Incapacity Beneft and Income Support to be scrapped

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Mike Harman
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Jul 21 2008 12:08
Incapacity Beneft and Income Support to be scrapped

http://www.timesonline.co.uk/tol/news/politics/article4371163.ece#cid=OTC-RSS&attr=797084

Quote:
James Purnell, the Work and Pensions Secretary, said that plans to abolish the Incapacity Benefit system - aiming to take millions of people off "the sick" and get them back into work - marked the biggest shake-up of the welfare state since the 1940s.

The Government wants all Incapacity Benefit claimants to undergo medical tests to determine their capacity to return to employment, and only full-time carers and disabled people "with the greatest needs" to remain exempt from finding work.

Labour backbenchers are expected to oppose the reforms, but the Government is assured of the support of the Conservatives, whose leader, David Cameron, said the proposals left him "thrilled".

Incapacity Benefit will be abolished by 2013 and Income Support will also be scrapped, with a simplified system of two benefits replacing them: Employment Support Allowance for those with medical problems which limit their ability to work, and JobSeekers’ Allowance for those who are fit to work.

Also under the plans, jobless people who take drugs will be banned from receiving dole money unless they accept treatment, and unemployed drug addicts who lie to get benefits will be forced to repay the money and could face jail.

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Demogorgon303
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Jul 21 2008 12:15

I saw this as well. I also heard that JSA is going to be cut from six months to four - can anyone confirm this?

I don't think it's any accident this is being pushed through very quickly, with support from the Tories (a nice example of the one-party state in action). They are clearly terrified at the damage that the coming deluge of unemployment is going to do to the already fragile public finances.

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little_brother
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Jul 21 2008 13:41

Don't know about the change of JSA period. But, for the rest, this is not exactly new is it? The plan to get rid of Incapacity Benefit has been around a while (replacing it with ESA, which is due to start in October for new claimants), and there have been previous speeches & outlining this by various ministers (including Ed Balls at Fabian Society).

http://www.dwp.gov.uk/welfarereform/
"The Employment and Support Allowance Regulations 2008 and the Employment and Support Allowance (Transitional Provisions) Regulations 2008 were laid before Parliament on 27 March 2008. They set out the entitlement conditions to Employment and Support Allowance (ESA). ESA will replace Incapacity Benefit and Income Support paid because of incapacity or disability for new claims from 27 October 2008. Incapacity Benefit and Income Support will continue to be paid to existing customers. "
ref: http://www.dwp.gov.uk/welfarereform/employment.asp

Also, in November 2007 we had some relevant discussion about compulsory voluntary work and education (another part of reforms) previously on libcom here: http://libcom.org/forums/war-peace-freedom-slavery-etc-14112007

So I don't really buy this idea of the 'one-party state' rushing it through because of current economic crisis, more that it is an ongoing part of the longer-term New Labour goal of enforcing citizenship through work - 'rights' going along with 'responsibilities' etc. I think its being announced now to head off the Torys who were already going on about kicking the unemployed back to work as an election promise back in the May elections.

Mike Harman
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Jul 21 2008 13:52

Incapacity Benefit has been under attack for some time, yes. Although this looks like a further step towards legislating it away. I've not heard about income support being scrapped before though - or is scrapping it only for people also on IB?

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Rob Ray
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Jul 21 2008 13:52

Freedom reported on this a while back but it's fair enough to repeat it as it comes into force l_b

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Demogorgon303
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Jul 21 2008 14:38
Quote:
So I don't really buy this idea of the 'one-party state' rushing it through because of current economic crisis, more that it is an ongoing part of the longer-term New Labour goal of enforcing citizenship through work - 'rights' going along with 'responsibilities' etc. I think its being announced now to head off the Torys who were already going on about kicking the unemployed back to work as an election promise back in the May elections.

There's been a general trend of attacks under Labour for 10 years, of course. One of their key roles for British capitalism has been that they've been able to continue them under the guise of "reform" in a way the Tories could never have managed. And, for ten years, Labour have pointed at the Tories and their "extremist" programmes saying "you think we're bad, look at what would happen if this bunch of nutters get back in". And the Tories played their role as "right-wing nutters" quite dutifully.

The ongoing attacks are a policy of the whole bourgeoisie, not just New Labour. There may be slight differences of implementation, but fundamentally they all agree on shrinking the welfare budget. Like economic policy (at the last election, the difference between the proposed spending plans of the three main parties was less than the margin of error in Treasury reports), many of these differences are just role-playing for public consumption.

As has been mentioned already, many of these attacks have been in the pipeline for sometime. There's been a fair share of sensationalism around some of them, as well as some political bickering, all in the name of "debate". This may have been because of a real debate within the ruling class on how far to go, or simply for public consumption. Whatever the case, it's now clear that the internal bourgeois debate is closed and that these measures will go ahead, although there will, of course, be some token opposition from Labour back benchers.

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little_brother
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Jul 21 2008 14:46

Yes, Saii, definitely it's fair enough to repeat it - but I think we should be careful when attributing reasons for these announcements and I don't think its timing is due to a party consensus based on macroeconomics. I think this is just party politics - to win votes. New Labour has for a long time had a moral crusade about unemployment - work is good for you and society needs everyone to contribute in order that we continue to benefit from the welfare state (even while they are dismantling it)! Tories have had similar policies but for different reasons- they are more likely to go on about removing tax spending on dolescroungers and wasters to appeal to their voters.

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Demogorgon303
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Jul 21 2008 14:55

LB, doesn't that strike you as different ideologies to accomplish the same thing? After all, all the parties agree with a tightening of the screws? Why do they agree? The idea that they're chasing votes seems to suggest that "the voters" are somehow in control and the parties are competing to give the voters "what they want". But who decides what voters want? Mostly the media - who set the framework for these debates - who are, quelle surprise,controlled by the same ruling class embodied in the political parties and, above all, the state.

MalFunction
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Jul 21 2008 16:20

Excellent timing what with some commentators suggesting unemployment could reach 2,000,000 by sometime in 2010.

What a good time to throw 1,000,000 people off sickness benefits and onto the unemployment list.

(and as there will be fewer jobs due to a recession, what better time than to make people work for nothing.)

Still with fuel, petrol and food prices the way they are -
one would have thought that anyone who could get a job would be making every effort to do so already?

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little_brother
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Jul 21 2008 17:39

Both parties have long term plans based on their ideologies, and while the implementation and effect of those plans on those on IB or JSA are likely to be very much the same (as we said when Labour continued with JSA after taking leadership from the Tories http://www.afed.org.uk/org/issue48/welfare.html ), I just sense this particular announcement is opportunistic electioneering so I don't see anything new here that is in direct response to the current economic climate that D303 was implying by comment, "They are clearly terrified at the damage that the coming deluge of unemployment is going to do to the already fragile public finances". The threat to IB, and other parts of the welfare state by both parties, has been on the agenda for ages and as such I don't think our rulers are, as a whole, terrified by employment rising in response to the current climate in terms of public finances. For example, official figures tell you that only 2% of total benefits budget is used for people not on sickness benefits who are unemployed (see http://www.ifs.org.uk/bns/bn13.pdf ) so any increase due to increased unemployment is really not going to have much relative effect on the overall welfare budget. On the other hand sickness and disabilities benefits is 16% of overall benefits so both parties can see that they could save money by cutting IB.

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Jul 21 2008 17:47
Quote:
Earlier, in an attempt to show clear water between Labour's plans and those of the Tories, Mr Purnell had claimed that his plans were inherently socialist in principle and pledged that Labour would "never, ever" stigmatise the jobless.

"I think that people who see the way incapacity benefit or drug addiction or deep unemployment can scar communities are desperate to turn that round, and when I speak to my colleagues they want a system that provides support for people, but also responsibility," he said.

So he is saying that incapacity benefit scars communities as drug addiction and "deep" unemployment do?? Umm..roll eyes

Also socialist plans??? Not stigmatising?? Maybe a New Labour plan but ...

Of course, the main point is that this horrible attitude of hounding the poor is both indefensible and illogical if the issue was about money.. it is not, it is about power and class. If just one of the superrich were taxed properly, for example, say Phillip Green, that would wipe out the entire bill for eg benefit fraud.

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little_brother
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Jul 21 2008 18:09

Indeed. For New Labour at least, a reduction in the 16% of benefits budget represented by sickness and disability benefit is not the only point of the reforms. It's as much about fitting everyone into UK PLC whether they like it or not ... rights and responsilbilities, raising expectations - roll those r's when you say it! It's what Socialism is all about.

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Jul 22 2008 07:47

LB

Just to clarify, I don't think the assault on benefits in general is a response to this current phase of crisis. Mass, persistent unemployment has been a social factor throughout capitalism since the 70s and, despite fluctuations, the remorseless trend is for it to grow.

Incapacity Benefit has been long acknowledged as a dumping ground for people who were unlikely to get job in order to mask unemployment. I remember back in the 90s my uncle was laid off. He went to the Job Centre to sign on and they said, "look, you're about to turn 60, basically with the job market how it is you're never going to work again, if we put you on disability you'll get more money, we won't be hounding you to try and find something". It's no accident that disability claims are highest in the most economically depressed areas.

This represents a growing bill for the bourgeoisie and they're desperate to cut it without triggering a response in the working class. But major phases of crisis do trigger responses in terms of an acceleration of those attacks which is what I think we're seeing here.

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little_brother
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Jul 22 2008 11:12

OK. So we can accept that this is not really anything new? This does leave the issue of why so little action has been taken (in Britain at least) for over a decade to really address these continued attacks on the unemployed, either as a movement of the unemployed or as a solidarity campaign by others.

Sorry if the following is very UK specific...

What we are seeing is really a widening out of what's been experimented with for years at least since 1996, starting with JSA 'Job Club', 'Restart inteviews', 'New Deal Options' (including education & voluntary sector workfare) etc. Benefits that are due to be taken away from single parents were completely removed from 16/17 year olds many years ago. Before then was the Tories' YOP and YTS (youth opportunties/training programme/scheme) followed by their 'Project Work' workfare pilot programme for the long-term unemployed, that was continued by Labour as the New Deal after they won the 1997 general election. And as I said above, it was already announced sometime last year that Incapacity Benefit was being scrapped for new claimants from October 2008, but note this is also something that has been planned by both parties for ages, and partially implemented already by introdcution of the 'All Work Test' at the end of the 1990s.

So in short I am bit loath to fall into any 'revolutionary change in benefits system' rhetoric. In Britain anarchists like those of us in A(C)F and libertarian communist groups like Subversion in particular have traditionally been well up on analysing this continuous attack on the unemployed and in the past at least, were strongly involved with claimant action groups. Much of A(C)F's and other stuff on the matter is documented here http://www.geocities.com/ncajsa

Perhaps it just seems to be new because what's been going on over the last decade has been ignored by the left since the unions rolled over and let JSA by imposed by Major and continued by New Labour. I think the new anti-poverty coalitions and other newish independent claimants groups such as the one in Liverpool are a important development that could address this lack of attention.

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little_brother
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Jul 22 2008 11:49

Here is the Green paper that gives the full picture ... http://www.dwp.gov.uk/welfarereform/noonewrittenoff/

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Jul 22 2008 13:42

Considering that unemployed workers did apparently organise in the 30s, the apparent inability for the unemployed to organise today is a cause of concern. Off the top of my head, I would put this down to several factors, some of which also affect the class struggle generally:

- one of the functions of the welfare state was to dampen any self-organisation by unemployed workers in this regard and to make them dependent on the state. Many traditions of self-reliance in this regard were lost (i.e. deliberately and consciously obliterated by the bourgeoisie) by the proletariat;

- specifically, this means a worker who is made redundant will have access to benefits, redundancy pay, etc. for a few months before finding himself completely destitute - by the time this point is reached, he has been isolated from his comrades and utterly demoralised by the futile effort to find work.

- unemployment is the hardest condition to struggle against. The main weapon of workers - the strike - is lost to them. It is true to say that those who have "lost the factory must gain the streets", but this is easier said than done. It can only succeed when linked to wider struggles or descends in the self-destructive riots where the class character of the proletariat is often subsumed into a community or racial ideology.

- the state has been careful to manage the growth of unemployment. It has bent over backwards to prevent large gatherings of unemployed, e.g. by staggering sign-on days, etc. Usually the most contact unemployed workers have with each other is through training schemes and things like JobClub (which are so thoroughly depressing, you're only thought it to get out as soon as possible);

- those efforts to organise that do appear, immediately fall under the control of the leftists. Unlike employed workers in struggle, where the battle with leftism is often fought on the terrain of whether to strike and/or how to strike and have a more direct experience of their own power, the unemployed generally lack confidence and direction and are more easily controlled;

- the crisis in the 30s was open and massive with immediate effects that were obvious to everyone, while the crisis since the 70s has appeared as a series of conjunctural recessions that the bourgeoisie presents as singular events, rather than a series of step in an overall tendency towards decline. As a result, the depth of the crisis is not immediately visible;

- the slow pace of the crisis has allowed the bourgeoisie to limit the scope of unemployment. Generally, It has increased continuously but there have also been periods of recovery and stabilisation. The initial isolation of the unemployed has allowed the bourgeoisie to set up an ideological cordon sanitaire by demonising them as scroungers. This poisonous campaign (now running for over 20 years) has had serious effects on the capacity of employed workers to link their struggles to their unemployed comrades;

- the nature of the crisis has also allowed the bourgeoisie to inculcate illusions about capitalism: it is simply a matter of finding the right economic policy to sort out the problem;

- the growing effects of social decomposition (which permanent, mass unemployment seriously aggravates) manifests itself in the growing "lumpenisation", especially of young people, many of whom have never had (and never will have) work. They are unable to see themselves as a class, are viewed with contempt by the rest of society because of their degraded conditions (economic, social, cultural, etc.) and in the absence of big struggles are unable to find any other example of solidarity other than gang-culture (itself peddled by the bourgeoisie through the medium of certain forms of music etc.).

Despite all these restraining factors, there is still potential for unemployment to have a radicalising effect as the crisis deepens and the class develops its struggle:

- the advance of the crisis is progressively destroying illusions in the system - all the economic policies fail and the new ones fail even more quickly than the old ones did (Reaganomics lasted 10 years, as opposed to the Keynesianism of 30, globalisation less than ten, the internet economy less than 5, etc.);

- the growth of unemployment makes it more difficult for the bourgeoisie to hide it, and more difficult to isolate workers. When everyone knows someone on the dole its harder to write them all off as scroungers;

- the impact of the crisis on the bourgeoisie itself, the growing ineffectiveness of all their counter-measures and the bankruptcy of the welfare state is making it more and more difficult for it to maintain this apparatus. While in the short term this will mean a horrific increase in the suffering and misery for millions, it will also lay bare (in conjunction with the impact of the crisis on those still working) the reality that capitalism can no longer offer the worker anything at all which can only radicalise the response to the crisis;

- the solidarity that will be rediscovered in the struggles of the employed workers can then be extended to those on the dole. There will be a long road before this level of solidarity is reached but once the point is reached it could manifest explosively and quickly.

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Jul 23 2008 11:37

As a consultant for New Labour, I think the above is unnecessarily pessimistic and suggest the government use existing gang culture much more positively by converting them into workteams who will do litter collection etc. in a self-managed way, whereby the top-dog is supplied with a state-licensed taser to keep everyone in line (and working effectively), also removing the need for the young people to carry knives or guns. This scheme would avoid the expense of employing (either directly, or indirectly though a private service) thousands of students to head up workfare teams. Almost no burden on the taxpayer, clean streets, no unofficial gangs, and everyone is happy.

PS here's an old ACF article from 1997 that's relevant to what w've been discussing ... http://www.afed.org.uk/online/newdeal.html

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Jul 23 2008 20:20

This article is worth reading to understand corporate pressures and academic concepts underpinning the Welfare Reform Act (2006) that was taken forward in the Freud report, and in the detail of the current announcement: New Labour and the end of welfare - http://www.compassonline.org.uk/article.asp?n=563&offset=20

An important point to note is "The Government target [of 80% employment] can be achieved by bringing in the private sector on long term, outcome based contracts. A price per claimant is calculated on the savings in IB costs when the claimant moves back into work. The income generated by the outflow of people from IB would be the incentive driving business toward the Government target. "

Now clearly this saving is achieved whether you actually get work or you get kicked off Incapacity Benefit. No private contractor would be stupid enough to let their income rely on former claimants actually getting a 'sustainable' job, so we can presume they will get paid for the latter. Now, exactly who will be making the decision that you haven't been trying hard enough to get work (or prepared for work)?

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little_brother
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Aug 1 2008 15:58

ATOS healthcare (AKA Atos Origin IT Services UK Limited http://www.atoshealthcare.com/ ) currently carry out the medical checks for Incapacity Benefit.
http://www.direct.gov.uk/en/DisabledPeople/FinancialSupport/IncapacityBenefit/DG_10023132

There is quite a bit of discussion on message boards about the changes in general including a mention of ATOS healthcare (who usually do the test rather than your GP).
Road to welfare or the road to hell?:
http://www.bbc.co.uk/dna/mbouch/F2322273?thread=5685197
Anyone on libcom had any experiences of ATOS healthcare they would care to talk about?

Incidently - ATOS origin carried out trials on biometrics for ID cards for UK Home Office and most recently won a contract to deliver Biometric passports in France:
http://www.atosorigin.com/en-us/Newsroom/en-us/Press_Releases/2008/2008_06_27_02.htm
See also: http://hsdailywire.com/single.php?id=6482
Here's a corporation that delivers control wherever its needed...