Balls warns of "despair" over welfare cuts after bedroom tax suicide

"There is no doubt this policy is driving people to the edge of despair," says the shadow chancellor in response to the case of Stephanie Bottrill.

Today's Sunday People features the distressing story of a woman who threw herself in front of a motorway lorry because she was worried about how she would pay the "bedroom tax". One should always be wary of ascribing motives to any suicide, but in this case there does appear to be a direct link.

In a letter to her son, the woman, Stephanie Bottrill, wrote: "Don't blame yourself for me ending my life, it's my life, the only people to blame are the government, no one else."

The son told the paper: "I couldn’t believe it. She said not to blame ourselves, it was the government and what they were doing that caused her to do it. She was fine before this bedroom tax. It was dreamt up in London, by people in offices and big houses. They have no idea the effect it has on people like my mum."

Under the "bedroom tax", those social housing tenants deemed to have one spare room have their housing benefit cut by 14 per cent, while those deemed to have two or more have it reduced by 25 per cent. The measure will cost tenants an average of £14 a week more in rent or an extra £728 a year. After being ordered to pay an extra £20 a week, Bottrill reportedly attempted to downsize, as the government has advised claimants to do, but found "nothing suitable" offered to her. As I've noted before, in England there are 180,000 social tenants "under-occupying" two-bedroom houses but fewer than 70,000 one-bedroom social houses to move to.

Asked about this case on Sky News's Murnaghan programme this morning, Ed Balls said that there was "no doubt this policy is driving people to the edge of despair". On this point, Balls is undoubtedly right. Speak to any Labour MP at the moment and one of the first things they mention is the disastrous effect that the welfare cuts introduced last month are having on their constituents. Balls said:

I don’t know the details of her case, it’s clearly a tragedy but I do know from my own constituents there are people having terrible trauma. If you are living in a home which has been adapted to deal with your blindness, your disability, if you have a bedroom which is there so that your child can come at the weekends because of a custody arrangement and you’re told you are either going to be a lot worse off or you’ve got to give up that special adaptation and access to your child, it puts people in the most terrible stress. Two third of people affected by the bedroom tax are disabled. Now I’m for tough welfare reform but not hitting the most vulnerable, the disabled, it’s not fair.

He added:

There is no doubt this policy is driving people to the edge of despair in their many thousands across the country and I do think that David Cameron and George Osborne and Iain Duncan Smith should stand back from the rhetoric which is always a little bit nasty and a little bit divisive, and said what are we actually doing here? They are not going to save money with a bedroom tax, they are going to end up spending more on housing benefit moving people into private rented houses but in so doing they cause terrible stress, make people a lot worse off who are living on small amounts of money, it’s terrible.

Over the next few months, as more and more examples of the harm inflicted by the welfare cuts make it into the papers, the government is likely to come under much greater pressure to change course. It's worth remembering that when most of these cuts were first announced in 2010, the coalition assumed growth, wages and employment would all be higher than they are now. It is now cutting into a flat economy.

The greatest concern, perhaps, is for those families hit by multiple cuts, including the 1 per cent cap on benefit increases (an unprecedented real-terms cut), the "bedroom tax" and the 10 per cent cut to council tax support, which will force millions to pay the charge for the first time. As even Iain Duncan Smith has conceded, this is a "dreadful period" to attempt welfare reform. We may be about to find out just how dreadful.

George Eaton is political editor of the New Statesman.

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Why Angela Merkel's comments about the UK and US shouldn't be given too much weight

The Chancellor's comments are aimed at a domestic and European audience, and she won't be abandoning Anglo-German relationships just yet.

Angela Merkel’s latest remarks do not seem well-judged but should not be given undue significance. Speaking as part of a rally in Munich for her sister party, the CSU, the German Chancellor claimed “we Europeans must really take our own fate into our hands”.

The comments should be read in the context of September's German elections and Merkel’s determination to restrain the fortune of her main political rival, Martin Schulz – obviously a strong Europhile and a committed Trump critic. Sigmar Gabriel - previously seen as a candidate to lead the left-wing SPD - has for some time been pressing for Germany and Europe to have “enough self-confidence” to stand up to Trump. He called for a “self-confident position, not just on behalf of us Germans but all Europeans”. Merkel is in part responding to this pressure.

Her words were well received by her audience. The beer hall crowd erupted into sustained applause. But taking an implicit pop at Donald Trump is hardly likely to be a divisive tactic at such a gathering. Criticising the UK post-Brexit and the US under Trump is the sort of virtue signalling guaranteed to ensure a good clap.

It’s not clear that the comments represent that much of a new departure, as she herself has since claimed. She said something similar earlier this year. In January, after the publication of Donald Trump’s interview with The Times and Bild, she said that “we Europeans have our fate in our own hands”.

At one level what Merkel said is something of a truism: in two year’s time Britain will no longer be directly deciding the fate of the EU. In future no British Prime Minister will attend the European Council, and British MEPs will leave the Parliament at the next round of European elections in 2019. Yet Merkel’s words “we Europeans”, conflate Europe and the EU, something she has previously rejected. Back in July last year, at a joint press conference with Theresa May, she said: “the UK after all remains part of Europe, if not of the Union”.

At the same press conference, Merkel also confirmed that the EU and the UK would need to continue to work together. At that time she even used the first person plural to include Britain, saying “we have certain missions also to fulfil with the rest of the world” – there the ‘we’ meant Britain and the EU, now the 'we' excludes Britain.

Her comments surely also mark a frustration born of difficulties at the G7 summit over climate change, but Britain and Germany agreed at the meeting in Sicily on the Paris Accord. More broadly, the next few months will be crucial for determining the future relationship between Britain and the EU. There will be many difficult negotiations ahead.

Merkel is widely expected to remain the German Chancellor after this autumn’s election. As the single most powerful individual in the EU27, she is the most crucial person in determining future relations between the UK and the EU. Indeed, to some extent, it was her intransigence during Cameron’s ‘renegotiation’ which precipitated Brexit itself. She also needs to watch with care growing irritation across the EU at the (perceived) extent of German influence and control over the institutions and direction of the European project. Recent reports in the Frankfurter Allgemeine Zeitung which suggested a Merkel plan for Jens Weidmann of the Bundesbank to succeed Mario Draghi at the ECB have not gone down well across southern Europe. For those critics, the hands controlling the fate of Europe are Merkel’s.

Brexit remains a crucial challenge for the EU. How the issue is handled will shape the future of the Union. Many across Europe’s capitals are worried that Brussels risks driving Britain further away than Brexit will require; they are worried lest the Channel becomes metaphorically wider and Britain turns its back on the continent. On the UK side, Theresa May has accepted the EU, and particularly Merkel’s, insistence, that there can be no cherry picking, and therefore she has committed to leaving the single market as well as the EU. May has offered a “deep and special” partnership and a comprehensive free trading arrangement. Merkel should welcome Britain’s clarity. She must work with new French President Emmanuel Macron and others to lead the EU towards a new relationship with Britain – a close partnership which protects free trade, security and the other forms of cooperation which benefit all Europeans.

Henry Newman is the director of Open Europe. He tweets @henrynewman.

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