The man with a plan who won’t tell us what it is

Question of the day: why won’t George Osborne say where he will find another £10 billion of cuts in welfare?

The obvious answer is that he doesn’t want us to find out before the election but there is a more immediate one too: because he can get away with it.

I found myself shouting at the radio twice today as interviewers failed to pin down first Osborne and then financial secretary David Gauke. The £10 billion figure is the so-far unexplained bit of the total £12 billion of welfare cuts Osborne is planning after the election. It matters both in its own right and because it enables him to deflect the Office for Budget Responsibility’s point about ‘rollercoaster’ cuts in public services.

Read the rest of this entry »


Sign of four

It’s time once again for a comprehensive overview of the state of the housing nation. Here are four key points I drew from this year’s UK Housing Review.

The headlines so far have been made by falls in home ownership for young people, but the 2015 Review also highlights these other key points for housing across all tenures:

1) Universal dependency

This isn’t the first time the Review has made this point but it is the first time I’ve seen it summed up so clearly in one graph.

All the rhetoric about universal credit says that it will reward those ‘hardworking families’ and help to end the ‘dependency culture’ of the benefits system. The new scheme does improve the poverty trap caused by the rate at which housing benefit is withdrawn as your earnings rise. A failure to include council tax benefit plus cuts in recent Budgets and Autumn Statement detract from this objective but it does still seem better designed to ‘make work pay’.

However, there is a price to be paid for this improvement.

Read the rest of this entry »


Minority rule

How do flawed policies that are opposed by a majority of MPs manage to survive unscathed?

One of the remaining mysteries of this parliament was solved in the Commons yesterday. Why has it taken the government almost a year to fail to respond to the all-party work and pensions committee’s report on housing benefit? The answer has much to say about how coalition government, and power, work.

Read the rest of this entry »


Little progress

It’s time for another peek inside the workings of universal credit. IDS look away now.

The work and pensions secretary told us about his latest triumph two weeks ago: the start of the national roll-out heralded a new benefits era; it was £600 million under budget; and it was helping people find work quicker. The commentariat seemed to agree: in his final Telegraph column Peter Obornewas gushing; and in The Guardian Matthew d’Ancona wondered if IDS might even be ‘the man to save the Tories’.

However, as I’ve blogged before, universal credit exists in two states at once: triumph and not-triumph. It didn’t take long for the other state to be highlighted: Nigel Keohane pointed out that only 0.3 per cent of claimants are on universal credit so far plus a host of other practical problems; and a claimant who advertised it told the BBC he now thought it was a nightmare.

And today’s progress update from the House of Commons Public Accounts Committee concludes that ‘very little progress has been achieved on the frontline’.

Read the rest of this entry »


Overpaid and overclaimed

Too expensive to repeal the bedroom tax? Look what’s happened to housing benefit overpayments.

A damning report published on Tuesday by the Commons public accounts committee reveals that overpayments cost £1.4 billion in 2013/14, the first year of the under-occupation penalty. That is an increase of £420 million since 2010/11.

Of that £1.4 billion, the DWP estimates that £900 million was claimant error, £340 million claimant fraud and £150 million official error. Overpayments since 2000/01 now total a staggering £12.6 billion – and there seem to be no figures on how much of the money that is overpaid is ever recovered.

-> Read the rest of this post on Inside Edge 2, my blog for Inside Housing


10 things about 2014: part 1

The first of a two-part look back at the issues and people that I’ve been blogging about this year.

1) Groundhog Day on the bedroom tax

The year ended as it began, in a welter of parliamentary accusation and counter-accusation that left tenants in England and Wales still having to pay the under-occupation penalty. A Commons debate in December just before the Christmas recess a classic example: Labour called a vote condemning the bedroom tax that didn’t actually change anything; the Lib Dems voted in favour and produced a weasly justification for the decision; and the Conservatives went from claiming it would save £1 million a day in January to £500 million, £1 billion and even £2 billion by the end of the year.

However, there were at least three occasions during the year when it looked as though significant changes would be achieved.

-> Read the rest of this post on Inside Edge 2, my blog for Inside Housing


Time loop

More than one MP compared Wednesday’s debate on the bedroom tax to Groundhog Day and it was not hard to see why.

Labour calls a debate that will not change anything but is designed to expose the Conservatives as callous and the Liberal Democrats as collaborators. The Conservatives (as personified by pictures of a laughing Iain Duncan Smith) duly live up to their billing. The Lib Dems accuse Labour of playing games but end up seeming to vote for something that they were against before they were in favour of it. We’ve been here many times before.

A Labour motion ‘that this House believes…the bedroom tax should be abolished with immediate effect’ was voted down by 298-266. A coalition amendment approved by 300-262 extols its record on cutting the welfare bill but also ‘notes’ that ‘the part of the coalition led by the deputy prime minister has proposed reforms to introduce other formal exemptions to the policy, including where claimants have not been made a reasonable alternative offer of accommodation’.

The net result of all that politics was that nothing much changed yesterday apart from UKIP’s Douglas Carswell voting against the policy he supported as a Conservative. But the sense of déjà vu hanging over the opposition day debate was about much more than just that. Here are some high (or low) lights:

-> Read the rest of this post on Inside Edge 2, my blog for Inside Housing


Follow

Get every new post delivered to your Inbox.

Join 219 other followers