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.

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What type of Brexit did we vote for? 150,000 Conservative members will decide

As Michael Gove launches his leadership bid, what Leave looks like will be decided by Conservative activists.

Why did 17 million people vote to the leave the European Union, and what did they want? That’s the question that will shape the direction of British politics and economics for the next half-century, perhaps longer.

Vote Leave triumphed in part because they fought a campaign that combined ruthless precision about what the European Union would do – the illusory £350m a week that could be clawed back with a Brexit vote, the imagined 75 million Turks who would rock up to Britain in the days after a Remain vote – with calculated ambiguity about what exit would look like.

Now that ambiguity will be clarified – by just 150,000 people.

 That’s part of why the initial Brexit losses on the stock market have been clawed back – there is still some expectation that we may end up with a more diluted version of a Leave vote than the version offered by Vote Leave. Within the Treasury, the expectation is that the initial “Brexit shock” has been pushed back until the last quarter of the year, when the election of a new Conservative leader will give markets an idea of what to expect.  

Michael Gove, who kicked off his surprise bid today, is running as the “full-fat” version offered by Vote Leave: exit from not just the European Union but from the single market, a cash bounty for Britain’s public services, more investment in science and education. Make Britain great again!

Although my reading of the Conservative parliamentary party is that Gove’s chances of getting to the top two are receding, with Andrea Leadsom the likely beneficiary. She, too, will offer something close to the unadulterated version of exit that Gove is running on. That is the version that is making officials in Whitehall and the Bank of England most nervous, as they expect it means exit on World Trade Organisation terms, followed by lengthy and severe recession.

Elsewhere, both Stephen Crabb and Theresa May, who supported a Remain vote, have kicked off their campaigns with a promise that “Brexit means Brexit” in the words of May, while Crabb has conceded that, in his view, the Leave vote means that Britain will have to take more control of its borders as part of any exit deal. May has made retaining Britain’s single market access a priority, Crabb has not.

On the Labour side, John McDonnell has set out his red lines in a Brexit negotiation, and again remaining in the single market is a red line, alongside access to the European Investment Bank, and the maintenance of “social Europe”. But he, too, has stated that Brexit means the “end of free movement”.

My reading – and indeed the reading within McDonnell’s circle – is that it is the loyalists who are likely to emerge victorious in Labour’s power struggle, although it could yet be under a different leader. (Serious figures in that camp are thinking about whether Clive Lewis might be the solution to the party’s woes.) Even if they don’t, the rebels’ alternate is likely either to be drawn from the party’s Brownite tendency or to have that faction acting as its guarantors, making an end to free movement a near-certainty on the Labour side.

Why does that matter? Well, the emerging consensus on Whitehall is that, provided you were willing to sacrifice the bulk of Britain’s financial services to Frankfurt and Paris, there is a deal to be struck in which Britain remains subject to only three of the four freedoms – free movement of goods, services, capital and people – but retains access to the single market. 

That means that what Brexit actually looks like remains a matter of conjecture, a subject of considerable consternation for British officials. For staff at the Bank of England,  who have to make a judgement call in their August inflation report as to what the impact of an out vote will be. The Office of Budget Responsibility expects that it will be heavily led by the Bank. Britain's short-term economic future will be driven not by elected politicians but by polls of the Conservative membership. A tense few months await. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.