Duncan Smith blames Conservative HQ for statistics abuse

Work and Pensions Secretary says incapacity benefit story was "nothing to do with the department" and adds: "I've tried to get my colleagues at Central Office to check first".

After months of trying, MPs on the work and pensions select committee finally had a chance to question Iain Duncan Smith on the DWP's abuse of statistics and the chaos surrounding Universal Credit today. On the former, Duncan Smith bullishly pointed out that the department had published "over 500" statistical releases and had received just two critical letters from the UK Statistics Authority. He again declared that he "believed" thousands of people had moved into work as a result of the introduction of the benefit cap, despite the UKSA warning that this was "unsupported by the official statistics".

But when he was questioned on the false statement by Conservative chairman Grant Shapps that "nearly a million people" (878,300) on incapacity benefit dropped their claims, rather than face a new medical assessment for the employment and support allowance (which resulted in another reprimand from the Statistics Authority to Duncan Smith and Shapps), he took a strikingly different line. Rather than defending the claim, he replied that it was "nothing to do with the department" and blamed CCHQ for the inaccurate "conflation of data". Speaking from what appeared to most to be a glass house, he added: "I've tried to get my colleagues at Central Office to check first before they put anything out about the areas that the DWP covers because it's complex". One was left with the image of Duncan Smith pleading with Shapps and other Tory apparatchiks not to twist statistics for the purposes of political propaganda but his own record meant he received little sympathy from the committee.

After being challenged on the DWP's demonisation of benefit claimants through its references to "a something for nothing culture", Duncan Smith similarly sought to shift the blame, noting that it was "a minister" from the last government (Liam Byrne) who first referred to "shirkers" and "workers", to which the only appropriate reply is 'two wrongs don't make a right".

On Universal Credit, which was being claimed by just 2,150 people at the end of September, 997,850 short of the original April 2014 target of one million, he defiantly declared "there is no debacle" and denounced the "bogus nonsense" that had been spoken about the scale of IT writedowns. We learned that a mere £40.1m of IT assets had been written off (lower than £140m figure cited by the public accounts committee) but what Duncan Smith didn't mention is that officials expect a further £91m to be "rapidly amortised" (written off) over the next five years.

Challenged on whether he expected his target of moving all claimants onto Universal Credit (with the exception of 700,000 claiming employment and support allowance) by 2017, he could only again reply that he "believed" it would be. But after so many delays, few MPs are now willing to accept his assurances. For now, Duncan Smith can only claim 'success' by permanently shifting the goalposts. As one of his officials put it today, "it works for a limited population at this time."

Work and Pensions Secretary Iain Duncan Smith arrives for a cabinet meeting. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Theresa May’s Brexit speech is Angela Merkel’s victory – here’s why

The Germans coined the word “merkeln to describe their Chancellor’s approach to negotiations. 

It is a measure of Britain’s weak position that Theresa May accepts Angela Merkel’s ultimatum even before the Brexit negotiations have formally started

The British Prime Minister blinked first when she presented her plan for Brexit Tuesday morning. After months of repeating the tautological mantra that “Brexit means Brexit”, she finally specified her position when she essentially proposed that Britain should leave the internal market for goods, services and people, which had been so championed by Margaret Thatcher in the 1980s. 

By accepting that the “UK will be outside” and that there can be “no half-way house”, Theresa May has essentially caved in before the negotiations have begun.

At her meeting with May in July last year, the German Chancellor stated her ultimatum that there could be no “Rosinenpickerei” – the German equivalent of cherry picking. Merkel stated that Britain was not free to choose. That is still her position.

Back then, May was still battling for access to the internal market. It is a measure of how much her position has weakened that the Prime Minister has been forced to accept that Britain will have to leave the single market.

For those who have followed Merkel in her eleven years as German Kanzlerin there is sense of déjà vu about all this.  In negotiations over the Greek debt in 2011 and in 2015, as well as in her negotiations with German banks, in the wake of the global clash in 2008, Merkel played a waiting game; she let others reveal their hands first. The Germans even coined the word "merkeln", to describe the Chancellor’s favoured approach to negotiations.

Unlike other politicians, Frau Merkel is known for her careful analysis, behind-the-scene diplomacy and her determination to pursue German interests. All these are evident in the Brexit negotiations even before they have started.

Much has been made of US President-Elect Donald Trump’s offer to do a trade deal with Britain “very quickly” (as well as bad-mouthing Merkel). In the greater scheme of things, such a deal – should it come – will amount to very little. The UK’s exports to the EU were valued at £223.3bn in 2015 – roughly five times as much as our exports to the United States. 

But more importantly, Britain’s main export is services. It constitutes 79 per cent of the economy, according to the Office of National Statistics. Without access to the single market for services, and without free movement of skilled workers, the financial sector will have a strong incentive to move to the European mainland.

This is Germany’s gain. There is a general consensus that many banks are ready to move if Britain quits the single market, and Frankfurt is an obvious destination.

In an election year, this is welcome news for Merkel. That the British Prime Minister voluntarily gives up the access to the internal market is a boon for the German Chancellor and solves several of her problems. 

May’s acceptance that Britain will not be in the single market shows that no country is able to secure a better deal outside the EU. This will deter other countries from following the UK’s example. 

Moreover, securing a deal that will make Frankfurt the financial centre in Europe will give Merkel a political boost, and will take focus away from other issues such as immigration.

Despite the rise of the far-right Alternative für Deutschland party, the largely proportional electoral system in Germany will all but guarantee that the current coalition government continues after the elections to the Bundestag in September.

Before the referendum in June last year, Brexiteers published a poster with the mildly xenophobic message "Halt ze German advance". By essentially caving in to Merkel’s demands before these have been expressly stated, Mrs May will strengthen Germany at Britain’s expense. 

Perhaps, the German word schadenfreude comes to mind?

Matthew Qvortrup is author of the book Angela Merkel: Europe’s Most Influential Leader published by Duckworth, and professor of applied political science at Coventry University.