The Welfare Cap


The announcement that Child Benefit would no longer be payable to higher rate tax payers came about five minutes after I pressed ‘publish’ on my post yesterday. For the record, I have no problems with reducing or means-testing child benefit although the method the government have chosen to limit Child Benefit is somewhat curious and I have no doubt that many questions will be asked about its equity in the next few months. The oft-quoted anomalies don’t need to be discussed here but the announcement fits in very well with my own concerns about the spending cuts – namely everything seems to be in panic mode at the moment without wider thoughts about the implications of the cuts.

I have graver concerns about the other parts of the millionaire Osborne’s speech yesterday. He drew wide roars of approval for his idea of capping benefit payments so that no-one would be better off on benefits than they would be in employment which sounds perfectly reasonable, especially as he specifically mentioned the proviso that this might not be the case for a household which has a disabled member.

All sounds very fair but he reverted to the benefits as lifestyle choice rhetoric again. I see this as a specific aim and sound bite to further stigmatise and discriminate against people on the basis of their employment status.

The ‘welfare cap’ is no doubt buying faithful party members but the universal ‘credit’ is going to not only include Jobseekers Allowance, Council Tax Benefit and Housing Benefit (now that’s scary for people who live in high rent areas) but also Employment and Support Allowance or the old ‘Invalidity Benefit’ – There is no reason to believe that Carer’s Allowance won’t also be included. It is a means-tested benefit and although it is a despicably small amount for what it is, it looks likely it will be a part of this capped, universal credit.

We know there are stories of people with many children living in large houses on hundreds of thousands of pounds of ‘welfare’ payments but that is not the majority experience.

Capping welfare to a specific level raises many concerns, specifically if there is no regional variation. Paying rent in London is going to take up the majority of the capped payment in any circumstances.

I can’t help but see a fundamental change in the fabric of this city when these reforms are ironed out. There will be entire towns that will be out of bounds to people who are claiming benefits because the mere cost of housing benefit will lead to a reduction in the other benefit incomes.

I know there is the argument that those who work have to choose where to live on the basis of cost, of course but we have to remember that not everyone is unemployed as a ‘lifestyle choice’ or is unemployed over the long term. What happens with someone who is made redundant in an ‘expensive’ city and needs some assistance for a few months until they find work in that same ‘expensive’ city? Would they be forced to move away from attachments, social support and familial links? It will be easier for some people than others and shifting unemployment north (because make no mistake, the cheaper moves will be northwards)  – out of the traditional ‘Tory’ areas and into the more traditional Labour strongholds, carries a hint of potential gerrymandering.

I suppose the proof will be in the details but the more I hear, the more the rhetoric of the right sickens me to my stomach.

The announcement of the ‘welfare cap’ seems to be entirely ideologically based. It was specifically to pander to the hard done by middle classes who baulked at the thought of losing their child benefit payments. This is not about cuts, make no mistake there. This is about ideology and forcing people into jobs that don’t exist.

There needs to be a move against the ‘benefits lifestyle choice’ rhetoric because it is untrue and it is unfair. Most anecdotal evidence provided has been either paraded on the front page of the right wing press – and remember, it only makes the front page BECAUSE it is rare. If we all knew real people like that, it wouldn’t actually hit the headlines.

But it feeds into an increasingly fearful societal agenda and narrative that is forming.

I know these posts are somewhat repetitive but I can’t shake the thoughts from my head at the moment and my personal politics drift merrily leftwards. I’m just glad I’ll be on another continent when the Spending Review is announced, it wouldn’t be good for my blood pressure!