Poverty - Conservative Impact

The widespread poverty created by the Tory government is either a blind and pointless ideology or even worse a purposeful choice of government. The evidence of the detructive nature of their policies has been placed before them many times. This decimation of society is either denied by the Tories or simply ignored. If it is accidental then it amounts to manslaughter. If it is intentional then it amounts to social murder. Whether they are blind or purposeful choices, they remain choices made by this government. Ignorance is not a defence in law.

This section covers the level of poverty created by this government (and by the Lib Dems) since 2010. It may be something of a cliche, but there is always enough money for war. There is always enough money for MPs, but we are told that there is not enough money to ensure our people have access to adequate services, food and housing. One of the things that defines this government as compared to previous post-war governments is the level of in-work poverty and the complete collapse of the safety net. Austerity is a political choice not a necessity.

Insecure Work


In Figure 1 it shows the growth in zero hours contracts where the individual has identified that they have no guaranteed hours. Since 2012 there has been a 358% rise in zero hour contracts.

Looking at the ONS business survey in Figure 2, the number of people on zero hours contracts doubles. This is where business reports on the number of people it employs with no guarantee of hours. The number peaked in 2015 at 2.1 million and fell off. 2017 saw the number begin to rise again upto 1.8 million.

In theory an individual on a zero hour contract has similar rights as an employee with guaranteed hours, but this much depends on how they are classified. There are two categories; "worker" and "employee". A worker while entitled to paid holiday leave and other rights typical of a employee, will not have the same rights over notice period and length of service. An individual employed on zero-hours as an "employee" has the full rights of a guaranteed hours employee in terms of employment rights, such as redundancy pay and a notice period. Of course if an employee is on a no guaranteed hours basis, the rights mean very little because the company can simply not provide the hours and avoid redundancy, hoilday pay etc. In effect zero-hours contracts cannot offer the employment rights guarantees by the nature of the agreement.

Universal Credit
Universal Credit (UC) was first introduced in October 2013. The Tory / LibDem coalition planned to introduce Universal Credit in a managed way, progressively rolling it out nationally. The transition from the current system of benefits and tax credits to Universal Credit was intended to be gradual and the rollout was expected to be completed by the end of 2017. It was presented as having the following advantages:


 * encourage people on benefits to start paid work or increase their hours by making sure work pays (1)
 * make it easier for people to manage the move into work (2)
 * simplify the system, making it easier for people to understand, and easier and cheaper for the government to administer (3)
 * reduce the number of people who are in work but still living in poverty (4)
 * reduce fraud and error (5)

 It is a myth that as a whole people need encouraging into work when on benefits. Given the right conditions the majority of people want to work. UC acts in the opposite way to the intended outcome. It follows the logic of "treat them mean, keep them keen." The structure of UC means that if you work, then for every £1 you earn, 63% of that pound is taken off your UC payment. With busfares and other costs associated with work, this can leave the UC claimant worse off. Being worse off when you are already living on the breadline is not an option for many claimants and leaves people who wish to work in a situation where they cannot. Below is just one example of somebody working being penalised: It is worth noting that somebody in the above scenario would be loath to take more hours as this would increase their risk of being without any money. If they reach the wage level where they come off UC and at a later date need to re-apply, they would be subject to a minimum wait of 5 weeks before receiving any help. If we consider the level of welfare payments on UC and how this leaves the individual often in debt, even the slightest interuption in their earning pattern could lead to complete destitution.  UC makes it more difficult for people to move into work. The risk created for the recipient of UC of moving into work is amplified by the nature of the welfare provided. Once somebody is on UC by its very nature and how it is implemented they will be in debt. Often moving into work has upfront costs such as clothes, travel costs, child care etc. It does not help people into work to place their accomodation at risk by stopping housing payments for a minimum of 5 weeks.  It is not necessary to simplify the system. In fact it is counterproductive to simplify some systems. UC replaces all these different welfare elements:


 * Child Tax Credit
 * Housing Benefit
 * Income Support
 * income-based Jobseeker’s Allowance (JSA)
 * income-related Employment and Support Allowance (ESA)
 * Working Tax Credit

The above could quite easily been streamlined into a single process, while not changing the terms of payment and certainly not introducing a delay between introduction and first payment. UC has been more expensive to administer, while leaving people poorer. The definition of a failed provision.   UC has not reduced the number of people in work who are living in poverty. In-work poverty has increased and in particular in areas where UC has been introduced.  

https://welfareweekly.com/amber-rudd-finally-admits-link-between-universal-credit-and-rising-foodbank-use/?fbclid=IwAR0CsorzR8uKyR5_i0KcbpdPCELG2xvOHt8BckUiZ2mhSahiLJEGNeIhLTk

https://www.theguardian.com/uk-news/2019/jan/07/need-to-sign-on-youll-have-to-walk-24-miles-to-jobcentre?fbclid=IwAR1ZCzoYNiQ0rF2Pv-RHqfHbqoD4FPyUmhz1ai8X2Bqx38-kgQ7ZTnP3k04