Work and pensions secretary Iain Duncan Smith. Photo: Getty
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The Tories are set to breach their own welfare spending cap – here’s why

Despite all the distress and financial hardship caused by a malfunctioning assessment process, spending on the government’s main sickness and disability benefit is set to rise.

The BBC are reporting that spending on Employment and Support Allowance (ESA) – the benefit for those who are unable to work as a result of a health condition or disability – is rising to the extent that the work and pensions Secretary Iain Duncan Smith could breach his own self-imposed welfare spending cap.

ESA was a response to the sharp rise in the numbers claiming its predecessor – Incapacity Benefit – under Thatcher and Major in the 1980s and 1990s. Unfortunately controversy has dogged it since its introduction in 2008. The test to determine entitlement – the Work Capability Assessment (WCA) – has produced thousands of incorrect decisions, with at least 15 per cent of those declared “fit for work” having this overturned on appeal.

Although the Tories knew about these issues when they came to power, they actually increased the number of assessments – moving beyond just looking at new claimants (as Labour had done) to the reassessment of the 2.2 million existing Incapacity Benefit claimants.

And yet the internal memo seen by the BBC today predicts that the cost of ESA will rise by nearly £13bn between the current financial year and 2018-19.

This could reflect a trend that I first identified in a House of Commons debate in April. I noted that although the total number of ESA/Incapacity Benefit claimants was set to fall by 150,000 between 2011 and this year, figures that isolate the impact of the Incapacity Benefit reassessment reveal that between the start of the process and March last year, 235,000 claimants had been reassessed as “fit for work”.

So over a shorter time period, 235,000 people were kicked off benefits, and yet the overall reduction in claimants was only 150,000. Clearly something was and is awry. What?

The leaked document suggests that the severity of ESA claimants’ illnesses and disabilities had been underestimated and noted that a new contract for the face-to-face part of WCAs could cost three times as much as the £100m per year currently paid to the much-criticised French IT firm Atos.

However I would argue that another key factor is the failure of the government’s Work Programme, where contractors are paid to support people into jobs. Figures from March 2014 show that between June 2011 and December 2013, only 2,500 of the 24,620 former Incapacity Benefit claimants declared fit for work and on the Work Programme had found a job. Perhaps unsurprisingly, those left behind will simply reapply for ESA for a second time round.

This demonstrates that despite the excessive severity of the test and all the distress and financial hardship this has caused claimants, the government’s attempt to reduce the numbers on benefits and control spending will have fallen well short.

If Labour win power in 2015 we have committed to overhauls of both the test and the support given to people to find work – both of which, as today’s reports demonstrate, are clearly needed.

Sheila Gilmore is MP for Edinburgh East and a member of the Work and Pensions Select Committee. She keeps a record of her work and research on ESA on her website.

Sheila Gilmore is Labour MP for Edinburgh East

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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.