Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

Young People – especially the Out-of-Work – are Being Hammered as Welfare Privatisation Looms.

with 28 comments

Iain Duncan Smith Hammers Young as he Plans to Let more Private Firms Make Money from Welfare.

UK ‘failing its young’ as gulf grows between generations reports the Observer this morning.

I cannot help feeling that this is one of the worst things you could say about any government and society

The prospects for young Britons have deteriorated sharply since the Tories entered government in 2010 as money and resources have been targeted at the older generation, according to a devastating new report by economists.

The latest findings of the Intergenerational Foundation, to be published this week, highlight a sharply widening gap on its “fairness index” between people under 30 and those over 60.

The report illustrates how the younger generation is increasingly paying the price for supporting those already in, or approaching, older age as the cost of funding their pensions and healthcare rises.

Since 2010, the report shows, there has been a 10% decline in young people’s prospects across a range of measures including housing, education, health, income and debt. It comes amid a growing backlash from young people against George Osborne’s budget last week in which he announced welfare cuts that will hit many young families, ended automatic entitlement to housing benefit for those aged 18 to 21, and replaced maintenance grants for students with a loan system. Osborne also unveiled plans for a new “national living wage” that will rise to £9 an hour by 2020, giving millions of people a pay rise. But it will not apply to those under 25.

After the budget we noted this,

The tone of the chancellor’s strict carrot-and-stick approach was established by his planned “youth obligation” for 18 to 21-year-olds on universal credit, which he said would provide them with “an intensive regime of support from day one of their benefit claim”, from April 2017. At the same time, Osborne said housing benefit would no longer be automatically available for 18 to 21-year-olds.

Is there worse to come?

Yes: in the end this for all of us (Welfare Weekly)

Iain Duncan Smith has hinted that the future of Britain’s welfare system could rest in the arms of private insurance schemes.

Speaking to the Telegraph, the Work and Pensions Secretary says young people should be encouraged to save into flexible accounts, from which they can then draw out money at times of sickness or unemployment.

The model is very similar to unemployment insurance schemes in the United States, but would work more like systems that exist in the far East – such as ‘Fortune Accounts’ in Singapore.

“We need to support the kind of products that allow people through their lives to dip in and out when they need the money for sickness or care or unemployment”, said Iain Duncan Smith.

He added: “We need to encourage people to save from day one, but they need to know that they can get some of the money out when their circumstances change.

Iain Duncan Smith said that although this is not yet official government policy, he is “keen to look at it, as a long-term way forward for the 21st century.”


28 Responses

Subscribe to comments with RSS.

  1. Tories introduce the Welfare Reform and Work Bill

    To the delight of ‘fist pumping’ IDS

    Many deluded Tories actually think that Iain Duncan Smith’s bizarre and frankly rather worrying response to the budget, a ‘fist pumping‘ display of euphor

    Shortly after the budget, the shameful Welfare Reform & Work Bill received its first reading, here it is in all its gory detail…..



    Andrew Coates

    July 12, 2015 at 2:40 pm

  2. And so It comes to pass as I predicted:

    “Speaking to the Telegraph, the Work and Pensions Secretary says young people should be encouraged to save into flexible accounts, from which they can then draw out money at times of sickness or unemployment.

    The model is very similar to unemployment insurance schemes in the United States, but would work more like systems that exist in the far East – such as ‘Fortune Accounts’ in Singapore.”

    Only Problems?

    1. Trust the city that caused the Financial Crash – we all know how that ended.
    2. Trust the city paying out hand over fist for miss sold products – we all know how thats going
    3. Trust the city which operates under only one rule – make money anyway/how etc from others, upto and including over dead bodies – we all know how that will end.

    So, next question is who/how are gov bills going to be paid if no money is being made off youngsters? Oops thats a big hole in the accounts there.

    This will fail/fall apart … Badly.


    July 12, 2015 at 6:26 pm

    • What was I saying only the other day about this government wanting all UK citizens to have debt and insurance, about how do you make a profit out of welfare ?


      July 13, 2015 at 10:08 am

    • Anybody ever made a claim on their insurance?

      Many people say that they can sometimes make JSA claims look equitable.

      Andrew Coates

      July 13, 2015 at 10:19 am

      • You mean the in case of sh*t fund that never gives back what it doesn’t spend.

        Basically insurance is loan interest payments without the loan.


        July 13, 2015 at 10:48 am

    • I would point out to all the Big Stinking Elephant [and I do mean stinking like a skunk].
      Do you really think they will pass up a oppurtunity like this to rip off people like they do in the US?
      Oh, have I let the cat out of the bag? Maybe that’s wy they opened offices here in the UK as the got a nudge nudge wink wink from someone?
      When the announcement of their involvement is made I wonder if the creation of the Bogus company [you know the one purporing to actually pay out Insurance?] will be very recently?


      July 13, 2015 at 11:50 am

  3. Spent on older claimants my foot, the chance would be a fine thing.

    They don’t spend anymore on us, infact they’ve diverted money away from us for apprenticeships which we all know goes to under 24s for example.

    Apprenticeships are suffering because unlike government approved training they cost the family supporting this child dearly as it automatically stops child and child tax benefits.
    Going to college is a much more viable route when talking costs.

    Getting back to older claimants, I fail to see how the work programme, placements in trades not suffering a skills shortage helps a person learn a skill that this country badly needs. As I already pointed out a while back, any claimant wanting to do a course MUST seek prior approval from DWP or face losing there benefits. That they MUST sign a contract stating they will give up the course and own the course debt in the event an offer of employment or training towards ( a non paid placement) comes up no matter what.

    To make even more joke of government tact, there’s far to many skilled claimants locked out of there previous profession because of needing certain tickets they can nolonger afford and aren’t supported by the 24 plus advanced learners loan, people who already have decades or experience but are passed over for one reason or another.

    This aside everyone no matter age should have the same opportunities no to mention this government should stop mucking about with courses that only last weeks in already over saturated skill sectors and concentrate on the real skill shortages like construction, manufacturing, science, engineering and technology.


    July 13, 2015 at 10:00 am

  4. As for the student maintenance grant, its just this government getting a bone at both ends. This government would like nothing better than for most of the UKs youth to do apprenticeships as then they could stop or reduce there respective parents child and child tax benefit claims while claiming victory on getting more people into work rather than study. If the parents or there child doesn’t take this apprentice route then the cost of the grant in terms of a loan makes up the difference of what this government would like to save or somewhere near it.


    July 13, 2015 at 10:22 am

  5. corporate welfare costs the tax payer around 180 billion


    Yes it is about high time this was discussed yet all the parties avoid it at every turn.


    July 13, 2015 at 11:39 am

    • Thats a big jump – the Guardian was reporting it at 85Bil a few years back


      July 13, 2015 at 11:52 am

  6. Physiotherapy: the big impact


    Like every qualification and training doesn’t already have lessons on health and safety, particularly posture and manual handling. That’s the first stinking lie, either that or clearly Mark Fletcher, Clinical Director of Physio Med needs to do more research.

    Secondly what this tell the boss, as the last time I checked, health and safety is a dirty word when spoken to an employer who will often quote the phrase, “reasonably practicable” so as to ignore it. Also raising the health and safety alarm at work will see the employer view the individual as a trouble maker and we all know what happens to whistle blowers, don’t we.

    It seems to me that physio is attempting to try and set up shop to make money out of both employer and employee alike.


    July 13, 2015 at 11:48 am

    • Pointed out to the fool – my situation:

      “I have crushed vertbre of the neck – the condition will only get worse with age so how will this help?”

      Fully expect the comment to be removed.


      July 13, 2015 at 11:59 am

      • Yep – comment removed


        July 13, 2015 at 2:30 pm

  7. CBI warns of ever looming skills emergency that threatens the countries growth.



    July 13, 2015 at 12:30 pm

  8. The Guardian carry the IDS story today and it’s already got worse.

    David Cameron is prepared to look at making workers pay into flexible saving accounts to fund their own sick pay or unemployment benefits, Downing Street has confirmed.

    The idea was first floated by Iain Duncan Smith, the work and pensions secretary, who said he was “very keen” to have a debate about encouraging people to use personal accounts to save for unemployment or illness, even though it is not official government policy.


    Andrew Coates

    July 13, 2015 at 3:50 pm

    • Save! What with? By the time you put a stale crust on the table there is nowt left over for a dollop of ketchup to go with the 15p can of spuds!

      National Minimum Wage Worker

      July 13, 2015 at 4:46 pm

      • Yeah, we love a dollop of ketchup on our value spuds, but it is just too damned expensive. Passed it the other day in the orange shop. £1 a bottle for crying out loud! Paused, looked at it, thought twice, picked it up then put it back down. Further down we got a bottle of salt for 20 pence so that had to do. That IDS slap-head must think we are all rolling in money!

        Bloody Hardworker but Low-Paid

        July 13, 2015 at 4:54 pm

      • You thought about trying a Foodbank, mate? There are thousands of them all over the place. Springing up like mushrooms they are. Sometimes we get sauce in – you could strike it lucky! 🙂 We had loads of yummy Stollen cakes in last Chrimbo. 🙂

        Foodbank Volunteer

        July 13, 2015 at 10:35 pm

      • The cakes were called Stollen – didn’t mean that we stole them lol 😀

        Foodbank Volunteer

        July 13, 2015 at 10:36 pm

    • The question should be if we are all going to prosper as this government claims with money, job creation and exporting, then why oh why would we need to save for illness and unemployment in the first place, I mean what’s the point of even having UC if this is going to be the case ?

      If the working public are going to be asked to save for such things then it can only mean that the welfare safety net is being folded up never to return bar for those never ever going to be able to work and those retired.

      Sounds to me like even after the next five years, this countries still going to be in financial crap as nothing stays the same so no matter what the government cut, the services will still cost more per unit year in, year out.

      I cant wait to see how they strategize how someone only working 20 hours a week on national min will be able to afford to save or even 37 hours once inflation kicks back in.


      July 13, 2015 at 6:37 pm

      • gaia,

        Strategize? George Smith strategize?

        Nope it’ll be the same old same old of …

        “Nope not my fault – I instructed senior civl servants too…. [fill in excuse here]. The Regulations I introduced in April 2016 allowed people the aspiration to take control of their own destinites with the chances we have given them…”

        DWP->Claimant “Increase your 16 hours, oh your current employer refuses to do that then get another job. Oh you can’t as there are none – here have a Sanction.”

        Yeah starve slowly, or starve fast – how much was that insurance again and how can I afford it on my nonexistant low wages/dole?

        In fact I saw over at BBC when they increased National Min Wage that employers rep said they were going to get rid of jobs – end result even less jobs to go around….


        July 13, 2015 at 9:40 pm

      • Like I said, sanctioned or not, we all end up at the same conclusive spot eventually.

        The rise of ZH and self employment are important markers as is the reported high skill shortages.

        Businesses speculate so the very fact ZH isn’t all but the reserve of very small companies tells us there confidence is not that of what our government displays.

        The rise in self employment despite the obvious known fact that 9 out of 10 start ups fail in the first year displays if anything sheer desperation.

        As for high skill shortages, it just stands to reason that technology has moved on, something our tory government fail to recognise what with being technophobic which is event by the continual failure to get there IT projects off the ground.

        Like everywhere else on the planet, the UK is on a sinking ship held up by fudged stats and consumer spending and debt.


        July 14, 2015 at 9:55 am

  9. Universal Credit staff go on strike in protest against ‘oppressive’ culture under Tory welfare reforms



    July 14, 2015 at 10:27 am

    • Excellent post “gaia”.

      Universal Credit looked doomed from the outset – and that was from an I.T. perspective. The complicated software behind it all, called “the beast”, won’t cope in real time with the sheer volume of ever changing information – including tax records and Housing Benefit details – it is intended to handle.

      Then we come to the recipients of UC and the harsh if not impossible conditionality rules.

      As if that’s not bad enough, we now have the Civil Servants who operate it going on strike.

      How can such an omnishambles like that possibly survive?

      But what happens if claimants don’t get paid when the system eventually goes “all Greek” and goes into meltdown? Is that all part of the plan?

      Things can only get worse…


      July 14, 2015 at 10:51 am

      • Can you name an IT system that’s never gone down on a near regular basis Tobanem ?

        As sure as the sun comes up, this system will crash, will get attacked.


        July 14, 2015 at 11:17 am

      • I woud gently point out the big hole in UC? it is wholy dependent on a IT system being set up by Inland Revenue – live daily updates on tax/NI.

        Problem? What could possibly go wrong – oh yeah, fact it don’t work, nor is it likely at last update be fit for purpose after trial last year/this year of being so for at least 5 years [so that’s 2020 then].

        Ooops. I wonder how this will impact Tax Credits/UC….


        July 14, 2015 at 2:14 pm

  10. Facts and figures time

    Leicester council reported to a paper that they had over paid housing benefit to the tune of 6.83 million.

    With a total budget of 140 million that means its an over payment of merely 4.9 % of the total housing budget, less dramatic than quoting millions yes ?

    Now lets look at what the tax payers actually lost in terms of how it looks in there pay packet.

    We currently have around 31.5 million in work so just for the sake of argument, lets say a third don’t pay any taxes.

    So if we now take this 21 million taxpayers and spread this 6.83 million we get around 0.32 pence per tax payer, not a week but in total for that housing year. This makes up precisely 0.0016 % of an average salary of £20’000 per annum.

    Its quite clear Leicester city council hyped there comment to maximum effect so as to draw working class public sympathy and that the paper in question cant claim they aren’t biased as they did nothing to highlight these poignant facts and are so complicit in the act.

    The second sin is this council like central government attempts to group the interests of taxpayers and why because as I demonstrated, any one individual paying taxes would be decimated in an argument if you really broke it down for them.

    Lastly the council neglected to state how much the cost of administering this overpayment was, oh I wonder why, oh maybe its because the process costs way more perhaps when we look at HMRC taking the money, having it flit through x amount of departments and then get administered.


    July 14, 2015 at 11:13 am

  11. Reblogged this on Britain Isn't Eating.


    July 15, 2015 at 2:34 pm

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: