The Welfare Debate

There can be few debates as depressing as the one that focusses on social security. And I use the term ‘social security’ advisedly. For seventy years, we’ve taken the view that the state has a role to play in securing everyone’s basic needs, not just those that can afford it.

When the Attlee government built it, the welfare state was there to ensure there was always a safety net. Heathcare for all, through the NHS. Pension for all, through National Insurance. Work for all, or where jobs are scarce, protection from abject poverty.

A changed debate

But today, this government think that stirring up a hatred of those who need this help is something to be encouraged, not challenged. George Osborne recently thought it was appropriate to use the crimes of Mick Philpott to launch an attack on those who claim benefit.

The truth is in Luton, there aren’t enough jobs to go around. But the Tory-led government consider the unemployed ‘fair game’; dividing us into strivers and shirkers. They think it’s the only way out of a hole of their own making. The economy is flatlining and to distract people from their failure to get it growing, they point the finger at families struggling to make ends meet already.

For all the rhetoric about making work pay, it’s working families who receive help from the state who will pay the cost of this government’s economic failure. Last month millionaires were given a whopping tax cut. But the government’s other decisions also began to kick in. 400,000 disabled people will be hit by the bedroom tax. Average families will lost nearly £900 a year. Tax credits for the low paid are being cut in real terms. 200,000 more children will find themselves in poverty.

And all the time, the national debt goes up not down. These cuts, punishing to those affected, will have virtually no effect on the deficit which remains stubbornly high. In fact, as it’s those on the lowest incomes that spend the greatest proportion of their income, leading economists have said they could actually be counter productive – pushing borrowing even higher. The government’s actions, then, are not just heartless, but hopeless. Not least of all because just 2.5% of the total benefits bill is spent on unemployment benefit.

Getting the bill down

Our system of social security is by no means perfect. There are always isolated cases of people who can work and don’t, and we should be hard in driving these people out of the system. But most people want what we all do – to be able to support ourselves and our families, and to have a reasonable standard of living. The fact they’re being denied this right by a clueless administration is no reason to turn on them.

Put simply, the best way to bring down the social security bill, is to get people back to work. The enemy isn’t the unemployed; it’s unemployment.

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Margaret Thatcher’s Passing

Later today, her body, draped in a Union flag, will reach its final resting place.

But the arguments about her life have not ended in death. Margaret Thatcher defined the 1980s, and left her mark on our town – just as she stamped her authority on country.

My experience of her in power was limited. When I was born, she had already been in Downing Street for two years. When she left, tearfully ousted by her cabinet colleagues, I was at primary school. But the world I have grown up in, is the world she shaped. It is not for no reason that those of us born in the 1980s are referred to as ‘Thatcher’s children’.

I abhor the polices she pursued, and I can say it was growing up in Thatcher’s Britain that inspired me to join the Labour party. There are many things about her legacy that are troubling, but at the heart, I think, is a prioritising of the individual at the expense of all else we can build together.

The end of solidarity

Her boarding up of manufacturing industry, selling off of social housing, and privatisation of our essential utilities were intended as much as a challenge to the politics of collective endeavor as they were an economic strategy. Her unlikely rise to become Britain’s first female Prime Minister wasn’t a triumph of feminism, but of individualism.

Today, the policies that hurt our town are being perpetuated once again by a new government. Thatcher may be gone, but the Tories and Lib Dems are using her as their compass point on policy.

Once my party held buckets outside the Town Hall to collect for miners who were starving hundreds of miles away. Today’s Labour party meets and brings contributions for our own residents – pasta and milk for Luton’s food bank.

The queue of people outside the Job Centre thirty years ago has been replaced by the more hidden but no less real phenomenon of youth unemployment up eleven-fold. Wasted opportunities and wasted lives. In our town.

In the wider economy, the Thatcherite slashing back of state spending is leading to low growth and high unemployment, and a cost of living crisis for most. In Cameron’s Britain, millionaires are incentivised to work harder by a tax break; while the poorest are incentivised to work harder by slashing away at small sums of social security.

Our country’s achievements

On the back of my Labour party membership card is a statement that, for all of the compromise of modern politics, still inspires me: “By the strength of our common endeavor we achieve more than we achieve alone.”

It’s a statement of faith. And today, as we lay the former Prime Minister to rest, it is one that I’ll be reflecting on.

Day of Reckoning

“We are paying down Britain’s debts.”

So said David Cameron a couple of months ago. And with the amount of pain that many of Luton’s families are experiencing, you might have assumed he was correct to say so.

The plan to rebuild our crumbling schools has been scrapped. Tax credits for the lowest paid in work will be squeezed; tuition fees for our students will treble; pay rises for our workers have been cancelled. Luton Borough Council is seeing its budget halved, meaning difficult decisions for every service which isn’t required by law.

So here is the curious thing: Britain’s debt isn’t going down. It’s going up – and going up by a lot. This Tory-led government will borrow more in five years than the last Labour government borrowed in thirteen.

Surely some mistake?

Surely some mistake, I hear you say. The Deputy Prime Minister recently claimed his government is “wiping the slate clean of debt.” That nice Nick Clegg wouldn’t say one  thing and then do another, would he?

Well, unfortunately he did. In the aftermath of the financial crisis, the national debt was £800 billion. It’s now on course to rise to £1.6 trillion. Apparently, “paying down Britain’s debts” means doubling it.

The deficit – the gap between the money coming in and the money going out each year – is around £120 billion. That’s how much we borrowed this year. It’s almost exactly the same amount as we borrowed last year, and that we are projected to borrow next year as well.

Each year that goes by the debt goes up and up.

Is this alarming? Did you think, despite all the pain, that Cameron and Osborne had at least made some progress towards getting our balance sheet back in order?

Well, if you were labouring under that misconception, don’t worry. Because almost everyone else in the country thinks the same as you did. The polls show that, depending on how you frame the question, only between 8% and 12% realise the national debt is rising.

A plan for jobs and growth

So, what to do? Well first, we need to realise that without growth in the economy, we’ll never get the economy back into balance. By cutting spending too far and too fast, this government has choked off the recovery. Some economists now even predict a triple-dip recession.

And secondly, David Cameron needs to start being straight with the British people. For short term political reasons he’s chosen to mislead us about the path of rising debt we are on. It would be better to be honest about it, so we can finally talk about the most pressing question of all – how do we get growth kick-started, and people back into work.

APPG

Redefining Marriage

A number of constituents have contacted me about same-sex marriage, ahead of the vote at second reading – and subsequent to it.

The bill seeks to redefine marriage to incorporate same-sex couples; both in so-called ‘civil’ contexts – and in religious institutions who choose to ‘opt-in’ to the new definition.

Common with all major pieces of legislation, there will be a series of votes on this issue.

Despite talk of a ‘quadruple lock’ to protect religious conscience, these measures are themselves subservient to judgements of the European Court of Human Rights (ECHR).

I remain concerned that a successful legal challenge could be brought as a result of the changes that would result in people of religious conviction being forced to solemnise marriages under this new definition. This is contrary to the government’s stated ambition.

Consequently, I have concluded that I cannot support the legislation as it moves through the House of Commons, and will not be voting for it.

A number of constituents have asked me about whether these votes will be ‘whipped’ or ‘free’. Having advocated forcefully for a free-vote, I am pleased to say that the Labour party will not be imposing a whip and as a result MPs will be able to vote in line with their conscience.

I should say the legislation is expected to pass with a significant majority in the House of Commons – and at second reading received 400 votes in favour, from a possible 650.

Rethinking Thameslink

Thameslink Programme

Photo Credit: Stuart Pinfold, stuart-pinfold.co.uk

It’s time to rethink the way our railway line runs.

I’ve been critical of First Capital Connect, particularly for their poor performance at the start of their franchise – and sharp price rises for passengers throughout their contract.

In Westminster I’ve been working hard to get a new operator for our packed commuter line. A hotly fought competition should have resulted in change this year – but government incompetence has put everything on hold.

The £6bn Thameslink upgrade programme has already caused the massive disruption on the route in recent years – but we are only half-way there. Before 2018, London Bridge station will have to be completely rebuilt, all new rolling stock introduced, and a timetable rolled out that allows for up to 24 trains an hour.

With the chance to pause to consider the best way forward now the process is suspended, I believe giving another franchise contract would be completely inappropriate. So I am calling on the government to introduce a management contract instead – with far less freedom for our new train operator to ‘innovate’!

They should be focussed on maintaining services through the disruption, not finding more and more ways to make money. Government would set the terms – and the price. And if the train companies don’t like it, they don’t have to bid for it.

Long term, we need to completely rethink how to fix the botched Tory privatisation of our railways. But right now, government should put passengers first, starting with Thameslink.

What is a management contract?

Management contracts have been used in the past when major upgrade works are being implemented – such as the ongoing programme of works on the Thameslink route through to 2018. Under the Thameslink upgrade programme, London Bridge station will be completely rebuilt, all new rolling stock introduced, and a timetable will be created that allows for up to 24 trains per hour.

Under a franchise agreement, the Department for Transport’s decision about who should get a contract is usually based on how much money a bidder will pay back to the government. Critics say this gives an incentive to drive down standards and drive up profits.

Under a management contract the agreement is much more restrictive – defining how much money it expects to receive and getting train operating companies to compete over the quality of the service delivered. In practice it can be far less profitable for the Train Operating Company too.

Why now?

Following the government’s mishandling of the West Coast Mainline franchise process, Richard Branson’s Virgin Trains launched a legal bid to expose inadaquacies in the Department for Transport’s approach. When the government accepted that there were problems, all pending franchise agreements were put on hold while the process was reviewed.

Richard Brown, the Eurostar Chairman, was tasked with reviewing rail franchising, and concluded that the new Thameslink franchise was a good candidate for letting under a management contract.

Welfare Changes

As the snow this week, I voted to block the government’s decision to restrict the rise of most in-work benefits to 1%.

In Luton alone 20,000 households are affected – on a low income already, they’ll have to get by with less from this April – while millionaires get a big tax cut and more spending power.

Since the financial crash in 2008, welfare spending has been up. But under this government, the amount we are spending is far higher than even the Tories predicted – because there’s no growth and stubbornly high unemployment.

Instead of getting people off benefit and back into jobs, or saying it’s the duty of government to protect those on a low income, everyone gets a smaller piece of the pie. Except the rich, of course. On average, everyone who earns more than £1m will get an extra £100k in their back pocket this year.

It’s the oldest trick in the book. Instead of engaging people in a debate about the big picture – that our economy has stalled and inequality is rising, they try to distract us in a debate about the small picture – fighting over the scraps that fall from the table.

They’d rather we fight over shirkers and strivers; benefit cheats and hard working families. And all the time we turn on each other, the rich get richer and the poor get poorer, aided and abetted by this government.

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