David Cameron's talk of Christian values is empty while he punishes the poorest and the majority while helping the wealthiest get wealthier

Prime Minister David Cameron’s talk of Christian values is empty coming from a man whose government is cutting benefits for the disabled and forced people into homelessness by increasing rents for people living in social housing  - including hundreds of thousands of disabled people - to 80% of market rates, while capping housing benefit (1) – (9).

While he claims ‘there is no money’ for the disabled or those he makes homelessness or  unemployed, he provides taxpayer subsidies to arms companies and won’t tax banks or hedge funds a penny more.

The government is paying BAE billions to build an aircraft carrier which will be left to rust; and billions more for another which will have just 6 aircraft by 2020. The National Audit Office found Cameron’s claim that it would be more expensive to cancel the contract was false (10) – (13).

Department for International Development Minister Andrew Mitchell told parliament that UK foreign aid to India is intended to secure trade deals with India including £6.6bn of  British fighter jets (14). There is money for the war in Afghanistan too and for new PFI contracts, which the Treasury Select Committee found cost taxpayers 70% more to repay per pound than funding by taxation or loans (15) – (16).

Cameron protects the City of London financial sector from new taxes and regulations (17). This includes stock market traders and hedge fund and bank managers who caused the financial crisis, on an average income of £100,000 per year including bonuses, who got a 12% pay increase in 6 months (18) – (19). At the same time he’s making hundreds of thousands of teachers, nurses, police and others unemployed (20).

Then, with six people unemployed for every job available, even on the government’s fiddled figures, his party labels them lazy scroungers (21) – (22).

His government cracks down hard on benefit fraud, which amounts to just £1.6 billion each year out of over £187 billion, with fraudulent claims made by just 0.6% of benefit claimants, often for very small amounts (The inaccurate £6 billion figure the government sometimes claims for benefit fraud actually includes mistakes made – many of them by Department of Work and Pensions staff, not claimants.) (23) – (24).

Meanwhile each year between £6.9 billion and £12.7 billion of benefits that people are entitled to go unpaid either because they are unclaimed or because staff wrongly or mistakenly refuse them to people entitled to them (25).

So at least 4 times as much money isn’t paid out in benefits to people entitled to them as is taken by fraud.

The UK National Fraud Authority’s reports show that the vast majority of fraud each year in the UK is tax fraud (around £15 billion a year) and private sector company and individual criminal fraud most of the rest (around £16 billion a year) (see page 7 of their annual report for 2011). So benefit fraud is peanuts by comparison (26).

At the same time Cameron allows tax havens in the Channel Islands and Belize to remain and lets the Inland revenue do sweetheart deals with big companies to get off with billions in taxes each year (27).

While it’s estimated at least 3,000 people will die of cold related illnesses this year in the UK  due to being unable to afford to heat their homes ; and with the proportion of households in fuel poverty having risen from a fifth to a quarter under the Coalition, Cameron’s government allows the big energy companies off with what a study by Manchester University found to be profiteering – raising their prices immediately by 80% of cost increases when their costs go up, but when costs fall cutting prices to consumers by only 50% of the fall in the wholesale costs of gas, coal and oil generated electricity (28) – (30).

As a result the gap between energy companies’ costs per unit of electricity or gas and their prices in the UK rose from £1.93 in 2004 to £4 in 2010. It’s since fallen due to media coverage – but is still much higher than in 2004 at £2.73 (31).

Yet no hint of capping energy profiteering coming from Cameron’s government.

In Cameron’s version of the Bible does Jesus invite the money-changers into the temple to discuss how they can work together to ring more money out of the poorest?

 (1) = guardian.co.uk 16 Dec 2011 ‘Cameron calls for return to Christian values as King James Bible turns 400’, http://www.guardian.co.uk/world/2011/dec/16/cameron-king-james-bible-anniversary

(2) = Guardian.co.uk 21 Oct 2011 ‘Disability groups fear further benefit cuts after miscalculation’, http://www.guardian.co.uk/society/2011/oct/21/disability-groups-further-benefit-cuts

(3) = BBC 08 Jul 2011 ‘Affordable rent housing plans 'to hit London families'’,http://www.bbc.co.uk/news/uk-england-london-14073437 ; ‘Families will struggle to afford multi-bedroom homes in London if government proposals for a new "affordable rent" tariff are introduced, a report by the London Assembly has said. Social housing tenants would be charged 80% of the market rent under the plans.But this is generally higher than the current level and may make payments tricky for families, the assembly's planning and housing committee said. And the proposed cap on benefits could make things even worse, it added. "In this example, new clients could therefore be facing rents that are higher by nearly 100% for a one-bedroom flat and over 300% for a four-bedroom property." This week the government said the changes to housing benefits were about "fairness" and were needed to reduce a bill "which has spiralled to £21bn a year under Labour". But Labour criticised the coalition after it emerged a senior civil servant had warned 20,000 people could be left homeless by the cap on benefits.’

(4) = Observer 21 Aug 2011 ‘Families 'will be priced out of social housing by plans for higher rents' - Proposed rent rises will be unaffordable across much of urban England, not just London, study warns’, http://www.guardian.co.uk/society/2011/aug/21/families-priced-out-social-housing

(5) = BBC News 11 Mar 2011 ‘Housing benefit cut to hit 450,000 disabled people’, http://www.bbc.co.uk/news/uk-politics-12714313 , ‘An assessment from the Department for Work and Pensions shows the change will leave 450,000 disabled people an average of £13 a week worse off.’

(6) = Scottish Government Communities Analytical Services January 2011 ‘Housing Benefit Changes : Scottish Impact Assessment’ (1^st draft version),http://www.google.co.uk/url?sa=t&rct=j&q=%22shelter%20scotland%22%20rent%2080%25%20market%20rates&source=web&cd=9&ved=0CFsQFjAI&url=http%3A%2F%2Fwww.scotland.gov.uk%2FResource%2FDoc%2F1125%2F0110252.doc&ei=a0KzTuzaN8OO8gO6p4jxBA&usg=AFQjCNGZf0X0ZRayjdogzPZqTzkV8I7JXA&cad=rja

(7) = Shelter (England) 12 Oct 2011 ‘Rent rises hit home’, http://england.shelter.org.uk/news/october_2011/rental_market_in_crisis

(8) = Shelter Scotland 21 Sep 2011 ‘50% Cut In Affordable Housing Budget As SNP Government’s Manifesto Pledge Turns to Rubble’, http://scotland.shelter.org.uk/media/press_releases/press_release_folder/2011/50_cut_in_affordable_housing_budget_as_snp_governments_manifesto_pledge_turns_to_rubble

(9) = BBC News 27 Oct 2010 ‘No change to housing benefit plan - Cameron’, http://www.bbc.co.uk/news/uk-11633163

(10) = Guardian 07 Jul 2011 ‘National Audit Office challenges £6bn project to build aircraft carriers’,http://www.guardian.co.uk/uk/2011/jul/07/nao-report-aircraft-carriers-navy

(11) = guardian.co.uk  11 Jul 2011 ‘David Cameron 'prevented independent watchdog seeing aircraft carrier papers'’,http://www.guardian.co.uk/uk/2011/jul/11/david-cameron-aircraft-carriers

(12) = Channel 4 News 07 Jul 2011 ‘Guardian 07 Jul 2011 ‘Full fact check : the real cost of cancelling aircraft carriers’http://blogs.channel4.com/factcheck/factcheck-the-real-cost-of-cancelling-aircraft-carriers/7210; ‘In 2007, the Labour government decided to build two 65,000-ton Queen Elizabeth-class aircraft carriers at an estimated cost of £3.65bn….But since then, costs have spiralled dramatically, with the projected outlay now thought to be £6.24bn for just one fully operational carrier, the Queen Elizabeth…..The second ship – the Prince of Wales – will be built, but left in a state of “extended readiness”, meaning that fighter planes won’t be able to launch from or land on its deck…..It gets worse: the NAOnow thinks the eventual bill for the programme “will significantly exceed £10 billion”.’

(13) = Guardian 29 Nov 2011 ‘MPs warn Royal Navy's carriers will be costly, late, and of limited use’, http://www.guardian.co.uk/uk/2011/nov/29/royal-navy-carriers-impaired-use-public-accounts-committee ; government admits one carrier to be mothballed on construction in 2016, one to have no planes on it till 2020, when it will have only 6, raised to 12 in 2023

(14) = Independent 17 Dec 2011 ‘Aid to India part of broad plan to build trade and investment, says minister ’, http://www.independent.co.uk/news/uk/politics/aid-to-india-part-of-broad-plan-to-build-trade-and-investment-says-minister-6278373.html , ‘The Government's controversial decision to continue giving money to India, a nation that has more billionaires than the UK and an aid programme of its own, is directly linked to developing trade and investment opportunities, a senior minister admitted yesterday.

In terms of perhaps surprising bluntness, international development minister Andrew Mitchell said the decision to spend £1.2bn over the next five years was part of a broader partnership that also included the hoped-for sale of fighter jets to India…. One potential deal officials are anxiously following is the sale of 126 fighter jets to Delhi. The EuroFighter Typhoon, made by a European consortium including Britain's BAE Systems, is one of two jets that have made the final shortlist in a deal worth an estimated £6.6bn.’

(15) = guardian.co.uk 19 Jul 2011 ‘300 schools to be built with £2bn PFI scheme’, http://www.guardian.co.uk/education/2011/jul/19/300-schools-built-private-finance-scheme

(16) = BBC News ‘PFI projects 'poor value for money', say MPs’, http://www.bbc.co.uk/news/uk-politics-14574059 ; ‘The Private Finance Initiative (PFI) used by successive governments to pay for new schools and hospitals is poor value for money, MPs have said. The Treasury select committee said PFI was no more efficient than other forms of borrowing and it was "illusory" that it shielded the taxpayer from risk. Government had become "addicted" to PFI, the committee's Tory chair said…. In a critical report, the cross-party Treasury select committee said the long-term expense of PFI deals - where the private sector shoulders the upfront cost and is typically repaid by the taxpayer over a 30-year period - were now much higher than more conventional forms of borrowing. Due to the financing costs involved, it said paying off a £1bn debt incurred through PFI cost the taxpayer equivalent to a direct government debt of £1.7bn.’

(17) = Guardian 07 Dec 2011 ‘David Cameron threatens veto if EU treaty fails to protect City of London’, http://www.guardian.co.uk/world/2011/dec/07/cameron-threatens-veto-eu-treaty

(18) = Astbury Marsden Compensation Survey 2011 – Banking Infrastructure London,http://docs.google.com/viewer?a=v&q=cache:tN8-iJkGpa8J:www.astburymarsden.com/documents/Astbury%2520Marsden%2520Compensation%2520Survey%25202011_Banking%2520Infrastructure%2520London%2520small.pdf+Astbury+Marsden+report+city+pay&hl=en&gl=uk&pid=bl&srcid=ADGEESjCp35WxasQC0uKU6hyPufcF3PKQgqywr0k1qNAEGK_4wMSeFBhohPhKrGo7oTiY4RLukF4E51KGYTxH6kmRfhX-1zs80hIKdv6Ckao6ZzZxFrjD6HI5anmt52lZR3QiNTc0ttx&sig=AHIEtbS9vlPCGJzgvi4HFde7s45wAlnw_w ; shows average salary for city of London financial sector is £83,000 with 12% increase in 6 months in 2011

(19) = Guardian 28 Nov 2011 ‘Banks under fresh pressure to curb bonus and dividend payouts’, http://www.guardian.co.uk/business/2011/nov/28/banks-curb-bonuses-dividends ; ‘According to a survey by headhunters Astbury Marsden published on Monday, City professionals expect an average bonus of 24% of their basic pay for 2011, indicating a payout of £19,920 on an average salary of £83,000.’ (which brings their average annual income including bonuses to about £103,000)

(20) = guardian.co.uk 29 Nov 2011 ‘Cuts: an extra 300,000 public sector jobs now face the axe’, http://www.guardian.co.uk/society/patrick-butler-cuts-blog/2011/nov/29/300k-extra-public-sector-jobs-face-axe , ‘The Office for Budgetary Responsibility now reckons 710,000 public service jobs - not 410,000 - will go over the next five years.’

(21) = Office for National Statistics ‘Labour Market Statistics, November 2011’, http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/november-2011/index.html ; shows 2.62 million people unemployed in 3^rd quarter of 2011

(22) = Labour market statistics: 16 Nov 2011 – Vacancies - http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/november-2011/statistical-bulletin.html#tab-Vacancies ; shows 462,000 job vacancies in 3^rd quarter of 2011

(23) = Guardian  01 Feb 2011 ‘Benefit fraud: spies in the welfare war’,http://www.guardian.co.uk/society/2011/feb/01/benefits-fraud-investigators ; ‘The Salvation Army and a number of other charities have written to the prime minister pointing out that the £5bn figure highlighted by the chancellor was "a threefold exaggeration of the true government estimate of benefit fraud". The frequently cited figure is achieved by adding the estimated amount of fraudulent claims (approximately £1.6bn) to the estimated total of claims made as a result of an error either by the claimant or the official handling their claim….There is an artful misrepresentation here; the suggestion is that the benefits bills is out of control because vast quantities of fraud is being committed by benefits claimants – so cutting the bill is just a question of tackling fraud. It is true that the benefits bill has grown rapidly, from £125bn in 1996/7 to £187bn in 2009/10, but this is not the result of increased fraud. The cost is higher because more people are (legitimately) claiming benefits and because an ageing population is making the cost of pensions soar. Less than 1% of people on benefits commit fraud, and those who do, campaigners argue, are often the poorest of the poor, and the sums involved very small.

(24) = Full Fact 01 Nov 2010 ‘Calls grow for George Osborne to correct the record’,http://fullfact.org/blog/calls_grow_for_george_osborne_to_correct_the_record-2364

(25) = Hansard House of Commons Written Answers 16 March 2011column 401w  ‘Social Security Benefits’ http://www.publications.parliament.uk/pa/cm201011/cmhansrd/cm110316/text/110316w0004.htm#1103171000102 ; ‘Dr Whiteford: To ask the Secretary of State for Work and Pensions what estimate he has made of monetary value of unclaimed benefits in the latest period for which figures are available; and how much was unclaimed for each benefit and allowance type. [45049].Chris Grayling: For the six income-related benefits for which estimates are available there was between £6,930 million and £12,700 million left unclaimed in 2008-09’

(26) = National Fraud Authority Jan 2011 ‘Annual fraud indicator’,http://www.homeoffice.gov.uk/publications/agencies-public-bodies/nfa/annual-fraud-indicator/annual-fraud-indicator-2011?view=Binary

(27) = Guardian 20 Dec 2011 ‘HMRC hid 'sweetheart' tax deals for big business, MPs say’, http://www.guardian.co.uk/politics/2011/dec/20/inland-revenue-sweetheart-tax-deals

(28) = guardian.co.uk 19 Oct 2011 ‘Fuel poverty 'will claim 2,700 victims this winter'’, http://www.guardian.co.uk/money/2011/oct/19/fuel-poverty-2700-victims-winter ; figure is if only 10% of 27,000 cold related excess deaths in winter are due to fuel poverty ; figure is for England and Wales only so including Scotland , with Scotland having a population of 5.2 million and England and Wales 63 million, there will be 222 cold related deaths in Scotland this winter, which, added to the 2,700 in England and Wales comes to 2922 – roughly 3,000)

(29) = guardian.co.uk 01 Dec 2011 ‘Fuel poverty affects a quarter of UK's households as bills soar and pay freezes’, http://www.guardian.co.uk/society/2011/dec/01/fuel-poverty-affects-quarter-households

(30) = guardian.co.uk 02 Dec 2011 ‘Big six energy firms face fresh accusations of profiteering’, http://www.guardian.co.uk/business/2011/dec/02/energy-firms-accusations-profiteering-electricity

(31) = See (30) above

If you’re blaming public sector employees, the unemployed or immigrants, you’re being divided and conquered by the real culprits

While the majority of people in employment in the UK have had pay rises below inflation,  effective cuts of an average of 4.5% ; the average city (i.e London financial sector) employee has seen their pay increase by 12% in the last six months, while managing directors have had a 21% increase (1) – (2). That’s equivalent to 19% and 37% rises in a year, after inflation. So the real division on pay and conditions is not public vs private sector, but ‘the city’ and top bank executives versus everyone else.

The endless rhetoric about supposedly ‘privileged’ public sector workers and unemployed ‘scroungers’ (while there are at least 6 people unemployed for every job vacancy) is just crude divide and conquer tactics.

The average London financial sector employee will get paid £83,000 plus a £20,000 bonus – or £103,000, compared to a median wage of £26,000 for the UK as a whole (3) – (4).

Around 710,000 public sector workers have either lost their job or are about to lose it, along with many people in the private sector  who’ve lost their jobs due to the knock on effects of a fall in consumer demand caused by the reduced income of the now unemployed public sector workers, or because banks have refused their business routine bridging loans.

It’s not so good either, if you are on a low income and live in socially rented housing, with the government having capped housing benefit and allowed rents in the social sector to rise to 80% of private sector rates, which are also rising as less people can afford to buy their own house, resulting in more renting (5) – (7). In fact many people who relied on social housing are being made homeless – and in the case of the others taxpayers are being forced to pay more to support them by the lifting of the cap on how much landlords in the ‘social’ sector can charge.

So the Coalition’s policies are good for a small minority – mostly in the markets or the city, advertising, public relations and media ownership, at the expense of the vast majority. It talks about the need to ‘protect’ the city and ‘maintain market confidence’, rewarding the people who caused the crisis, while punishing people who do jobs that benefit other people (8).

That’s why it’s been vital for the political success of the Conservative party (and their allies in the ‘city’ or ‘markets’ and banks) that the majority who are suffering should be divided from one another to eliminate the risk of the majority uniting against the small minority in whose interests the Conservatives are acting.

The unemployed as ‘scroungers’ – even though there aren’t nearly enough jobs for all of them

Decades of propaganda from tabloids owned by billionaires and from a Conservative party (and sometimes a New Labour party) largely funded by billionaires and multi-millionaires has been devoted to creating scapegoats – targets to divert blame away from the people who have the actual power and wealth.

One target has been the unemployed – supposedly all parasites who don’t want to work, despite the fact that the figures show there have never been enough jobs for all the unemployed during economic booms never mind during the worst recession since the 1930s.

The Office for National Statistics figures for July to October 2011 show that there were 462,000 job vacancies,  compared to 2.62 million people unemployed – around 6 people unemployed for every job  (and due to many methods of fiddling the figures developed by governments over the years, that is almost certainly an underestimate of the number of people unemployed) (9) – (10).

It’s undoubtedly true that a minority don’t want to work. If there are no jobs available for them even if they did want to, that’s pretty academic though.

The Daily Mail was outraged that Chancellor George Osborne increased benefits in line with inflation – by 5.2%, talking about this as a ‘big rise’ – it’s not. It only stops them being reduced by inflation – in practice they stay at the same level – about £60 a week – rather than being cut.

The propaganda seems to work as intended though, dividing the employed from the unemployed and even getting some of each to vote entirely against their own interests in and in the interests of billionaires and big multinational companies, on the assumption that any ‘benefit reforms’ will target only the undeserving, lazy unemployed and not them.

Which is more of a parasite? Someone on unemployment benefit getting £60 a week? Or a large company, a primary PFI contractor, which gets taxpayers to pay it dozens of times the amount they would pay in interest on a loan to fund construction of a new hospital or school? There’s no doubt the latter get a lot more public money for nothing.

Immigrants and the EU

Then there are immigrants – who don’t get any benefits unless granted refugee status – and then get benefits well below those given to British citizens. They, like the EU, are foreign – and so an easy target to deflect blame on to. The city traders who helped cause the crisis are British; and so supposedly on our side, even after causing the entire problem and being grossly over-paid for jobs many of which harm the majority of people.

Public sector Vs Private Sector

Finally there are the supposedly ‘cushy’ jobs held by public sector workers with ‘gold plated’ pensions. Osborne talks about public sector workers being ‘paid for’ by workers in the private sector, as if public sector workers aren’t doing vital jobs looking after NHS patients, saving people from fires, arresting criminals, teaching children; and as if public sector workers don’t pay tax at the same rate as private sector employees.

While Cameron and Osborne sack hundreds of thousands of these people to keep ‘the markets; who caused the crisis happy, Cameron has pledged to protect ‘the city’ against any EU actions that might reduce their profits.

There are some private sector workers who do vital jobs – there are a lot who fit the description ‘parasite’ very well though – the hedge fund managers trading in food futures traders in  ‘the city’ who effectively spend their time betting that the price of food will rise, then buying up food to ensure it does, causing starvation for many of the poorest people in the world and hunger even for some of the poorest here.

What I don’t understand is how so many people are so easily conned over and over again? How long will they continue to fall for such obvious divide and conquer tactics and be diverted into pointless arguments between the middle class and the working class, between the employed and the unemployed, between public sector workers and private sector workers?

(New Labour government ministers who were on a pay of over £100,000 a year and many of them – including Tony Blair – formerly lawyers – also played the ‘middle class’ vs ‘working class’ divide and conquer card, pretending that lawyers turned MPs and government ministers were working class heroes.)

The vast majority of people working in the public and private sectors, even up to the managers of small and medium sized businesses, are doing work that does benefit society as a whole and are paid a fraction of what the bank and hedge fund managers get.

Yet while bank managers and the heads of the biggest firms are paying themselves between millions and tens of millions a year, plus the same again in bonuses, often at taxpayers’ expense in bailed out banks, the Conservatives’ tactics of divide and rule ensure many peoples’ anger is directed not at the real parasites, but at other people who are also their victims.

 (1) = Astbury Marsden Compensation Survey 2011 – Banking Infrastructure London,http://docs.google.com/viewer?a=v&q=cache:tN8-iJkGpa8J:www.astburymarsden.com/documents/Astbury%2520Marsden%2520Compensation%2520Survey%25202011_Banking%2520Infrastructure%2520London%2520small.pdf+Astbury+Marsden+report+city+pay&hl=en&gl=uk&pid=bl&srcid=ADGEESjCp35WxasQC0uKU6hyPufcF3PKQgqywr0k1qNAEGK_4wMSeFBhohPhKrGo7oTiY4RLukF4E51KGYTxH6kmRfhX-1zs80hIKdv6Ckao6ZzZxFrjD6HI5anmt52lZR3QiNTc0ttx&sig=AHIEtbS9vlPCGJzgvi4HFde7s45wAlnw_w

(2) = guardian.co.uk 23 Nov 2011 ‘UK incomes fall 3.5% in real terms, ONS reveals’, http://www.guardian.co.uk/money/2011/nov/23/uk-household-earnings-fall?commentpage=last#end-of-comments(including people in part-time jobs, fall is 4.5% including inflation – a 0.5% rise minus 4.5% inflation)

(3) = Guardian 28 Nov 2011 ‘Banks under fresh pressure to curb bonus and dividend payouts’,http://www.guardian.co.uk/business/2011/nov/28/banks-curb-bonuses-dividends

(4) = Office for National Statistics ‘2011 Annual Survey of Hours and Earning -Median full-time gross annual earnings’, http://www.ons.gov.uk/ons/rel/ashe/annual-survey-of-hours-and-earnings/ashe-results-2011/ashe-statistical-bulletin-2011.html#tab-Annual-earnings

(5) = BBC News 27 Oct 2010 ‘No change to housing benefit plan – Cameron’, http://www.bbc.co.uk/news/uk-11633163

(6) = guardian.co.uk 22 Nov 2011 ‘Housing strategy prices people out of homes’,http://www.guardian.co.uk/society/2011/nov/22/housing-strategy-prices-people-homes

(7) = guardian.co.uk 16 Sep 2011 ‘UK rents rise by record amount in August’,http://www.guardian.co.uk/money/2011/sep/16/rents-rise-record-amount-august

(8) = Guardian 07 Dec 2011 ‘David Cameron threatens veto if EU treaty fails to protect City of London’, http://www.guardian.co.uk/world/2011/dec/07/cameron-threatens-veto-eu-treaty

(9) =  Office for National Statistics ‘Labour Market Statistics, November 2011’, http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/november-2011/index.html

(10) = Labour market statistics: 16 Nov 2011 – Vacancies - http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/november-2011/statistical-bulletin.html#tab-Vacancies