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Universal credit is NOT an incentive to work for the single able-bodied: 63p of every pound earned is clawed back

Focussing on undue delays causing hardship, highlighted on this site, The Times and the FT in 2017 asked ‘is universal credit – to date – a disaster?’

The FT today says “Universal credit is a plum example of how not to reform public services. The theory was broadly sound: the simplicity and real time data of the universal credit would ensure people were always better off in work. The reality, however, has proved calamitous”.

Conservative and Labour politicians, such as Jacob Rees-Mogg, Johnny Mercer, Gordon Brown and Frank Field, are now demanding that the government reconsiders the national rollout.

John Major has warned that UC could lead to a repeat of the poll tax debacle of the early 1990s, which saw riots against the then Conservative government.

A reader with a postgraduate degree was asked to look at these sections on a government-recommended benefits calculations site:

Work allowance for Universal Credit (Ed: able-bodied & childless need not apply)

If you/and or your partner are in paid work, you might be able to earn a certain amount before your Universal Credit is affected, this is called the work allowance. Your work allowance will depend on whether you are single or part of a couple and whether your Universal Credit includes amounts for housing costs, children and/or limited capability for work. The table below shows the different levels of monthly work allowance.

Universal Credit earnings taper rate

The Universal Credit earnings taper is a reduction to your Universal Credit based on your earned income. The taper rate sets the amount of benefits a claimant loses for each pound they earn. The earnings taper rate is currently 63%. This means for every pound you earn over your work allowance your Universal Credit will be reduced by 63 pence. To work out the earnings taper that applies to your award:

  1. Take your total monthly earnings figure after tax, National Insurance and relevant pension contributions have been taken off
  2. Deduct your monthly work allowance, which is the amount you can earn without your benefit being affected (if you are eligible for one)
  3. Apply the taper rate by multiplying the remaining earnings by 0.63

This is the amount that will be taken from your Universal Credit maximum amount when calculating your award.

Even the post-graduate reader found these instructions ‘far from simple’ and in no way producing a simpler and more effective system.

Esther McVey, the work and pensions secretary in charge of the scheme, confirmed last week that families will be poorer under UC. She did not deny reports that millions of families could be up to £200 a month worse off when it is fully rolled out.

The chairman of the Commons work and pensions select committee has described the project – running well behind schedule – as a “shambles, leaving a trail of destruction” and in its assessment this year, the National Audit Office doubted whether the system would ever deliver value for money.

Last year Leigh Richards commented on last November’s news: “ Even Scrooge might have balked at Universal Credit”.

The current Universal Credit system is NOT ‘fit for purpose’

 

 

 

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Jeremy Corbyn’s balanced view confronts half-truths peddled about the Venezuelan crisis

The right-wing press, neoliberal politicians and corporates in Britain such as Foreign Minister Sir Alan Duncan, Liberal Democrat leader Sir Vince Cable, Tory MP Mark Pritchard and Labour MP Frank Field, are firmly attached to the US-led global order which attempts to impose its will by propaganda and force – generally in oil rich countries like Venezuela. As MP Chris Williamson pointed out in his recent Newsnight interview, the US has a track record of interference at all levels, including military overthrow of inconvenient governments, in Latin America. 

They have led repeated attacks on an absent Jeremy Corbyn for failing to cheer the US-led destabilisation of Venezuela. Labour List, which is clearly backing the Blairite wing, referred toNicolas Maduro’s violent suppression after a dirty election’. The Sun’s dig:

On his return, Mr Corbyn said: “I’m very sad at the lives that have been lost in Venezuela. The people who have died, either those on the streets or security forces that have been attacked by people on the street — all of those lives are terrible for the loss of them.” Repeatedly pressed to condemn Mr Maduro’s actions, he said: “What I condemn is the violence that’s been done by any side, by all sides, in all this. Violence is not going to solve the issue”, adding:

“We also have to recognise that there have been effective and serious attempts at reducing poverty in Venezuela, improving literacy and improving the lives of many of the poorest people.”

Using record-high oil revenues of the 2000s, the government nationalized key industries, created participatory democratic Communal Councils, and implemented social programs to expand access to food, housing, healthcare, and education. Venezuela used its oil revenue to make improvements in poverty, literacy, income equality, and quality of life.

James Tweedie effectively put the record straight in an interview on Radio 4’s Today Programme on 7th August, with the usually combative presenter failing to challenge even one of the facts he presented. In that and a recent article he made many points. Some of these follow:

  • The opposition is led by representatives of wealthy families that have never been reconciled to losing power to a government committed to raising the majority from abject poverty.
  • Tactics include factory-owners stopping production of products to create shortages in the shops. Food distribution giant Polar is accused by Mr Maduro’s government of orchestrating the food shortages that led to the current crisis, by hoarding stocks in its warehouses. Actions include blocking main roads, shutting down public transport networks and forcing shops to stay closed — exacerbating the shortages of food, medicines and other goods the opposition blame on the government. On Thursday night rioters burned some 40 tons of food out of 100 at a government distribution centre in eastern Anzoategui state destined for distribution to hungry families.
  • Opposition supporters building barricades, blocking streets and attacking police during the constituent assembly election are routinely described in our mainstream media as “peaceful protesters”, though, as Sky News footage revealed, masked men were dressed in helmets, carrying full body shields carrying firearms and a roadside bomb blasting police motorcyclists.

The use of fire is a prime opposition weapon

  • The opposition tactics are to engage in violent protests that force responses by the government and make the Maduro government look like an authoritarian regime.
  • Amnesty International and Human Rights Watch are taking a simplistic view of the intensifying crisis in Venezuela, ignoring appalling acts of opposition violence such as those detailed in this site which brings Spanish-language news in English.

  • The country overwhelmingly believes the opposition lacks a plan for dealing with high inflation and the lack of state revenue for social services. They also oppose the violent tactics of the opposition (see poll results).
  • The opposition agreed to take part in Vatican-mediated negotiations with the government but walked away from talks, adopting a new strategy of violent street confrontations to destabilise society.
  • After all the executives of Smartmatic, an electronic voting company, left the country its CEO claimed at a press conference that the 8.1 million turnout figure in Sunday’s National Constituent Assembly election had been “tampered with” and inflated by about a million votes. No such report had been made to the Venezuelan authorities. (Smartmatic is owned by former MP Baron Mark Malloch-Brown, who has close links to George Soros – a major funder of New York-based Human Rights Watch and longstanding critic of Venezuela’s socialist government).

True socialism has been advancing in Britain over the past two years with Labour’s gains in the June election on an anti-austerity manifesto and the increasing public respect for Corbyn as leader. We can see, on the horizon, rejection of the current form of Western intervention which has gained adherents for extremist groups, destabilising many of the world’s regions, followed by collaboration with others to undertake the monumental task of rebuilding and reconciliation.

 

 

 

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