£40 billion per year Tory Cuts to ‘welfare’ 2010 – 2020

Tomorrow, Tuesday 17 January 2017 the Scottish National Party has secured an Opposition Day Debate in the House of Commons concerning the £40 billion per year of cuts the Tories aim to make by 2020.

The House of Commons Library has produced a report on this including this:

cuts2010to2020welfare

The wording of the parliament website says:

Members will debate the following motion moved by the Scottish National Party:

Effect of DWP Policies on low income households

That this House is concerned at the impact of policies pursued by the Department of Work and Pensions upon low income households; notes the negative impact disclosed in the pilot schemes for Universal Credit; expresses concern about the forthcoming cuts to Work Allowances under Universal Credit and believes that the closure of JobCentres in Glasgow and other areas will create difficulties for many people in accessing services, and calls on the Department to suspend the roll out of Universal Credit and the Job Centre closure programme. 

YET this abstract does not tell the story at all and I have extracted the table from the above graphic which does start to go into detail upon which I comment:

cuts2010to2020table

In tabular form we can see where these cuts will be made AND whom the cuts will ALL affect which is the working-age households and not -with some small exceptions in HB terms such as LHA Maxima cap – the pensioner household.

The reason this £40 billion per year cut to working-age ‘welfare’ recipients is so important is that it all falls on the 32% of welfare spend that goes to those of working-age and next to nothing on the 68% of ‘welfare’ that goes to the pensioner.  Note here the minus figures in the table on Pension Credit and State Pension which means an increase in welfare expenditure.

Now look at what Iain Duncan Smith, the principal player of these welfare cuts said to Parliament regarding 2015/16 and the percentage split on ‘welfare’:

ids12bn

Now go back to the table for 2015/16 and we see a cut figure of £24.677 billion in total which as it includes increases for pensioner welfare of £0.255 billion in Pension Credit and £1.610 billion in State Pension sees working-age ‘welfare’ claimants have a total of £26.542 billion cut from their total £54 billion – or a cut of almost FIFTY PER CENT!

[£24.677 + £0.255 + £1.610 bn = £26.542 billion]

Every interest and lobby group can make hay with these figures.  The Disability lobbies will focus on the £2.723 billion estimated yearly saving by 2020 of the move from DLA to PIP and the additional £1.918 billion per year cut to ESA (and residual Incapacity Benefit claimants) – a total of £4.641 billion per year.

The Housing lobbies (such that they exist!) will focus on the estimated £5.677 billion per year savings to housing benefit (HB and LHA)

The Trades Unions will go ballistic over the £5.704 billion per year cuts to Tax Credits (as will many Tory MPs in not safe seats)

The largest cut / saving is the £15.444 billion per year under the title of ‘general’ which masks a thousand sins yet in reality is the saving and thus cut from freezing all working-age social security benefits for those of working-age – and pensioners once again are exempted and excluded from this.

The £4.27 billion per year forecast cut and saving from Universal credit by 2020 of course fails to factor in that UC in its design pays out 100% of what the claimant is entitled to and so the over £24 billion that is now entitled yet goes unclaimed will make this alleged £4.27 billion cut and saving become a £20 billion per year increase in overall ‘welfare’ spend – a posit I first stated 5 years ago and most recently last year with very detailed yet simple comment here and which nobody has yet to counter its basis.

Instead of hundreds or even thousands more words of comment just look at these figures and their source being the House of Commons Library and prepared specifically for all parties to debate tomorrow makes your eyes water.

Enjoy

 

 

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