Posts tagged ‘a4e’

May 17, 2010

Stop Demonising the Unemployed

Unemployment figures were up to 2.5 million by the end of March, and there’s no reason to think they won’t get any higher: some estimates put them as high as 3.3 million by the end of the year.

As well as rises in unemployment over the past few years, there have been increased attempts on the part of capital to project an image of criminality onto the unemployed, with high-level campaigns targeting “benefit thieves”. Such campaigns have the basic effect of portraying the unemployed as lazy, scrounging criminals, in what seems like a more-or-less conscious campaign to undermine solidarity on the part of the rest of the working class.

For those lucky enough not to hang around in JobCentres, here’s what you have to do to get your £64 a week (£100 if you’re married). At first it’s suprisingly relaxed: you go to reception, get waved through by two or three security guards, sit in a waiting area for ten minutes or so, before being called over to sign on and have a ‘chat’ with your advisor. You’ll have been expected to fill in a jobsearch booklet, detailing all your efforts to find work. Your advisor will glance at it, and then you’ll be free to go. I’ve been signing on for a while, and have never once had my jobsearch checked in any meaningful way. It can happen though, and if they find it ‘unsatisfactory’, or if you’ve failed to fill it in at all, then they can, and often do, stop your benefit for a fortnight.

Incidentally, the waiting areas can be great places to meet people. Last time I was signing, I got talking to someone. He was going off his head because they were going to stop his benefit, predictably enough because his jobsearch wasn’t ‘satisfactory ’. The guy was pretty ill, and on heavy medication. He was terrified of becoming homeless. He was 65 years old. I eavesdropped on his interview when he was eventually called over. They gave him a week’s grace, and they spoke to him like he was a five year old. A few years ago, he would have been on Disability Benefit, and would not have had to put with such harassment and condescension. But these days Disability Benefit is being phased out, and is almost impossible to get on.

When you’ve been signing on for three months things start getting to be a bit more serious. You’ll probably be put on “intensive signing”, which means you’ll have to sign on weekly instead of fortnightly, and your advisor will look a little more closely at your jobsearch.

At further ‘stages’ in the process – you move up a stage every three months – you’ll be given various ‘offers’. Training courses, most of which are absolutely useless and are run by private companies, A4e being the most notorious example. These companies have zero knowledge of the issues facing the long-term unemployed, and the services they offer are completely useless in terms of getting any meaningful work. And things are set to get a lot worse. From October sections of the unemployed in Greater Manchester will be forced to take part in the proposed Work for Your Benefits scheme, where they will have to do full-time work whilst remaining on benefit money. Of course, with the new government, this may well change – but it’s unlikely to change for the better.

All of this doesn’t seem to be much more than a punishment system for those who for whatever reason can’t get a job. Claimants are demoralised and patronised, and are certainly not offered any meaningful help. The training that you can do outside of the JobCentre system is severely limited by the cap that is placed on the number of hours you can do if you are not to lose your benefits. Voluntary work – which any sensible system would understand to be the best place to gain new skills – is limited to registered charities. In dark moments I almost think that ultimately the benefits system would like to force inactivity: if you’re not actively seeking work, you shouldn’t be doing anything at all.

Traditionally the unemployed have been used in capitalism as a reserve workforce, to instil fear and discipline into the working population. That’s starting to change: we are increasingly portrayed as a criminal class to be feared and despised, entirely separate from the working class proper. Sometime in the last five years the term usually used for people who fiddle their benefits was changed from ‘benefit cheat’ to ‘benefit thief’. The DWP website claims that “those who steal benefits are picking the pockets of law-abiding taxpayers. In 2008-9 benefit thieves stole an estimated £900 million from public funds, that’s why we are determined to catch them”. They don’t mention that there’s an estimated £10.5 billion saved in unclaimed benefits each year. Nor do they mention how reluctant the DWP are to explain precisely what benefits you are entitled to. And they certainly don’t have anything to say about that pack of benefit thieves in Buckingham Palace, who with the Civil List have their very own, very high class benefits system.

On the Benefit Thief section of the DWP website, alongside the usual drivel about “hidden cameras and mobile surveillance”, there is an online form for the enthusiastic Benefit Snitch to fill in. It is remarkably detailed: it wants to know the victim’s NI number, their height, the colour of their eyes. It would be pretty funny if it wasn’t ever so slightly sinister. Who are these snitches who know the colour of your eyes? Just like with terrorists, the honest taxpayer in expected to see benefit thieves everywhere, and to dob them in at every opportunity. Far from being a criminal class, the unemployed are actually a scapegoat class: one more example of capital’s vicious tendency to set up the most vulnerable people in the country – migrant workers, asylum seekers, the ill, the ‘insane’, the list goes on – as hate figures.

Since Thatcher, and even more so since Blair, it is always automatically assumed that the unemployed quite simply don’t want to work. Blair and Brown were always droning on about “benefit culture”, about how a “life on the dole” would soon be impossible. They never say anything that since the all-out attacks on the industrial base in the 1980s there are massive areas of the country where work is quite simply not there, or that most of the “job creation” they talk about is either meaningless or illusory. It is worth repeating: the jobs are not there. The only sane response would be to accept that full employment is an impossibility, and to then start coughing up a decent amount of benefit money. And ultimately, an all-out critique of the entire ideology of work is necessary: of course, these demands are totally incompatible with capitalism.

The dole is essentially one of the front-line zones of capital, where we come face to face with the seething contempt that it holds for us. But we’re not taking it lying down. One of the most exciting developments for the left over the last year has been the massive increase in Unemployed Workers’ Unions throughout the country: groups have formed in Cambridge, Salford, Oxford, Sheffield and London. The Cambridge offices of A4e were picketed in January, and in March, London Coalition Against Poverty, the Disabled People’s Direct Action Network and Feminist Fightback organised a week of action against the Welfare Reform Bill.

Claimants are only able to be scapegoated because the public don’t know what the conditions for the unemployed actually are. The new campaigns can challenge this, and will lead to greater solidarity has between the unemployed and the wider movement. False images of the unemployed have to be challenged at every opportunity. Most important of all, Work for your Benefits, or whatever version of it Cameron decides to throw at us, must be treated in the same way that we treated the Poll Tax. Resistance to capitalism is slowly but surely increasing in intensity: the unemployed have a key role to play in the struggle.

Taken from the commune

October 4, 2009

A4e propose new benefits delivery system

The CJS Dynamic Benefits report outlines a scheme to abolish all benefits and replace them with two. All surpluses from abolished benefits will be channelled to service providers in a bonanza of Corporate Welfare. Unsuprisingly the report was written by former A4e and Lloyds Directors. It will be Tory Policy at the next election.
The Tories are proposing to use “Dynamic Modelling” to determine benefits. What they do not mention is Dynamic Modelling is one of the techniques that created the Profit Crunch. The entire model is based on the assumption that people will work for employers. Be very clear, this is not a model that allows people to be rewarded for being in Education, being self Employed, Being the “stay at home parent” or being Retired. This is a model for ensuring that work is the only economic model for receipt of benefits. Those who do not work enough will be dynamically modelled out of the system.

Nicholas Boys Smith, currently Wealth Director in the International Private Banking division of Lloyds Banking Group helped to write the report. As one of the people responsible for the Banking Crisis, is he really competent enough to be given direct control of eleven million peoples lives?

James Greenbury, another author, has spent the last 20 years running a number of private equity backed support services business that had a majority of the work force for whom staying on benefits was necessary. As an employer needing low paid workers, is it really responsible to suppose he will get people out of poverty?

Sara McKee, yet another author, is Group Services Director of Anchor Trust and previously Group Commercial Director at A4e. Is it really sensible to allow A4e deeper into the corporate welfare trough?

Yet another author is Debbie Scott: Chief Executive of Tomorrow’s People and a member of the Employment Advisory Group of the CBI and its Public Service Industry Forum (PSIF).

Is it really sensible policy to allow Employers to determine what happens to people they do not employ? If policy were to dictate that employers were not allowed to exercise their “right to manage” there would be uproar – yet there is no representation of the “right to work”. With these people as headline contributors – not to mention a member of the Insurance Industry a few Oxbridge Graduates and the patronage of Ian Duncan Smith – the whole report is unlikely to make anybody on benefits happy.

The basis of “Dynamic Modelling” is “Claims Handling” – a euphemism for reducing the amount an insurance scheme has to pay out. Pursuing a claims handling model requires an infrastructure is built in order to minimise payouts. In order to minimise payouts a clear goal is needed. For Insurers, this is maximising shareholder profit. For the Tories it is maximising the number of people in employment.

To make things perfectly clear: for the Tories the goal is maximising the number of people in employment. This does not mean maximising the amount of tax revenue. This does not mean maximising the income of individuals. This does not mean encouraging self employment – far from it: self employment segments the workforce. This does not mean working to live. This means living to work.

There is a large criticism of “Dynamic Modelling” that the Insurance Industry makes – and tries to hide. That criticism is that dynamic modelling works badly when markets are segmented. Cut through the jargon and you find that segmentation means anything that creates uniqueness. A need to look after a dependent creates uniqueness. A desire to be self employed creates uniqueness. Indeed, the one workhouse fits all approach of A4e is the best way to manage benefits in a dynamic modelling policy. It removes the uniqueness and so the system “works well”.

The problem with the report (“Dynamic Benefits: Towards Welfare That Works” A Policy Report by the CSJ Economic Dependency Working Group [16/09/2009]) is that it is a dynamic modelling solution of a segmented market. It is based on some fairly unreformed Thatcherite assumptions about how to treat those who are not indentured to employers. The hook the report has for the Right is “withdrawal rates”. This means how much a claimant loses by earning more. It is also the tool that the Torys intend to use in order to force people to take increasing amounts of work.

The proposals create a new kind of nanny state: the kind of nanny that fails the CRB and murders their charges. The proposed mechanisms would ensure that anybody taking work from being a benefits recipient would be obliged to take extra overtime because the mechanisms are in place to maximise working. People who stand still – people who want part time work or short hours for childcare – will be pushed through a system that “encourages” longer working hours.

This hook works at the lowest paid jobs. The research says that those most penalised by the benefits are those entering low paid work. So, people are reluctant to enter those jobs. So the dynamic model ensures that a person entering a low paid job is better off than a person currently on benefits. However, long term, the person in a low paid job can only sustain that differntial by additional work. A long hours, cheap labour culture ensues.

Anybody with any experience of A4e will recognise the system.

The proposals would also make housing benefits part of an integrated system. Housing benefits are the benefit most frequently obtained by fraud. This fraud is usually the landlord rather than the claimant. Making this part of an integrated benefit in a dynamic model ensures that the landlord has easier access. Taking mortgages into the same benefit system – while ostensibly a “fair” policy – then allows the banks greater access to corporate subsidy.

The truth is the proposals are about creating a sustained corporate welfare system.

The reforms are supposed to do the following:

(1) continue to relieve poverty;
(2) reduce worklessness and benefit dependency;
(3) support positive behaviours by reducing the couple, mortgage and savings penalties; and
(4) increase the affordability of the system.

This will be achieved by reducing the available benefits from 51 to 2. All other benefits will be channelled to service providers. The proposals are not about reducing poverty but about channelling tax revenue away from the electorate and towards shareholders.

Taken from UK Indymedia

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