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UC (& TC) uplift..
We’re back to the perennial HMT v DWP fight
HMT’s objective: sound public finances
DWP objective: alleviate hardship
Having lived through it as a DWP advisor during Coalition it’s all rather déjà vu
But here’s why it’s different to 2010 & why HMT's wrong
1/
We’re back to the perennial HMT v DWP fight
HMT’s objective: sound public finances
DWP objective: alleviate hardship
Having lived through it as a DWP advisor during Coalition it’s all rather déjà vu
But here’s why it’s different to 2010 & why HMT's wrong
1/
In 2010 there was scope to cut costs: wages were stagnating while benefits were being uprated by RPI, families on benefits too often better off than those in work. At DWP we hated the shirkers/strivers narrative, but public saw system as something for nothing
2/
2/
That is not the case now
-After years of benefit freeze (which DWP ministers fought) the basic allowance is far too low
-UC removes the distinction btwn in and out of work (latest stats +2m in empl)
3/
-After years of benefit freeze (which DWP ministers fought) the basic allowance is far too low
-UC removes the distinction btwn in and out of work (latest stats +2m in empl)
3/
-For those out of work, where are the jobs? (redundancies record high, vacancies almost 1/3 lower than year ago). Being on out of work UC doesnt mean you dont want to be in work
-The public mood has changed (polling = maj support keeping uplift)
4/
-The public mood has changed (polling = maj support keeping uplift)
4/
Anyone arguing that removing the uplift is about supporting the hardworking vs the idle is massively mistaken.
& remember more working-class voters voted Con than middle-class at last election – many of whom will be benefiting from that £20/wk (i.e. also politically stupid)
5/
& remember more working-class voters voted Con than middle-class at last election – many of whom will be benefiting from that £20/wk (i.e. also politically stupid)
5/
Finally… those opposing departmental objectives? Low -income families spend their money– yes some will go on debt, but much of uplift is consumer cash back into the economy
Spending stimulates growth = good for getting the finances back on track *&* preventing hardship
6/6
Spending stimulates growth = good for getting the finances back on track *&* preventing hardship
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