Benefits

Trust in bricks and mortar

If George Osborne is serious about growth, a relatively easy decision awaits him: to stimulate the economy by spending more on housebuilding. David Cameron knows there’s a problem, and during Tory conference announced a “Tory Housing Revolution” to tackle the failing housing market, and plans to boost Right to Buy and release more land for house building that will deliver 200,000 new homes and create 400,000 jobs. All welcome, suggesting the government has recognised the role that housing can play in creating growth. But if the Treasury is looking to stimulate demand in the short term, there’s still much more that could be done. Investment in housing can happen fast.

The poverty of the poverty measure

‘400,000 children will fall into relative poverty by 2015, says IFS’ we read on The Guardian’s front page today — yes, one of the most pernicious ideas of recent years is back. It’s the definition of ‘poverty’ as being figures on a spreadsheet, households deemed to fall beneath an arbitrary threshold. It’s almost entirely meaningless, and diverts energy and resources away from a real fight against poverty. I really do believe that, as ideas go, this one has damaged Britain more than almost any other over the last two decades — and it’s high time it was confronted.   The ‘poverty’ that the Institute of Fiscal Studies is talking about

The Winter Fuel Allowance is indefensible

Freed from the shackles of elected office, Steve Norris remains an electrifying speaker. He is also refreshingly honest. So, when I met the 66-year-old former mayoral candidate at a Tory conference fringe on the future of London, he was only too happy to admit how spent his Winter Fuel Allowance: “I’m amazed by the Chancellor’s annual gift. I spend it on Claret,” he said. In fact, he said that when paid to the wealthy, the allowance is “a complete waste of money” and “a bribe to older voters”. I mention this only because the Allowance was referred to again in a different context this week: during David Cameron’s own address.

Any questions for IDS?

At 6pm this evening, I’m interviewing Iain Duncan Smith at a Conservative Party conference fringe meeting. He is fighting a war on at least three fronts: the welfare-to-work programme, the creation of his Universal Credit (ie, rewriting the benefits system), and producing a government response to the riots and the conditions behind them. I may put questions to him from CoffeeHousers, so if you have any please leave them below. IDS is surprisingly candid for a Cabinet member, perhaps because he wants this to be his last job in government. He isn’t watching his words, worried that he’ll say something to damage his promotion chances. I’d say that his job

Miliband woos the strivers

Finally, a good idea from the Labour conference. In his speech tomorrow, Ed Miliband will say he’d give workers priority over the jobless for social housing. This is the dividing line he was reluctant to draw when asked to by Andrew Marr on Sunday. It’s a clever move, and one that recognises the resentment felt by the strivers against the welfare dependent. He will say: “The hard truth is that we still have a system where reward for work is not high enough, where benefits are too easy to come by for those who abuse the system.” So councils dolling out housing should not only take need into account, but

Welfare worries

Away from Liverpool, the big stories of the day are the markets’ reaction to the putative Eurozone deal, which has been mixed so far, and the Telegraph’s splash about the progress of the Universal Credit, the coalition’s flagship welfare reform. The scheme is designed to simplify the benefits system and save circa £5 billion a year by reducing the scope for claims to be duplicated and errors made; it is a crucial cog in the coalition’s plan to make work pay. James Kirkup reports that the Treasury has apparently put the credit at the top of its “to watch” list of government projects that are at risk of running over

Cameron’s well-schooled argument

When Michael Howard offered David Cameron the pick of the jobs in the shadow Cabinet after the 2005 election, Cameron chose education. Howard was disappointed that Cameron hadn’t opted to shadow Gordon Brown but Cameron argued that education was the most important portfolio. A sense of that commitment was on display today in his speech on education, delivered at one of the new free schools that have opened this term. His defence of the coalition’s plans to make it easier to sack bad teachers summed up its refreshing radicalism. He simply said, “If it’s a choice between making sure our children get the highest quality teaching or some teachers changing

Getting tough on discipline

A fortnight ago, The Spectator asked if Cameron was fit to fight? We wondered if he had the gumption to use the political moment created by the riots to push through the radical reforms the country needs.  So, it’s only fair to note that the government has today actually done something—as opposed to just talking about—the excesses of the human rights culture. The Department for Education has stopped the implementation of new regulations that would require teachers to log every incident in which they ‘use force’ with children. These new rules would have made teachers record every time they had pulled apart two kids in a corridor or intervened to

Right to reply: Why do so many “new jobs” go to foreigners?

On Monday, we published a post on George Osborne’s “jobless recovery” — the point being that 90 per cent of the recent rise in employment can be accounted for by foreign nationals. Here’s a counterpunch to it from the IPPR’s Matt Cavanagh, who should already be familiar to CoffeeHousers from his previous posts and articles for us on matters military. We’re hoping that this will be the first of a new series of “Right to reply” posts, giving outside writers the opportunity to take on your loyal baristas in mortal combat. Here goes: One of the most frequently recycled statistics of recent years is the percentage of “new jobs going

Exclusive: Osborne’s jobless recovery

George Osborne was right to boast in the Commons that Britain has the “second highest rate of net job creation in the G7”. Coffee House recently pointed out that all of the increase is accounted for by foreign-born workers. But what if you narrow the definition to foreign nationals? We put in an information request to the Office for National Statistics and the below information came back. It is quite striking. Over the 12-month period to which Osborne refers, 90.1 per cent of the extra employment amongst the working-age population can be accounted for by an increase in foreign nationals working in the UK. Here are the figures. The phenomenon of pensioners returning to

Blair on the riots

Tony Blair has dropped in to write an article on the social context to the recent riots. It’s insightful, especially as a testament of his failings in government. At the close of his premiership, he says, he’d realised that the acute social problems in Britain’s inner cities were “specific” and could not be solved with “conventional policy”. So much for ‘education, education, education’, Blair’s favoured solution was a mixture of early intervention on a family by family basis to militate against the “profoundly dysfunctional” upbringings these young people endure and a draconian response to antisocial behaviour. Alas, he was forced from office for before implementing the plan. The present government

WEB EXCLUSIVE: Full-length interview with IDS

I have interviewed Iain Duncan Smith for tomorrow’s Spectator. In print, space is always tight and we kept it to 1,500 words. One of the beauties of online is that you can go into detail in political debate that you never could with print: facts, graphs (my guilty pleasure) and quotes. Here is a 2,300-word version of the IDS interview, with subheadings so CoffeeHousers can skip the parts that don’t interest them. I’ve known him for years, and remember how hard it was to get out of his room four years ago when he started on the subject of gang culture and the merits early intervention. Now, he’s in the

The scale of IDS’ task

This afternoon’s parliamentary debate touched on the sociological issues that may have inspired the recent looting. Naturally, there are plenty of competing views on the subject, but I bring your attention to Harriet Sergeant’s, which she has expressed in the latest issue of the Spectator. Sergeant has conducted extensive investigations into the teenage gangs in London, acquainting herself with gang members and their way of life. Her observations are intriguing, albeit terrifying. An extended version of her magazine article is available online and I urge you to read it. But here is a short extract: ‘The young men I interviewed had very obviously failed to make the transition to manhood and

Universally speaking

As Paul Waugh notes, James Purnell’s article for the Times today (£) is striking for its attack on universal benefits. “I have never bought the argument,” writes the former welfare secretary, “that universal benefits bind the middle classes in. It feels too much like taxing with one hand to give back with another.” Although this is, in truth, a point that he has been making for some time. He said something similar in a speech back in April. The question, really, is how much Purnell’s viewpoint will percolate down through Labour circles. During last year’s leadership election, it seemed as though universal benefits were to become one of the defining

IDS’ great expectations

There is no rest for IDS. Yesterday he was in Madrid talking about youth unemployment and immigration and today he turns his attention to child poverty. Of all life’s accidents, the accident of birth is the most decisive. It is said that a child’s prospects are determined by the age of five, and numerous other statistics and factoids lead to a similar conclusion. IDS rehearses some in a piece in today’s Guardian. IDS and Labour MP Graham Allen have conducted a report into these matters, and have concluded that early intervention in a child from a deprived or broken family is vital if the poverty gap is to be closed,

Ed’s not dead

Crafty old Ed. After a week on death row, he was expected to arrive at PMQs and do the decent thing. Drink down a foaming cup of hemlock and depart the political stage for good. But Ed is made of sterner stuff than many of us realised. He was cunning, passionate and articulate today and his performance will have steadied the nerves of his anxious troops. It all began oddly. As soon as Miliband stood up he was greeted by a slightly over-done chorus of cheers from his backbenchers. This absurdity prompted a burst of satirical catcalling from the Tories. They knew this would be fun. Cameron would run rings

James Forsyth

Miliband relieves the pressure

After last week’s performance and this weekend’s headlines, Ed Miliband needed a win at PMQs — and he got one. Knowing that David Cameron would attack him over the fact Labour will vote against the welfare reform bill this week, Miliband had a string of questions for the Prime Minister on the detail of the bill and whether people recovering from cancer would lose the contributory element of their benefits. The issue was both wonky and emotive. The fact the questions were about cancer meant that Cameron couldn’t deliver his usual string of put downs to Miliband. Indeed, when one Tory backbencher heckled him, the Labour leader shot back that

Osborne’s valuable weapon

Paul Waugh is tweeting that Number 10 is stressing that, pace this morning’s front pages and Lord Freud’s comments yesterday, the benefit cap remains. This is not surprising: the benefit cap was always a statement of values more than anything else. As George Osborne said at Tory conference, it was designed to ensure that, “No family on out of work benefits will get more than the average family gets by going out to work.” The cap was designed to say something both about the Tories’ values and those of its opponents. If Labour opposed it, they would put themselves on the wrong side of the whole welfare/fairness debate. It is

The welfare revolution will require much time and effort

Forget Balls, today brings one of the most significant moments in the life of the coalition so far: the launch of its Work Programme. The name may be commonplace but, as Fraser suggested earlier, the policy is revolutionary. Over the next year, around one million unemployed people will be enrolled on work schemes run by private companies and charities. Those companies will then be paid between £4,000 and £13,700 for every person they return to proper, long-term work. It is, evidence suggests, an effective and cost-effective way of getting benefit claimants back into the labour market — and it reaches those claimants that the state-run JobCentres can scarcely be bothered

Fraser Nelson

How the coalition hopes to fix Britain’s economic dysfunction

The largest welfare-to-work programme on the planet is launched today by Chris Grayling and Iain Duncan Smith. It’s not much of an exaggeration to say that the future of this country — and, perhaps, David Cameron – depends on its success. The lead article of this week’s Spectator looks at it, and we used various metrics — some of which puzzled David Smith of the Sunday Times. He understandably challenged our claim that 81 per cent of the new jobs created are accounted for by immigration. We had a Twitter “conversation” about it earlier this morning, but some things you can’t explain in 140 characters. So here is my argument: