Campaigners against the Bedroom Tax, a measure that could add to the financial burden of disabled people. Photo: Getty
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Debt and disability: the real cost of being disabled in Britain

Disabled people have seen their dignity and their budgets shredded under this government; Labour is looking to challenge this.

During the 2010 election, David Cameron proudly claimed, "the test of a good society is you look after the elderly, the frail, the vulnerable, the poorest in our society. And that test is even more important in difficult times, when difficult decisions have to be taken, than it is in better times".

Disability has always created a premium that makes making ends meet harder. Scope’s recent report Priced Out shows how disabled people pay on average £550 a month extra for everyday living costs. These come from having to buy more of everyday things, such as heating or taxis, as well as the costs of specialist items to help manage their impairment or paying more for regular goods and services, like insurance, than non-disabled people.

Yet four years on, life for disabled people in David Cameron’s Britain is harder than ever as they have been amongst the worst affected by the decisions his government have made. At the same time as he has presented millionaires with a tax cut, disabled people have seen their dignity and their budgets shredded. Whether it’s the introduction of the unfair bedroom tax, the undermining of the Equality and Human Rights Commission, or changes to legal aid funding, disabled people have borne the brunt of austerity.

Little wonder Scope’s report showed that they are also twice as likely to have unsecured debt – such as payday loans, log book loans or credit card debt – totalling more than half of their household income. Even the Government’s own research shows this group is over-represented among high cost borrowers, with 18 per cent reporting using this credit compared with 5% of non disabled people. In Cameron’s Britain, a group already vulnerable to financial pressure is being "looked after" by the legal loan sharks and doorstep lenders, not the government. Indeed, Scope found that disabled people are three times more likely to take out doorstep loans than those without.

Debts don’t just make day-to-day living harder; they also narrow your horizons, as it is impossible to plan for the future if you can’t be sure you can keep a roof above your head or feed your family. The spiral of debt many disabled people now face from loan repayments and rising household bills is compounded by the additional difficulties of finding work that can work for them. We believe every person’s contribution to society should be valued, regardless of whether or not they can work. Yet we also know that confronted with second-rate employment support, many disabled people who want to work are missing out on the chance to boost their incomes. Characterised by delays, incompetence and unacceptable levels of inaccuracy, both the work capability assessment and the work capability programme have lost the trust of disabled people.

It isn’t right that those who face the greatest barriers in society are expected to shoulder the biggest burden. That’s why, together with disability campaigners, Labour called on the government to undertake a cumulative impact assessment that will assess the full impact of austerity on disabled people. Now we must understand their debt profile too. Payday lending is recognised as so toxic to consumers that the entire industry has been referred to the Competition Commission. Yet we are only at the start of understanding just how badly particular groups within our society have been affected by the delay in tackling this industry, and the consequences for society as a result. The government must conduct urgent research to get a clear and accurate idea of the impact on disabled people, and use this to inform the developing role of the Financial Conduct Authority in protecting vulnerable customers.

A Labour government would take determined action to tackle the additional financial pressures faced by disabled people – repealing the bedroom tax, freezing energy prices and a root-and-branch reform of the Work Capability Assessment to ensure it becomes a genuine route into work for those who’re able to take up employment. We also know we will have to find creative solutions to support disabled people with the additional living costs they face, whilst maintaining our commitment to the cap on social security spending. Many of the recommendations in Scope’s report, along with the work of the independent disability and poverty taskforce that has contributed to Labour’s policy review, will be useful to us in exploring these solutions further. Cameron has failed his own test to look after the elderly, the frail, the vulnerable, the poorest in our society. Labour is determined to rise to the challenge.


Stella Creasy is Labour MP for Walthamstow and shadow minister for competition and consumer affairs; Kate Green is Labour MP for Stretford and Urmston and shadow disability minister

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Why isn't Labour putting forward Corbynite candidates?

Despite his successes as a candidate, the organisational victories have gone the way of Corbyn's opponents. 

The contest changes, but the result remains the same: Jeremy Corbyn’s preferred candidate defeated in a parliamentary selection. Afzhal Khan is Labour’s candidate in the Manchester Gorton by-election and the overwhelming favourite to be the seat’s next MP.

Although Khan, an MEP, was one of  the minority of Labour’s European MPs to dissent from a letter from the European parliamentary Labour party calling for Jeremy Corbyn to go in the summer of 2016, he backed Andy Burnham and Tom Watson in 2015, and it is widely believed, fairly or unfairly, that Khan had, as one local activist put it, “the brains to know which way the wind was blowing” rather than being a pukka Corbynite.

For the leader’s office, it was a double defeat;  their preferred candidate, Sam Wheeler, was kept off the longlist, when the party’s Corbynsceptics allied with the party’s BAME leadership to draw up an all ethnic minority shortlist, and Yasmine Dar, their back-up option, was narrowly defeated by Khan among members in Manchester Gorton.

But even when the leadership has got its preferred candidate to the contest, they have been defeated. That even happened in Copeland, where the shortlist was drawn up by Corbynites and designed to advantage Rachel Holliday, the leader’s office preferred candidate.

Why does the Labour left keep losing? Supporters combination of bad luck and bad decisions for the defeat.

In Oldham West, where Michael Meacher, a committed supporter of Jeremy Corbyn’s, was succeeded by Jim McMahon, who voted for Liz Kendall, McMahon was seen to be so far ahead that they had no credible chance of stopping him. Rosena Allin-Khan was a near-perfect candidate to hold the seat of Tooting: a doctor at the local hospital, the seat’s largest employer, with links to both the Polish and Pakistani communities that make up the seat’s biggest minority blocs.  Gillian Troughton, who won the Copeland selection, is a respected local councillor.

But the leadership has also made bad decisions, some claim.  The failure to get a candidate in Manchester Gorton was particularly egregious, as one trade unionist puts it: “We all knew that Gerald was not going to make it [until 2020], they had a local boy with good connections to the trade unions, that contest should have been theirs for the taking”. Instead, they lost control of the selection panel because Jeremy Corbyn missed an NEC meeting – the NEC is hung at present as the Corbynsceptics sacrificed their majority of one to retain the chair – and with it their best chance of taking the seat.

Others close to the leadership point out that for the first year of Corbyn’s leadership, the leader’s office was more preoccupied with the struggle for survival than it was with getting more of its people in. Decisions in by-elections were taken on the hop and often in a way that led to problems later down the line. It made sense to keep Mo Azam, from the party’s left, off the shortlist in Oldham West when Labour MPs were worried for their own seats and about the Ukip effect if Labour selected a minority candidate. But that enraged the party’s minority politicians and led directly to the all-ethnic-minority shortlist in Manchester Gorton.

They also point out that the party's councillor base, from where many candidates are drawn, is still largely Corbynsceptic, though they hope that this will change in the next round of local government selections. (Councillors must go through a reselection process at every election.)

But the biggest shift has very little to do with the Labour leadership. The big victories for the Labour left in internal battles under Ed Miliband were the result of Unite and the GMB working together. Now they are, for various reasons, at odds and the GMB has proven significantly better at working shortlists and campaigning for its members to become MPs.  That helps Corbynsceptics. “The reason why so many of the unions supported Jeremy the first time,” one senior Corbynite argues, “Is they wanted to move the Labour party a little bit to the left. They didn’t want a socialist transformation of the Labour party. And actually if you look at the people getting selected they are not Corbynites, but they are not Blairites either, and that’s what the unions wanted.”

Regardless of why, it means that, two years into Corbyn’s leadership, the Labour left finds itself smaller in parliament than it was at the beginning.  

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.