View all newsletters
Sign up to our newsletters

Support 110 years of independent journalism.

  1. Business
  2. Economics
27 June 2013

Osborne’s new welfare measures are anything but fair

Regardless of the actual levels of need, the poor will lose out under the Chancellor's cap.

By Alison Garnham

Big or small, the Chancellor’s spending review announcements on social security were anything but fair.

Take the his most significant plan, to impose a ‘super-cap’ on the majority of working-age benefits. While Osborne has confirmed that out-of-work benefits will not be included in the cap, other key sources of support such as housing benefit, disability benefits and in-work support for those on low-incomes will all be subject to a nominal limit regardless of the actual levels of need.

So what does this mean in real-terms? If demand exceeds the (artificially capped) supply, benefits will have to be spread more thinly or eligibility restricted in other ways. Low-income families and individuals, then, will have to bear the cost of rising rents, ill-health, low pay and cuts to hours, all of which, of course, are factors beyond their control. It’s hard to see the fairness in that.

On a smaller scale, the announcement that those who lose their jobs will not be eligible for support until seven days have elapsed is mean-spirited in the extreme. While the sums may not seem huge (a couple would lose £64 a week as a result), this move can only cause more hardship in already hard times. How the new rule will work once Universal Credit (UC) is introduced is unclear: will claimants be able to access any of their UC award for the first seven days once all their benefits are rolled up into one? Denying claimants all sources of support in such a situation hardly seems fair either.

Look to the Treasury’s distributional analysis and the real story of the spending review is exposed. While the Chancellor made much of the fact that “those with the broadest shoulders are bearing the greatest burden”, the government’s charts (2.D and 2.E) show that those with the slimmest are being made to carry an almost equal amount of the pain. Fairness, then, is clearly very much in the eye of the beholder…

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team.
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

Content from our partners
How to tackle the UK's plastic pollution problem – with Coca-Cola
The hard truth about soft skills
Why we need a national employment service

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team.
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU