1m People to Have Disability Benefits Cut by Labour

THE TIMES: Rachel Reeves vows to ‘get a grip’ on the burgeoning welfare bill but cabinet ministers express disquiet over £5 billion savings

A million people face having their ¬benefits reduced under an overhaul of the welfare system that means only the most severely disabled will qualify.

Cost-cutting reforms due to be ¬announced next week are set to deny payments to many people with mental health conditions and those who ¬struggle with washing, dressing themselves and ¬eating.

The changes to eligibility criteria have been estimated to hit about a million people and are set to be applied to new claims and reassessments of ¬existing claimants. » | Chris Smyth, Whitehall Editor | Friday, March 14, 2025

UN Report Compares Tory Welfare Policies to Creation of Workhouses

THE GUARDIAN: Ministers in denial about impact of austerity since 2010, says poverty expert

A leading United Nations poverty expert has compared Conservative welfare policies to the creation of 19th-century workhouses and warned that unless austerity is ended, the UK’s poorest people face lives that are “solitary, poor, nasty, brutish, and short”.

In his final report on the impact of austerity on human rights in the UK, Philip Alston, the UN rapporteur on extreme poverty, accused ministers of being in a state of denial about the impact of policies, including the rollout of universal credit, since 2010. He accused them of the “systematic immiseration of a significant part of the British population” and warned that worse could be yet to come for the most vulnerable, who face “a major adverse impact” if Brexit proceeds. He said leaving the EU was “a tragic distraction from the social and economic policies shaping a Britain that it’s hard to believe any political parties really want”. » | Robert Booth, Social affairs correspondent | Wednesday, May 22, 2019

Trump Dumps Nearly 1M People From Food Stamps

Trump administration toughens work requirements for people struggling the most—and 48% are white men. Chuck Collins from IPS discusses the implications

Welfare Reform Should Tackle the Cheats at the Top As Well As the Bottom
THE DAILY TELEGRAPH: Greedy MPs and rapacious bankers are just as dishonest as welfare fraudsters and freeloaders, says Jenny McCartney.

David Cameron, at the launch of the Welfare Reform Bill last week, made a rousing plea for the restoration of our ethics. In his speech, he bemoaned the end of “a collective culture of responsibility”, of an age when people’s self-image was measured by “whether they did the decent thing”. In such an era, he said, “fiddling the system would have brought not just public outcry but private shame”.

Mr Cameron was speaking with specific regard to our welfare system, and much of what he said is true. We are all familiar with those lurid tales of enterprising gentlemen who have claimed disability allowance while giving disco-dancing lessons on the side, or ladies whose complicated housing scams trawl in the annual GDP of a small Baltic country.

As well as such criminal fraudsters, however, there are the opportunistic freeloaders who trigger public ire without actually breaking the law. The latter are open in their intention to have large families that will be wholly supported by a groaning state. It was reported last week that the anti-social antics of the family of Tom O’Leary and Tanya Walsh (two adults, 12 children) had caused distress to the neighbours of their £1.2 million council-funded abode in Muswell Hill. Miss Walsh wrote on her Bebo site recently that her hobbies were “eating chocolate and having children”: the only people cheering her on were the makers of confectionery and Pampers. Read on and comment >>> Jenny McCartney | Saturday, February 19, 2011

My comment:

At last, a refreshing bit of common sense! Thank you for this extremely sensible article, Jenny McCartney. It is very tiresome to listen to the fraudsters at the top always going on about the people at the bottom milking the system. Who milks the system more than the greedy bankers and fraudulent MPs? And I write as a disinterested observer. Cameron had better start looking sideways before he looks down. He should get his chums to lead by example. – © Mark

This comment also appears here

Welfare Bill Soars as Coalition Counts Cost of Austerity Drive
THE GUARDIAN: Slowdown in economic growth makes reducing deficit harder, says Office for Budget Responsibility

Rising unemployment will cost the government £1.5bn more than expected in welfare benefits, according to official forecasts that reveal the hidden cost of the coalition's austerity drive.

As big increases in VAT are due to bite from Tuesday, analysis from the Office for Budget Responsibility shows slowing economic growth will make it harder to reduce the deficit by forcing more people to seek state support.

The Treasury watchdog calculates the government will have to pay out £700m more in unemployment benefit than previously forecast. Similarly, a higher number claiming jobseeker's allowance as well as falling into lower wage brackets will see the government needing to pay out another £700m more in housing assistance over the next four years.

Though the OBR data, released last month, confirms the government is still making substantial savings from its changes to both benefits, the shadow work and pensions secretary, Douglas Alexander, said the OBR's fresh assessment suggested it was government strategy that was leaving these higher numbers exposed.

He said: "The growing cost of the risk the government is running with the economic recovery is now emerging. The result of policies which undermine growth and jobs is a longer dole queue and a higher welfare bill." >>> Allegra Stratton and Julia Kollewe | Sunday, January 02, 2010

Poor Must Accept Benefit Cuts: Clegg on Collision Course with Own Party by Backing Welfare Axe
MAIL ONLINE: Nick Clegg has waded into the row over welfare reform by warning that benefits should not be there 'to compensate the poor for their predicament'.

On the eve of the Liberal Democrat conference, the Deputy Prime Minister backed the Coalition's programme of welfare cuts and dramatically shifted his party's policy on the subject.

He said the billions spent on welfare should be used as an 'engine of mobility', instead of just leaving people 'stuck on benefits, year in, year out'.

His comments are likely to infuriate his party's left-wingers, who have publicly accused the Coalition of targeting the vulnerable and Mr Clegg of breaking promises to ensure all cuts were 'fair'.

The issue is likely to prove a flashpoint with the LibDem Left when activists gather in Liverpool from Saturday for the first time since joining the Tories in government.

But Mr Clegg made clear he considered welfare reforms to be essential. In a newspaper article, he said: 'A fair society is not one in which money is simply transferred by the central State from one group to another.

'Welfare needs to become an engine of mobility, changing people's lives for the better, rather than a giant cheque written by the State to compensate the poor for their predicament.

'Instead of turning the system from a 'safety net' into a 'trampoline', as Labour promised, people have been stuck on benefits, year in, year out.' Read on and comment >>> Jason Groves | Thursday, September 16, 2010

Benefit Claimants to Have Payments Cut
THE TELEGRAPH: Benefits claimants will have their payments cut as ministers seek a further £4 billion in welfare cuts.

George Osborne, the Chancellor, said that the Government will go further than previously announced in trying to bring down the cost of Britain’s social security system.

The promise of new welfare cuts has caused strain in the Coalition, with some Liberal Democrat MPs protesting against the move.

Mr Osborne said the welfare system had grown out of control and allowed some people to make the “lifestyle choice” of claiming benefits for their entire life instead of working.

Reforms being drawn up by the Coalition will give welfare claimants “a strong incentive” to get a job.

Welfare now costs £192 billion a year, almost a third of all government spending. An estimated 5 million people of working age are now economically inactive and receiving benefits.

In the Budget in June, Mr Osborne announced that benefits cuts will save £11 billion a year by the end of the Parliament.

In a BBC interview, he signalled that ministers will now seek deeper cuts, reducing welfare spending by another £4 billion. >>> James Kirkup and Andrew Porter | Thursday, September 09, 2010

Obama Warned over ‘Welfare Spendathon’
THE SUNDAY TIMES: The new administration's economic stimulus plan may undo reforms that cut the dole queues, critics say

RONALD REAGAN started it, Bill Clinton finished it and last week Barack Obama was accused of engineering its destruction. One of the few undisputed triumphs of American government of the past 20 years – the sweeping welfare reform programme that sent millions of dole claimants back to work – has been plunged into jeopardy by billions of dollars in state handouts included in the president’s controversial economic stimulus package.

As Obama celebrated Valentine’s Day yesterday with a return to his Chicago home for a private weekend with family and friends, his success in piloting a $785 billion (£546 billion) stimulus package through Congress was being overshadowed by warnings that an unprecedented increase in welfare spending would undermine two decades of bipartisan attempts to reduce dependency on government handouts.

Robert Rector, a prominent welfare researcher who was one of the architects of Clinton's 1996 reform bill, warned last week that Obama’s stimulus plan was a “welfare spendathon” that would amount to the largest one-year increase in government handouts in American history. >>> The Sunday Times | Sunday, February 15, 2009

THE SUNDAY TIMES: No Excuses if Obama Can't Fix 'His' Recession

If, like John Maynard Keynes, you believe that spending, any spending, will revive a flagging economy, the freshly minted, 1,000-page American Recovery and Reinvestment Act of 2009, calling for $504 billion in deficit-financed spending, is for you. Well, not quite. It seems that most of the money will not be spent very soon. About 30% won't hit the economy until 2011, and the balance is likely to be tied up in the procurement processes of the federal and state governments until well into 2010, and beyond. Besides, much of the spending will end up boosting other economies — subsidies for wind machines will benefit workers in the other countries in which such machines are manufactured, not our very own horny-handed toilers. And much of the spending will not create jobs for the unemployed: laid-off car workers do not have the skills to design the software to manage the "smart grid" that is the apple of the greens' eye.

If you have not jumped onto the new Keynesian spending bandwagon, but believe with Christina Romer, chairman of Barack Obama's Council of Economic Advisers, that tax cuts are more certain than spending to turn the economy round, you should love this bill, with its $286 billion in tax cuts and credits. Well, not quite. True, individuals earning less than $75,000 a year and families earning less than $150,000 will receive credits of $400 and $800, the earned income-tax credit for working families with three or more children is increased, and there is something for pensioners, disabled veterans, families of college students and a host of others.

Reflection suggests, however, the tax-cut contingent is doomed to disappointment. Much of the money will be saved or used to pay down credit-card balances, not bad things, but not very stimulative. Much will be spent in Wal-Mart, earning Congress the applause of Chinese trainer and t-shirt manufacturers. And much will never be claimed: the specific subsidies for college education are simply too small to have much effect on college enrolments. If you are a supply-side enthusiast… >>> Irwin Stelzer*

*Irwin Stelzer is a business adviser and director of economic policy studies at the Hudson Institute

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