Grant Shapps rebuked by UK Statistics Authority for misrepresenting benefit figures

Yet another Conservative politician is caught making it up.

After entering office in 2010, David Cameron promised to lead "the most open and transparent government in the world", but rarely a month now passes without one of his ministers being rebuked for some act of statistical chicanery. Last December, Jeremy Hunt was ordered by the UK Statistics Authority to correct his false claim that spending on the NHS had risen in real terms "in each of the last two years", then in January, Cameron himself was rapped for stating that the coalition "was paying down Britain’s debts" (the national debt has risen from £828.7bn, or 57.1 per cent of GDP, to £1.19trn, or 75.4 per cent of GDP since May 2010) and then earlier this month, Iain Duncan Smith was rebuked for alleging that 8,000 people moved into work as a result of the introduction of the benefit cap (for which, as I recently revealed on The Staggers, he now faces a grilling from the work and pensions select committee). 

Now, Grant Shapps has joined his fellow Conservatives in the data hall of shame. In March, the Tory chairman claimed that "nearly a million people" (878,300) on incapacity benefit had dropped their claims, rather than face a new medical assessment for its successor, the employment and support allowance. The figures, he said, "demonstrate how the welfare system was broken under Labour and why our reforms are so important". The claim was faithfully reported by the Sunday Telegraph but as the UK Statistics Authority has now confirmed in its response to Labour MP Sheila Gilmore (see below), it was entirely fabricated.

In his letter to Shapps and Iain Duncan Smith, UKSA chair Andrew Dilnot writes that the figure conflated "official statistics relating to new claimants of the ESA with official statistics on recipients of the incapacity benefit (IB) who are being migrated across to the ESA". Of the 603,600 incapacity benefit claimants referred for reassessment as part of the introduction of the ESA between March 2011 and May 2012, just 19,700 (somewhat short of Shapps's "nearly a million) abandoned their claims prior to a work capability assessment in the period to May 2012. The figure of 878,300 refers to the total of new claims for the ESA closed before medical assessment from October 2008 to May 2012. Thus, Shapps's suggestion that the 878,300 were pre-existing claimants, who would rather lose their benefits than be exposed as "scroungers", was entirely wrong. 

As significantly, there is no evidence that those who abandoned their claims did so for the reasons ascribed by Shapps. Thousands of people move on and off ESA each month, many for the simple reason that their health improves and/or they return to employment before facing a work capability assessment. To suggest, as Shapps did, that all those who dropped their claims were dodging the doctor is sinister nonsense designed to reinforce the worst prejudices about the welfare system. 

Fortunately, the newly activist UK Statistics Authority appears intent on tracking Shapps and co. all of the way. Ministers may continue to prefer policy-based evidence to evidence-based policy, but they can no longer do so without consequences.

Update: Labour has now responded to the story, with shadow work and pensions secretary Liam Byrne calling on Shapps "to come clean and apologise for trying to pull the wool over people’s eyes". Here's his full statement: 

"This is a Government that doesn’t like to let the facts get in the way of a good story.

"Grant Shapps may know a thing or two about making things up but it really is outrageous that the Tories have been caught yet again misusing statistics for their own ends. People want a Government that deals with the problems facing Britain, with a plan for getting growth and jobs in our economy, not one that repeatedly misleads the public.

"Grant Shapps needs to come clean and apologise for trying to pull the wool over people’s eyes."

Conservative chairman Grant Shapps speaks at last year's Conservative conference in Birmingham. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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How should Labour's disgruntled moderates behave?

The price for loyalty looks like being long-term opposition. Sometimes exiting can be brave.

When Albert O. Hirschman was writing Exit, Voice, Loyalty: Responses to decline in Firms, Organizations, and States he wasn’t thinking of the British Labour Party.  That doesn’t mean, though, that one of the world’s seminal applications of economics to politics can’t help us clarify the options open to the 80 to 90 per cent of Labour MPs who, after another week of utter chaos, are in total despair at what’s happening under Jeremy Corbyn.

According to Hirschman, people in their situation have essentially three choices – all of which stand some chance, although there are no guarantees, of turning things around sooner or later.

The first option is simply to get the hell out: exit, after all, can send a pretty powerful, market-style signal to those at the top that things are going wrong and that something has to change.

The second option is to speak up and shout out: if the leadership’s not listening then complaining loudly might mean they get the message.

The third option is to sit tight and shut up, believing that if the boat isn’t rocked it will somehow eventually make it safely to port.

Most Labour MPs have so far plumped for the third course of action.  They’ve battened down the hatches and are waiting for the storm to pass.  In some ways, that makes sense.  For one thing, Labour’s rules and Corbyn’s famous ‘mandate’ make him difficult to dislodge, and anyone seen to move against him risks deselection by angry activists.

For another, there will be a reckoning – a general election defeat so bad that it will be difficult even for diehards to deny there’s a problem: maybe Labour has to do ‘déjà vu all over again’ and lose like it did in 1983 in order to come to its senses. The problem, however, is that this scenario could still see it stuck in opposition for at least a decade. And that’s presuming that the left hasn’t so effectively consolidated its grip on the party that it can’t get out from under.

That’s presumably why a handful of Labour MPs have gone for option two – voice.  Michael Dugher, John Woodcock, Kevan Jones, Wes Streeting and, of course, John Mann have made it pretty clear they think the whole thing’s a mess and that something – ideally Jeremy Corbyn and those around him – has to give.  They’re joined by others – most recently Stephen Kinnock, who’s talked about the party having to take ‘remedial action’ if its performance in local elections turns out to be as woeful as some are suggesting.  And then of course there are potential leadership challengers making none-too-coded keynote speeches and public appearances (both virtual and real), as well as a whole host of back and frontbenchers prepared to criticise Corbyn and those around him, but only off the record.

So far, however, we’ve seen no-one prepared to take the exit option – or at least to go the whole hog. Admittedly, some, like Emma Reynolds, Chuka Umunna, Dan Jarvis, Yvette Cooper, and Rachel Reeves, have gone halfway by pointedly refusing to serve in Corbyn’s Shadow Cabinet.  But nobody has so far declared their intention to leave politics altogether or to quit the party, either to become an independent or to try to set up something else.

The latter is easily dismissed as a pipe-dream, especially in the light of what happened when Labour moderates tried to do it with the SDP in the eighties.  But maybe it’s time to think again.  After all, in order to refuse even to contemplate it you have to believe that the pendulum will naturally swing back to Labour at a time when, all over Europe, the centre-left looks like being left behind by the march of time and when, in the UK, there seems precious little chance of a now shrunken, predominantly public-sector union movement urging the party back to the centre ground in the same way that its more powerful predecessors did back in the fifties and the late-eighties and nineties. 

Maybe it’s also worth wondering whether those Labour MPs who left for the SDP could and should have done things differently.  Instead of simply jumping ship in relatively small numbers and then staying in parliament, something much bolder and much more dramatic is needed.  What if over one hundred current Labour MPs simultaneously declared they were setting up ‘Real Labour’?  What if they simultaneously resigned from the Commons and then simultaneously fought scores of by-elections under that banner?

To many, even to ask the question is to answer it. The obstacles – political, procedural, and financial – are formidable and forbidding.  The risks are huge and the pay-off massively uncertain.  Indeed, the whole idea can be swiftly written off as a thought-experiment explicitly designed to demonstrate that nothing like it will ever come to pass.

On the other hand, Labour MPs, whether we use Hirschman’s three-way schema or not, are fast running out of options.  The price for loyalty looks like being long-term opposition.  Voice can only do so much when those you’re complaining about seem – in both senses of the word – immovable.  Exit, of course, can easily be made to seem like the coward’s way out. Sometimes, however, it really is the bravest and the best thing to do.

Tim Bale is professor of politics at QMUL. His latest book, Five Year Mission, chronicles Ed Miliband's leadership of the Labour party.