The benefit cap isn't working for the poor, but that was never the aim

The cap is less a serious act of policy than a political weapon designed to trap Labour on the wrong side of the argument and to demonise the unemployed.

Whichever Conservative first came up with the line that "no out-of-work family should receive more in benefits than the average family receives from going out to work" probably deserves some sort of prize. The policy to which it refers - the benefit cap of £26,000 (£500 a week) - has been framed so as to make reasonable disagreement appears impossible. Who can argue that it should pay more to be on welfare than in work? (Although the cap takes no account of the in-work benefits claimed by families.) It’s unsurprising, then, that the measure is the coalition’s most popular. A YouGov poll published earlier this year found that 79% of people, including 71% of Labour voters, support the cap, with just 12% opposed. But while politically astute, the cap, which was introduced nationally in July, is perhaps the most flawed of all the government's policies.

A study of its effects in Haringey, one of the boroughs where it was piloted from April, offers new evidence of why. While the cap is saving the council £60,000 a week after 747 households had their benefits reduced, it is costing nearly as much to manage. The council is currently spending £55,000 a week on Discretionary Housing Payments to help claimants meet their rent and thousands more on additional welfare and employment support. None of this should be surprising. As a leaked letter from Eric Pickles's office to David Cameron warned in 2011, the measure "does not take account of the additional costs to local authorities (through homelessness and temporary accommodation). In fact we think it is likely that the policy as it stands will generate a net cost. In addition Local Authorities will have to calculate and administer reduced Housing Benefit to keep within the cap and this will mean both demands on resource and difficult handling locally."

At the same time, there is little evidence that the cap is achieving its stated aim of moving claimants into work (principally because few choose to live "a life on benefits"). Just 74 of the 740 households affected have found work, a number no greater than one would expect without the cap given the regular churn of claimants. In many cases, the lack of affordable childcare continues to represent a barrier to employment. Indeed, by requiring councils to relocate families hundreds of miles away, the cap actually reduces work opportunities by forcing them to live in an area where they have no employment history. 

But to judge the cap on these terms is to misunderstand the government's motives. The cap is less a serious act of policy than a political weapon designed to trap Labour ("the welfare party") on the wrong side of the argument and to perpetuate the belief that the unemployed are to blame for their own misfortune. On this basis, lamentably, it is working just as intended. 

Iain Duncan Smith speaks at the Conservative conference in Manchester earlier this month. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Our union backed Brexit, but that doesn't mean scrapping freedom of movement

We can only improve the lives of our members, like those planning stike action at McDonalds, through solidarity.

The campaign to defend and extend free movement – highlighted by the launch of the Labour Campaign for Free Movement this month – is being seen in some circles as a back door strategy to re-run the EU referendum. If that was truly the case, then I don't think Unions like mine (the BFAWU) would be involved, especially as we campaigned to leave the EU ourselves.

In stark contrast to the rhetoric used by many sections of the Leave campaign, our argument wasn’t driven by fear and paranoia about migrant workers. A good number of the BFAWU’s membership is made up of workers not just from the EU, but from all corners of the world. They make a positive contribution to the industry that we represent. These people make a far larger and important contribution to our society and our communities than the wealthy Brexiteers, who sought to do nothing other than de-humanise them, cheered along by a rabid, right-wing press. 

Those who are calling for end to freedom of movement fail to realise that it’s people, rather than land and borders that makes the world we live in. Division works only in the interest of those that want to hold power, control, influence and wealth. Unfortunately, despite a rich history in terms of where division leads us, a good chunk of the UK population still falls for it. We believe that those who live and work here or in other countries should have their skills recognised and enjoy the same rights as those born in that country, including the democratic right to vote. 

Workers born outside of the UK contribute more than £328 million to the UK economy every day. Our NHS depends on their labour in order to keep it running; the leisure and hospitality industries depend on them in order to function; the food industry (including farming to a degree) is often propped up by their work.

The real architects of our misery and hardship reside in Westminster. It is they who introduced legislation designed to allow bosses to act with impunity and pay poverty wages. The only way we can really improve our lives is not as some would have you believe, by blaming other poor workers from other countries, it is through standing together in solidarity. By organising and combining that we become stronger as our fabulous members are showing through their decision to ballot for strike action in McDonalds.

Our members in McDonalds are both born in the UK and outside the UK, and where the bosses have separated groups of workers by pitting certain nationalities against each other, the workers organised have stood together and fought to win change for all, even organising themed social events to welcome each other in the face of the bosses ‘attempts to create divisions in the workplace.

Our union has held the long term view that we should have a planned economy with an ability to own and control the means of production. Our members saw the EU as a gravy train, working in the interests of wealthy elites and industrial scale tax avoidance. They felt that leaving the EU would give the UK the best opportunity to renationalise our key industries and begin a programme of manufacturing on a scale that would allow us to be self-sufficient and independent while enjoying solid trading relationships with other countries. Obviously, a key component in terms of facilitating this is continued freedom of movement.

Many of our members come from communities that voted to leave the EU. They are a reflection of real life that the movers and shakers in both the Leave and Remain campaigns took for granted. We weren’t surprised by the outcome of the EU referendum; after decades of politicians heaping blame on the EU for everything from the shape of fruit to personal hardship, what else could we possibly expect? However, we cannot allow migrant labour to remain as a political football to give succour to the prejudices of the uninformed. Given the same rights and freedoms as UK citizens, foreign workers have the ability to ensure that the UK actually makes a success of Brexit, one that benefits the many, rather than the few.

Ian Hodon is President of the Bakers and Allied Food Workers Union and founding signatory of the Labour Campaign for Free Movement.