Real Benefit Levels.
There’s a letter in the papers (Guardian) today that’s worth reading:
The inadequacy of the £64.30 weekly jobseeker’s allowance (£50.95 for the under-25s), noted by Paul Nicolson (Letters, 11 May) is a modern phenomenon. When unemployment benefit started in 1912 it was 7 shillings a week – about 22% of average male earnings in manufacturing. The percentage fluctuated over the succeeding decades, but by 1979 the benefit rate was still about 21% of average earnings (manual and non-manual, male and female). By 2008, however, as a result of the policy of tying benefits to the price index while real earnings increased, the renamed jobseeker’s allowance had fallen to an all-time low of 10.5% of average earnings. And while, in the past, means-tested allowances raised unemployed income to a higher minimum level, the jobseeker’s allowance rates are now the same, whether means-tested or not.
Of course, average earnings have grown but so has the relative deprivation of the unemployed. This is not a policy justified by the need to maintain work incentives. It is just a dreadful record of neglect by governments since 1979.
Jonathan Bradshaw
University of York
Tony Lynes
London
As Dan from this Blog has pointed out, if you’re under 25 you don’t have by any means less cash needs.
Ipswich Unemployed Action. 
House prices in Ipswich have fallen around 10% however not many unemployed people are attempting to buy or sell a house to worry, however, renting a place… the prices don’t seem to fall much. They dont seem to have changed.
http://www.eveningstar.co.uk/content/eveningstar/news/story.aspx?brand=ESTOnline&category=News&tBrand=ESTOnline&tCategory=xDefault&itemid=IPED14%20May%202009%2023%3A00%3A54%3A970
The new University will boost the local economy however was the worst possible move for unemployed people. There are loads of empty flats and apartments laying empty because the landlords wont drop the price hoping for them to be occupied at the full price by some university students.
This said, university students will also find it rather difficult.
The average price of an apartment is £300 month exclusive – how are you going to afford that alone at £50 a week income? Studio flats and house share will be a bit cheaper.
Hostels exist which are seen as good value however soon as you find a job they will start demanding a lot extra. Then you wont be able to afford to move out.
I agree for the amount to be doubled. There are a lot of concerns about benefit fraud and “lazy dole scroungers” which from my experience alone, happens to be absolute nonsense.
Even though the rule has been relaxed due to the increased number of claimants people are expected to bring a job log each time they sign on – if requested and you dont have you may have your claim stopped. The clock is around 2-3 minutes forward and be a minute or two late you could lose your benefit. Get too early you are made to wait outside or at the front. It isn’t uncommon to wait 10-15 minutes to be called and not to even receive an apology.
The biggest problem with benefit fraud is actually incapacity benefit not Jobseekers Allowance.
You may have seen them waiting outside the building in Silent Street at the front. These people get a lot more money than Jobseekers and have to travel less. Most are genuine however not all are. Alcoholics (tested with possible liver damage by doctor – so the occassional binge drinking doesn’t count – I admire your thinking though) get a higher amount than Jobseekers as they claim incapacity benefit so they can waste it on booze and have no chance in even getting a job.
Could be coincidence but due to all the new loads of people signing on nationally a lot of people this year claiming again via Rapid Reclaim have not received any money whatsoever. I am one of them – waiting to receive a backdated month of payment which is likely to take another 2 weeks until I receive it.
Dan
May 15, 2009 at 11:44 am
I find it hard to believe that the dole has since my last claim (well over 12 years ago) just over a brown beer token, and in 1986 – the first dole I claimed I think it was £35/wk. And we smokewd and drank in the pub!
Harry Pollitt
May 21, 2009 at 1:46 am
£35 in 1986? It has hardly increased at all.
Dan
May 21, 2009 at 10:05 am
[…] As described further here, when unemployment benefit began it was equal to 22% of average male earnings. By the 1980’s it was still 21% of average earnings. In 2008, Jobseekers Allowance became equal to 10.5% of average earnings. […]
Jobseekers Allowance Scandal « DWP New Deal Scandal
July 15, 2009 at 6:13 pm
Whenever I’ve been thrown in to the Unemployed pool, everyday is like a chore. Budgeting whether you can buy a burger instead of cooking a meal due to lack of motivation, let alone whether it’s in my reach to buy some tool or materials to try to create an opportunity for yourself. Then made to feel like shit that you haven’t found a job (cos they’re either some bolox job that contributes nothing to society or your well being, or their just isn’t any). That is why I feel that through this Union we should be pushing for Benefits that correlate with the actual cost of living and any jobs wage to be set above that value. Also instead of just fighting for the right to work, we should be pushing for only jobs that are socially useful.
Solidarity with workers only in the productive sectors (public transport, health, education, infrastructure, food) and fuck off all the call centres, advertising, etc. then all in all we would be using less resources and all have to work less hours for a relatively equitable wage.
Before we wait to find out that the government isn’t going to provide this for us, we can use this as a network to actually start building up running these services (like food distribution) for ourselves under a workers co-operative. It would be great to hear what others have to say about that, please let me know.
In Solidarity,
sb
Cambs UWU
September 16, 2009 at 1:45 pm
while the attack on those paid unemployment benefits’ continue in the media with crisis loans labeled a cash point and a public scandal,its interesting the contrast outcry when child benefit is withdrawn for high earners,some saying they would be better off divorced and duncan smith quoting i don’t love the idea.,he isn’t saying that while issuing statements in regard to the unemployed.
http://www.thisismoney.co.uk/news/article.html?in_article_id=515896&in_page_id=2&ito=1565
ken
October 6, 2010 at 3:55 am
They are playing with your mind, ken. You not see where all this is going?
Johnny Storm
October 6, 2010 at 8:34 am