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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There's nothing Luddite about banning zero-hours contracts

The TUC general secretary responds to the Taylor Review. 

Unions have been criticised over the past week for our lukewarm response to the Taylor Review. According to the report’s author we were wrong to expect “quick fixes”, when “gradual change” is the order of the day. “Why aren’t you celebrating the new ‘flexibility’ the gig economy has unleashed?” others have complained.

Our response to these arguments is clear. Unions are not Luddites, and we recognise that the world of work is changing. But to understand these changes, we need to recognise that we’ve seen shifts in the balance of power in the workplace that go well beyond the replacement of a paper schedule with an app.

Years of attacks on trade unions have reduced workers’ bargaining power. This is key to understanding today’s world of work. Economic theory says that the near full employment rates should enable workers to ask for higher pay – but we’re still in the middle of the longest pay squeeze for 150 years.

And while fears of mass unemployment didn’t materialise after the economic crisis, we saw working people increasingly forced to accept jobs with less security, be it zero-hours contracts, agency work, or low-paid self-employment.

The key test for us is not whether new laws respond to new technology. It’s whether they harness it to make the world of work better, and give working people the confidence they need to negotiate better rights.

Don’t get me wrong. Matthew Taylor’s review is not without merit. We support his call for the abolishment of the Swedish Derogation – a loophole that has allowed employers to get away with paying agency workers less, even when they are doing the same job as their permanent colleagues.

Guaranteeing all workers the right to sick pay would make a real difference, as would asking employers to pay a higher rate for non-contracted hours. Payment for when shifts are cancelled at the last minute, as is now increasingly the case in the United States, was a key ask in our submission to the review.

But where the report falls short is not taking power seriously. 

The proposed new "dependent contractor status" carries real risks of downgrading people’s ability to receive a fair day’s pay for a fair day’s work. Here new technology isn’t creating new risks – it’s exacerbating old ones that we have fought to eradicate.

It’s no surprise that we are nervous about the return of "piece rates" or payment for tasks completed, rather than hours worked. Our experience of these has been in sectors like contract cleaning and hotels, where they’re used to set unreasonable targets, and drive down pay. Forgive us for being sceptical about Uber’s record of following the letter of the law.

Taylor’s proposals on zero-hours contracts also miss the point. Those on zero hours contracts – working in low paid sectors like hospitality, caring, and retail - are dependent on their boss for the hours they need to pay their bills. A "right to request" guaranteed hours from an exploitative boss is no right at all for many workers. Those in insecure jobs are in constant fear of having their hours cut if they speak up at work. Will the "right to request" really change this?

Tilting the balance of power back towards workers is what the trade union movement exists for. But it’s also vital to delivering the better productivity and growth Britain so sorely needs.

There is plenty of evidence from across the UK and the wider world that workplaces with good terms and conditions, pay and worker voice are more productive. That’s why the OECD (hardly a left-wing mouth piece) has called for a new debate about how collective bargaining can deliver more equality, more inclusion and better jobs all round.

We know as a union movement that we have to up our game. And part of that thinking must include how trade unions can take advantage of new technologies to organise workers.

We are ready for this challenge. Our role isn’t to stop changes in technology. It’s to make sure technology is used to make working people’s lives better, and to make sure any gains are fairly shared.

Frances O'Grady is the General Secretary of the TUC.