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.

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR