Lies, Damn Lies, and Department for Work and Pensions Statistics

So much of what Iain Duncan Smith and his department is doing is based on empirical sand.

 

Things have come to a pretty pass when the Economist - not a publication renowned for its strident radicalism - is moved to describe the statistical output of a Government department with a simile that contains the words “raw sewerage”. But then hell hath no fury like a centrist (in this case, Daniel Knowles) frustrated by the misuse of statistical evidence.

The claim which sparked his reaction came from the Department for Work and Pensions: “Around one million people have been stuck on a working-age benefit for at least three out of the past four years.”

Knowles was, of course, too polite to say so in such terms, but this is all but a barefaced lie: “[the] one million includes single mothers who have children too young to go to school, people who are seriously ill but may eventually get better, and people who may be ill, but have yet to be tested.” His piece goes on to question the figures in a number of other DWP press releases, including the claim that the benefits cap has encouraged 8,000 people to get jobs, and the 878,000 people who apparently dropped their claims for disability benefits when faced with a test.

And at risk of reproducing all of the post, his argument as to why we should take issue with these dubious statistics was unimprovable: "the whole point about government statistics is that they are meant to be at least sort of objective. Ministers can quote the ones which support their case — but they shouldn’t manipulate them and distort them to tell stories that aren’t actually true. There is plenty of evidence to support welfare reform without resorting to such disgraceful abuse of numbers.”

Look, like Knowles, I’m broad-minded. I can live with the idea of benefit reform. Maybe I can even live with the really ugly stuff - the misery, the bailiffs champing at the bit to cash in - actually I can’t, but anyway: the real problem is that I think there’s even more to this issue than he highlighted.

For a start, as this blog shows, these were actually two of three misleading claims in the space of four weeks: in a Daily Mail article on Personal Independence Payments, we hear: “The decision to introduce new tests has produced an extraordinary ‘closing-down sale’ effect, with rocketing claims as people rush to get their hands on unchecked ‘welfare for life’ [by claiming Disability Living Allowance] before [Esther] McVey’s axe falls on April 8.” True? Well, you can find out more about the veracity of this claim here. Yet despite the lack of credibility, Iain Duncan Smith repeated it on 8 April, in all the major newspapers.

Perhaps we should start at the beginning - about five or six years ago. Back when the Tories were in opposition I became - and I type these words while pummelling myself viciously about the face with a rolled up copy of the Spectator - a believer in Iain Duncan Smith. I read about the research he was doing in Easterhouse in Glasgow with some approval. Here’s a 2002 report on a visit which crept somewhat under the radar. Duncan Smith’s rhetoric chimed with many of the things I was discovering at the time about crime and poverty - and indeed his think tank, the Centre for Social Justice (CSJ), would later produce a report on gangs which contained barely a word with which I could find fault.

The trouble was that as the years went by, the more it seemed like the by-now-minister’s beliefs were based on nothing more than my own: gut instinct and a few statistics that appeared to back them up. Now journalists, by the nature of their trade, generally have little more than this with which to work. But Government departments? Policy-makers? Surely they need a little more. And that’s why I worry about the DWP. Because it strikes me that so much of what it’s doing is based on empirical sand.

When the left complain about the cruelty of Duncan Smith’s various reforms, his usual reaction to get particularly angry about how unjust the “benefits trap” is for those families trapped in it in the long term: a symptom of the left’s own peculiar brand of cruelty; one that echoes down the generations. Common sense dictates there’s some truth to the claim. But the question is, how many families are are in this situation? Given that one of us is a government minister enacting reforms with evangelical zeal and the other a semi-sober hack at a keyboard shrugging his shoulders, I find it concerning to think he’d know no more than I do.

Consider, then, the CSJ’s response to a report by a number of churches entitled “The Lies We Tell Ourselves: Ending Comfortable Myths About Poverty”. The idea is to fisk these ecclesiastical do-gooders right up their cassocks and prove that these myths are, in fact, not myths. So. “On intergenerational worklessness, the [Church] report argues that there is ‘no credible evidence that such families actually exist’. The report is right to highlight that the Government does not collect data on this, but this does not mean that the problem itself does not exist. The CSJ frequently speaks with poverty-fighting charities who comment that they come across it regularly.”

Well, that’s put the lie to bed hasn’t it? I mean, might it not be worth mentioning one of the few studies of intergenerational worklessness - this one - and note the researchers’ findings that “even two generations of complete worklessness in the same family was a very rare phenomenon, which is consistent with recent quantitative surveys of this issue”? Was there no space to mention Bristol University’s study of Labour Force Survey figures which found only only 0.3 per cent of UK households have two generations that have never worked? I guess if you “frequently speak to charities” you don’t need to draw on such things.

And so it goes on - the churches rightly argue that the level of benefit claimants on the fiddle is lower than people think - the CSJ responds: “The report argues that the level of benefit fraud is low. Yet it fails to mention that the level of error is very high... However, rather than blame claimants for the levels of fraud and error, the CSJ places much of the blame with our complex benefits system.”

To clarify, since the CSJ doesn’t:: 0.7 per cent, or £1.2bn, of total benefit expenditure is overpaid due to fraud - 0.9 per cent, or £1.4bn, of total benefit expenditure is overpaid due to claimant error, and this is offset by £1.3bn underpaid due to error. So when the CSJ doesn’t blame claimants, that’s because it’s bloody right not to.

What it should say is: “Agreed: the overwhelming majority people on benefits aren’t on the fiddle, according to the statistics.” But that wouldn’t fit with the pledges to go after the “bogus disabled”, would it? Instead the best we can manage is this patronising, come one come all rhetoric farted out on a weekly basis, the weasel words that imply that this could only ever be about helping people to help themselves.

I’m not going to go through every point of this response. Needless to say, there’s a huge elephant in the corner, one unacknowledged by either of our main political parties, nor the yammering baked-wind merchants who belch this stuff out on their behalf. They have singularly failed to find an answer to the problem of low wages. It’s impossible to make this point any clearer: six out of ten benefits claimants are in work. You want to get angry? Forget the scrounging folk demons - get angry at our supine political class.

And speaking of the jobs market, there’s a whole other dimension to the DWP's statistical horseplay worthy of contemplation. The most recent Private Eye used a FOI request to reveal that ministers attempted to massage the results of the Work Programme, by pushing for “simple” figures to be publicised instead of the official statistics. Mark Hoban apparently told Kirsty McHugh, head of the Employment Related Services Association, that he was keen on the ERSA’s figure of “200,000 Job entries”, which would be “more understandable to the media/public than discussion around Job Outcomes.” As the magazine reported: “Baldly stating that 200,000 people started jobs means little without counting the far larger official number who did not start or hold on to a job.”

In the end it didn’t help - the DWP’s press release avoided mention of minimum performance failure, but it was still the dominant headline. How indicative a little tale this is. To some it might suggest a department floundering, frantically spinning, its beliefs and its practises founded on the shakiest of statistical foundations. If this is the soil upon which our political right wants to plant its flag then fine. I wish it luck. But It shouldn’t be surprised if it suddenly sinks out of sight.

David Cameron and Iain Duncan Smith visiting A4e in 2011. Photograph: Getty Images

Alan White's work has appeared in the Observer, Times, Private Eye, The National and the TLS. As John Heale, he is the author of One Blood: Inside Britain's Gang Culture.

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Chuka Umunna calls for "solidarity" among Labour MPs, whoever is voted leader

The full text of shadow business secretary Chuka Umunna's speech to Policy Network on election-winning ideas for Labour's future, and the weaknesses of the New Labour project.

There has never been an easy time to be a social democrat (or “democratic socialist” as we sometimes call ourselves in Britain). Whereas the right can demonise the poor and extol the virtues of the market, and the hard left can demonise the market and extol the role of the state, our position of constraining the domination of markets and reforming the state is, by definition, more complex.

It is nonetheless the case that social democracy has a historic responsibility, in every generation, to renew democracy and preserve a civic culture. This is achieved not through soundbites and slogans, but through the hard-headed development of a progressive politics that reconciles liberty and democracy, new comers and locals to our communities, business and workers, in a common life that preserves security, prosperity and peace.  This historic mission is all the more urgent now and my determination that we succeed has grown not weakened since our election defeat last May.

But, in order to be heard, it is necessary to make balanced and reasonable argument that both animates and inspires our movement, and which is popular and plausible with the people.  The first is pre-requisite to the second; and there is no choice to be made between your party’s fundamental principles and electability. They are mutually dependent - you cannot do one without the other.

We are in the midst of choosing a new leader and it is clear to anyone who has watched the UK Labour Party leadership election this summer that amongst a significant number there is a profound rage against Third Way politics – as pursued by the likes of Bill Clinton, Tony Blair, Gerhard Schröder and others - as a rejection of our fundamental values.

In the UK there is a view that New Labour accepted an uncritical accommodation with global capital that widened inequality, weakened organised labour and we were too close to the US Republicans and too far from the European left.

I do not believe this is fair, not least because we rescued many of our public services from the scrap heap when we came to office in 1997 and there were very significant achievements  we should celebrate.  New Labour renewed our National Health Service in a fundamental way; we built new schools and improved existing ones; we set up new children’s centres all over the country; we brought in a National Minimum Wage; we worked with others to bring peace to Northern Ireland; we introduced civil partnerships.  Just some of our achievements.

However, though we may take issue with the critique, I do not think we can simply dismiss out of hand those who hold critical views of New Labour. Like any government, the New Labour administration made mistakes - it could and should have achieved more, and done more to challenge the Right’s assumptions about the world. In the end, it is not unreasonable to be ambitious for what your party in government can achieve in building greater equality, liberty, democracy and sustainability. It is far better we acknowledge, not reject, this ambition for a better world, as we seek to forge a new politics of the common good fit for the future.

Realising our values in office has been disrupted by globalisation and the surge of technological forces that are displacing and reshaping industry after industry.

Some argue that globalisation as an ideological construct of the right. But we must recognise that we live in an increasingly integrated world in which markets have led to an unprecedented participation of excluded people in prosperity, a rise in living standards for hundreds of millions  of people and a literacy unprecedented in human history – this is particularly so in emerging economies like my father’s native Nigeria. And the internet has led to a level of accountability that has disturbed elites.

Yet, this has been combined with a concentration of ownership that needs to be challenged, of a subordination of politics that requires creative rather than reactive thinking, and these global forces have exacerbated inequalities as well as helped reduce poverty.

So it is important that we understand the sheer scale and impact of new technologies. At the moment we are engaged in a debate about Uber and its threat to one of the last vestiges of vocational labour markets left in London, those of the black taxi cabs and their attainment of 'The Knowledge'. But the reality is that within the next decade there will be the emergence of driverless cars so we have to intensify our exploration of how to support people in a knowledge economy and the realities of lifelong learning, as well as lifelong teaching. As people live longer we will have to think about how to engage them constructively in work and teaching in new ways.

Once again, I'm addressing all of this, Social Democracy requires a balanced view that domesticates the destructive energy of capital while recognising its creative energy, that recognises the need for new skills rather than simply the protection of old ones. A Social Democracy that recognises that internationalism requires co-operation between states and not a zero sum game that protectionism would encourage.

Above all, Social Democratic politics must recognise the importance of place, of the resources to be found in the local through which the pressures of globalisation can be mediated and shaped. Our job is to shape the future and neither to accept it as a passive fate nor to indulge the fantasy that we can dominate it but to work with the grain of change in order to renew our tradition, recognising the creativity of the workforce, the benefits of democracy and the importance of building a common life.  Sources of value are to be found in local traditions and institutions.

This also requires a recognition that though demonstration and protest are important,; but relationships and conversations are a far more effective way of building a movement for political change.

One of the huge weaknesses of New Labour was in its reliance on mobilisation from the centre rather than organising. It therefore allowed itself to be characterised as an elite project with wide popular support but it did not build a base for its support within the party across the country, and it did not develop leaders from the communities it represented. It was strong on policy but weak on strengthening democratic politics, particularly Labour politics.

Over half a million people are now members, supporters or affiliated supporters of our party, with hundreds of thousands joining in the last few weeks. Some have joined in order to thwart the pursuit of Labour values but many more have joined to further the pursuit of those values, including lots of young people. At a time when so many are walking away from centre left parties across the Western world and many young people do not vote let alone join a party, this is surely something to celebrate.

So it is vital that we now embrace our new joiners and harness the energy they can bring to renewing Labour’s connection with the people. First, we must help as many them as possible to become doorstep activists for our politics. Second, I have long argued UK Labour should campaign and organise not only to win elections but to affect tangible change through local community campaigns. We brought Arnie Graf, the Chicago community organiser who mentored President Obama in his early years, over from the U.S. to help teach us how to community organise more effectively. We should bring Arnie back over to finish the job and help empower our new joiners to be the change they want to see in every community – we need to build on the links they have with local groups and organisations.

I mentioned at the beginning that in every generation Social Democracy is besieged from left and right but the achievements of each generation are defined by the strength of a complex political tradition that strengthens solidarity through protecting democracy and liberty, a role for the state and the market and seeks to shape the future through an inclusive politics. Solidarity is key which is why we must accept the result of our contest when it comes and support our new leader in developing an agenda that can return Labour to office.

Yes, these are troubled times for social democrats. All over Europe there is a sense among our traditional voters that we are remote and do not share their concerns or represent their interests or values.  There is surge of support for populist right wing parties from Denmark to France, of more left wing parties in Greece and Spain and in Britain too. There is renewal of imperial politics in Russia, the murderous and abhorrent regime of ISIL in the Middle East, volatility in the Chinese economy and in Europe a flow of immigration that causes fear and anxiety.

But, the task of Social Democracy in our time is to fashion a politics of hope that can bring together divided populations around justice, peace and prosperity so that we can govern ourselves democratically. We have seen worse than this and weathered the storm. I am looking forward, with great optimism to be being part of a generation that renews our relevance and popularity in the years to come.

Chuka Umunna is the shadow business secretary and the Labour MP for Streatham.