’s happened all over the country, from Hastings to Cumbria. But it happens most often in London, and most recently of all at Battersea power station, the Thames landmark and long-time London ruin which I wrote about in my 2016 book, Up In Smoke: The Failed Dreams of Battersea Power Station. For decades, the power station was one of London’s most popular buildings but now it represents some of the most depressing aspects of the capital’s attempts at regeneration. Almost in shame, the building itself has started to disappear from view behind a curtain of ugly gold-and-glass apartments aimed squarely at the international rich. The Battersea power station development is costing around £9bn. There will be around 4,200 flats, an office for Apple and a new Tube station. But only 386 of the new flats will be considered affordable

What makes the Battersea power station development worse is the developer’s argument for why there are so few affordable homes, which runs something like this. The bottom is falling out of the luxury homes market because too many are being built, which means developers can no longer afford to build the sort of homes that people actually want. It’s yet another sign of the failure of the housing market to provide what is most needed. But it also highlights the delusion of politicians who still seem to believe that property developers are going to provide the answers to one of the most pressing problems in politics.

A Malaysian consortium acquired the power station in 2012 and initially promised to build 517 affordable units, which then rose to 636. This was pretty meagre, but with four developers having already failed to develop the site, it was enough to satisfy Wandsworth council. By the time I wrote Up In Smoke, this had been reduced back to 565 units – around 15 per cent of the total number of new flats. Now the developers want to build only 386 affordable homes – around 9 per cent of the final residential offering, which includes expensive flats bought by the likes of Sting and Bear Grylls. 

The developers say this is because of escalating costs and the technical challenges of restoring the power station – but it’s also the case that the entire Nine Elms area between Battersea and Vauxhall is experiencing a glut of similar property, which is driving down prices. They want to focus instead on paying for the new Northern Line extension that joins the power station to Kennington. The slashing of affordable housing can be done without need for a new planning application or public consultation by using a “deed of variation”. It also means Mayor Sadiq Khan can’t do much more than write to Wandsworth urging the council to reject the new scheme. There’s little chance of that. Conservative Wandsworth has been committed to a developer-led solution to the power station for three decades and in that time has perfected the art of rolling over, despite several excruciating, and occasionally hilarious, disappointments.

The Battersea power station situation also highlights the sophistry developers will use to excuse any decision. When I interviewed Rob Tincknell, the developer’s chief executive, in 2014, he boasted it was the developer’s commitment to paying for the Northern Line extension (NLE) that was allowing the already limited amount of affordable housing to be built in the first place. Without the NLE, he insisted, they would never be able to build this number of affordable units. “The important point to note is that the NLE project allows the development density in the district of Nine Elms to nearly double,” he said. “Therefore, without the NLE the density at Battersea would be about half and even if there was a higher level of affordable, say 30 per cent, it would be a percentage of a lower figure and therefore the city wouldn’t get any more affordable than they do now.”

Now the argument is reversed. Because the developer has to pay for the transport infrastructure, they can’t afford to build as much affordable housing. Smart hey?

It’s not entirely hopeless. Wandsworth may yet reject the plan, while the developers say they hope to restore the missing 250 units at the end of the build.

But I wouldn’t hold your breath.

This is a version of a blog post which originally appeared here.

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