"Benefits tourism" is largely a myth. Photo: Getty
Show Hide image

Why cracking down on "benefits tourism" won't get David Cameron very far

Central to the Prime Minister's plan to "toughen" his stance on immigration is to curb welfare to migrants. But "benefits tourism" is a myth.

We must anchor the debate in fact not prejudice.

This is what David Cameron said in his speech about immigration this morning. He also emphasised that "the great majority of those who come here from Europe come to work, work hard and pay their taxes".

However, these two points haven't stopped the Prime Minister's central policy proposal when it comes to immigration being to curb and delay benefits for EU migrants. Cameron's idea, to stop EU migrants from claiming in-work benefits, such as tax credits, and getting access to social housing for four years, is an even tougher version of Labour's proposal to delay such benefits for two years.

Both parties seem to be in a welfare-restricting arms race on immigration, because this is the only possible approach; controlling the borders by restricting freedom of movement would be impossible as long as Britain remains an EU member.

However, cracking down on "benefits tourism" won't get the PM, nor his opposition, very far. This is because the phenomenon is largely a myth.

Firstly, as Cameron himself pointed out, EU migrants come to the UK overwhelmingly to work or study. The largest number of migrants (228,000) in the year ending March 2014 came to the UK for work purposes. According to the Migration Observatory, the increase in EU migrants for work purposes is likely to be linked to employment opportunities created by the UK’s recent economic growth, which is relatively stronger than its fellow developed EU economies.

And they are successfully finding employment. According to the latest ONS figures, estimated employment of EU citizens was 17 per cent higher in April to June 2014 compared to the same period last year. The latest DWP figures from 2014 show that there are 1.73m EU nationals working in the UK, equal to 5.7 per cent of all people in work. The employment rate for EU nationals living in the UK is 79 per cent. This is according to the latest figures, from the April-June 2014 Labour Force Survey.

The UK is the only EU country to have a lower unemployment rate for migrants than nationals (7.5 per cent to 7.9 per cent respectively), suggesting a key reason for migration to the UK is to find work. It is also notable how low the number of EU migrants claiming out-of-work benefits is here: less than 5 per cent of EU migrants are claiming Jobseekers’ Allowance, while less than 10 per cent are claiming other DWP working-age benefits.

Also significant is that the UK ranks nowhere near highest in terms of total social security spending per head. It spends less than France and Germany on this per inhabitant. For example, in 2011, the UK spent €7,350.66 per inhabitant, the 15th highest of the member states, below France and Germany. And according to a 2012 European Commission report into welfare spending in EU states, the UK is not hugely "generous", as Cameron describes it. The report identifies Belgium, Denmark, Portugal, Spain, Finland and the Netherlands as “relatively generous”, comparing them to “the UK, Malta, Slovakia, Estonia, Poland and Romania” where “benefit conditions are relatively tight”.

There may be individual cases of migrants coming to the UK because they are attracted by the benefits they could receive, but this is not a significant phenomenon, and certainly doesn't amount to the hordes of visitors arriving on a jolly as the term "benefits tourism" suggests.

Focusing on restricting welfare even further won't help the Prime Minister in his ambitions to "control" immigration levels. This is because what he is trying to crack down on does not really exist. It is also an illogical approach, because EU migrants choose to come to the UK over other EU member states mainly due to our relatively healthy economy and the fact that we offer more job opportunities than our European counterparts. This means Cameron having to play down the significance of the apparent recovery of which his party is so vehemently trying to take ownership. 

Anoosh Chakelian is deputy web editor at the New Statesman.

Photo: Getty
Show Hide image

How the row over Jackie Walker triggered a full-blown war in Momentum

Jon Lansman, the organisation's founder, is coming under attack. 

The battle for control within Momentum, which has been brewing for some time, has begun in earnest.

In a sign of the growing unrest within the organisation – established as the continuation of Jeremy Corbyn’s first successful leadership bid, and instrumental in delivering in his re-election -  a critical pamphlet by the Alliance for Workers’ Liberty (AWL), a Trotskyite grouping, has made its way into the pages of the Times, with the “unelected” chiefs of Momentum slated for turning the organisation into a “bland blur”.

The issue of contention: between those who see Momentum as an organisation to engage new members of the Labour party, who have been motivated by Jeremy Corbyn but are not yet Corbynites.

One trade unionist from that tendency described what they see the problem as like this: “you have people who have joined to vote for Jeremy, they’re going to meetings, but they’re voting for the Progress candidates in selections, they’re voting for Eddie Izzard [who stood as an independent but Corbynsceptic candidate] in the NEC”.  

On the other are those who see a fightback by Labour’s right and centre as inevitable, and who are trying to actively create a party within a party for what they see as an inevitable purge. One activist of that opinion wryly described Momentum as “Noah’s Ark”.

For both sides, Momentum, now financially stable thanks to its membership, which now stands at over 20,000, is a great prize. And in the firing line for those who want to turn Momentum into a parallel line is Jon Lansman, the organisation’s founder.

Lansman, who came into politics as an aide to Tony Benn, is a figure of suspicion on parts of the broad left due to his decades-long commitment to the Labour party. His major opposition within Momentum and on its ruling executive comes from the AWL.

The removal of Jackie Walker as a vice-chair of Momentum after she said that Holocaust Memorial Day belittled victims of other genocides has boosted the AWL, although the AWL's Jill Mountford, who sits on Momentum's ruling executive, voted to remove Walker as vice-chair. (Walker remains on the NEC, as she has been elected by members). But despite that, the AWL, who have been critical of the process whereby Walker lost her post, have felt the benefit across the country.

Why? Because that battle has triggered a series of serious splits, not only in Momentum’s executive but its grassroots. A raft of local groups have thrown out the local leadership, mostly veterans of Corbyn’s campaign for the leadership, for what the friend of one defeated representative described as “people who believe the Canary [a pro-Corbyn politics website that is regularly accused of indulging and promoting conspiracy theories]”.

In a further series of reverses for the Lansmanite caucus, the North West, a Momentum stronghold since the organisation was founded just under a year ago, is slipping away from old allies of Lansman and towards the “new” left. As one insider put it, the transition is from longstanding members towards people who had been kicked out in the late 1980s and early 1990s by Neil Kinnock. The constituency party of Wallasey in particular is giving senior figures in Momentum headaches just as it is their opponents on the right of the party, with one lamenting that they have “lost control” of the group.

It now means that planned changes to Momentum’s structure, which the leadership had hoped to be rubberstamped by members, now face a fraught path to passage.

Adding to the organisation’s difficulties is the expected capture of James Schneider by the leader’s office. Schneider, who appears widely on television and radio as the public face of Momentum and is well-liked by journalists, has an offer on the table to join Jeremy Corbyn’s team at Westminster as a junior to Seumas Milne.

The move, while a coup for Corbyn, is one that Momentum – and some of Corbyn’s allies in the trade union movement – are keen to resist. Taking a job in the leader’s office would reduce still further the numbers of TV-friendly loyalists who can go on the airwaves and defend the leadership. There is frustration among the leader’s office that as well as Diane Abbott and John McDonnell, who are both considered to be both polished media performers and loyalists, TV bookers turn to Ken Livingstone, who is retired and unreliable, and Paul Mason, about whom opinions are divided within Momentum. Some regard Mason as a box office performer who needs a bigger role, others as a liability.

But all are agreed that Schneider’s expected departure will weaken the media presence of Corbyn loyalists and also damage Momentum. Schneider has spent much of his time not wrangling journalists but mediating in local branches and is regarded as instrumental in the places “where Momentum is working well” in the words of one trade unionist. (Cornwall is regarded as a particular example of what the organisation should be aiming towards)

It comes at a time when Momentum’s leadership is keen to focus both on its external campaigns but the struggle for control in the Labour party. Although Corbyn has never been stronger within the party, no Corbynite candidate has yet prevailed in a by-election, with the lack of available candidates at a council level regarded as part of the problem. Councilors face mandatory reselection as a matter of course, and the hope is that a bumper crop of pro-Corbyn local politicians will go on to form the bulk of the talent pool for vacant seats in future by-elections and in marginal seats at the general election.

But at present, a draining internal battle is sapping Momentum of much of its vitality. But Lansman retains two trump cards. The first is that as well as being the founder of the organisation, he is its de facto owner: the data from Jeremy Corbyn’s leadership campaigns, without which much of the organisation could not properly run, is owned by a limited company of which he is sole director. But “rolling it up and starting again” is very much the nuclear option, that would further delay the left’s hopes of consolidating its power base in the party.

The second trump card, however, is the tribalism of many of the key players at a local level, who will resist infiltration by groups to Labour’s left just as fiercely as many on the right. As one veteran of both Corbyn’s campaigns reflected: “If those who have spent 20 years attacking our party think they have waiting allies in the left of Labour, they are woefully mistaken”. 

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