Benefits

Today

Andrew Lewis

Confessions of a middle-class jobseeker

Having been made redundant from a job in the City, I could have afforded not to sign on at all. But since my P45 showed I had paid well over £40,000 in income tax last year, I didn’t feel desperately guilty about clawing back £90 a week in New Style Jobseeker’s Allowance. I didn’t know how long I would remain unemployed. Plus I wanted to protect my national insurance to keep my entitlement to the state pension. The chaos started almost immediately. I registered online in early February and was told to await a date for my ‘assessment interview’. Instead, a month later, a letter arrived to say I had

Thursday

The Spectator

Portrait of the week: Welfare war, gold prices soar and gang jailed for toilet heist 

Home Sir Keir Starmer, the Prime Minister, entertained 29 other national leaders online to seek a way of guaranteeing the future security of Ukraine. He then invited European defence leaders to meet in London. He spoke by phone to President Volodymyr Zelensky after the inconclusive conversation between President Donald Trump and President Vladimir Putin. John ‘Paddy’ Hemingway, thought to be the last Battle of Britain pilot, died aged 105. The government faced resentment in its own party against welfare cuts outlined by Liz Kendall, the Work and Pensions Secretary: the eligibility criteria for Personal Independence Payments would be tightened; incapacity benefits under universal credit would be frozen for existing claimants

Tuesday

Katy Balls

Inside Labour’s welfare split

15 min listen

This afternoon we had Liz Kendall’s long-awaited address in the Commons on Labour’s plans for welfare reform. The prospect of £5 billion worth of cuts to welfare has split the party in two, with fears of a rebellion growing over the weekend and into this week. Her announcement was a mixed bag, including: restricting eligibility for the Personal Independence Payment (PIP) so that only those who have the highest level of disability can claim the benefit and – to sweeten the deal for backbenchers – announcing that the government will not bring in vouchers for disability benefit or freeze PIP. One of the new lines that had not been trailed

Thursday

Katy Balls

Starmer’s next target: his MPs

Labour MPs these days are experiencing whiplash. When in opposition, the party attacked the Tories’ proposed benefits cuts for ‘effectively turning on the poorest in our society’. Now, Keir Starmer plans to drive through £6 billion in welfare cuts of his own. Labour ministers previously spent much of their time scolding the government for showing insufficient respect towards civil servants. Now, Pat McFadden, Chancellor of the Duchy of Lancaster, has launched a crackdown on poor performers. Since the start of Starmer’s premiership, ministers have announced 27 new quangos – yet this week the Prime Minister scrapped one in a signal of intent, telling his cabinet they cannot do what the

Thursday

Rod Liddle

My money-saving tips for Rachel Reeves

It is always upsetting to watch a woman enmired in distress and so I thought I might ride on my trusty charger to the assistance of Rachel Reeves, the Chancellor, with a few suggestions as to where she might make spending cuts. Rachel needs these cuts because she can’t raise taxes and the British economy is lying flat on its back in an alleyway with wee dribbling down its leg. Growth is what we need, plus some serious savings to the Exchequer. Clearly, most civil servants should be sacked – bringing a bounteous gift to the nation’s coffers My first suggestion would be to cut the rate of benefits by

Thursday

Fraser Nelson

The sickness benefit trap

Now that I’m no longer editor of this magazine, I can admit that I spent the election night of 1997 cheering on Tony Blair. Reader, it gets worse. I didn’t particularly want a Labour government but I badly wanted the devolution they had promised. A parliament in Edinburgh would, I thought, consider why the East End of Glasgow – home to many of my extended family – had some of the worst deprivation in Europe. Drugs deaths, unemployment, crime, all ignored by Westminster, would surely be remedied by the new politicians in Holyrood. There are lots of organisations to help people sign on, but those who want to get back to

Monday

Stephen Daisley

The taxman has failed Britain’s poor

Today we are witnessing a significant failure of the UK state. This morning, the personal finance campaigner Martin Lewis reported that around 30 per cent of families had not received their latest child benefit payment. HMRC, which administers the payments, said it was ‘working to resolve the issue’ and advising claimants to ‘continue to check your bank account throughout the day’. This evening, HMRC said that 500,000 claimants had been affected. Child Benefit is worth £24 per week for the eldest child and £15.90 for every child thereafter. These sums will seem trivial to those with means but to poor and low-paid families they are a financial lifeline. The Daily

Tuesday

Ross Clark

Britain needs more honesty about unemployment

Is low unemployment causing us more problems than we realise? The suggestion might seem absurd, offensive even. It’s reminiscent of the days of Mrs Thatcher’s supposedly ‘cruel’ monetarism, when we had three million unemployed. Some on the fringes liked to argue that unemployment was good for the economy because it made people work harder, being fearful for their jobs. Mass redundancies would not, of course, help the economy now or at any other time. If a million people were to lose their jobs, as happened in the early 1980s, that would be a million households suffering a collapse in the spending power. As well as a human tragedy, it would

Wednesday

Stephen Daisley

Liz Truss should increase Universal Credit

Liz Truss’s plans for a two-year energy bill freeze, estimated to cost £100 billion, underscore three points. One, the incoming Prime Minister expects the energy crisis to be with us for more than one winter. Two, she grasps how lethal it will be to the Tories’ hopes of re-election if the Treasury doesn’t intervene in a big way. Three, she is prepared to run up government debt even further in order to mitigate a crisis that threatens people’s quality of life. This third point is the crucial one. When a neo-Thatcherite like Truss concedes the merits of transformative interventions funded by borrowing, it opens up a broader conversation. If the Treasury

Wednesday

Katy Balls

Rishi Sunak’s low tax pitch to MPs

Is Rishi Sunak a low tax chancellor? He certainly likes to tell anyone who will listen that he is. Yet his actions tend to suggest the opposite. The tax burden is currently on track to reach its highest level since the early 1950s, and while Sunak unveiled one big tax slash in the Budget in the universal credit taper rate cut, the main thrust of Sunak’s announcements was spend, spend, spend. Tonight Sunak addressed Tory MPs at a meeting of the 1922 committee. After announcing £150 billion in extra public spending, Sunak sought to convince his party that, despite this, he was committed to lowering taxes. Having said in the chamber that

Friday

Robert Peston

Could the squeeze on living standards bring down Boris?

There is about to be a two-phase onslaught on the living standards of those on low-to-middling incomes. On 1 October the energy price cap, for dual fuel, rises from £1,150 to £1,277. This is a rise of 11 per cent, at a time when furlough is ending and just a few days before the £1,000 a year uplift to Universal Credit is removed (which presumably Boris Johnson will not be swanking about in his big speech to Tory conference). That’s the first hit to living standards. There’ll then be a gradual further erosion of living standards with rising food inflation (of around five per cent, as per what Tesco’s chairman John

Monday

Isabel Hardman

Tory MPs are changing their minds on Universal Credit

Tory MPs will not get the chance to force the government into a U-turn on scrapping the £20-a-week Universal Credit uplift this afternoon after the Speaker didn’t select their rebel amendment. Sir Iain Duncan Smith and Damian Green had tabled the motion refusing to give a second reading to the bill on the basis that the money saved by breaking the pensions triple lock should have been diverted towards keeping the uplift. The motion would not have reinstated the uplift, but would have blocked the legislation process enabling the government to suspend the triple lock so that the state pension rises in line with inflation or 2.5 per cent, rather than

Monday

The Spectator

Universal Credit and the future of the welfare state

Amid the many failures of public policy during the Covid crisis, one success has gone largely unnoticed. The Universal Credit system coped with a huge uplift in applications without breaking down. In February last year 2.6 million households were signed up; six months later that had swelled to 4.6 million. Some 554,000 people made new claims in the first week of lockdown, ten times the normal levels. For a benefit which not so long ago was being damned for the poor execution of its rollout, it is remarkable that the system coped. Its unexpected success offers plenty of lessons for the future of the welfare state. The digitisation of the

Isabel Hardman Isabel Hardman

Amber Rudd changes the Tory tune on food banks

What’s behind the rise in demand for food banks? Over the past few years, the default Conservative line has been that the reasons people need emergency help are ‘complex’. This is certainly true: the figures released by the Trussell Trust, which runs the largest network of food banks in the country, show that there is no one factor in food bank use. But those figures also show quite clearly that problems with the payments of benefits, or cuts to benefits, are a major driver: the top four reasons cited for referring someone to a food bank in 2017-18 were low income (28.49 per cent), benefit delays (23.74 per cent), benefit

Thursday

Katy Balls

How Thérèse Coffey plans to help millions back to work

If you haven’t heard of Thérèse Coffey, then this will be — to her — a sign that she has been doing something right.  As Work and Pensions Secretary she has had to sign people on to benefits faster than anyone who has held the position before. If this had gone wrong during lockdown, she would be as infamous as Gavin Williamson. But the system, Universal Credit, managed 1.5 million claims in four weeks. Many things have gone wrong for the government over the past few months, but the welfare system has (so far) held up. Coffey has kept her anonymity.  ‘My main task has been making sure that DWP

Tuesday

Kate Andrews

Sunak’s coronavirus rescue package looks increasingly unsustainable

The number of people claiming unemployment benefits in Britain rose by over 856,000 to 2.1 million in April, the first full month of the lockdown. Figures from the Office for National Statistics reveal that the number claiming benefits due to unemployment has increased by nearly 70 per cent. This marks an unbelievable u-turn from the start of the year, when UK employment figures were hovering at record highs. These figures do not include ‘the furlough effect’: those who are still counted as employed, paid by the Government to stay home and wait for the green light to return to work. Today’s numbers, as bad as they are, don’t reflect the number of

Saturday

Isabel Hardman

The Tories only have themselves to blame for Labour’s threat to Universal Credit

The Labour Party is buzzing about in Iain Duncan Smith’s constituency today, threatening both to unseat the former Conservative leader and scrap the reform he introduced: Universal Credit. Jeremy Corbyn made the promise, saying the changes to the benefits system have been an ‘unmitigated disaster’. The party will first get rid of the most controversial aspects of UC – including the fitness-to-work tests, the two-child limit, and sanctions which dock benefits from claimants who miss appointments – before scrapping it entirely. This has naturally prompted protests from the Tories, including some of the many MPs who served as work and pensions Secretary at one point or another. But the truth

Monday

Isabel Hardman

Amber Rudd admits Universal Credit is in trouble

Amber Rudd left the Home Office over the Windrush scandal and has joined the Work and Pensions department just as its flagship benefits reform is under fire from all angles. The new Secretary of State spent most of her first session at the dispatch box this afternoon answering questions on Universal Credit – and she had arrived determined to strike a rather different tone from her predecessor. Esther McVey, who resigned from the role last week, had garnered a reputation for being rather hardline when dealing with criticisms of the benefit roll-out, while also managing to give far more away about some of its problems than Number 10 would have

Tuesday

Isabel Hardman

Delays to Universal Credit won’t fix its fundamental flaw

It’s rare that a government pauses the implementation of a flagship policy. There’s so much ego involved in these matters that to do so is to admit a failing, rather than merely being sensible. But the government has had little choice but to further delay the roll-out of Universal Credit while it sorts out some of the problems with it. The plan had originally been that a further roll-out to four million people would start in January, with more claimants moving in July. But today the Work and Pensions department confirmed that the July deadline has moved to November as a result of fears across Parliament that those who are

Thursday

C.A.R. Hills

The best place to be poor

I was born in north London, at the Whittington Hospital in Archway, and at the age of 62, after many years of trouble and wandering, I have come to rest in the streets where I was born. And in my usual cunning way I have become one of the roughly 300 or 400 people living in inner London you perhaps think of as ‘homeless’, making the rounds from drop-in centres to churches, from morning till night, in the hunt for free food. For this is what my life has come down to as I stand on the threshold of old age, the endless movement from one soup kitchen to the