Starmer faces backlash in the Commons over potential welfare cuts - "Sir Keir Starmer has faced a backlash over rumoured welfare cuts, with one Labour MP pleading with the Prime Minister to make the “moral” choice. Richard Burgon told the Commons disabled people are “frightened” as he urged Sir Keir to introduce a wealth tax instead of “making the poor and vulnerable pay”."
Clearly, everyone on benefits is a bona fide claimant. Once again, we see that the "solution" left wingers want is to tax the "rich"
It is interesting that left wingers claim the Tories are heartless, but Labour is blaming them for a too-big welfare bill
Mental ill-health is behind soaring disability benefits bill in England and Wales, report says - "More than half of the increase in disability benefits is due to more mental health claims, according to research. Since the pandemic, the number of working-age adults in England and Wales paid disability benefits has increased by nearly 1 million people to 2.9 million in 2024, with 7.5% of 16- to 64-year-olds claiming... Whereas in 2002, mental health or behavioural problems were the main condition for 25% of claimants, it had risen to 40% by 2019 and has accelerated further since Covid-19. In 2024, the proportion of those receiving disability benefits whose main condition was a mental or behavioural problem had reached 44% (3.3% of the working-age population)"
The downsides of "awareness"
One in four young people consider quitting workforce entirely - "A generation of young people risk is languishing on benefits after one in four said they considered quitting the workforce. Poor mental health was the most frequent reason given by under-25s for wanting to drop out of employment. A stark report lays bare the scale of Labour's challenge as it seeks to see off opposition from its own backbenchers to slash the ballooning welfare bill and encourage adults back to work. And the crisis looks set to deepen as one in ten workers is said to be actively considering leaving the workforce, equivalent to 4.4million Britons. This rises to a quarter of 18 to 24-year-olds, who are 40 per cent more likely than older generations to give poor mental health as a reason for quitting work. A third of those classed as 'economically inactive' are 'not interested' in returning to jobs – with 37 per cent saying low 'self-esteem and confidence' acts as a barrier, a report from accounting firm PwC reveals. It concludes that considering leaving work has 'gone mainstream'. Yesterday Health Secretary Wes Streeting warned there is an 'overdiagnosis' of mental health conditions leading to 'too many people being written off'... Last year the proportion of those receiving disability benefits whose main condition was mental or behavioural hit 44 per cent, up from 40 per cent in 2019 and just 25 per cent in 2002, according to the Institute for Fiscal Studies. Among them are tens of thousands of youngsters who now go straight from studying to being economically inactive, raising concerns many could be consigned to a life on benefits. Meanwhile the cost of sickness and disability benefits for working age people is up £20billion since the pandemic. The report from PwC – which surveyed more than 300 businesses and 4,000 adults – found 63 per cent of firms have seen a rise in people leaving work and becoming inactive, with 70 per cent of businesses saying mental health has been the key driver... 31 per cent are not interested in returning to work, with 48 per cent citing a long-term mental health condition as the reason... It comes after a recent report from Policy Exchange found the current welfare system will cost every taxpayer up to £1,500 per year by 2028/29 and does not incentivise claimants to seek work."
Britain ‘no longer a rich country’ after living standards plunge - "Britain is no longer a rich country after 15 years of stagnation “caused UK living standards to plummet”, according to economists, leaving parts of the UK worse off than the poorest parts of nations including Slovenia and Lithuania. Economic growth and productivity have lagged behind a host of other nations since the financial crisis, the National Institute of Economic and Social Research (Niesr) said, as it called on the Government to raise the threshold at which workers start to pay income tax in an attempt to boost performance. The typical British worker would be £4,000 per year better off if productivity growth and wages in the UK had matched those of the US, said Max Mosley, economist at the Institute. “Economic stagnation over the past decade is now threatening the UK’s position as a place for a high standard of living. A combination of weak productivity growth driving near zero growth in real wages and cuts to welfare has resulted in a situation where we are neither delivering prosperity through high wages nor security through welfare,” he said. “That the poorest in our country now fare worse than those in nations once considered less affluent is a stark indictment of the UK’s economic social model.” Mr Mosley asked whether Britain is still a rich country, declaring that “this question – which was easy to answer for centuries – is now less straightforward”. Parts of Birmingham and the north east of England are worse off than even the poorest parts of Slovenia and Lithuania, Niesr found, as nations that once made up the Eastern Bloc become increasingly prosperous. The average Slovenian’s living standards are now almost on a par with the typical Briton’s, the think tank said, in a stark indication of the UK’s relative economic decline... “The Government’s mission to grow the economy is not just about aggregate numbers but about higher living standards in every part of the country. It is vitally important to raise public investment in ways that unlock business investment to generate productivity increases and sustained real wage growth.”... That should include tax cuts, Mr Pabst said, adding: “The Government should revisit its decision to delay the uprating of the personal income tax threshold until April 2028. After more than 15 years of real wage stagnation for millions, working families need to see a tangible improvement in their living standards over the duration of this parliament.” Niesr also suggested ending the two-child limit on benefits as the most cost-effective way to reduce poverty, as well as boosting productivity by slashing barriers to building by reforming the planning system."
Time for more degrowth, net zero and taxing the "rich"
All UK families ‘to be worse off by 2030’ as poor bear the brunt, new data warns - "Living standards for all UK families are set to fall by 2030, with those on the lowest incomes declining twice as fast as middle and high earners, according to data that raises serious questions about Keir Starmer’s pledge to make working people better off. The grim economic analysis, produced by the respected Joseph Rowntree Foundation (JRF), comes before the chancellor, Rachel Reeves, makes her spring statement on Wednesday in which she will announce new cuts to public spending rather than increase borrowing or raise taxes, so as to keep within the government’s “iron clad” fiscal rules. In December, the prime minister announced a series of “milestones” that he said would be passed before the next general election, which is likely to be held in 2029. The first of these was “putting more money in the pockets of working people”. But with many Labour MPs already deeply concerned about Reeves’s plan to raise about £5bn by cutting benefits, including for disabled people, evidence that living standards are on course to fall markedly under a Labour government – and to decline most for the least well off – will add to the mood of growing disquiet in party’s ranks... The JRF also said that if living standards have not recovered by 2030, Starmer will not only have failed to pass his No 1 milestone but will also have presided over the first government since 1955 to have seen a fall in living standards across a full parliament... Alfie Stirling, director of insight and policy at JRF, said further cuts were not the way to reverse the trend of falling living standards. Instead, he argued, Reeves should consider raising tax for the wealthiest... a group of leading economists wrote to the Financial Times warning that it would be a “profound mistake” for ministers to cut spending or investment, adding that “the UK cannot cut its way to growth”. Several areas of unprotected government spending such as prisons, justice and local government – the last of which has already seen real terms cuts of over 45% since 2010 – are likely to be in line for further cuts on Wednesday, casting doubt on Starmer’s claim that is not returning the country to austerity. In her budget last October, Reeves left herself with £9.9bn of “fiscal headroom” – in effect, spare money in reserve – to allow her to meet her fiscal rule that says day-to-day spending must be matched by revenue coming into the Treasury. But higher-than-expected borrowing costs on global markets, leading to higher debt interest payments, and lower than expected growth have wiped away that leeway, leaving her needing to find ways to restore the finances through raising money or cutting expenditure or both. Local government leaders are among those most anxiously awaiting Wednesday’s statement, which they fear could reduce what they receive and tip more councils into bankruptcy, leaving them all straining more to fund key services for the most vulnerable such as social care... With ministers struggling to manage the economy, the latest Opinium poll for the Observer shows the damage being done to Labour’s reputation from its economic stewardship after eight months in power. No single party leader is now trusted on the economy, Opinium found. However, Starmer (-32%) and Reeves (-38%) are the most distrusted, with the Reform leader, Nigel Farage, the Tory leader, Kemi Badenoch, and shadow chancellor, Mel Stride, all rated similarly on -22%, -23% and -24% respectively. While most voters say they do not trust any party on economic issues, the Tories are now marginally more favoured than Labour to run the economy and “improve your financial situation”."
Bernie on X - "LABOUR - Promised a better future for working people, instead he’s delivering a managed decline 🤡"
If you "tax the rich", the rich will have their living standards decline more, so those on low incomes will feel better and be relatively better off. It is "moral" for the rich to suffer more than the poor - it doesn't matter if everyone suffers as long as you screw the rich more
I went to the US and was shocked by how different the culture toward entrepreneurship was from the UK. Here are the main differences. - "Using data from a company that tracks migration patterns of the ultrawealthy, Henley & Partners projected that at least 9,500 millionaires would leave the UK in 2024, compared with a projected gain of about 3,800 for the US. We spoke at the mastermind about why so many British founders are looking to exit the UK. In my opinion, it's about the country's energy as much as tax changes. In those two weeks in the States, I felt a source of energy I'd never experienced."
Time to "tax the 'rich'" and demonise them more so the country becomes even poorer
Brit who boasted about claiming benefits abroad 'held in Thai jail' - "A British TikToker who boasted of living in Thailand while claiming UK benefits says she is on hunger strike after being arrested by Thai authorities. Mum-of-three Ellis Matthews, 32, is being held at a detention centre for mothers with children in Bangkok with one of her sons, four-year-old Cairo. She was detained earlier this month for allegedly overstaying her visa ten days after it was cancelled... Ms Matthews blamed ‘people in the UK [who have been] trolling me’ online following controversy around her lifestyle. Posting videos to 16,000 followers under an account titled ‘@mumontheruninasia’, she claimed she was receiving £2,300 in Disability Living Allowance ‘for the past four years of not living in the UK’. She said she qualified due to her ‘six mental disorders’ which required ‘ongoing treatment costs to be met by the NHS by the taxpayer’."
OPINION - I'm sorry, but ADHD has become a scam that is wildly overdiagnosed and an excuse for poor behaviour - "why is it that nationally, 25 people in every thousand were getting an ADHD prescription in 2020 and more than 44 are getting it now? And why is it that London is at the front of this particular trend? Is it that the pace of life has rocketed so dangerously over this time – cost of living, febrile world order, climate crisis, smartphone dependency … all that stuff?... there’s the continuing fallout from lockdown five years ago. Is it actually the case that the numbers of us who, say, procrastinate or show poor impulse control (both symptoms), has gone up by over 40 per cent in four years? Or has lockdown exacerbated our tendency to blame our problems on a mental health condition. In Sweden, which didn’t lockdown, the numbers of people alleging mental health problems fell rather than increased as it did here. You can see by the way I’ve put the question where my thought is going... But there’s another aspect to the condition. It would seem that more people, especially in the savvy capital, have worked out that this particular disorder can actually be rather useful. My own daughter, for instance, established with the diabolical ingenuity of urban youth that she could get an extra 15 minutes for each paper when she sits her A levels if she were diagnosed with ADHD. She urged me to remember how she flits from one subject to another; I told her that she had the attention span of a gnat and if she put her wretched phone away, she’d crack it. But the problem goes further. ADHD is, for instance, not only one of the most popular grounds for obtaining that useful state benefit, Personal Independence Payments – it’s number 14 of the 500 grounds for claiming – but for obtaining it at an enhanced level. In 2023, there were 52,989 people with people claiming PIP who gave ADHD as their main problem. Now PIP is rather a useful payment. You can get it even if you’re working, have savings or are getting other benefits. The amount you can be paid is dependent on the impact your health condition or disability has on your ability to do day-to-day tasks. So the more your ability is impaired – the more money you will receive. And of the people claiming it on ADHD grounds, almost half, or 43 per cent, obtain it at an enhanced rate. The standard rate is £73.10 a week from next month; the enhanced rate is £110.40. So for those who are keen to supplement their income from state benefits, ADHD is quite a handy route."
Sam Ashworth-Hayes on X - "There are currently 1.9 million people claiming enhanced mobility PIP eligible for a state funded car. One in 37 people. 639,000 are claiming for mental health. The most common causes are mixed anxiety and depressive disorders (118,000), autism (113,000) and ADHD (36,000)."
Mike Tapp MP on X - "Strength without decency is weakness. This is weakness. British values rejected, yet again."
Sam Ashworth-Hayes on X - "The British values of... giving people a state-funded car if they say they've got anxiety?"
Want a brand new BMW? Either pay £52k or tell the DWP about your mental health - "If you want a brand new BMW i4 M Sport, you have two choices. The first is to lay out the full £52,770. The second is to tell the DWP that your mental health makes it hard to leave the house, claim the enhanced mobility rate of the Personal Independence Payment (Pip), fork out a down payment of £7,999, and get the Government to lease it for you. In exchange for the mobility component of your benefit, you’ll get a new BMW every three years, your insurance and accident breakdown paid for, your servicing and tyre replacements covered, and your choice of “conventional metallic paint option”... It’s true that the system could probably be tightened up. Dig into the data, and among those claiming Pip are 23 people with “factitious disorder”: a condition whereby otherwise healthy people fake illnesses. To put it another way, people who want to be sick, but aren’t sick, are categorised as sick and therefore receive sickness benefits. Some 14 of them paid the enhanced mobility award necessary to access a state-funded BMW. Another 16 people have managed to claim Pip for acne. Five were awarded the higher mobility rate. Some outcomes are less amusing: people attempting to claim for asbestosis are less likely to win an award than those claiming to have autism (around 59pc of whom are eligible for Motability). But the timing and scale of the rise might not be down to remote working or NHS dysfunction alone. Welfare claims are state-dependent: people who claim welfare at one point in time are more likely to do so again in the future than similar people who don’t. Part of this is due to differences between individuals that are hard to identify in statistical datasets, but part of it seems to be a treatment effect: exposure to the welfare system has the effect of increasing future use. What happened during the pandemic was a country-wide experiment with exposure to the benefits system... Since the pandemic, the relationship between people and the state has shifted. Public services have stalled out in productivity. The NHS waiting list has ballooned, teachers have gone on strike. And against this background, the rise in benefits claims might have become a self-fulfilling prophecy. In a high-trust society, you might not claim every benefit you’re eligible for, reserving the money for the genuinely needy. If, however, you see people claiming who clearly shouldn’t, while state services are falling apart and the Government is using your taxes to house illegal migrants in hotels, you might see things in more transactional terms."
Sam Ashworth-Hayes on X - "A friend of mine earning six figures just commented that they have never owned a new car and between mortgage and childcare they don't expect to any time soon. Perhaps they should start claiming benefits?"
Families on benefits can be better off than those earning £70k
Sam Ashworth-Hayes on X - "If you earn £60,000 in London, you pay £17,000 in direct taxes, another £4,300 in indirect taxes, and your rent. Even living further out, you have a lower standard of living than a socially housed family of benefits claimants. And if they get PIP, you'll drive a worse car too."
Meme - Sam Ashworth-Hayes @SAshworthHayes: "121,000 people whose primary disability is "mixed anxiety and depressive disorder" currently receive the full enhanced PIP mobility award, and are thereby entitled to a state-funded car."
"Mobility Award Status and Disability by Month. Filters: Default Summation : PIP Cases with Entitlement from 2019
Mobility Award Status: Mobility Award - Enhanced. Anxiety and depressive disorders - mixed. 121,199"
Jemma Moore @JemHaydonMoore: "He’s sensationalising. It would be extremely difficult to get full mobility allowance for anxiety."
Sam Ashworth-Hayes on X - "The American Dream is working hard and making it to the top. The British Dream is a London council flat, £50k Motability car and full PIP and UC awards."
Sam Ashworth-Hayes on X - "A brief summary of life in the UK: 27 million private sector workers support 9 million economically inactive people aged 16-64, 6 million public sector workers, and 13 million pensioners. If you suggest any part of this is unsustainable, people compare you to Hitler.
This does not include children (obviously) or the shadow public sector - private sector jobs that are state funded contracts. The long term fiscal trajectory is not good."
Rachel Charlton-Dailey on X - "Labour are making a huge fuss of how many people are claiming pip (3.6 million). But there are 16.1 million disabled people in the UK. That means 12.5 million disabled people AREN'T getting PIP or any support."
Lara Brown on X - "I find it impossible to believe that 23% of the entire UK population are disabled. Any metric which identifies 1 in 4 people as disabled clearly isn't a useful metric, and risks preventing us from identifying the people who genuinely need state support."
1 in 4 people being disabled in the UK is proof that capitalism has failed!
If everyone is disabled, no one is disabled
Labour is spreading the biggest lie in British politics - "Stop me if you’ve heard this one before: the Labour Party wins office and immediately sets about preparing the ground for higher taxes. If it sounds familiar, it should: no Labour chancellor since 1970 has left office with the country facing a lower tax burden than when they started. Rachel Reeves appears to be in no mood to buck this trend... Now safely ensconced in the Treasury, Reeves is picking up where the campaign left off. In her first speech as chancellor, earlier this week she claimed to have inherited the “worst set of circumstances since the Second World War”, and warned that she had ordered “Treasury officials to provide an assessment of the state of our spending inheritance so that I can understand the scale of the challenge”. This is obviously nonsense. As Institute for Fiscal Studies director Paul Johnson pointed out last month, the Government’s books are “wide open, fully transparent”. Everyone – you, me, and most certainly the bond markets – can see exactly what’s going on at any given point in time. It would be a very brave lender who chose to fund the UK’s debt if this weren’t the case. Equally nonsensical is the idea that this is the worst economic inheritance in 79 years and counting of British economic history. You don’t have to look back to the Second World War to find a more challenging set of circumstances for an incoming government. You don’t even have to look back to the last millennium. The deficit today stands at around 4.5pc of GDP. In 2010, the coalition government took over a country running a deficit more than twice that ratio at a whopping 10.3pc. It took years of work to bring it back down under control. In contrast, the deficit inherited by Labour is already due to fall substantially. By 2028-29, the Office for Budget Responsibility estimates that it will be around 1.2pc of GDP. Some of this fall is based on spending assumptions that are, charitably, challenging to meet. But a good 1.5 percentage points is due to come from increases in revenue and falls in interest rates that are, in the absence of any further bad news, pretty much baked in. Many of the hard decisions in terms of tax rises and frozen thresholds have already been taken. It’s true that the debt burden is larger than it was in 2010, standing at a little under 100pc of GDP. But it’s worth remembering that a good deal of this rise was the result of pandemic measures enthusiastically supported by the Labour Party, which called for extensions to the furlough scheme and bigger pay rises for NHS “heroes”. It is also true that the Labour Party had itself overseen a rise in debt to 65pc of GDP in 2010 from a starting point of 38pc, without the excuse of having put the economy into deep freeze for a year. If Reeves wants someone to blame for Britain’s precarious fiscal state, Gordon Brown would be a better target than Rishi Sunak. As for interest rates, yes Labour will be paying out a higher rate on government debt than the Conservatives were in 2010. But what matters for the sustainability of government debt is the difference between this interest rate and the growth rate of the economy. And just as inflation has led to higher interest rates, it has also pumped up nominal GDP growth. Once this is taken into account, the difference between the two scenarios is substantially reduced... Even with the best will in the world, the party’s grand plans to improve public services will require money as well as reforms. Money, however, is scarce. Over the next half century, an older population means spending on health, social care, and the state pension are set to eat up another 10pc of GDP, while Labour’s plans for energy and defence are likely to require substantial spending increases of their own. Putting it all on the credit card isn’t an option. Our toxic combination of demography and state generosity led the OBR to comment that our fiscal trajectory is “unsustainable” in 2011, 2012, 2013, 2014, 2015 – the 2016 report was cancelled – 2017, 2018, 2019, 2020 – 2021’s publication focused, understandably, on the pandemic – 2022, and 2023. The 2024 report was delayed by the election, but I think I can just about guess about what it will say, too. Reeves knows that abandoning the party’s fiscal rules – or trying to get too clever with definitions of “investment” – would spook the markets into a catastrophic backlash. Going through with the cuts pencilled in to public services in the last Budget, meanwhile, is unthinkable for the party of state expansion. And while a burst of economic growth would do a great deal to resolve our problems, Liz Truss is an ever-present warning to those who spend the fruits of such expansions before setting out how they are to be achieved. This leaves the party with only one palatable choice: break its promise, raise taxes, and try to pin the blame on the Tories."
Tom Harwood on X - "Where does it all go? Welfare, the NHS, and debt interest are the three largest slices of the state spending pie. Together, these three areas cover almost 50% of where your taxes go."
Why shouldn’t this white German woman ‘identify as black’? - "Where’s the ‘compassion’ for tax-payers?
All week long, Left-wing MPs have been demanding that Liz Kendall abandon her proposed cuts to benefits. Again and again, they’ve angrily told the Work and Pensions Secretary to show some compassion, and think about how their poor, horrified constituents feel. These MPs are undoubtedly kind, caring people. I have just one small question for them. Who do they think pays for all these benefits? It’s not Ms Kendall. Nor is it Rachel Reeves. Nor is it Sir Keir Starmer. Ministers may be the ones who dole out the money. But I wouldn’t strictly call it theirs. Possibly some MPs have lost sight of this fact, but in reality, the money comes from taxes extracted from people who actually work for a living. People who slog away for long hours in not terribly glamorous jobs that they don’t necessarily enjoy all that much. This week, Left-wing MPs have focused entirely on the feelings of people whose benefits could be reduced. But what about the feelings of the people who fund those benefits? How do those people feel, at the end of another gruelling day, when they read that money deducted from their earnings has been handed to claimants who say they need it because they feel “anxious”, or have eczema? How do they feel when they learn that claimants can watch TikTok videos full of clever tips on how to claim the maximum possible amount of money? How do they feel when they learn that, last year, this country spent significantly more on sickness benefits (almost £65 billion) than it did on defence (£53.9 billion)? And, last but not least, how do they feel when they realise that, after tax, they aren’t necessarily much better off than they would be if they didn’t work at all, and just claimed benefits instead? Perhaps we should spare at least a little compassion for those people, too."