Duncan Smith to face grilling from MPs over misuse of statistics

The work and pensions select committee launches an inquiry after Duncan Smith was rebuked by the UK Statistics Authority for misrepresenting figures on the benefit cap.

With deceptively little fanfare, the work and pensions select committee has announced that it intends to question Iain Duncan Smith over his misuse of statistics. After IDS was rebuked by the UK Statistics Authority for falsely claiming that 8,000 people had moved into work as a result of the introduction of the benefit cap, the committee has "decided to examine the way DWP releases benefit statistics to the media". 

The inquiry into Duncan Smith's behaviour will be carried out as part of its annual assessment of the DWP Annual Report and Accounts (ARA), which is due to be published at the end of June. Since the Work and Pensions Secretary always appears before the committee once the assessment has been published, he is now certain to face questions over his statistical chicanery. The Change.org petition calling for Duncan Smith to be held to account by parliament has now received 96,271 signatures. Let us now hope he is.

In the past month, the Work and Pensions Secretary has claimed that 878,000 people dropped their claims for sickness benefits rather than face a new medical assessment; that thousands deliberately registered for the Disability Living Allowance before it was replaced with the more “rigorous” Personal Independence Payment; and that 8,000 people moved into work as a result of the introduction of the coalition’s benefit cap. Not one of these assertions was supported by the official statistics.

Thousands of people move on and off benefits each month as their health, housing and employment circumstances change but there is no evidence that they do so for the reasons ascribed by Duncan Smith. As his own department stated in relation to the benefit cap, “The figures for those claimants moving into work cover all of those who were identified as potentially being affected by the benefit cap who entered work. It is not intended to show the additional numbers entering work as a direct result of the contact.”

Duncan Smith’s insistence that the reverse was true was dog-whistle politics of the worst kind. By stating that 8,000 people entered employment as a direct consequence of the benefit cap, he painted them as “scroungers” unwilling to work until the state ceased to subsidise their fecklessness. As for those who had not found jobs, the implication was that they were merely not trying hard enough. 

Work and Pensions Secretary Iain Duncan Smith arrives to attend the government's weekly cabinet meeting at Number 10 Downing Street. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty
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Scotland's vast deficit remains an obstacle to independence

Though the country's financial position has improved, independence would still risk severe austerity. 

For the SNP, the annual Scottish public spending figures bring good and bad news. The good news, such as it is, is that Scotland's deficit fell by £1.3bn in 2016/17. The bad news is that it remains £13.3bn or 8.3 per cent of GDP – three times the UK figure of 2.4 per cent (£46.2bn) and vastly higher than the white paper's worst case scenario of £5.5bn. 

These figures, it's important to note, include Scotland's geographic share of North Sea oil and gas revenue. The "oil bonus" that the SNP once boasted of has withered since the collapse in commodity prices. Though revenue rose from £56m the previous year to £208m, this remains a fraction of the £8bn recorded in 2011/12. Total public sector revenue was £312 per person below the UK average, while expenditure was £1,437 higher. Though the SNP is playing down the figures as "a snapshot", the white paper unambiguously stated: "GERS [Government Expenditure and Revenue Scotland] is the authoritative publication on Scotland’s public finances". 

As before, Nicola Sturgeon has warned of the threat posed by Brexit to the Scottish economy. But the country's black hole means the risks of independence remain immense. As a new state, Scotland would be forced to pay a premium on its debt, resulting in an even greater fiscal gap. Were it to use the pound without permission, with no independent central bank and no lender of last resort, borrowing costs would rise still further. To offset a Greek-style crisis, Scotland would be forced to impose dramatic austerity. 

Sturgeon is undoubtedly right to warn of the risks of Brexit (particularly of the "hard" variety). But for a large number of Scots, this is merely cause to avoid the added turmoil of independence. Though eventual EU membership would benefit Scotland, its UK trade is worth four times as much as that with Europe. 

Of course, for a true nationalist, economics is irrelevant. Independence is a good in itself and sovereignty always trumps prosperity (a point on which Scottish nationalists align with English Brexiteers). But if Scotland is to ever depart the UK, the SNP will need to win over pragmatists, too. In that quest, Scotland's deficit remains a vast obstacle. 

George Eaton is political editor of the New Statesman.