The growth of food banks shows why there must be no welfare cap

Cuts to benefits have pushed thousands of families to the edge. Welfare needs to be paid on the basis of need, not within some artificial limit.

Food bank use in south east England, the region known for its wealth and relative prosperity, is up over 60% this year and thousands of families face the prospect of relying on emergency food handouts this Christmas. A decade ago, food banks were almost unheard of in this area but there are now 59 across the region.

We know this thanks to a report from Green MEP Keith Taylor, who’s released Hungry Christmas, a report into the spread of food banks in his region. The report is published ahead of a debate on food banks in Parliament on Thursday, which came after the public demonstrated its understanding of the issue, with more than 100,000 people signing a petition on the subject within four days, possibly a record for the official government site. A group of public health experts have concluded that the rate of food poverty in Britain should be classed as a medical emergency.

At this year’s Green Party conference we heard from the brilliant Jack Monroe, known for the blog A Girl Called Jack; her story is not unusual. She went from a well-paying job working for the Fire Brigade to being a mother living on benefits that didn’t cover the bills. She had tried and tried to balance work and childcare but was stymied at every turn. Jack’s story hasd a happy ending. Not everyone’s does. Few can expect that – what stretches ahead of them are years and, unless our economy is transformed, decades of endless, grinding struggle for the basics of life.

As today’s report highlights, three new food banks are set up every week to help meet demand. Cuts to benefits such as housing benefit, child benefit and council tax benefit have pushed people to the edge. Increasing use of unreasonable sanctions that leave already desperate households with no income at all, force them to turn to charity. But the rise of food banks is not just a result of government’s welfare policies – although a report for Defra, delivered in early summer and mysteriously not seen since – probably shows how welfare cuts are a critical part of the process, and that’s certainly what Keith’s report demonstrates for this one region.

Low pay is, however, the other side of the story. Eighty seven per cent of people on benefits are in work – and many of those are the one in five workers on less than the living wage. That’s more than five million workers – the staff who serve you in shops, the school dinner ladies, the road sweepers and parking attendants you see every day – who can work a full-time week yet not earn enough money to live on. Then there’s the victims of fast-spreading zero-hours contracts. They’re employed, but they can get to the end of the week without any income, or with only a fraction of what they need to pay the rent, buy food, pay for heating and travel.

For despite the Chancellor’s gleeful posturing in this year’s Autumn Statement, the claim of "economic recovery" is not recognisable to most people. Wages are not in line with inflation, energy and transport costs are spiralling, and many people are in the "heat or eat" dilemma, a problem set to worsen due to this government’s disastrous lack of policies to ensure warm, comfortable, affordable-to-heat homes for all and its failure to invest in public transport and ensure its affordability.

So what is to be done: initially, the government should abandon its plan for a welfare cap – as should the Labour Party. Welfare needs to be paid on the basis of need, not within some artificial limit. It should stop pressuring Job Centre staff to sanction benefit recipients. And it should abolish the illogical, unfair bedroom tax, and ensure councils aren’t pushed to force low-income households that can’t afford it to pay council tax.

And it should make the minimum wage a living wage. Labour is saying it is going to ask employers to pay a living wage and offer tax breaks for doing so. I say we should ensure that everyone who works full-time earns enough money for a basic decent existence – the living wage.

A living wage is a salary people can live on, feed themselves and their children on. It would give people back some control over their lives and the ability to plan for the future rather than live a hand to mouth existence. Now that really would be a Merry Christmas from George Osborne.

A volunteer carries a basket of donated jam at the headquarters of the Trussell Trust Foodbank Organisation in Salisbury. Photograph: Getty Images.

Natalie Bennett is the leader of the Green Party of England and Wales and a former editor of Guardian Weekly.

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By refusing to stand down, Jeremy Corbyn has betrayed the British working classes

The most successful Labour politicians of the last decades brought to politics not only a burning desire to improve the lot of the working classes but also an understanding of how free market economies work.

Jeremy Corbyn has defended his refusal to resign the leadership of the Labour Party on the grounds that to do so would be betraying all his supporters in the country at large. But by staying on as leader of the party and hence dooming it to heavy defeat in the next general election he would be betraying the interests of the working classes this country. More years of Tory rule means more years of austerity, further cuts in public services, and perpetuation of the gross inequality of incomes. The former Chief Secretary to the Treasury, Seema Malhotra, made the same point when she told Newsnight that “We have an unelectable leader, and if we lose elections then the price of our failure is paid by the working people of this country and their families who do not have a government to stand up for them.”

Of course, in different ways, many leading figures in the Labour movement, particularly in the trade unions, have betrayed the interests of the working classes for several decades. For example, in contrast with their union counterparts in the Scandinavian countries who pressurised governments to help move workers out of declining industries into expanding sectors of the economy, many British trade union leaders adopted the opposite policy. More generally, the trade unions have played a big part in the election of Labour party leaders, like Corbyn, who were unlikely to win a parliamentary election, thereby perpetuating the rule of Tory governments dedicated to promoting the interests of the richer sections of society.

And worse still, even in opposition Corbyn failed to protect the interests of the working classes. He did this by his abysmal failure to understand the significance of Tory economic policies. For example, when the Chancellor of the Exchequer had finished presenting the last budget, in which taxes were reduced for the rich at the expense of public services that benefit everybody, especially the poor, the best John McConnell could do – presumably in agreement with Corbyn – was to stand up and mock the Chancellor for having failed to fulfill his party’s old promise to balance the budget by this year! Obviously neither he nor Corbyn understood that had the government done so the effects on working class standards of living would have been even worse. Neither of them seems to have learnt that the object of fiscal policy is to balance the economy, not the budget.

Instead, they have gone along with Tory myth about the importance of not leaving future generations with the burden of debt. They have never asked “To whom would future generations owe this debt?” To their dead ancestors? To Martians? When Cameron and his accomplices banged on about how important it was to cut public expenditures because the average household in Britain owed about £3,000, they never pointed out that this meant that the average household in Britain was a creditor to the tune of about the same amount (after allowing for net overseas lending). Instead they went along with all this balanced budget nonsense. They did not understand that balancing the budget was just the excuse needed to justify the prime objective of the Tory Party, namely to reduce public expenditures in order to be able to reduce taxes on the rich. For Corbyn and his allies to go along with an overriding objective of balancing the budget is breathtaking economic illiteracy. And the working classes have paid the price.

One left-wing member of the panel on Question Time last week complained that the interests of the working classes were ignored by “the elite”. But it is members of the elite who have been most successful in promoting the interests of the working classes. The most successful pro-working class governments since the war have all been led mainly by politicians who would be castigated for being part of the elite, such as Clement Atlee, Harold Wilson, Tony Crosland, Barbara Castle, Richard Crossman, Roy Jenkins, Denis Healey, Tony Blair, and many others too numerous to list. They brought to politics not only a burning desire to improve the lot of the working classes (from which some of them, like me, had emerged) and reduce inequality in society but also an understanding of how free market economies work and how to deal with its deficiencies. This happens to be more effective than ignorant rhetoric that can only stroke the egos and satisfy the vanity of demagogues

People of stature like those I have singled out above seem to be much more rare in politics these days. But there is surely no need to go to other extreme and persist with leaders like Jeremy Corbyn, a certain election loser, however pure his motives and principled his ambitions.

Wilfred Beckerman is an Emeritus Fellow of Balliol College, Oxford, and was, for several years in the 1970s, the economics correspondent for the New Statesman