Benefit Cap: 'a clear incentive to work'?

jobcentre (3)The benefit cap is providing a clear incentive to work, according to new research released by the Department for Work and Pensions today. However opponents say welfare reforms have damaged society and have not produced savings promised by the government.

The Westminster government says it has long suspected that the benefit cap was having a positive impact on people’s lives, compelling them to find work, and that the publications ‘now show this is undoubtedly the case’.

The benefit cap was introduced as part of the government’s long-term economic planso that people on out-of-work benefits do not receive more than the average working family earns.

The research shows that:

  • those who would be impacted by the cap are 41% more likely to go into work than a similar group who fall just below the cap’s level, but this trend didn’t exist before the cap was in place – indeed those with higher weekly benefit used to be less likely to move into work
  • before the benefit cap fewer than 300 of the highest claiming families got over £9 million in benefits every year – the cap is preventing this and saving millions of pounds a year
  • 38% of those capped said they were doing more to find work, a third were submitting more applications and 1 in 5 went to more interviews
  • where households said they intended to seek work because of the cap in February 2014 (45%) by August the vast majority of them (85%) had done so – 2 in 5 (40%) of those who said they had looked for work because of the cap in February actually entered employment by August.

DuncanSmithWork and Pensions Secretary Iain Duncan Smith said: “We know that the benefit cap has had a real impact in changing attitudes and behaviours, and now we have evidence showing that our welfare reforms are encouraging people into work.

“By putting an end to runaway benefit claims and introducing a system which guarantees you will always be better off in work, we are incentivising people find employment. Every month hundreds of people who have been affected by the cap are making the positive move into work – gaining the financial security and esteem that comes with a job and a pay packet.

“As part of our long-term economic plan, we’ll continue to support people to break free from welfare dependency so they can look forward to a better, more secure future for themselves and their families”.

The DWP cites London as a good example of the policy working.

‘In London where the highest number of people are subject to the benefit cap, scare stories claimed that people would be pushed out of the capital. In actuality, of those capped households living in inner London that moved, 84% continued to live in the central boroughs. In London there is also larger likelihood of capped households moving into work with those in scope for the cap being 70% more likely to go into work than their equivalents just below the cap’.

One interviewee in the research said: “It gave me the shock of my life. But it’s given me the kick I need. I can see what the gentleman was saying, why should we pay for your lifestyle. We should want to work. We shouldn’t sit on our backsides watching Jeremy Kyle. I genuinely do want to work.”

While the government may believe it is on the right track, it’s fair to say that not everyone is convinced that the controversial cap is working, however. Trades Unions, disability rights organisations, charities, anti-poverty campaign groups, churches and opposition political parties all continue to condemn the government’s ‘draconian’ welfare reforms. They point to record numbers of families using food banks as evidence that the welfare reforms are hurting poor families – both in work and on benefits.

There’s also doubt about how much – or how little – money is being saved by the welfare reforms. Today, the Institute for Fiscal Studies said savings from the cap were ‘small’.  They say the cap affects about 27,000 families in the UK – less than 1% of working-age families who receive housing benefits – and saved around £100m a year.

More about the benefit cap

Introduced in April 2013 the benefit cap is set at a rate of no more than £500 a week for couples and families and £350 for single people – £500 a week is equivalent to a salary of £34,000 a year after tax.

Over 50,000 households have had their benefits capped since April 2013 and since then 23,900 are no longer impacted – 12,000 because they have found work or are no longer claiming Housing benefit at all.

Burgess: 'Westminster has failed fuel poor'

Scottish Government calls on UK to do more to address fuel poverty

gasHousing Minister Margaret Burgess has demanded Westminster do more to cut fuel bills for vulnerable households as new figures show higher energy prices pushed more people into fuel poverty in 2013.

Mrs Burgess has asked the UK Government to urgently increase the £140 a year Warm Homes Discount that helps low income households.

The Scottish House Condition Survey, published yesterday, shows a seven per cent increase in fuel prices between 2012 and 2013 led to 100,000 more households living in fuel poverty.

Fuel bills have now risen nearly six times faster than household incomes since 2003.

Scottish Government spending on domestic energy efficiency, which is £94 million this year and next, has already made hundreds of thousands of homes warmer and cheaper to heat and, as the report indicates, has helped to mitigate the rise in fuel poverty.

Mrs Burgess said: “Fuel prices rose by an inflation-busting seven per cent in 2013, pushing more people into fuel poverty. The fact that this is happening in an energy-rich country is scandalous.

“We have invested over £300 million since 2009 to make fuel poor homes more energy efficient. This year and next, we are spending £94 million to improve energy efficiency. Around one in three Scottish households, over 700,000, have now benefited from measures like new boilers or insulation.

“These statistics make clear that without action to improve energy efficiency, which is our responsibility, price increases would have put even more households into fuel poverty in 2013.

“So the Scottish Government is doing what it can, but we don’t control prices and don’t have any powers over ECO or the Warm Homes Discount.

“Fuel costs have risen six times faster than incomes since 2003, while the UK Government’s fiscal policies since June 2010 will leave the poorest 20 per cent of households worse off by the equivalent of £441 per year in 2015-16. We will mitigate against this where possible but we know there are further cuts to come.

“That is why we are calling on the UK Government to increase the Warm Homes Discount and fund that increase centrally. That would give immediate relief to the lowest income households and those on benefits and go some way to lifting people out of fuel poverty this winter.”

Patrick Harvie, Scottish Green MSP for Glasgow and a member of Holyrood’s economy and energy committee, called for major investment in energy-efficient housing as statistics confirmed that the Government will fail its target of ending fuel poverty by 2016.

The latest figures show that 36 per cent of housing is in urgent disrepair, with 51 per cent of private housing failing the Scottish Housing Quality Standard. The biggest reason for houses failing is ‘Not Energy Efficient’.

Patrick Harvie MSP said: “Energy efficient homes should be a national infrastructure priority and I will continue to press for this to feature in the forthcoming Scottish budget. It would help create thousands of high quality jobs while also tackling fuel poverty.

“We also need college courses and well-paid modern apprenticeships in energy efficiency. Fuel prices and profiteering by the energy companies must be urgently tackled across the UK, but unless the Scottish Government also steps up investment we’ll miss out on the potential for energy efficiency jobs in Scotland.”

Call for clarity on free school meals

dinnerThe Scottish Government has welcomed progress being made across Scotland in preparation for the introduction of free school meals for all P1 – 3 pupils next month  – but Green MSP Alison Johnstone says the policy must be supported with modern facilities. 

The measure, which comes into effect on 5 January, is expected to benefit around 135,000 pupils across Scotland and will save families of every eligible child at least £330 a year.

Following agreement with COSLA, the Scottish Government is providing revenue funding of £70.5 million over two years to deliver the commitment, supported with additional capital funding for local government of £24.8 million to ensure demand is met.

The introduction of free school meals for all P1-3 pupils has been supported by campaigners against child poverty, including Child Poverty Action Group Scotland, Children in Scotland, One Parent Families Scotland, the Church of Scotland and trade unions.

Last week Learning Minister Dr Alasdair Allan welcomed the hard work that has been ongoing across Scotland to prepare for the increased demand in schools. He said: “School lunches are hugely important in supporting a pupil’s ability to learn and January 5, 2015 marks the beginning of a new era in Scottish education.

“This Government is proud to be implementing free school meals for all P1-3 pupils. Delivering a saving of at least £330 a year for eligible families is just one aspect of this Government’s work to tackle the scourge of child poverty in Scotland.

“Free school meals will also play an important role in improving attainment in schools, through offering children healthy and nutritious lunches that will help them achieve their best in class.

“It’s never too early for children to start learning about the benefits of healthy eating and free school meals, in addition to learning through Curriculum for Excellence, will play a big role in helping to deliver that message.

“The implementation of free school meals for P1-3 comes in addition to a range of legislation and policies that have been developed by the Scottish Government over the past decade to ensure that our children and young people are offered balanced and nutritious meals at all stages of their school life. Most recently, the Better Eating, Better Learning guidance sets the agenda for the coming decade to drive further improvements to both school food and food education.

“I have been impressed with the work that local authorities are doing to prepare. I encourage everyone with an interest to make sure they are up to date with the new arrangements.

“The Scottish Government has worked very closely with COSLA and local authorities throughout this process and I look forward to January 5, when we will see this very positive measure coming into effect.”

Positive progress indeed, but Green MSP Alison Johnstone is calling for more details of how the policy will work in practice.

Earlier this year Freedom of Information requests by Ms Johnstone, the Scottish Greens’ education spokesperson and MSP for Lothian, revealed that many local authorities had no school kitchens and dining facilities already at capacity.

She said: “Free school meals is a sound policy but it must be matched with modern facilities. We know that many local authorities are struggling to cope as it is, so I want to hear in detail how well they have been supported in preparing for this welcome initiative.

“We have a great opportunity to improve our supply chains and invest in the skills of the catering workforce. The Scottish Government should be ready to find the funds necessary to make the most of this opportunity.”

For better or worse? Mixed views on Autumn Statement

coinsPredictably mixed opinions over the Westminster government’s Autumn Statement yesterday. Scottish Secretary Alistair Carmichael says Scotland is strengthened by the announcements but the Holyrood government says Scotland’s poor will pay the price for further austerity measures.

The Scottish Government will benefit from additional funding of £213 million through to 2015-16 as a result of spending decisions taken by the UK Government at this Autumn Statement, bringing  the total amount of additional spending power granted to the Scottish Government since 2010 to over £2.3 billion.

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That’s good news for Scotland, said Scottish Secretary Alistair Carmichael MP. Speaking after the Chancellor’s announcement, Mr Carmichael said: “This Autumn Statement sets out the next steps in the UK Government’s long term economic plan to secure a sustained recovery and a more resilient economy. By backing businesses, helping more people into work and supporting families in communities across the country Scotland is benefitting from the action we are taking to help our economy grow.

“These measures will give the Scottish Government an extra £213 million of spending, taking the total of additional spending power to over £2.3 billion since we came to office. This means they can crack on and spend more money such as on funding for the NHS, more childcare places or more funding for schools or colleges.

“Scotland chose to retain a shared currency, pensions, single market and the economic stability and security that comes from being part of the UK. With more funding provided to the Scottish Government today and more powers and great responsibility for the Scottish Parliament on the way, Scotland is strengthened by today’s Autumn Statement.”

Not so, according to Holyrood’s Finance Secretary John Swinney. The Deputy First Minister said today that Scotland is continuing to pay the price of UK Government’s austerity agenda .

ScottishParliamentHolyroodIn his autumn budget address Chancellor George Osborne admitted to the House of Commons that the Government had missed key targets on economic recovery. In the last substantial finance statement before next year’s General Election, the Chancellor confirmed that his forecasts on deficit reduction were off target, with borrowing higher and tax revenues lower than expected. More austerity, to ensure future prosperity, was the government message.

Finance Secretary John Swinney warned that the Chancellor’s decisions were continuing to hit the poorest in our society hardest with the Treasury confirming that those in the lowest 20% will face some of the hardest impacts of the austerity plan.

The majority of spending announcements simply recycle existing money meaning the Scottish Government will receive around £200m in Barnett consequentials. This makes up only 8% of the £2.7bn of real terms cuts that have been removed from Scotland’s budget since 2010 and have taken 25% of Scotland’s capital budget.

Commenting on the Autumn budget statement, John Swinney said: “The Scottish Government is focused on securing economic growth, tackling inequality and protecting our public services. The Chancellor’s budget fails to pass the test on all of these measures.

“Today’s budget shows the failure of the UK Government’s austerity policy and it is clear that we in Scotland are paying the price. In 2010 the Chancellor embarked on his austerity programme and instead of putting the finances on a sound footing we are seeing borrowing this year of over £50bn higher than expected, lower tax revenues and austerity extended by atleast a further two years.

“Just last week I wrote to the UK Government to ask them to use the Autumn statement as an opportunity to ensure that the benefits of economic growth are not only sustained but are made accessible to all. The Chancellor has not listened.

“The lowest earning households in Scotland will be among the hardest hit by the UK Government cuts.

“And while the Chancellor gives Northern Ireland the power to cut corporation tax his government is continuing to block the job creating powers Scotland needs.

Commenting on the Barnett consequentials which will come to Scotland as a result of today’s announcements, the Finance Secretary said: “Additional spending for Scotland is always welcome but the consequentials of around £200m we have received today cannot compensate for the £2.7bn of real terms cuts we have faced since 2010. And with a further £25bn of cuts in the future the Westminster Government is locking Scotland into austerity against our wishes.

“The £125m of consequentials we have received from frontline NHS spending in England will be passed to Scotland’s NHS as they have been in every year of this parliament.”

 

'Smith Commission believes in young people'

The politicians have had their say on the Smith Commission recommendations – the unionists say it’s a vow delivered while the nationalists argue it doesn’t go nearly far enough.

But what do young people think?

SYP logo

Terri Smith MSYP, Vice Chair of the Scottish Youth Parliament, welcomes the Smith Commission’s recommendation to devolve the voting franchise:

Waking up this morning to the news that the Smith Commission has recommended that the voting franchise should be devolved to Holyrood is particularly pleasing, and it is some of the best political news I’ve heard since the franchise was originally lowered for the referendum.

There is a real commitment in Scotland from politicians and others alike to have 16 and 17-year-olds voting in the 2016 Scottish Parliament elections, and for me, that’s the least our young people deserve. The referendum saw unprecedented levels of political participation from the young people of Scotland.

During the referendum campaign, the Scottish Youth Parliament engaged with over 18,000 young people and registered thousands of first time voters. As a Member of the Scottish Youth Parliament (MSYP), the opportunity to be at the forefront of one the most historic moments in Scottish history was astounding. The process gave me the opportunity to engage with young people right in the heart of their communities.

I’ve spoken with young people from all walks of life. Throughout the referendum process, each and every one of the young people I met with were informed, engaged, and full of passion. Young people have truly been at the heart of shaping history throughout the last year, and the entire world has been watching and waiting to see if the decision to lower the franchise would be a success, and indeed it has been.

I think we can all agree that the referendum provided a platform for mass engagement for everyone in Scotland, but particularly young people. We now need to maintain these levels of engagement, otherwise we are at risk of disenfranchising an entire generation, when in fact, we are aiming to be doing the opposite.

As the democratically elected voice of Scotland’s young people, the Scottish Youth Parliament has always known that 16 and 17-year-olds are capable of making informed decisions when it comes to voting, and now the rest of the country can see that too.

I am incredibly happy to see that the Smith Commission believes in young people, and is now urging the UK Government to ensure these recommendations are implemented so that Scotland can continue to lead the way in involving young people in political decision making. After all, the young people of Scotland deserve it.

Terri Smith MSYP

Vice-Chair, Scottish Youth Parliament

Lazarowicz backs wildlife cybercrime crackdown

Mark Lazarowicz MP Backs Report Exposing Cruel Wildlife Cybercrime

IFAWMark Lazarowicz MP is backing a hard-hitting report by the International Fund for Animal Welfare (IFAW) that sets out – in often shocking detail -the scale of wildlife trade over the internet.

The report entitled ‘Wanted – Dead or Alive’ shows how thousands of endangered species are bought and sold on the Internet, many advertised without any form of supporting documentation.

IFAW found the legality of almost 13 per cent of the advertisements investigated warranted turning them over to law enforcers for further examination. However this may only be the tip of the iceberg as investigators focused on open-source websites.

The Edinburgh North and Leith MP is a member of the House of Commons Environmental Audit Committee (EAC) which has published a series of reports on wildlife crime.

Mark Lazarowicz said: “I welcome this report for shining a light on the murky sale of protected species and parts of them like ivory – it’s big business built on cruelty to magnificent but rare animals like tigers, bears and orangutans.

“When the EAC reported in 2012 we called for the Government to give the National Wildlife Crime Unit the funding it needs to be effective and we highlighted how the lack of certainty over its funding is making it especially difficult to attract staff and hampering its work on wildlife crime.

“I want to see the UK and Scottish Governments – which has responsibility for tackling this in Scotland – working closely together to shut down these practices – it’s a crime that crosses borders and wildlife that we treasure should not be traded online like any other commodity.”

The report calls for:

• A criminal offence created for those advertising a protected animal, or its parts

• Warnings on marketplaces online to make people searching for protected species aware that they might be breaking the law so they cannot plead ignorance

• Secure funding for the National Wildlife Crime Unit and a dedicated post for wildlife cybercrime.

Mr Lazarowicz has written to DEFRA calling for the Government to act.

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Politicians call for action to save Leith-based Pelamis

Wave goodbye? Local politicians say Pelamis must be saved  

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Edinburgh Green and Labour parliamentarians are calling for their respective governments to support a troubled local technology company before foreign rivals step in.

Green MSP Alison Johnstone has urged the Scottish Government to intervene to secure the future of wave technology firm Pelamis, which entered administration last week.

Questioning the Energy Minister at Holyrood yesterday,she said there was a real danger that Scotland would lose a global leader in the development of the technology to an overseas buyer, and end up importing wave technology in future years.

Pelamis employs 56 staff, with most based in Leith.

Alison Johnstone, Lothian MSP said: “Pelamis has been a global pioneer in wave technology and a leading Edinburgh company, which we cannot afford to lose. We hear so much about Scotland’s renewable energy potential but we will not reap the rewards without support to turn research into commercially-ready technology.

“Pelamis is a highly respected company which has built up a huge amount of expertise. I urge the Scottish Government to use every possible means to support this company and its employees at this uncertain time.”

North and Leith MP Mark Lazarowicz has also expressed concern and is urging Wstminster and Holyrood to work together to rescue the company. Speaking today, the Labour MP said: “The UK is currently the world leader in marine energy and the expertise of Pelamis Wave Power – based in Leith – has won it grants and awards from the UK and Scottish Governments: I want to see them act now to put together a rescue package.

“I have raised the urgent need to try and save Pelamis in a meeting with the Secretary of State for Scotland and contacted the UK Energy and Climate Change Secretary urging him him to act.

“Scotland and the UK have Europe’s greatest wave resources, but we run a real risk that if wave power technology isn’t given the long term guarantees of support that it needs, other countries will become the leaders in the technology.”

He also raised his concerns in a debate on fracking in Parliament where he referred specifically to the situation affecting Pelamis, and said after the debate: “Supporting pioneering renewable energy technology is what governments should do, instead of giving generous tax breaks to fracking.”

Pelamis Wave Power has been awarded grants for development of its pioneering technology by the UK Department for Energy and Climate Change and earlier this year its Chief Executive, Richard Yemm, was awarded the Scottish Government’s Saltire Prize for marine renewable energy.

Keir welcomes New York flights

Flights from Auld Reekie to Big Apple next summer 

New YorkColin Keir, the MSP whose Edinburgh Western constituency covers Edinburgh Airport, has welcomed the news that American Airlines will be launching daily flights between Edinburgh and New York’s JFK Airport.

Mr Keir said: “This is great news for Edinburgh Airport and more widely for Scotland. I congratulate the management of Edinburgh Airport for securing this direct service to one of the world’s leading financial centres. One of the benefits of direct flights is that the Air Passenger Duty (APD) is less for travellers who don’t have to fly to another UK hub airport such as Heathrow or Gatwick. It will be a huge boost for business and tourism and I am sure this will prove a very successful destination.”

The new service will launch next summer and run between May and September.

Cheers! Local MP votes for fair deal for publicans

Lazarowicz supports clause to protect community pubs

drink[1]Mark Lazarowicz MP has voted to protect local publicans from the predatory practices of large pub owning companies (known as pubcos) by backing a new cross-party clause to the Small Business Bill earlier this week.

Following a report into the industry by the cross-party Business, Innovation and Skills Select Committee in 2010, Labour has campaigned alongside a broad coalition of groups in the industry – including the Federation of Small Businesses, the Forum of Private Business, CAMRA, FairPint and the GMB and UNITE trade unions – to call for greater protection for local pubs and put a stop to unfair treatment and restrictive practices by pubcos.

The government’s provisions to regulate pubcos in the Small Business Bill, debated in Parliament this week, but these fell some way short of Labour’s plans and campaigners’ demands. Labour therefore supported a cross-party clause to strengthen the Bill. The government opposed this change but were defeated by 284 votes to 269.

The North & Leith MP said: “27 pubs close every week and 57% of landlords who are tied to a large pubco earn less than £10,000 a year. These are scandals which must be addressed, and so I was proud to support the new clause which gives licensees the option of going free of tie – so that they can buy their beers on the open market – whenever they negotiate a new contract.

“This is the best way to ensure that large pub companies offer fair terms to their licensees and to finally address the scandal of so many valued community pubs shutting. The cooperation of the Scottish government will now be required for the proposals to be fully implemented in Scotland, and I hope that they will do this.”

 

Fracking hell: politicians speak out

Johnstone: ‘I’d urge communities to oppose such developments’

shale gas extractionAlison Johnstone, Green MSP for Lothian and a member of Holyrood’s economy and energy committee, is urging communities around the Forth to oppose plans for underground coal gasification.

Drilling firm Cluff, one of a number of firms with licences to extract gas from coal seams around the Scottish coast, says it intends to apply for planning permission to develop drilling operations under the Firth of Forth.

Gasification involves drilling into coal seams, igniting them and capturing the resulting gas from a borehole.

Even with as-yet unproven carbon capture and storage technology, coal gasification would still emit more greenhouse gases than renewables.

Alison Johnstone MSP said: “Just a week after the IPCC warned that we need to urgently phase out fossil fuels, we have a company preparing to drill for yet more. In recent months I’ve been hearing from local people rightly alarmed at the prospect of unconventional gas drilling in their area, and I’d urge communities to oppose such developments.

“The local authorities and the environmental regulator Sepa must take into account the climate impact from this proposal. It also poses an economic risk by extracting fossil fuel we simply can’t afford to burn, and diverting attention away from the renewables sector that is steadily growing the long-term, well-paid jobs we all want to see.”

Mark Lazarowicz MP has urged the UK Government to devolve the responsibility for licencing fracking in Scotland to the Scottish Government. He was speaking at Energy and Climate Change questions in the House of Commons.

The North & Leith MP said: “This is an issue that many people feel strongly about, and I do not see any reasons why the power to grant licences should not be transferred from the Department of Energy and Climate Change to the Scottish Government.”

“Labour has already called for much tighter safeguards for licencing: companies must be forced to disclose the chemicals used in fracking and tests must take place for 12 months before the final go-ahead to find any trace of water contamination.

“Many issues relating to fracking are already devolved, including planning and environmental regulation, consent for electricity generation and transmission are all devolved. It makes sense for all aspects of the control of fracking to be devolved.”

Currently, companies must first apply for a licence from the Department for Energy and Climate Change (DECC) to explore for shale gas and another to then actually drill and extract it.

The company also needs a licence from the Scottish Environment Protection Agency (SEPA), who regulate the way that the development will affect the local environment, in particular discharges of fracking fluid to local water sources.

Companies must also apply to the local authority for planning permission to deal with matters covered by planning law and the Scottish Parliament already has full authority over that, so Mr Lazarowicz argues that it makes sense for overall control of licencing to be devolved too.