Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

Government to Freeze (Cut) Benefits.

with 11 comments

On Newsnight yesterday,

The government is considering ending the automatic annual increase in benefits in line with inflation, sources have told BBC Newsnight.

If implemented, the move would see many benefits frozen for two years, then rising only in line with average pay.

In recent years inflation has risen at a far higher rate than average earnings – Whitehall officials say a switch since 2008/9 would have saved £14bn.

The government needs to find £10bn of extra savings in the welfare budget.

Opinion is being softened up for this, and it was noteworthy that the Labour MP on the programme did not go for an all-out attack on the proposals.

Sources said they were mindful of the risk of pushing benefit claimants into poverty, but that there was potential for massive savings.

“Benefits are rising faster than earnings; this does not encourage people to go to work. Benefits were never meant to be a salary replacement,” one told the BBC.

“We are aware that there is the effect on poverty to be considered but we believe that benefits have risen by so much over the last few years that a freeze for a couple of years would help people deal with the transfer. When you see the savings possible, it is simply mind-boggling,” the informant added.

In the report and discussion it seemed probable that the most likely target would be JSA.

This will effectively mean a cut in benefits.

At their low-level even if the lead-total of inflation is (in a recession) decreasing, ending the link means the loss of a few, crucial, extra pounds.

We note that Oxfam states that, in the “last 5 years, food prices have risen by 30.5%”.

This raise has, if anything, accelerated.

Anybody highly conscious of prices, as we are, noticed how basics like bread, oil and pasta, have gone up. The cost of fish is exorbitant.

We should also remember that those on benefits are going to have to pay a percentage of Council Tax, those on Housing Benefits will have to pay a part of their rent from their dole.

Pushing people into poverty is no doubt very appealing when you can make “massive savings”.

The ‘Source who said they were “mindful'”about this  was being intentionally or not, ironic.

The Liberal-Conservative Coalition does not care about the out-of-work being pushed to the bread-line.

Ian Duncan Smith probably get his fish freshly caught in Cornwell, freighted to his kitchen and the House-Keeper pays.


Written by Andrew Coates

September 18, 2012 at 9:30 am

11 Responses

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  1. this goverment havent a clue what to do! in true tory fashion they will bash the unemployed into the wall for their own failures,thats them not bringing enough decent fulltimeb jobs into this country and letting it overflow with a population of 100% overflow,we have good infrastrucure for 35million, we have i think something like 65million if any of them self serving mps did maths at school they should have forseen the nightmare we are all going to pay for now.Nothing to do with being racist just plain facts .Next thing they will be scrapping the state pension.

    Ian duncan smith has a funny overall mentality when he thinks that these messures with housing benefit and council tax will incentify people to get a job,he truly misses the [point in that the majority of jobs being advertised in the uk are peasant pay and especially if you are single with rent or mortgage to pay.He needs a tast of what he preaches and all the rest of the posh boys.


    September 18, 2012 at 9:56 am

  2. Working as a volunteer for Age Concern during the 1980s, I vividly remember one old guy regaling me with tales of life in the 1930s when he found himself long-term unemployed after being paid off from his job as a welder in the local shipyard. Denied any sort of financial aid after a couple of months, he was obliged to leave his parents’ home where he had been born and raised (they being simply too poor to support him) and wander the streets homeless and pennyless desperately looking for any type of employment he could find. After several weeks of unsuccessful seaching he ended up collapsing and being admitted to hospital where he was diagnosed as suffering from malnutrition.

    Trying to reassure him that those days were long gone, he angrily retorted that as far as he was concerned given half a chance the Tories would drag us all back there. Well, with yet another vicious attack on claimants, how right he was. This is without doubt the worst, most reactionary, spiteful and vindictive government of the post war years – and worse is to come.


    September 18, 2012 at 1:22 pm

  3. with the likelihood of having to pay council tax this is going to be tough going,the trouble when cuts are made costs are pushed elsewhere such as gp’s surgeries when stress bites.

    locally crime has gone up a neighbour has been burgled,crime levels rise,there are media reports of people filling shopping trollies and attempting to just leave,then in court the defence stating that their benefits have been stopped.

    duncan smith making false claims about “fears of” hardship payments being used for nights out,holidays and subscription tv are being used to stir hate in newspapers against those on benefits,its nasty false propaganda tactic aimed at playing for votes,he knows its a popular line and is playing it.


    September 20, 2012 at 11:47 am

    • What is really annoying is the way the cuts and benefit reductions is being presented as something ‘popular with voters’.

      That is until they find they’ve got people sleeping rough in the doorways next to where they live – as I do.

      Andrew Coates

      September 20, 2012 at 3:14 pm

  4. IDS even had the audacity to visit Scotland recently playing on fears of higher taxes to pay for benefit scroungers.

    Most discerning Scottish people are not fooled by his scaremongering mission. Only one solitary Tory MP exists in Scotland – and even he was investigated earlier on for fraud! What, only one Tory MP in Scotland? Yes, so that fact can’t be insignificant then!!!

    I’m left wondering how many people will needlessly die as a result of these nasty Tory policies before the accumualting mess the Tories are creating finally disintegrates into the oblivion it deserves.


    September 20, 2012 at 12:47 pm

    • Tobanem

      September 20, 2012 at 12:51 pm

      • Meanwhile, the flagship Universal Credit is sinking already:


        The wrong button was pressed, or rather the correct button was pressed at the wrong time, resulting in hundreds of people becoming overdrawn – and subsequently incurring Bank charges. This is yet another example of Big Business profiting at the expense of the poor who did not cause the error in the first place. It is particularly ironic that it is a Bank of all things profiting here!!!

        And that is just a pilot of Universal Credit!!!

        What happens when (or if) the full blown scheme is rolled out all over the country? It is chaos in the making – an accident just waiting to happen.

        Expect the bodies – dead as well as alive – piling up in the streets of cardboard city!


        September 20, 2012 at 1:12 pm

      • Tobanem there is more than one cardboard city in Ipswich, but the most visible one is just opposite Suffolk New College.

        Andrew Coates

        September 20, 2012 at 3:16 pm

  5. Andrew Coates :
    Tobanem there is more than one cardboard city in Ipswich, but the most visible one is just opposite Suffolk New College.

    And the lucky ones have got a Sammie 60 inch!


    September 20, 2012 at 6:41 pm

  6. Need any more evidence of this out of touch Government? Have a look at this report:


    We have seen and heard it all before. How much longer can this increasing absurdity go on?


    September 22, 2012 at 9:49 am

  7. Have you heard of the latest punitive development from the DWP called UNIVERSAL JOBMATCH? Job-seeking is going Orwellian:


    One of the many “gems” of the new Jobseekers Allowance Regulations 2012 is “…we propose that claimants are expected to have spent 35 hours a week…looking or preparing for work.”

    And, of course, from October this year, there will be a savage increase in the duration of sanctions for failing to keep up with these harsh new rules.

    As I said earlier on, how much longer can this increasing absurdity go?


    September 22, 2012 at 2:41 pm

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