Conflating all social security spending as "welfare" is not transparent. Photo: Getty
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Osborne's personal tax summaries are not transparent: they don't break down welfare spending

Why the Chancellor's personal tax summaries are the wrong type of transparency.

At CPAG, we slept on yesterday’s news of George Osborne’s personal tax summaries. This morning, we awoke to find we’re still pretty annoyed. This blog is an attempt to figure out why, exactly.

Now, we’re not against transparency in politics. Indeed, like most people, we’re also partial to motherhood and apple pie. Yet, scratch the surface, and it’s clear that the government have chosen very carefully what information they’re using, and how they’re presenting it. And selective transparency isn’t really transparency at all.

How that information is presented has been critiqued in a number of places. At the top of the government-produced mock-ups of the summaries sits a monolithic block, "welfare" – a term that, unlike social security or social protection, has no commonly-accepted meaning. Others have raised serious concerns about how spending is allocated to that block, and thus the total calculated. Putting that aside, however, it is hard to see this outside the prism of mooted further cuts to "welfare". Why else conflate spending as diverse as unemployment benefit, in-work tax credits, disability living allowance, and pension credit? With the public already confused as to what proportion of the "welfare" bill goes on these conceptually very different things, is transparency served best by dispelling those misconceptions, or by playing into them?

In reality, our social security system is doing a wide range of things at the same time. Support for pensioners is by far the biggest slice of the pie (state pensions, but also pensioner benefits like pension credit), with the continuing falls in pensioner poverty one of the great public policy success stories of our day; housing benefit comes in next – with the proportion of in-work claims increasing rapidly. Other major spends include disability benefits, child benefit and tax credits, in-work tax credits, and a small slither (around 3 per cent) on jobseeker’s allowance. As a society, we’re spending money to support people with extra costs (of disability, or of having children), those with reduced capacity to earn (disabled people, pensioners, parents), topping up low wages, and subsidising high housing costs. By all means, let’s have a debate about the relative priorities of these functions. But rather than shedding light, these summaries are casting shadows.

The personal summaries are selective, too, looking only at direct personal taxation. Direct tax accounts for less than half of all government revenue, with the long-term reduction in that proportion accelerated by increases in both the personal tax allowance and VAT in this Parliament. This matters because increasing numbers of people are earning too little to pay much if any direct tax. In reality, though, those on low incomes pay a higher proportion of their income in tax than those on high incomes, but do so mostly through indirect taxes. That, in turn, matters because statements focusing just on direct taxes promote a false picture of relative contributions to the Exchequer.

Increasing understanding of how public money is spent is a laudable aim, and we would welcome informed public debate on what our social security is for, and how it can be directed most effectively towards those ends. A well-functioning, well-resourced social security system is an essential pillar in achieving a poverty-free society. Part of transparency around the costs of social security has to include the £29bn annual cost of child poverty alone. Sadly, the selectiveness and partiality of the new personal tax summaries are such that they risk having, if anything, the opposite effect. Not so much transparent, then, as transparently political.

Moussa Haddad is senior policy and research officer at the Child Poverty Action Group

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Copeland must be Labour's final warning

Unison's general secretary says Jeremy Corbyn is a friend - but must also take responsibility for turning the party's prospects around. 

No one objective could argue that last night’s by-election results were good for Labour.

Whilst it was undoubtedly pleasing to see serial fibber Paul Nuttall and his Trumpian politics put in their place in Stoke, this was never a seat where the result should have been in doubt. 

But to lose Copeland – held by Labour for 83 years – to a party that has inflicted seven years of painful spending cuts on our country, and is damaging the NHS, is disastrous.

Last autumn, I said that Labour had never been farther from government in my lifetime. Five months on the party hasn’t moved an inch closer to Downing Street.

These results do not imply a party headed for victory. Copeland is indicative of a party sliding towards irrelevance. Worse still, Labour faces an irrelevance felt most keenly by those it was founded to represent.

There will be those who seek to place sole blame for this calamity at the door of Jeremy Corbyn. They would be wrong to do so. 

The problems that Labour has in working-class communities across the country did not start with Corbyn’s leadership. They have existed for decades, with successive governments failing to support them or even hear their calls for change. Now these communities are increasingly finding outlets for their understandable discontent.

During the 2015 election, I knocked on doors on a large council estate in Edmonton – similar to the one I grew up on. Most people were surprised to see us. The last time they’d seen Labour canvassers was back in 1997. Perhaps less surprisingly, the most common response was why would any of them bother voting Labour.

As a party we have forgotten our roots, and have arrogantly assumed that our core support would stay loyal because it has nowhere else to go. The party is now paying the price for that complacency. It can no longer ignore what it’s being told on the doorstep, in workplaces, at ballot boxes and in opinion polls.

Unison backed Corbyn in two successive leadership elections because our members believed – and I believe – he can offer a meaningful and positive change in our politics, challenging the austerity that has ravaged our public services. He is a friend of mine, and a friend of our union. He has our support, because his agenda is our agenda.

Yet friendship and support should never stand in the way of candour. True friends don’t let friends lose lifelong Labour seats and pretend everything is OK. Corbyn is the leader of the Labour party, so while he should not be held solely responsible for Labour’s downturn, he must now take responsibility for turning things around.

That means working with the best talents from across the party to rebuild Labour in our communities and in Parliament. That means striving for real unity – not just the absence of open dissent. That means less debate about rule changes and more action on real changes in our economy and our society.

Our public servants and public services need an end to spending cuts, a change that can only be delivered by a Labour government. 

For too many in the Labour party the aim is to win the debate and seize the perceived moral high ground – none of which appears to be winning the party public support. 

But elections aren’t won by telling people they’re ignorant, muddle-headed or naive. Those at the sharp end – in particular the millions of public service employees losing their jobs or facing repeated real-terms pay cuts – cannot afford for the party to be so aloof.

Because if you’re a homecare worker earning less than the minimum wage with no respite in sight, you need an end to austerity and a Labour government.

If you’re a nurse working in a hospital that’s constantly trying to do more with less, you need an end to austerity and a Labour government.

And if you’re a teaching assistant, social worker or local government administrator you desperately need an end to austerity, and an end to this divisive government.

That can only happen through a Labour party that’s winning elections. That has always been the position of the union movement, and the Labour party as its parliamentary wing. 

While there are many ways in which we can change society and our communities for the better, the only way to make lasting change is to win elections, and seize power for working people.

That is, and must always be, the Labour party’s cause. Let Copeland be our final warning, not the latest signpost on the road to decline.

Dave Prentis is Unison's general secretary.