Getting by on benefits is no easy ride
By Anjum Klair
In the process of selling the Welfare Reform Bill to the electorate, the government, with enthusiastic backing from the tabloid press, has been keen to portray claiming benefits as a lifestyle choice. However, there is now a long list of objective research, covered in a new TUC report, that reveals life on benefits is no easy ride.
Benefits in the UK are already comparatively lower than other industrialised countries. Since 1980, benefits have been up-rated in line with prices alone rather than whichever was higher of earnings or prices. The net effect of the change is that the relative value of benefits has declined significantly.
If Jobseeker’s Allowance had been increased in line with earnings over the last 30 years, the rate for a single person over 25 years of age in 2007 would be £113.26 as opposed to £59.15 in that year (JSA is now £65.45). This is a situation that will be exacerbated by the Government’s decision to up-rate benefits in line with CPI rather than RPI.
As a result, the welfare expert, Peter Kenway, concluded that the current value of JSA is not sufficient for the essentials of life, such as food, bills and travel.
JSA represents roughly:
• A fifth of the actual, average expenditure of single adults;
• Half of the actual, average expenditure of single adults in the poorest households;
• Half of the government’s (income) poverty line for single adults;
• Two fifths of what a consensual view among members of the public (ratified by experts) say is needed to reach a minimum standard of living.
Numerous other studies have come to similar conclusions to Kenway.
The Government’s plans to further reduce the value of benefits in an attempt to save money is thus not only morally questionable, it will also prove a false economy.
For example, the Joseph Rowntree Foundation estimate that child poverty costs £25 billion each year – £12 billion is spent on dealing with the social fallout from child poverty and a further £13 billion is lost through the economic damage done by child poverty.
And, of course, benefits are an important route to the reduction of inequality. As Wilkinson and Picket show in The Spirit Level the costs to society, the economy and taxpayers rises significantly the more unequal the country.
The spending cuts of the early 1980s resulted in benefits severely losing their value. Since then a wide range of research has shown that life on benefits has become even tougher and that inequality has risen with significant costs to the taxpayer and wider society. We cannot afford to repeat the same mistakes of the early 1980s in 2011.
Unfortunately, the government seems determined to do just this.
-
http://twitter.com/meganclareprice/status/38253574697922560 Megan Price
-
http://twitter.com/dontmindwaiting/status/38253912091918336 jennifer roberts
-
http://twitter.com/treeofman/status/38254602881077248 TreeOfMan
-
http://twitter.com/aspiemum/status/38254850466643968 aspiemum
-
http://twitter.com/justmysay/status/38259504869015552 jbw
-
Katrina Gilman
-
http://twitter.com/clivemcr/status/38275236214341632 clivemcr
-
http://twitter.com/grannygal/status/38295021635510272 grannygal
-
http://twitter.com/steve_trow/status/38342746821369856 Steve Trow
-
Mr. Sensible
-
http://twitter.com/brokenofbritain/status/38376291660992512 Broken OfBritain
-
http://twitter.com/oldmankelv/status/38376341514616832 Kelvin John Edge
-
http://twitter.com/darkestangel31/status/38376449815740416 DarkestAngel
-
http://twitter.com/nickbloke/status/38378267387895808 Nick H.
-
http://twitter.com/caer23/status/38394916740534272 Caer
-
http://twitter.com/thepeasantpoet/status/38396741745246210 —
-
Peter
-
http://twitter.com/mrsrammadamma/status/38639539895533568 Tippy RammaDamma
-
http://twitter.com/bendygirl/status/38912834935078912 BendyGirl
-
http://twitter.com/fizzy08/status/38913261265096704 fizz
-
http://twitter.com/leni_lava/status/38915017747345408 kirst
-
http://twitter.com/jrf_uk/status/38923930857259009 JRF
-
http://twitter.com/pinkpolitika/status/38925303933833216 pinkpolitika
-
http://twitter.com/bhanudhir/status/38926229994352640 Bhanu Dhir
-
http://twitter.com/vivomediauk/status/38941239831310336 vivo media
-
http://twitter.com/dearengland/status/39298838657376256 dearengland
-
Robert
-
http://twitter.com/churchpoverty/status/39638786291802112 ChurchActionPoverty
-
http://twitter.com/ukfreenews/status/39639818145107968 UKFreeNews
-
http://twitter.com/ravensrod/status/42142687511453696 Ferret Dave
-
http://www.leftfootforward.org/2011/09/miliband-must-stop-spreading-myths-about-benefit-claimants/ Miliband must stop spreading myths about benefit claimants | Left Foot Forward
YouGov Tracker
ToUChstone Economic Tracker
George’s Marvellous Deficit Calculator
Most read this week
- Week Outside Westminster: Is Cameron a separatist sleeper-cell?
- "You've never had it so good" has never been so wrong: Review of The Cost of Inequality
- Tory voters trust BMA and co. over Cameron and Lansley on the NHS
- German superunion to begin negotiating for 6.5 per cent wage increase
- Building social housing would cut the housing benefit bill three times faster than a cap
Best of the web
Top issues
Left Foot Facebook
Awards & Rankings
Archive
Tag Cloud
Domestic Progressives
- A Thousand Cuts
- Alastair Campbell
- Andrew Gibson's Blog
- Anthony Painter
- Ayes To The Left
- Blackburn Labour Party
- Chartist
- Conor's Commentary
- Dave's Part
- Diary of a Benefit Scrounger
- Duncan's Economic Blog
- Follow my leaders
- Freemania
- Full Fact
- Go Fourth
- Good Animal / Bad Animal
- Guardian Politics blog
- Harry's Place
- Hopi Sen
- Institute for Government
- Intelligence Squared
- Labour and Capital
- Labour Home
- Labour List
- LabourHome
- Left Central
- Lib-Con Trick
- Liberal Conspiracy
- Liberal Democrat Voice
- LSE politics blog
- Luke's blog
- Mark Thompson Blog
- Matthew Taylor's blog
- Max Atkinson's blog
- Migrants' Rights Network
- New Statesman: free speech
- Next Left
- Nick Pearce
- OurKingdom
- Patrick Bury's blog
- Policy Critical
- Political Reboot
- Political Scrapbook
- Progress
- Red Brick
- RSA Projects
- Runnymede Trust
- Rupa Huq's Blog
- Sadie's Tavern
- Save EMA
- Shamik Das
- Slinger blog
- Tank the Tories
- Tax Research UK
- The Centre Left
- The Green Benches
- The Novocastrian
- This is my truth
- Tim McLoughlin
- Tom Harris MP
- Tom Watson MP
- Touchstone
- Touchstone TUC blog
- Young Fabians Blog







