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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Will the collapse of the EU/Canada trade deal speed the demise of Jean-Claude Juncker?

The embattled European Comission President has already survived the migrant crisis and Brexit.

Jean-Claude Juncker, the embattled President of the European Commission, is likely to come under renewed pressure to resign later this week now that the Belgian region of Wallonia has likely scuppered the EU’s flagship trade deal with Canada.

The rebellious Walloons on Friday blocked the Comprehensive Economic and Trade Agreement (CETA). The deal for 500 million Europeans was at the final hurdle when it fell, struck down by an administration representing 3.2 million people.

As Canada’s trade minister, Chrystia Freeland, walked out of talks in tears and declared the deal dead, fingers were pointed at Juncker. Under pressure from EU governments, he had agreed that CETA would be a “mixed agreement”. He overruled the executive’s legal advice that finalising the deal was in the Commission’s power.

CETA now had to be ratified by each member state. In the case of Belgium, it means it had to be approved by each of its seven parliaments, giving the Walloons an effective veto.

Wallonia’s charismatic socialist Minister-President Paul Magnette needed a cause celebre to head off gains made by the rival Marxist PTB party. He found it in opposition to an investor protection clause that will allow multinationals to sue governments, just a month after the news that plant closures by the world’s leading heavy machinery maker Caterpillar would cost Wallonia 2,200 jobs.

Juncker was furious. Nobody spoke up when the EU signed a deal with Vietnam, “known the world over for applying all democratic principles”, he sarcastically told reporters.

“But when it comes to signing an agreement with Canada, an accomplished dictatorship as we all know, the whole world wants to say we don’t respect human right or social and economic rights,” he added.  

The Canadian Prime Minister Justin Trudeau was due to arrive in Brussels on Thursday to sign CETA, which is backed by all EU leaders.

European Council President, Donald Tusk, has today spoken to Trudeau and his visit is currently scheduled to go ahead. This morning, the Walloons said they would not be held to ransom by the “EU ultimatum”.

If signed, CETA will remove customs duties, open up markets, and encourage investment, the Commission has said. Losing it will cost jobs and billions in lost trade to Europe’s stagnant economy.

“The credibility of Europe is at stake”, Tusk has warned.

Failure to deliver CETA will be a serious blow to the European Union and call into question the European Commission’s exclusive mandate to strike trade deals on behalf of EU nations.

It will jeopardise a similar trade agreement with the USA, the Transatlantic Trade and Investment Partnership (TTIP). The Commission claims that an “ambitious” TTIP could increase the size of the EU economy by €120 billion (or 0.5% of GDP).

The Commission has already missed its end of year deadline to conclude trade talks with the US. It will now have to continue negotiations with whoever succeeds Obama as US President.

And if the EU cannot, after seven years of painstaking negotiations, get a deal with Canada done, how will it manage if the time comes to strike a similar pact with a "hard Brexit" Britain?

Juncker has faced criticism before.  After the Brexit referendum, the Czechs and the Poles wanted him gone. Hungary’s Prime Minister Viktor Orban muttered darkly about “personnel issues” at the Commission.

In July, it was reported that Angela Merkel, the most powerful politician in Europe, was plotting to oust Juncker. Merkel stayed her hand, and with German elections looming next year is unlikely to pull the trigger now.

When he took office in November 2014, Juncker promised that his administration would be a “political Commission”. But there has never been any sign he would be willing to bear the political consequences of his failures.

Asked if Juncker would quit after Brexit, the Commission’s chief spokesman said, “the answer has two letters and the first one is ‘N’”.

Just days into his administration, Juncker was embroiled in the LuxLeaks scandal. When he was Luxembourg’s prime minister and finance minister, the country had struck sweetheart tax deals with multinational companies.  

Despite official denials, rumours about his drinking and health continue to swirl around Brussels. They are exacerbated by bizarre behaviour such as kissing Belgium’s Charles Michel on his bald head and greeting Orban with a cheery “Hello dictator”!

On Juncker’s watch, border controls have been reintroduced in the once-sacrosanct Schengen passport-free zone, as the EU struggles to handle the migration crisis.

Member states promised to relocate 160,000 refugees in Italy and Greece across the bloc by September 2017. One year on, just 6,651 asylum seekers have been re-homed.

All this would be enough to claim the scalp of a normal politician but Juncker remains bulletproof.

The European Commission President can, in theory, only be forced out by the European Parliament, as happened to Jacques Santer in 1999.

The European Parliament President is Martin Schulz, a German socialist. His term is up for renewal next year and Juncker, a centre-right politician, has already endorsed its renewal in a joint interview.

There is little chance that Juncker will be replaced with a leader more sympathetic to the British before the Brexit negotiations begin next year.

James Crisp is the news editor at EurActiv, an online EU news service.