Benefits

The new welfare consensus

The New Statesman’s George Eaton has already homed in on the key passage from James Purnell’s article in the Times (£) today, but it’s worth repeating here. According to the former welfare minister, he pitched something like Iain Duncan Smith’s Universal Credit to Gordon Brown, and the reception it received catalysed his departure from government: “Before I resigned from the Cabinet, I proposed a similar plan to Mr Brown. But he was scared that there would be losers, and his refusal to give me any answer made me think that there was no point in staying inside the Government to try to influence him.” This is of more than simple

Breaking dependency

IDS has played the party politics of welfare reform adeptly. He has built a coalition beyond the government, convinced of the need for urgency and dynamic reform. Even Labour is on side, only criticising when valid and necessary. It has not proposed a comprehensive alternative because it is protecting its record in government – sensing, correctly, that it is vulnerable to its history. Douglas Alexander rallies to New Labour’s defence in the Independent on Sunday. Labour’s record on welfare was not uniformly baleful: Purnell, Hutton and Murphy did important work, on which IDS has drawn. But Alexander overlooks some inconvenient truths. Gordon Brown’s definition of ‘poverty’ was an arbitrary line

Waiting for welfare reform

After a summer of sporadic announcements, IDS’ welfare reforms will be published in a white paper next week. As in 1997, when Tony Blair urged Frank Field to think the unthinkable, there is consensus on the need for radical welfare change. IDS has earned respect as a moral and pragmatic reformer, and he attracts goodwill from across the House. The Liberal Democrats, Nick Clegg and Steve Webb particularly, were ‘vital’ in securing a spending concession from George Osborne, whilst Douglas Alexander has described IDS’ plans and ‘noble’ and pledges to support principle that welfare should be a safety net, not a vocation. He warms to the theme in today’s Guardian.

EXCLUSIVE: What about those who aren’t pulling a housing benefit scam?

Most sensible taxpayers think Britain’s current housing benefit costs to be a terrific scam. In the last five years the bill has risen by 25 percent. We now pay £21billion each year, a good chunk of which flows private landlords turning a healthy profit from the state’s responsibility to the poor. We all know by now that a slew of reforms designed to cut the bill by at least £2bn will stop the indefensible abuses of taxpayers’ money like this and this. That’s why Danny Alexander, among others, claims that the coalition must be ‘brave’ on housing benefit. But cast aside the most extreme exploiters of the system and ask

All is not quiet of the welfare front

Welfare is fast becoming this parliament’s Ypres Salient – strategically critical, it is constantly contested. £20bn on social housing, £100bn on out of work benefits and £billions on universal benefits: welfare reform is where spending cuts are most conspicuous. A rhetorical confrontation is building and various tactical dispositions are being made. The Staggers’ George Eaton has an analysis that assumes that Labour’s current wedge-strategy (which I critiqued here) is not working because it is avowedly sectional, privileging those who might be caricatured as ‘undeserving’. Eaton argues that Labour must ‘launch a defence of the hard pressed majority’; those who work but still stand to lose, particularly families. Indeed, Westminster’s number-crunchers

The Lib Dems, breaking doors in anger

This one, from the Mail on Sunday, needs adding to the scrapbook: “Colchester MP Bob Russell’s fury over the Coalition’s housing benefit cuts boiled over at a stormy private meeting with the Deputy Prime Minister. To the astonishment of fellow Lib Dem MPs, it ended with Mr Russell storming out and slamming the Commons’ committee room door behind him. Witnesses said last night: ‘He took the door off its hinges.’ In a bizarre twist, Mr Russell’s ally and fellow Lib Dem MP Mike Hancock – himself a fierce critic of Mr Clegg – tried to spare his colleague’s blushes by creeping back the following morning to repair the door before

The Tories rally after the Spending Review

It’s just one poll, but today’s YouGov effort for the Sunday Times seems to underline many of the themes of recent weeks. It has the Tories on 42 percent, 5 points ahead of Labour on 37 percent, and with the Lib Dems on 13 percent. So the Spending Review – accompanied, as it has been, by rows over housing and child benefits – has not yet had a precipitous effect on the Tories’ poll rating. If anything, YouGov have had the blue vote rallying since 20 October. As always we should be wary of drawing too many conclusions from the shifting landscape of opinion polls and surveys, but some of

Housing benefit reform is a Good Thing

Dressed with his effortless prose, Matthew Parris has a point (£) that proves why he is the leading commentator of the last two decades. Housing benefit reform is his subject and he urges his readers reject the legends that have accrued around the issue – not Boris, not Polly Toynbee, not shrill councils, not rapacious landlords and definitely not the government. No one, he says, has the numbers but there are several certainties: ‘The outcomes may not prove nearly as brutal as this week’s predictions. What (as I asked above) can we know? We know that comparisons with Paris are ludicrous. All of our big cities are speckled with very

Voters think the new generations look old and tired

There’s an intriguing detail in the latest YouGov poll. The number of people seeing Labour as old and tired is back up to 44 percent, which is where it was before Ed Miliband became leader.   The concern for Labour must be that the youthful, vigorous optimism that Ed Miliband is trying to promote hasn’t cut through to the public yet. Admittedly it is early days. But first impressions do matter in politics. Indeed, I must admit to being slightly surprised that the Tories are still generally ahead in the polls. I thought that the spending review would push Labour into the lead.   Something that, contrary to the media

More perspective on housing benefit

A useful reminder of the opinion polls on housing benefit from ConservativeHome’s Harry Phibbs: “…in coming out with such hyperbole Labour show themselves to be out of touch with the voters. An ICM poll in June asked: “Do you support or oppose imposing a maximum weekly limit of £400 on Housing Benefit.” Support was 68% with 23% opposed. Even among Labour voters there was strong support – by 57% to 35%. A YouGov poll in August asked: “Here are some policies the coalition government have announced in their first hundred days. For each one please say if you oppose or support it?” Among them was: “Putting a limit on housing benefit.”

Some perspective on housing benefit

Depending on who you read, the planned £400 a week cap on housing benefit is either comparable to Nazi concentration camps, death squads in Brazil, or ethnic cleansing in the Balkans Critics have ranged from the Mayor of London to the ultra Left. So it is worth taking a moment to get some perspective. Firstly, the general caps on housing benefit don’t even impact on social tenants because they pay lower, subsidised rents, (though the £26,000 cap on the total amount of benefits per household might hit them). But for housing benefit claimants in the private sector outside London, less than 1% are affected by the cap. And even in

James Forsyth

Boris v Dave, this time it’s serious

Make no mistake about it, Boris Johnson’s rhetorical assault on the coalition’s housing benefit plan is a direct challenge to David Cameron’s authority. The two best-known Conservatives in the country are now involved in a battle that only one of them can win.   Boris told BBC London this morning: “What we will not see and we will not accept any kind of Kosovo-style social cleansing of London. “On my watch, you are not going to see thousands of families evicted from the place where they have been living and have put down roots.” What is infuriating the Tory machine is not only Boris’s criticisms, but the language that he

Another fine mess | 28 October 2010

You know that child benefit cut for higher-rate taxpayers? Yeah, well, it may not be quite as straightforward as the government have hitherto indicated. In an important post on his Wall Street Journal blog, Iain Martin sets out a problem that is exercising nerves and minds in the Treasury: simply put, there’s no existing method for establishing whether mothers (who receive child benefit) are living in a household which pays tax at the higher rate. In effect, this means that the policy is “unenforceable” – although there are some possible solutions, as Iain points out: “I hear that ministers are considering (and tell me which part of the rest of

Weak, weak, weak

Weak again. For the second session in a row Miliband was feeble at PMQs. He opened in his quiet-assassin mode with a quickie question. ‘There are reports that the government is planning changes to housing benefit reforms. Are they?’ Clearly he meant to wrong-foot Cameron by tempting him into admission which could be instantly disproved. But Cameron simply denied the suggestion and Miliband had no embarrassing disclosure to fire back with. Pretty duff tactics there. He fared slightly better when he asked Cameron what advice he’d give to a family facing a 10 percent cut in housing benefit after the chief bread-winner had been unemployed for a year. Cameron replied

James Forsyth

The new fairness battleground

The f word, fairness, got another outing today at PMQs as David Cameron attempted to defend the coalition’s proposed housing benefit changes from attack by Ed Miliband. Cameron’s argument was that it isn’t fair for people to be subsiding people on housing benefit to live in houses that they couldn’t afford to live in themselves. On this, I strongly suspect that most people in the country agree with him. If Labour wants to turn housing benefit into a big issue, the wedge will work to the Conservatives’ advantage. However, what should be worrying the coalition is that the changes to housing benefit will have to be implemented by local authorities,

The pros and cons of tweaking the housing benefit cuts

It says a lot about the Lib Dems that a meeting between their party leader and deputy leader can throw up so many policy differences. When Nick Clegg and Simon Hughes chatted behind closed doors yesterday, the latter sought concessions over the coalition’s housing benefit cuts – the cuts that Clegg then had to defend in the House. This morning, it was reported that he might just get some of them, even though Downing St are denying the story. Regardless of the outcome, the situation is reminiscent of the child benefit cut for higher-rate taxpayers. A policy was announced, only for the coalition to start pulling back from it in

Labour tries to prise Osborne and IDS apart

Labour’s spin is less dexterous now that Alistair Campbell and Peter Mandelson have passed into night; but it can still artfully disguise politics as principle. Douglas Alexander is at in the Guardian, fanning the dull embers of George Osborne and IDS’ summer spat. He renews the offer of cross-party dialogue that he made on Andrew Marr last Sunday, before retreating, saying: ‘But beneath the talk of “we’re all in this together” (a phrase specifically recommended for repeated use by Republican pollster Frank Luntz), what the chancellor announced on welfare was largely a laundry list of cuts that penalise the vulnerable and the working poor. And in doing so he undermined

The IDS plan approaches consensus status

Plenty of attention for Nick Clegg’s listening, reading and smoking habits this morning, as well as his appearance on the Andrew Marr show. But it is another of Marr’s guests who has made perhaps the most important intervention of the day: the shadow work and pensions secretary, Douglas Alexander. Here’s how the Beeb website reports it: “Mr Alexander also said he backed ‘in principle’ the coalition’s plan to replace all out-of-work benefits with a single ‘universal credit’ payment. He said such a move was ‘sensible’ but he would be ‘scrutinising’ the government ‘very carefully’ over its £2bn start-up costs.” If true, then it leaves the the parties in a surprisingly

Now is the time for reform

Throughout the country debates on the spending review have begun in earnest. Some of the most important questions in these debates will centre around the economics of consolidation, as I discussed on a recent radio show containing Professor Joseph Stiglitz. I also set out to discuss these issues at the launch of the Orwell Prize. In my remarks I focussed on the general case for eliminating the structural deficit within a Parliamentary term and less on the specifics of the approach that the Coalition has taken to achieving this goal (which I have outlined some thoughts on here). I made five key points.   First, consolidation is not based on

IFS: The Spending Review was regressive – sorta

The second half of the IFS briefing was all about the distributional effect of the Spending Review. And you know what that means: decile charts – and lots and lots of them. As it happens, there were some areas of agreement between the IFS and the Treasury figures. Both, for instance, say that the welfare measures set out in yesterday’s Spending Review will affect the least well-off the most. But there was one main area of disagreement. The Treasury says that its combined tax and welfare measures up to 2012-13 will be broadly progressive. The IFS says that they will be regressive. This is exactly the same issue that cropped