The coalition's Dickensian welfare cuts are terrorising the poor

Ministers either don't know about the devastating impact of their policies in areas like Neath or just don’t care.

If Britain’s working poor can be cast as so many Oliver Twists condemned to the workhouse, then this government is surely Mr Bumble, looking aghast at a starving child and exclaiming "more? You want more?"

It’s a sad fact of life in 2013 that ministers either don't know about the devastating impact of their welfare cuts or just don’t care. Many of my Neath constituents are, in the stark words of one, feeling "terrorised". The impact can indeed be terrifying in communities in south Wales, which for historical reasons have lower wages than average, higher unemployment, more industrial injuries, more disability and therefore more benefit claimants.  

Far from conquering poverty and making it pay to work, as ministers cosseted away in the Westminster bubble constantly profess, their policies are having the reverse effect. Since Parliament returned after the new year, every week has seen yet more bad news for those who live with a Sword of Damocles hanging over them.  Ironically, these reforms are hitting those in work and on low pay the hardest, including 6,200 people in Neath who rely on benefits to top up their meagre incomes, but are now having their tax credits removed. 

Government suggestions that they shore up their income by taking on more hours simply ignore local reality. Many part-time workers will be competing with the thousands more that are unemployed in the Neath labour market, where as many as six people have been chasing every vacancy.

Under-employment is also a growing trend.  In 2005-2008 (pre-recession) there were, on average, 86,000 underemployed workers in Wales, a fairly average underemployment rate of 6.5 per cent of the working age population. But in the last three years, 2009-2012, there were an average of 134,000 underemployed workers in Wales, an underemployment rate of 10.3 per cent  – nearly half as much again as the standard rate – an increase of 48,000. That’s one in ten Welsh workers being thwarted from working as much as they wish – often thwarted from bringing themselves above the benefits threshold. There simply are no extra hours in the south Wales economy for people to work the fuller week they want to.

Furthermore, how are they supposed to compete in an already saturated labour market against hundreds of youngsters between the ages of 16 and 24 who every week are demoralised by being rejected as both "over qualified and under experienced"?

As for the carers, who must balance work with other duties, when will these extra hours fit into already unmanageable timetables? Being in work should always be preferable to relying on welfare, but this will only be the case if the government helps to create jobs and guarantees a living wage across the public and private sectors. As long as full-time work is so badly paid that it falls beneath certain welfare thresholds the case for removing those benefits cannot be made in good faith.

An impact study undertaken by Sheffield University shows Neath to be one of the worst affected constituencies. An old industrial area dominated in the past by coal and steel, we have a legacy of incapacity – one of the highest counts in the country with around 6,000 people in receipt of incapacity benefits. When she shut coal mines and heavy industries in the 1980s, Margaret Thatcher dumped many on to what was then termed 'invalidity benefit' to conceal the true level of unemployment: most never worked again.

Official estimates suggest that over a third of them will now be assessed 'fit for work', stripped of their incapacity benefit and arbitrarily forced to seek jobs which either don’t exist or, if they do, are likely low-paid, part time, temporary – or a combination of all three. They face a future of stigmatisation by local Job Centre workers forced to administer oppressive regulations and procedures designed solely to cut the welfare bill, not to increase job opportunities.

People with serious health problems, including cerebral palsy, hemiplegia and a speech impediment have previously worked in sheltered employment in the local Remploy factory.  But it is now being closed. One constituent taking over twenty tablets a day, and in and out of hospital, was found fit for work: hard working people are being made to feel tawdry and ashamed by the government.

Now being added to this chaotic and upsetting process is the payment of housing benefit to tenants rather than landlords, ostensibly to teach 'responsibility', but loudly denounced by addiction and mental health charities as fundamentally misunderstanding the predicament of vulnerable citizens.

Cynically parading their 'scroungers' versus 'strivers' bile – lapped up by government supporting newspapers – ministers demonstrate wilful ignorance about the realities of poverty, unemployment, lack of jobs and welfare reliance, and the highly complex causes.  Far from promoting a sense of pride and opportunity, government 'reforms' humiliate through dehumanising assessment tests performed by quota-ticking, private sector drones like ATOS.

Ministers must know that their zealous drive to cut the deficit, no matter what, will result in 500,000 disabled people being worse off under the new Universal Credit on top of big cuts to child disability payments.

Where is government compassion for the countless people who will face difficulty heating their homes or putting food on the table as well as having to go without specialist equipment and care? Far from removing obstacles on the route to employment, the government is creating huge road blocks for those with disabilities.

Do ministers also comprehend that few will be affected solely by one of these cuts? Disabled single parents stand to lose twice over. Take the new 'bedroom tax'. Disabled people will no longer have a spare room for relatives to come and stay to take care of them. One of my constituents is a carer for his severely disabled, bed-ridden wife, who hardly sleeps at night and has the TV on constantly, yet the government is to deprive him of his second bedroom, and there are no local one-bedroom homes available. Meanwhile young families won’t be able to have a relative to stay to ease soaring childcare costs, forcing people out of work and onto benefits in order to look after their young children.

In Neath we have bedroom tax cases of parents who have separated – the parent who does not have full care of the children but may have them on the weekend is not considered eligible to have a ‘spare room’, so either has to pay the extra rent or leave the child without a roof to sleep under. 

Neath is one of 69 areas in Wales where more than half of all children are living in poverty with a household income totalling less than 60 per cent of the average. These official figures are shocking enough without taking into consideration the rising cost of living with utility bills and food prices spiralling. The benefit cap will push a further 200,000 children across Britain into poverty. Material deprivation, which is a key indicator of poverty includes the inability to afford clothing or bedding, a situation that will become a reality for another 400,000 children by the end of this parliament.

Neath Foodbank has seen over 1,600 different people in 12 months – half of them working and desperate. I had to refer one young man who had suffered a breakdown because all his benefits had been stopped – and he was starving.  Meanwhile, voluntary groups’ budgets have been savaged and the once busy Citizens Advice Bureau office has been forced to shut because of the cuts. Some 'big society' this is.

Neath Port Talbot County Borough Council's excellent Welfare Rights Unit is deluged with distraught people needing help with an appeal against one arbitrary decision after another. So is my constituency advice office. 

Viewed from Neath, the prospect of returning the country to a Victorian state of dependency on a handful of charitable do-gooders is all too real; the image of the government as a cabal of Dickensian villains rings only too true. 

Work and Pensions Secretary Iain Duncan Smith speaks at last year's Conservative conference in Birmingham. Photograph: Getty Images.

Peter Hain is MP for Neath and a former Labour cabinet minister

Photo: Getty Images
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Autumn Statement 2015: How should Labour respond?

The government always gets a boost out of big setpieces. But elections are won over months not days. 

Three days in the political calendar are utterly frustrating for Her Majesty’s Loyal Opposition – the Queen’s Speech, the Budget and the Autumn Statement. No matter how unpopular the government is – and however good you are as an opposition - this day is theirs. The government will dominate the headlines. And played well they will carry the preceding with pre-briefed good news too. You just have to accept that, but without giving in or giving up.

It is a cliche that politics is a marathon not a sprint, but like most cliches that observation is founded in truth. So, how best to respond on the days you can’t win? Go to the fundamentals. And do the thing that oddly is far too little done in responses to budgets or autumn statements – follow the money.

No choices in politics are perfect - they are always trade offs. The art is in balancing compromises not abolishing them. The politics and the values are expressed in the choices that you make in prioritising. This is particularly true in budgets where resources are allocated across geographies - between towns, cities and regions, across time - short term or long term, and across the generations - between young and old. To govern is to choose. And the choices reveal. They show the kind of country the government want to create - and that should be the starting point for the opposition. What kind of Britain will we be in five, ten, fifteen years as these decisions have their ultimate, cumulative impact?

Well we know, we are already living in the early days of it. The Conservative government is creating a country in which there are wealthy pensioners living in large homes they won, while young people who are burdened with debts cannot afford to buy a home. One in which health spending is protected - albeit to a level a third below that of France or Germany – while social care, in an ageing society, is becoming residualised. One where under-regulated private landlords have to fill the gap in the rented market caused by the destruction of the social housing sector.

But description, though, is not sufficient. It is only the foundation of a critique - one that will succeed only if it describes not only the Britain the Tories are building but also the better one that Labour would deliver. Not prosaically in the form of a Labour programme, but inspirationally as the Labour promise.

All criticism of the government – big and little – has to return to this foundational narrative. It should connect everything. And it is on this story that you can anchor an effective response to George Osborne. Whatever the sparklers on the day or the details in the accompanying budgetary documentation, the trajectory is set. The government know where they are going. So do informed commentators. A smart opposition should too. The only people in the dark are the voters. They feel a pinch point here, a cut there, an unease and unfairness everywhere – but they can’t sum it up in words. That is the job of the party that wants to form a government – describing in crisp, consistent and understandable terms what is happening.

There are two traps on the day. The first is narrowcasting - telling the story that pleases you and your closest supporters. In that one the buzzwords are "privatisation" and "austerity". It is the opposite of persuasion aimed, as it is, at insiders. The second is to be dazzled by the big announcements of the day. Labour has fallen down here badly recently. It was obvious on Budget Day that a rise in the minimum wage could not compensate for £12bn of tax credit cuts. The IFS and the Resolution Foundation knew that. So did any adult who could do arithmetic and understood the distributional impact of the National Minimum Wage. It could and should have been Labour that led the charge, but frontbenchers and backbenchers alike were transfixed by the apparent appropriation of the Living Wage. A spot of cynicism always comes in handy. In politics as in life, if something seems to be too good to be true then … it is too good to be true.

The devil may be in the detail, but the error is in the principle – that can be nailed on the day. Not defeated or discredited immediately, but the seeds planted.  

And, if in doubt, take the government at their word. There is no fiercer metric against which to measure the Tories than their own rhetoric. How can the party of working people cut the incomes of those who have done the right thing? How can the party who promised to protect the health service deliver a decade of the lowest ever increases in spending? How can the party of home ownership banish young people to renting? The power in holding a government to account is one wielded forensically and eloquently for it is in the gap between rhetoric and reality that ordinary people’s lives fall.

The key fact for an opposition is that it can afford to lose the day if it is able to win the argument. That is Labour’s task.