Sunday, December 09, 2012

A reality check

All working-age benefits, including tax credits and child benefit, will only go up by 1% a year – less than half the rate of inflation – for the next three years. A cut, in other words, that will be worth £3.75 billion a year to the Treasury, in addition to all the previously announced cuts and freezes. The poorest 30% will be made to bear most of Osborne's budget cuts in the age of austerity.

The Joseph Rowntree Foundation explained that as things stand – which is to say, before the next round of cuts – out-of-work benefits cover 60% of the minimum income standard for couples with children, and 40% for single adults.  It is calculated simply by asking ordinary members of the public what they think is "an essential minimum standard of living".

28% of workers engaged in the Scottish private sector earn less than £7.20 an hour. 17% of Scots are stuck in relative poverty – defined as having a household income of less than 60% of median household income. 

Six out of 10 children in Scotland belong to families enduring the contradiction known as in-work poverty. 57% of children in poverty had at least one parent in work.

Oxfam claims, however, that four million of the 13.5 million poor in Britain are in work, of sorts. Meanwhile, the Child Poverty Action Group points out that a couple with two kids would need to find 58 hours of work a week on the minimum wage – if work could be had – simply to be out of poverty.

Zero-hours contracts are spreading. One million workers, by the latest estimate, are stuck in part-time jobs, hoping for more hours.

 In November 2011, the Trussell Trust established a food bank in the south-east of Glasgow. During the Christmas period last year, it helped 168 people, including 103 children. The Trust estimates that up to 60,000 Scots will need its help every year.

 To some, "recession" means a little more prudence when managing the monthly finances. But others, those who can least afford any further cuts in their household budgets will suffer long-term job losses and find it more difficult to feed and clothe their families. They will be much more susceptible to mental and physical ill health and another couple of years will be deducted from their life expectancy. Many will turn to alcoholism and drug misuse as a pitiful means to get to the end of the day in one piece. A particularly cold winter will carry off the vulnerable and elderly people.
The vast majority of those who rely on benefits and tax credits are either in work, have worked, or will be in work in the near future. Families are scraping by in low-paid work, or being bounced from insecure jobs to benefits and back again. The means testing is being de facto deployed by Atos, the inquisitors of the disabled with the presumption of benefit fraud before any claimant is given a single penny of welfare.

The richest 10% in Scotland have incomes equal to the earnings of the poorest 50%. The sheer greedy, corrupt and rapacious bankers and hedge fund managers who caused the recession tell us that they shouldn't be punished for their avarice because the country need their expertise too much but that we the victims should pay the price of their failures and to just knuckle under.

The poor are being blamed for being poor.

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