Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

Benefit Cuts Don’t Create Employment: Amazing Revelation!

with 37 comments

IDS: Still in Comfort Zone Denying Facts. 

Benefit Cuts Don’t Encourage The Unemployed Into Work – Research

Welfare Weekly.

Controversial and hard-hitting reforms to the benefits system are failing in their objective of encouraging the unemployed into work, according to new research.

A report published by the Scottish Parliament’s Welfare Reform Committee has found “little support for the view that welfare reform is having important and positive impacts on the labour market in Scotland”.

The reforms are estimated to take £1.5bn out of the Scottish economy, equivalent to £440 a year for every adult of working age, as evidenced in previous research for the Committee.

The  site of the Scottish Parliament says,

Welfare Reforms Not Boosting Employment.

Controversial and hard-hitting reforms to the benefits system are failing in their objective of encouraging the unemployed into work, according to new research.

A report published by the Scottish Parliament’s Welfare Reform Committee has found “little support for the view that welfare reform is having important and positive impacts on the labour market in Scotland”. The reforms are estimated to take £1.5bn out of the Scottish economy, equivalent to £440 a year for every adult of working age, as evidenced in previous research for the Committee.

The research was conducted for the Committee by Christina Beatty and Steve Forthergill of Sheffield Hallam University and Donald Houston of the University of Glasgow. It sets out detailed analysis of the link between employment figures and the various welfare reforms.

Michael McMahon MSP, Convener of the Welfare Reform Committee, commented:

“This research presents firm evidence that welfare reforms are not working. Thousands of people in Scotland have faced upheaval in their lives as a result of these changes, yet they are not leading to more people entering the job market.

“Just as our Committee has already heard from witnesses, the report also shows that people are fighting on several fronts to make ends meet as they are hit by cuts to multiple benefits. This tallies with research we published earlier this year that concluded that parents and people with disabilities were being hit hardest by welfare reform.”

The report also argues that it is economic recovery, in the form of improved consumer spending and higher borrowing, that has contributed to higher employment levels (and reduced numbers of unemployed people in Scotland), rather than welfare reform. Larger than average reductions in unemployment in the places hit hardest by welfare reform also happened in previous economic upturns.  This makes it impossible to attribute recent trends to welfare reform.

Mr McMahon continued:

“The most deprived areas of the country are contributing the most savings to the welfare budget. Yet rather than this shining a spotlight on the success of welfare reform it only serves to highlight that these areas are losing out financially against other, better-off parts of the country.”

Evidence was based on the impact of reforms introduced before 2015, however the report considers the likely impact of the £12bn of further welfare cuts recently announced by Chancellor, George Osbourne MP. It concludes that it is hard to see this new round of reductions having any greater impact on the labour market.  Given that reductions to tax credits account for around half the additional planned saving, and that a large proportion of these cuts falls on in-work claimants, a reduction in the numbers on out-of-work benefits seems even less likely as a result of the new round of welfare reforms.

Professor Fothergill said:

“This research delivers a severe blow to the Westminster government claims about the positive impact of welfare reforms on the labour market, not just in Scotland but potentially across the rest of the UK as well.”

Background

One of the report’s authors, Professor Steve Fothergill of the Centre for Regional Economic and Social Research, Sheffield Hallam University, will appear before the Committee on Tuesday 8 September.

This is the conclusion of the Report:

93. On balance, the evidence in this report provides little support for the view that welfare reform is having important and positive impacts on the labour market in Scotland.

94. The out-of-work benefit claimant rate, and more particularly the JSA claimant rate, has fallen faster in the parts of Scotland where the welfare reforms have resulted in the largest financial losses. Superficially, this might be interpreted as evidence that welfare reform is working in the way the Westminster government intended. Closer examination, however, shows that similar falls in unemployment in these places have been a feature of previous upturns. Recent trends cannot therefore be attributed simply to welfare reform.

95. Looking ahead, the Conservative government in Westminster has announced a further £12bn a year of welfare cuts to be implemented over the next few years. These include reductions in tax credits, a lower household benefit cap, lower ESA payment rates and a four-year freeze in the value of most working-age benefits, including Housing Benefit in the private-rented sector. In the light of the evidence on the impact of the pre-2015 welfare reforms it is hard to see this new round of reductions having any greater labour market impact. Indeed, given that reductions to tax credits account for around half the additional planned saving, and that a large proportion of these cuts falls on in-work claimants, a reduction in the numbers on out-of-work benefits seems even less likely as a result of the new round of welfare reforms.

96. The analysis presented here remains exploratory. A final word on the labour market impact of welfare reform would require a substantially larger and more wide-ranging exercise, beyond the scope of the present project. Nevertheless, there is sufficient evidence in the present report to cast doubt on one of the central claims used to justify welfare reform. Welfare reform does reduce public expenditure and thereby the budget deficit but it does not, it would seem, lead to higher employment or lower unemployment.

The Mirror already sums up this research:

Benefit cuts DON’T force people into work – despite what Iain Duncan Smith says.

But…..

A Department for Work and Pensions spokesman insisted: “Our welfare reforms are transforming the lives of some of the poorest families in our communities while making the system fair for those who pay for it.”

Advertisements

Written by Andrew Coates

September 1, 2015 at 11:40 am

37 Responses

Subscribe to comments with RSS.

  1. The welfare reforms are transforming the lives of some of the poorest families in our communities – because many people have lost at least one family member. and of course saving £ millions.

    enigma

    September 1, 2015 at 2:19 pm

  2. As if when your benefits are cut or are sanctioned you are guaranteed to get paid employment if you look for it.

    enigma

    September 1, 2015 at 3:28 pm

  3. I would have thought that one immediate effect of being sanctioned is to make you extremely depressed and angry – not exactly a good preparation for getting a job.

    Andrew Coates

    September 1, 2015 at 4:13 pm

    • Yes, it sure does that, so the so called incentives are nonsense.

      enigma

      September 1, 2015 at 4:27 pm

    • I think the threat of sanctions/the fact that they are a likelihood at some point over the life of a claim(ant) – & more so the more weeks that pass – will cause those feelings. That, together wiith living very much hand to mouth, is more than enough to minimise the conditions necessary to allow someone a fair to middling chance of finding suitable work. Anyone who manages it does so despite the DWP and JCP-‘s ‘interventions’.

      shirleynott

      September 1, 2015 at 8:58 pm

  4. A substantially larger and more wide-ranging exercise should be used, what do they mean by this. why don’t they spell it out. and employment, are we sure they are talking about paid employment.

    enigma

    September 1, 2015 at 4:20 pm

    • Paid employment as we know it.

      enigma

      September 1, 2015 at 4:32 pm

      • ‘in employment’ is the new ‘in work’. In DWP speak employment doesn’t necessarily mean it is paid employment but there is a general (false) assumption especially with the public that all employment is paid unlike the phrase ‘in work’ which could swing either way. That is why IDS now talks about ‘more people in employment’. Crafty!

        Newspeak

        September 3, 2015 at 12:48 pm

  5. This Government really is the pits , they appear to be taking us back to a discredited view of life were the poor and disadvantaged are so because of their own stupidity and deserve to be ..
    Why don’t you weak ineffectual talentless twerps try tackling the disgusting fraud now becoming increasingly apparent in every Government Department but especially The Department of Work and Pensions where the contractors seem able to run rings around Job Centre Plus management and even persuade them to cover up fraud on their behalf .
    The last time i looked the covering up and hiding of Fraud by a third party was a criminal offence; its called conspiracy to defraud and charges can be bought up to twenty years after the offence, am I missing something here or do these rules no longer apply to Job Centre plus management ?
    If we had a half decent set of people running things in this nation who actually believed in training our youngsters in the skills they so badly need for the workplace we would all be living in a much happier more productive society.

    David Anthony Penson

    September 1, 2015 at 4:41 pm

    • I would seriously like to see these “Outsourcing” “partners” and “providers” of the Unemployment Business put before a People’s Court and sentenced.

      But that’s just moderate me.

      Andrew Coates

      September 1, 2015 at 5:07 pm

      • You’re just a big softie, love! You need to toughen up… 😉

        Old Edna

        September 1, 2015 at 5:36 pm

      • You’re just a big softie, love! You need to toughen up….. 😉

        Old Edna

        September 1, 2015 at 5:37 pm

      • 😀

        Hang 'Em High

        September 1, 2015 at 5:40 pm

  6. Zero hour contacts up 19%, theirs now around 800’000 such contracted employees in the UK.

    Doug

    September 2, 2015 at 9:39 am

    • Walking through the high street I now see young single mothers with their kid/s waiting outside shops/cafe’s etc for their parents to pick up their kids, then start work in those shops etc, on zero hour.

      enigma

      September 2, 2015 at 12:13 pm

      • And that’s the lucky ones who have such support!!

        kat rehman

        September 2, 2015 at 3:24 pm

      • Yes Kat, and looking at their faces, not very happy. which is understandable. while the DWP of course is expecting all to smile.

        enigma

        September 2, 2015 at 4:37 pm

  7. Those were the days….

    Andrew Coates

    September 2, 2015 at 3:12 pm

  8. “Today’s slavery focuses on big profits and cheap lives. It is not about owning people like before, but about using them as completely disposable tools for making money.”

    http://www.alternet.org/civil-liberties/there-are-more-slaves-today-any-time-human-history

    Annos

    September 2, 2015 at 8:29 pm

  9. Its whole scale avoidance of responsibility that this amounts to.People are not going to find work on whats being said and done,more so disabled people who have needs.

    http://www.yorkshirepost.co.uk/news/debate/letters/september-2-earning-a-living-again-all-thanks-to-iain-duncan-smith-1-7438789

    ken

    September 2, 2015 at 9:46 pm

  10. Does Bill Turnbull dye his hair?
    Does George Osborne dye his hair?
    Do bears shit in the woods?
    Is the Pope a Catholic?

    Naga Munchetty's Knickers

    September 2, 2015 at 10:44 pm

    • Does Paul McCartney dye his hair?

      The Big Question

      September 3, 2015 at 7:43 am

      • Do bears shit in the woods?
        Is the Pope a Catholic?

        The Big Question

        September 3, 2015 at 7:44 am

      • There are no bears in Suffolk, at least not since the Bear Baiting pit in Ipswich closed last year.

        Andrew Coates

        September 3, 2015 at 11:47 am

  11. Poppycock, utter poppycock. Let me be clear: welfare reforms ARE working. There are now more people in employment than ever before.

    We are working for you

    The Rt. Hon. Iain Duncan Smith MP, Secretary of State for Work and Pensions

    Iain Duncan Smith MP

    September 2, 2015 at 10:53 pm

  12. Missed a bit:

    “Our welfare reforms are transforming the lives of some of the poorest families in our communities [into shit] while making the system fair for those who pay for it.”

    It’s not what they say – it’s what they DON’T say…. 😉

    Typo

    September 2, 2015 at 11:01 pm

  13. The Department for Work and Pensions has again refused to release data about the impact of changes to the disability benefit system after a request under the Freedom of Information Act.

    http://www.independent.co.uk/news/uk/politics/dwp-again-refuses-to-release-data-on-disability-benefits-using-the-same-excuse-as-before-10483144.html

    enigma

    September 3, 2015 at 11:26 am

    • Its a major worry for people on DLA.The assessments start in October for lifetime and indefinite awards.The DWP have released figures of around 500,000 will be removed from the register,this shows that’s a misguided act.It appears based solely on one set of criteria,PIP is supposed to be harder benefit to claim but those in these figures are likely to have other areas covered elsewhere in the descriptors which take them over the threshold for qualifying,The road which the current ESA has gone down doing the same to permanently disabled people is going to and is causing attention.

      http://www.rt.com/uk/314007-un-investigates-disability-rights/

      The government should not be attempting to strip disability benefits for lifelong conditions however its looked at,even the US pays disability benefits which here they are trying to remove.its certainly not going to make work pay or should be considered reform as by what the disability is they are far more to suffer discrimination and be not in work if that could be changed but some things never will.

      Given the attitudes there is going to be more headlines soon.

      ken

      September 3, 2015 at 10:51 pm

  14. knickers

    iain duncan smith

    September 3, 2015 at 5:54 pm

    • marks and spencer sell them

      PJ

      September 4, 2015 at 8:31 am

  15. OT : Zero Hours Contracts

    The above mentioned “Type” of job is cack.

    Was signing on today and the bloke in front was complaining of the following:

    – On taking up said Financially Viable “Opportunity”, no help with attendance of mandatory 2 day course or anything else to do with it for that matter – oh, you do get half back on your first weeks fares. That’s such a great great help.
    – No help with bills. You know, little things like food, rent [threatened with eviction], things that really don’t matter – but the plus is he’s hanging by the phone waiting for the call to work though.
    – Did I mention that he can look forward to working on the whim of the Gang Master employer?
    – One last one – can look forward to first pay check – 8 Working days after first week of work. Lovely

    Gazza

    September 3, 2015 at 8:15 pm

  16. After 2,380 people died within two weeks of being found fit for work, the Department for Work and Pensions said we should instead focus on those still alive.

    http://newsthump.com/2015/08/27/lets-focus-on-those-declared-fit-for-work-who-are-still-alive-insists-dwp/

    enigma

    September 3, 2015 at 8:52 pm

  17. OT – A boy removed from disabled mother’s care over costs as judge dismisses an allegation of ‘social engineering’

    http://www.telegraph.co.uk/news/uknews/law-and-order/11842893/Judge-removes-child-from-disabled-mother-over-costs-of-care.html

    enigma

    September 3, 2015 at 9:34 pm

  18. does ids polish his head

    PJ

    September 4, 2015 at 8:29 am

  19. who else thinks ids is a bad nightmare come to life hands up then lets count them

    PJ

    September 4, 2015 at 8:30 am

  20. Universal Credit – Universal Jobmatch Access:

    Department for Work and Pensions (DWP)
    Central Freedom of Information Team

    [DWP request email]

    Our reference: VTR 2080
    Date: 17 June 2015

    In terms of Universal Credit claimants to whom the Welfare Reform Act 2012 and the
    Universal Credit Regulations apply, the recorded information we hold that best
    answers your questions is contained in the knowledge management available to
    Jobcentre staff dealing with Universal Credit claimants which is included in Annex 1
    to this letter. Specifically, the highlighted paragraphs may be of particular interest.

    There is also no legal requirement for a Universal Credit claimant to give permission
    for DWP to access their UJ account.

    If you have any queries about this letter please contact us quoting the reference
    number above.

    Yours sincerely,

    DWP Central FoI Team.

    https://www.whatdotheyknow.com/request/269113/response/666047/attach/html/3/FOI%202080.pdf.html

    Obi Wan Kenobi

    September 4, 2015 at 10:56 am


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: