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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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.