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Confronting Women’s Poverty:

       turning things around




                A one-day event
  International Women’s Day 2013 (8th March)
                Bristol City Hall
Women’s poverty and the wider
          picture:
         an evidence-based journey
           Pamela Trevithick
              Feminist activist
Cutting Women Out


                      This presentation
                     builds on the report
                      produced by the
                    Bristol Fawcett Anti-
                    Cuts Group – Cutting
                    Women Out in Bristol
                            (2010 )

                      I do not propose to
                    cover issues highlighted
                      in Vicky Boroughs’s
                       presentation on the
                     impact of the cuts on
                     women’s employment
                       and low pay status
What I plan to cover

   1 An overview of the impact of the
     cuts on women

   2 The poverty picture in the UK –
     indicators of hardship

   3 The price of inequality

   4 Why cuts are not the cure . . . .
1. The impact of the cuts on women


  Government policy has a direct bearing on the extend to
  which millions of people are forced to live in poverty.
  The impact of these policies disproportionately affect
  women in six key areas:
                                  This has been summarised to
  1.   as workers                 by the Fawcett Society as the
  2.   as mothers                 ‘triple jeopardy’ that women
                                  face in terms of –
  3.   as carers                  (1) slashed benefits
  4.   as benefit claimants       (2) job loses
  5.   as users of key services   (3) loss of core public services
                                  Fawcett Society - http://www.fawcettsociety.org.uk/the-

  6.   as citizens                triple-jeopardy-2/
1. The impact of the cuts on women
Overview: Women’s Budget Group

   An analysis by the Women’s Budget Group (2010)
   shows that:
   - the groups that will suffer the greatest reduction in
     their standard of living due to cuts in public services
     are lone parents and single pensioners, the majority
     of whom are women;

   - lone parents will lose services worth 18.5% and
     female single pensioners services worth 12% of
     their respective incomes;
   Women’s Budget Group - http://www.wbg.org.uk/
1. The impact of the cuts on women
Overview: Women’s Budget Group


  - overall single women will lose services worth 60% more
    than single men will lose as proportions of their
    respective incomes, and nearly three times those lost
    by couples
   - the cuts will lead to hundreds of thousands of women
     losing their job. 65% of all public sectors workers are
     women whose pay and conditions of employment are
     likely to deteriorate without our support
  Women’s Budget Group (2010) - http://wbg.org.uk/RRB_Reports_4_1653541019.pdf
1. The impact of the cuts on women

Overview: Women’s Budget Group

   - cuts in welfare spending fall disproportionately on the
     finances of women. Child Benefit is paid almost 100%
     to women; while 53% of Housing Benefit claimants
     are single women. Both benefits have been cut
     significantly in real terms and eligibility has been
     tightened
    Women’s Budget Group (2010) - http://wbg.org.uk/RRB_Reports_4_1653541019.pdf



   Cuts in public services will almost inevitably increase
   women’s caring responsibilities and add further
   barriers to the employment opportunities for women
1. The impact of the cuts on women

Overview: Women’s Budget Group



   Employment: and the public sector
   Just under 40% of women’s jobs nationally are in the
   public sector - in the NHS, schools and caring services
   - compared to around 15% for men’s jobs
   Women’s Budget Group (2010) - http://wbg.org.uk/RRB_Reports_4_1653541019.pdf


   Within this picture UK childcare costs are rising at
   more than twice the rate of inflation
   Haroon Sidddique (2013) - http://www.guardian.co.uk/money/2013/mar/06/childcare-costs-twice-rate-inflation
1. The impact of the cuts on women
Income inequality hits women the hardest
     Throughout the last decade, a much larger proportion
     of women than men have been low paid
      In 2010, around 3½ million employees aged 22 to
      retirement were paid less than £7 per hour. 2⁄3 were
      women and 1⁄3 were men
      Among the low-paid part-timers, women predominate.

      In total, in 2010 almost 2⁄5 of all part-time workers
      were paid less than £7 per hour
      The Poverty Site - http://www.poverty.org.uk/51/index.shtml
1. The impact of the cuts on women

Childcare costs
   According to a Daycare Trust Childcare Costs Survey
   a part-time nursery place (25 hours) for a child under
   two years rose to an estimated £106.38 a week and a
   full-time place to £11,000 a year

   A Daycare survey snapshot showed that a place at
   Britain’s costliest nursery (£42,000) ran at 25% more
   than a place at a top public school such as
   Charterhouse (£30,574 a year)
   Daycare Trust - http://www.daycaretrust.org.uk/pages/childcare-costs-surveys.html
2. Poverty in the UK

Poverty statistics

   2010–11 – the estimated UK population living below the
   poverty line was 13.0 million (21.3%) when housing
   costs are taken into consideration
   Institute of Fiscal Studies (2012) http://www.ifs.org.uk/comms/comm124.pdf




   Relative poverty
    – indicates the proportion of individuals with household
   incomes below 60% of the average (median) household
   income in a particular year after income tax, council tax
   and housing costs have been deducted
   Institute of Fiscal Studies (2012) - http://www.ifs.org.uk/comms/comm124.pdf
2. Poverty in the UK

Child poverty
   The ‘End Child Poverty’ coalition, which is made up of
   more than 150 organisations and groups, calculate than
   4 million children – one in three – are currently living
   in poverty in the UK. This is one of the highest rates in
   the industrialised world
   End Child Poverty - http://www.endchildpoverty.org.uk




   Ian Duncan Smith and the schools minister, David Laws,
   want to introduce a new range of indicators that include
   family stability, worklessness and educational
   achievement
   Patrick Wintour (2012) - http://www.guardian.co.uk/society/2012/nov/14/iain-duncan-smith-child-poverty
2. Poverty in the UK

Child Poverty in Bristol
     The ‘Ending Child
     Poverty’ Map of the
     estimated number of
     children in poverty in
     Bristol in 2012 =
     21,366 children

     The estimated
     percentage of Bristol
     children in poverty in
                              End Child Poverty - http://www.endchildpoverty.org.uk/why-end-chil
     2012 = 25% of children
            25
2. Poverty in the UK



   Other examples of the hardships
   experienced by people on low incomes
   or people living below the poverty line
   covered in this presentation include:
    fuel poverty
    food poverty
    homelessness
    debt
2. Poverty in the UK
Fuel poverty


     What is fuel poverty?
     A household is said to be experiencing fuel poverty if
     it needs to spend more than 10% of its income on fuel
     to maintain an adequate level of warmth. In England,
     fuel poverty is modelled using the data from the
     English Housing Survey (EHS)

     It is estimated that around 6 million UK
     households are currently living in fuel poverty
     End Fuel Poverty - http://endfuelpoverty.org.uk/
2. Poverty in the UK
Utility prices

         Soaring gas profits. An announcement in March 2013
Gas      showed an 11% increase in profits for British Gas and its
         parent group, Centrica a staggering £1.3 billion promised to
         shareholders
         Terry Macalister (2013) - http://www.guardian.co.uk/business/2013/feb/27/centrica-british-gas-increase-profit



         Why? Poor regulation - Despite some new requirements
         on companies to publish the accounts of their retail
         businesses, the prices they pay for the gas they supply to
         customers remains unknown, even to Ofgem (which
         regulates the electricity and gas markets in Great Britain),
         which does not have jurisdiction beyond UK borders
         Tim Webb (2010) - http://www.guardian.co.uk/business/2010/nov/26/ofgem-intervenes-electricity-gas-profits
2. Poverty in the UK
 Utility prices
                                   Thames Water and Anglian Water
        Water
                                   paid no corporation tax on the
                                   profits. Indeed, in 2012 Thames
                                   Water enjoyed a £76m tax rebate.
                                   As a reward, Martin Baggs, chief
                                   executive, received a bonus of
                                   £420,000 on top of his £425,000
                                   salary
                                   He is said to be in line for a further
                                   windfall of £1m based on company
Daily Mirror › February 06, 2013
                                   performance through to 2015
                                   Daniel Boffey, Ian Griffiths and Toby Helm (2012) -
                                   http://www.guardian.co.uk/business/2012/nov/10/water-companies-tax
2. Poverty in the UK
Food poverty
    What is food poverty?
    The Department of Health has defined food poverty as
    “the inability to afford, or to have access to, food to make up a healthy diet.” 

    Massive growth in foodbanks
    2009: The Trussell Trust approved 28 food banks
    2013: there are 325 foodbanks currently in operation + three
    more added weekly
    2011-12: foodbanks fed 128,687 people nationwide
    The Trussell Trust - http://www.trusselltrust.org/foodbank-project

    USA - an estimated 37 million people receive charity food
    Canada - an estimated 900,00 people use food banks each month


    Some eligible children denied access to free school meals
    Patrick Butler (2013) - http://www.guardian.co.uk/society/2013/mar/07/children-ineligible-free-school-meals-poverty
2. Poverty in the UK
Food poverty

      Bristol foodbanks - and other places - offering
      hot food:
      The Salvation Army - Bristol Citadel & Candle Community Centre
      Bristol Methodist Centre
      Bristol Soup Run Trust
      Churches Together Watershed
      Churches Together Broadmead Bus Station by subway
      Churches Together, Queens Road
      Julian Trust
      Matthew Tree Project Carpenters Foodstore, The Withywood Centre
      Matthew Tree Project Foodstore and central food hub
      Great George Street Mission
      Matthew Tree Project Foodstore, The Mede
      NW Foodbank
2. Poverty in the UK
Housing/homelessness


    Homelessness on the increase
    2012 - Dept for Communities and Local Government
    data shows a 14% rise in people classed as homeless –
    with 69,460 children/expected children are in homeless
    households. Charities warn the figure is much higher
    Simon Rogers (2012) - http://www.guardian.co.uk/society/2012/mar/08/homelessness-jumps-repossession-unemployment




    Centrepoint’s research estimates that roughly 60,000
    young people are using hostels or sleeping rough - over
    three times higher than official figures
2. Poverty in the UK
Housing/homelessness

                                 Homelessness on the increase
                                 According to the National Housing
                                 Federation, homeless families in Bed and
                                 Breakfast (B&B) accommodation has
                                 increase by 44%

                                 20 councils warned by the government
                                 about housing families in B&Bs for
 Daily Mirror 18 February 2013   “unacceptably long time”
                                 Randeep Ramesh (2012) -
                                 http://www.guardian.co.uk/society/2012/sep/17/homeless-families-bed-and-breakfast
2. Poverty in the UK
Housing/homelessness

  Housing picture in Bristol

       6,500 private tenants face cuts of £15 to £25 per week
       in their Housing Benefit, forcing many into destitution
       or homelessness.
       Over 14,300 households are waiting on the Housing
       Register
       An average of nine people chase every private tenancy
       Bristol Poverty (Housing) Action - http://bristolpovertyaction.wordpress.com/
2. Poverty in the UK
Debt

       UK Debt Statistics from Credit Action
        January – September 2013 - 8,308 new debt problems
       were dealt with by the Citizens Advice Bureau (CAB)
       each working day
       September - November 213 - 1,727 people were made
       redundant every day
       Every 16 min 4 sec - a property is repossessed
       Credit Action - http://www.creditaction.org.uk/helpful-resources/debt-statistics.html
2. Poverty in the UK
Debt statistics for Bristol
    Clients seen by the Bristol Debt and Advice Centre
                 January – December 2012
 Of the total clients seen, 55% were women
 A breakdown of 1,140 female clients revealed the following:   Note the number of
 Female clients with a long term      285                      women with long
 illness                                                       term illnesses (25%)
 Female clients with a priority debt 567                       and the total number
 Employment status of female          Unknown: 21              in full and part-time
 clients                              Carer: 4
                                      Training/Education: 12
                                                               employment - yet
                                      Other: 23                still in debt (31%)
                                      Unemployed: 533
                                      Retired: 46              Unemployment is
                                      Self-employed: 29        key feature for
                                      Unfit for work: 113
                                                               women seeking debt
                                      Working full time: 137
                                      Working part time: 222   advice and support
                                                               (46%)
 (from Bristol Debt and Advice Centre)
2. Poverty in the UK
Benefit changes
   There are too many changes to describe in detail but the
   following summary indicates the changes proposed/enacted:

   Migration of existing claimants to Employment Support Allowance - continues until
   April 2014
   Increases to all working age benefits will increase by 1% annually until 2016. 10 million
   households effected
   Child benefit frozen for 3 years
   Maternity Grant restricted to first child only
   Taper on tax credits moved from 39% to 41%
   Childcare element of Working Tax Credit (WTC) reduced from 80% to 70% of costs (up
   to pre-set maximum)
   Local Housing Allowance capped
   Large increases of non dependent deductions for Housing Benefit recipients
   Local Housing Allowance – rates set at 30th percentile not 50th
   Educational Maintenance Allowance abolished
   Single-room rent restriction extended from people under 25 to people under 35
   (From Jane Emanuel, Bristol Advice Network)
2. Poverty in the UK
Benefit changes

  What’s been proposed from January 2013 onwards:
  ‘Affluence test’ for Child Benefit
  Council Tax Benefit handed to local authorities
  ‘Bedroom Tax’ for social housing sector (under-occupiers will have reduced housing
  benefit or have to transfer to smaller property)
  Working-age Disability Living Allowance recipients must apply for Personal
  Independence Payments
  Crisis loans and Community Care Grants abolished, budget reduced then passed to local
  authorities to devise their own scheme
  Household Benefit Cap for all except Disabled Living Allowance (DLA) recipients and
  war widows/widowers
  Universal Credit – replaces Income Support, Income-based Job Seekers Allowance (JSA),
  Employment and Support Allowance (ESA), Housing Benefit, Child Tax Credit and
  Working Tax Credit
  Pathfinders in the North to start this process which may begin in Southwest 2014?
   (From Jane Emanuel, Bristol Advice Network)
2. Poverty in the UK
Benefit changes: two insidious changes
         1. Universal credit scheme
                   involves:
    1 applying for benefits online
    2 weekly payments being replaced with monthly payments
    3 a single payment being issued per household
    The Women's Resource and Development Agency said: “It is
    estimated that in 80% of cases Universal Credit will be paid to the
    male partner in the household”.
    Rosa Prince The Telegraph - http://www.telegraph.co.uk/news/politics/9531622/Iain-Duncan-Smith-told-millions-will-struggle-to-
    claim-universal-credit.html


    This change is likely to impact negatively on women’s bargaining
    position and status within the family, particularly for women with no
    other independent income
2. Poverty in the UK
Benefit changes: two insidious changes
      1. Universal credit scheme

    70 organisations submitted over 500 pages of evidence outlining concerns
   about the government's plans

   Benefits have to be applied for online
   Yet “The new universal credit system risks causing difficulties to the 8.5 million
   people who have never used the internet and a further 14.5 million who have
   virtually no ICT [internet + communications technology] skills” (CAB)

   Department for Work and Pensions (DWP) stated: “anyone without IT skills or
   access to a computer will be fully supported and we have processes in place to
   help them” but who will provide/fund this support?
   Rosa Prince (2012)
   http://www.telegraph.co.uk/news/politics/9531622/Iain-Duncan-Smith-told-millions-will-struggle-to-claim-universal-credit.html
2. Poverty in the UK
Benefit changes: two insidious changes
      2. The ‘bedroom tax’

    New rules state that housing benefit and universal
    credit claimants deemed to have one unused
    bedroom in their council or housing association
    home will lose 14% of their housing benefit and
    those with two or more will lose 25%

    The ‘bedroom tax’ is likely to hit single parents and
    disabled people hardest
    Toby Helm and Tracy McVeigh (2013)
    http://www.guardian.co.uk/society/2013/mar/30/bedroom-tax-disaster-housing-chief
2. Poverty in the UK
 Other dangers – changes to the NHS

                                           But not without a fight . . .




                                                15,000 protesters march to save Lewisham A & E and to stop
© Jenny Fleming                                 the downgrading of maternity services


Oliver Letwin, Etonian, Tory Cabinet Minister
and Chief of Policy boasted in 2004:
“the NHS will cease to exist within 5 years
of a Conservative victory”.
2. Poverty in the UK
 Other dangers – changes to the NHS
                                        The Health & Social Care Act 2012
                                        Clauses that lead to the privatisation of health
                                        care could seriously reduce the quality and
                                        availability of health provision for people living
                                        in poverty or on low incomes
                                        On some nights the NHS out-      Back door privatisation
                                        of-hours service in Cornwall,    Britain's leading medical body, the
                                        run by the private company       Academy of Medical Royal
                                        Serco, had only 1 GP to care
                                                                         Colleges, has expressed grave
                                        for 535,000 patients
                                        (BBC News 29 September 2012      concern that the government is
                                        http://www.bbc.co.uk/news/u      planning to privatise large sections
                                        k-england-cornwall-19770029).    of the NHS by the back door – in
                                                                         breach of previous promises to
                                        A recent poll surveyed by the    limit the role of the private sector.
                                        Royal College of General
                                                                         This reneges on previous
                                        Practitioners revealed that ¾    agreements with the profession
                                        of GPs want health and           Observer Sunday 3rd March 2013
                                        social care bill withdrawn
The Independent Sunday 3rd March 2013   The Guardian 12 January 2012).
2. Poverty in the UK
Danger posed by privatisation




It is worth remembering that the privatisation of social care has in places been disastrous. This
article from the Financial Times shows how 5 Southern Cross executives sold shares before
its value crashed and were legally able to walk away with £35m. Southern Cross provided care
homes for older people and its crash led to a crisis for people who were living in these homes.
3. The price of inequality


  The poorest 10% will suffer 15 times
  more than the richest (False Economy website)
  What we are witnessing is the break-up of the welfare
  state

  The so-called ‘economic recession’ and financial
  ‘deficit’ are being used to justify cuts in the welfare
  budget and further privatisation of welfare and health
  provision
3. The price of inequality
The big picture: inequality is on the rise in most counties within the
Organisation for Economic Co-operation & Development [OECD]

                                                           Increased inequality

                                                                                               -- 2008
                                                                                               -- 1985


 The OECD includes
 34 countries
 (From: Divided We
 Stand: Why Inequality
 Keeps Rising © OECD
 2011)
 http://www.bmask.gv.at/cms/site/attachments/0/7/9/CH2267/CMS1343644102547/oecd_divided_we_stand_2011.pdf
3. The price of inequality
The share of top incomes increased, especially in English-speaking
countries. The USA and UK have sharp rises for top income earners




(From:
Divided We Stand:
Why Inequality Keeps
Rising
© OECD 2011)
http://www.bmask.gv.at/cms/site/attachments/0/7/9/CH2267/CMS1343644102547/oecd_divided_we_stand_2011.pdf
3. The price of inequality
                                                            This graph shows that greater the
                                                            income gap between the richest and
                                                            poorest 20% in a country, the greater
                                                            the likelihood of health and social
                                                            problems being intensified. This is
                                                            detrimental not just to people living in
                                                            poverty, but to the vast majority of
                                                            society. This research suggest that
                                                            many health and social problems, such
                                                            as high levels of mental illness,
                                                            numbers in prison, rates of drug and
                                                            alcohol use, weight problems, and low
                                                            levels of public trust tend to be worse
                                                            in less equal societies
                                                            http://www.equalitytrust.org.uk



This graph is from Wilkinson and Pickett’s (2010) influential text The Spirit Level: Why Equality
is Better for Everyone. London: Penguin. Wilkinson and Pickett are the founders of the Equality
Trust. Equality Bristol is a local branch of the Equality Trust http://equalitybristol.wordpress.com/
3. The price of inequality


 This ‘Infographic’ on The
 Price of Inequality by Adam
 Frost and Rosie Roche is
 on the Equality Trust
 website
 http://www.equalitytrust.org.uk/



For an enlarged version of this
chart, see
http://i.imgur.com/Cufgf.gif
Or The New Statesman
http://www.newstatesman.com/economics/economics/2012/10/chart-day-price-inequality
4. Cuts are not the cure
Cuts in Bristol




An overview of Bristol’s population: 2011 Census

  Bristol’s population = 428,100 people
  Bristol is the 7th largest city in England and is one of 8 ‘core cities’      (+
  Birmingham, Manchester, Liverpool, Nottingham, Leeds, Sheffield, Newcastle)

  16% of Bristol’s population belong to a black/ethnic minority group
4. Cuts are not the cure
Bristol advice centres and services



  Advice agencies are overwhelmed and struggling cope
  with the number of people seeking help
  Legal Aid cuts have led to redundancies in many centres
  Employment Support Allowance (ESA) appeals
  currently constitute more than 60% of specialist advice
  time. In Bristol area 85% of cases represented at
  Tribunal are successful
4. Cuts are not the cure
Bristol advice centres and services

    Advice Centres for Avon (ACFA)
    Age UK
    Bristol Avon & Bristol Law Centre (ABLC)
    Bristol City Council Welfare Rights and Money Advice
    Service
    Bristol Citizens’ Advice Bureau (CAB)
    Bristol Debt and Advice Centre (BDAC)
    North Bristol Advice Centre
    South Bristol Advice Services
    St Paul's Advice Centre
4. Cuts are not the cure

    The deficit
    ‘The deficit is simply the gap between what the
    government spends each year and what it receives in
    tax . . . UK debt has grown in the recession but is
    much lower than in the past’ (from False Economy)
                               False Economy - http://falseeconomy.org.uk


                                This graph shows that for the UK,
                                the National Debt has been much
                                higher than it is today
                                Quick fact
                                Current UK national debt: 60%
                                Average UK national debt 1988
                                -2010: 112% (from False Economy)
4. Cuts are not the cure
The deficit grew because tax income fell
If countries spend more than they get back from tax they normally have to borrow
money to make up the difference. If the government covers a deficit by borrowing
money, then that will increase the national debt. When times are good and tax
income is higher than spending, governments can pay back part of the debt and it
will come down.




                                            Our UK national debt is lower than in many
                                            other countries including France, Germany,
                                            Canada and the USA (from False Economy)
4. Cuts are not the cure
                       The UK is the 7th richest country in the world but
There is money . . .   the allocation of resources and funding favours
                       certain groups or vested interests over others e.g.

                       Renewing Trident – experts state the UK's
                       Trident nuclear deterrent will cost a minimum
                       of £20bn plus £100bn to build and operate

                       Subsidising the arms trade - the level of
                       public subsidy (from taxpayers) is estimated to
                       be £700m per year according to research by
                       the Campaign Against Arms Trade (CAAT)

                       Subsidising private schools – the current
                       subsidy to private schools is estimated to be
                       £100m of taxpayers’ money
4. Cuts are not the cure
Banks and bankers
              A report from the London School of Economics
              revealed:
              London’s top 1,400 bankers take home an average
              £2 million a year including £568,000 “basic” pay
              London finance workers received 14.2% more in
              salary and cash bonuses in 2011 than 2008
              average workers outside the City got 3.7% over the
              same period. This is equivalent to a 6% FALL
              because inflation rose by (9.7%)
              £1 in every £7 earned in Britain now goes to the
              top 1% of earners
              Brian Bell and John van Reenen (2013) http://cep.lse.ac.uk/pubs/download/occasional/op035.pdf
4. Cuts are not the cure
Banks and bankers




                                                                                                     Guardian 24 February 2013
                                     Daily Mail online
   http://www.dailymail.co.uk/news/article-2093630/Stephen-Hester-bonus-Top-RBS-bankers-follow-boss-example-says-Vince-Cable.html


Taxpayers have a 83% stake in the Royal Bank of Scotland.
In March 2013, 26 EU finance ministers imposed curbs on bankers' bonuses as a strategy to curb bankers’
incentive to gamble and repeating the excesses that led to the financial crisis. The UK opposed these curbs .
4. Cuts are not the cure
Tax avoidance and evasion
 In 2010, the government, via Her Majesty's Revenue and Customs
 [HMRC], let Vodafone off a £6bn tax bill
 The tax gap
 (1) tax avoidance (finding loopholes e.g. tax havens) is
     estimated to be about £25bn per annum
 (2) tax evasion (breaking the law) is estimated to be about £70bn per
 annum according to World Bank data
 (3)unpaid and late-paid tax – currently evaluated by
     HMRC to be at least £26bn per annum

 Together, these figures = more than £120bn, ‘enough, at least in
 principle, to close the whole current government deficit’ (Murphy 2010)
 Richard Murphy (2010) http://www.guardian.co.uk/commentisfree/2010/aug/20/tackle-tax-gap-deficit-reduction
 Tax Research - http://www.taxresearch.org.uk/Documents/FAQ1TaxGap.pdf
4. Cuts are not the cure
Tax avoidance and evasion

   Tax inspector job losses contribute to a failure to collect 1.1bn
   in taxes
   in 2004-5 staff were employed nearly 100,000
   by June 2010 the numbers fell to 68,000
   by 2015 the numbers are likely to fall to 55,000 (nearly half the 2005 number)
   Experts indicate that staff were not being properly trained and
   equipped for the job http://www.guardian.co.uk/business/2012/jun/23/tax-revenue-tribunals-staff-billions

   “Last year (2009) 5,000 frontline (tax inspector) staff went and
   more still are to go. This makes no sense: each frontline
   member of staff brings in on average 30 times in tax what it
   costs to employ them. The result is that tax that is so badly
   needed to keep services going is being given away” (Murphy 2010)
   Richard Murphy (2010) http://www.guardian.co.uk/commentisfree/2010/aug/20/tackle-tax-gap-deficit-reduction
4. Cuts are not the cure
Tax reduction for companies
    - Top rate of tax reduced from 50% to 45% on salaries of
      more than £150,000
    - No increase to Capital Gains tax, static at 28%
    - A £2,000 employment allowance allows a third of all
      employers to pay no National Insurance ‘ jobs tax'
    - Corporation Tax steadily reducing from 28% in
      2010 to 21% in 2014 - one of the lowest
      corporation tax rates in the western world
    The authorative Institute of Fiscal Studies estimate that the poorest 10% of households
    will lose an average of £127 under the 2013 budget changes, while the richest 10% will
    gain almost 10 times that figure - £1,265. Families with children will be hit even
    harder, with the poorest 10% losing £236 a year
Why is this happening?



15,000 protesters march to save
Lewisham A & E and to stop the
downgrading of maternity services


      The intention: to promote the breakup of
      the welfare state and to divert funding in
        order to support the profit motive and
                   private enterprise
Why is this happening?



15,000 protesters march to save
Lewisham A & E and to stop the
downgrading of maternity services

           The strategy: to overwhelm and
      overstretch public services with the sheer
       number of policy changes being set in
                       motion
Why is this happening?



15,000 protesters march to save
Lewisham A & E and to stop the
downgrading of maternity services



                    The strategy: divide and rule by
                    setting people against each other
                              people on benefits versus ‘hard working people’
                                 people on benefits versus ‘heroic’ soldiers
            one hospital (Lewisham) versus another hospital (S. London Healthcare NHS Trust)
                       people who “deserve to be helped” versus “those who don’t”
Divide and rule                                             The impact of stigma and other social
                                                             influences on applying for benefits –
                                                             some research finding suggest that the
                                                             public see claimants as less deserving
                                                             than they did 20 years ago




Negative reporting of benefit
claimants in newspapers. From
http://www.turn2us.org.uk/PDF/Benefits
%20stigma%20Draft%20report%20v9.pdf
                                         http://www.guardian.co.uk/news/datablog/2012/nov/20/benefits-stigma-newspapers-report-welfare
Unclaimed benefits


        Community Links, a coalition of 27
        charities co-ordinated by the Citizens
        Advice Bureau, stated that in 2009 an
        estimated £16bn in welfare benefits
        and tax credits went unclaimed
        Community Care
        http://www.community-links.org/linksuk/?p=1531

        BBC News 2010 http://news.bbc.co.uk/1/hi/business/8494105.stm
The stigma of poverty


          feelings of shame
          self blame
          guilt
          secrecy
          powerlessness
          hopelessness
          despair
          injustice
UK cabinet 2009: 23 millionaires out of 29
   Only 4 female cabinet members!!
Could Iain Duncan Smith (IDS), the current Work and Pensions
Secretary, survive on £53 a week or £7.57 a day - a 97% reduction
in his current income. As a cabinet minister, Duncan Smith earns
£134,565 a year, which is £1,581.02 a week or £225 a day after tax*
The Telegraph http://www.telegraph.co.uk/news/politics/9964767/Iain-Duncan-Smith-I-could-live-on-53-per-week.html


                                                                                          Mr Duncan Smith lives in a 16th-
                                                                                          century Grade-II listed Tudor house
                                                                                          in Swanbourne which is said to be
                                                                                          worth £2m. The property includes
  Photo -
                                                                                          a swimming pool, tennis courts and
  Independent                                                                             three acres of grounds. It belongs to
  Tuesday 2 April                                                                         Mrs Duncan Smith's father, John
  2013                                                                                    Tapling Fremantle, the fifth Baron
                                                                                          Cottesloe, who moved out of the
                                                                                          house with his wife several years
                                                                                          ago. Mr Duncan Smith is technically
                                                                                          a tenant and living rent-free with his
                                                                                          wife and children.
                                                                                          The Independent
                                                                                          http://www.independent.co.uk/news/uk/politi
                                                                                          cs/george-osborne-mounts-fierce-defence-of-
                                                                                          essential-cut-in-top-tax-8556168.html



               300,000 people signed the petition at www.change.org
As feminists we are known for our
    wonderful sense of humour . . . .




© Jill Posener 1979
We are also known for our determination to build
a better and fairer society – for women, for
children, for men - both at home and abroad . . . .
Please join us . . . .




     © Jenny Fleming
References




         Please see separate handout

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Cwp pamela trevithick powerpoint 61 slides final

  • 1. Confronting Women’s Poverty: turning things around A one-day event International Women’s Day 2013 (8th March) Bristol City Hall Women’s poverty and the wider picture: an evidence-based journey Pamela Trevithick Feminist activist
  • 2. Cutting Women Out This presentation builds on the report produced by the Bristol Fawcett Anti- Cuts Group – Cutting Women Out in Bristol (2010 ) I do not propose to cover issues highlighted in Vicky Boroughs’s presentation on the impact of the cuts on women’s employment and low pay status
  • 3. What I plan to cover 1 An overview of the impact of the cuts on women 2 The poverty picture in the UK – indicators of hardship 3 The price of inequality 4 Why cuts are not the cure . . . .
  • 4. 1. The impact of the cuts on women Government policy has a direct bearing on the extend to which millions of people are forced to live in poverty. The impact of these policies disproportionately affect women in six key areas: This has been summarised to 1. as workers by the Fawcett Society as the 2. as mothers ‘triple jeopardy’ that women face in terms of – 3. as carers (1) slashed benefits 4. as benefit claimants (2) job loses 5. as users of key services (3) loss of core public services Fawcett Society - http://www.fawcettsociety.org.uk/the- 6. as citizens triple-jeopardy-2/
  • 5. 1. The impact of the cuts on women Overview: Women’s Budget Group An analysis by the Women’s Budget Group (2010) shows that: - the groups that will suffer the greatest reduction in their standard of living due to cuts in public services are lone parents and single pensioners, the majority of whom are women; - lone parents will lose services worth 18.5% and female single pensioners services worth 12% of their respective incomes; Women’s Budget Group - http://www.wbg.org.uk/
  • 6. 1. The impact of the cuts on women Overview: Women’s Budget Group - overall single women will lose services worth 60% more than single men will lose as proportions of their respective incomes, and nearly three times those lost by couples - the cuts will lead to hundreds of thousands of women losing their job. 65% of all public sectors workers are women whose pay and conditions of employment are likely to deteriorate without our support Women’s Budget Group (2010) - http://wbg.org.uk/RRB_Reports_4_1653541019.pdf
  • 7. 1. The impact of the cuts on women Overview: Women’s Budget Group - cuts in welfare spending fall disproportionately on the finances of women. Child Benefit is paid almost 100% to women; while 53% of Housing Benefit claimants are single women. Both benefits have been cut significantly in real terms and eligibility has been tightened Women’s Budget Group (2010) - http://wbg.org.uk/RRB_Reports_4_1653541019.pdf Cuts in public services will almost inevitably increase women’s caring responsibilities and add further barriers to the employment opportunities for women
  • 8. 1. The impact of the cuts on women Overview: Women’s Budget Group Employment: and the public sector Just under 40% of women’s jobs nationally are in the public sector - in the NHS, schools and caring services - compared to around 15% for men’s jobs Women’s Budget Group (2010) - http://wbg.org.uk/RRB_Reports_4_1653541019.pdf Within this picture UK childcare costs are rising at more than twice the rate of inflation Haroon Sidddique (2013) - http://www.guardian.co.uk/money/2013/mar/06/childcare-costs-twice-rate-inflation
  • 9. 1. The impact of the cuts on women Income inequality hits women the hardest Throughout the last decade, a much larger proportion of women than men have been low paid In 2010, around 3½ million employees aged 22 to retirement were paid less than £7 per hour. 2⁄3 were women and 1⁄3 were men Among the low-paid part-timers, women predominate. In total, in 2010 almost 2⁄5 of all part-time workers were paid less than £7 per hour The Poverty Site - http://www.poverty.org.uk/51/index.shtml
  • 10. 1. The impact of the cuts on women Childcare costs According to a Daycare Trust Childcare Costs Survey a part-time nursery place (25 hours) for a child under two years rose to an estimated £106.38 a week and a full-time place to £11,000 a year A Daycare survey snapshot showed that a place at Britain’s costliest nursery (£42,000) ran at 25% more than a place at a top public school such as Charterhouse (£30,574 a year) Daycare Trust - http://www.daycaretrust.org.uk/pages/childcare-costs-surveys.html
  • 11. 2. Poverty in the UK Poverty statistics 2010–11 – the estimated UK population living below the poverty line was 13.0 million (21.3%) when housing costs are taken into consideration Institute of Fiscal Studies (2012) http://www.ifs.org.uk/comms/comm124.pdf Relative poverty – indicates the proportion of individuals with household incomes below 60% of the average (median) household income in a particular year after income tax, council tax and housing costs have been deducted Institute of Fiscal Studies (2012) - http://www.ifs.org.uk/comms/comm124.pdf
  • 12. 2. Poverty in the UK Child poverty The ‘End Child Poverty’ coalition, which is made up of more than 150 organisations and groups, calculate than 4 million children – one in three – are currently living in poverty in the UK. This is one of the highest rates in the industrialised world End Child Poverty - http://www.endchildpoverty.org.uk Ian Duncan Smith and the schools minister, David Laws, want to introduce a new range of indicators that include family stability, worklessness and educational achievement Patrick Wintour (2012) - http://www.guardian.co.uk/society/2012/nov/14/iain-duncan-smith-child-poverty
  • 13. 2. Poverty in the UK Child Poverty in Bristol The ‘Ending Child Poverty’ Map of the estimated number of children in poverty in Bristol in 2012 = 21,366 children The estimated percentage of Bristol children in poverty in End Child Poverty - http://www.endchildpoverty.org.uk/why-end-chil 2012 = 25% of children 25
  • 14. 2. Poverty in the UK Other examples of the hardships experienced by people on low incomes or people living below the poverty line covered in this presentation include: fuel poverty food poverty homelessness debt
  • 15. 2. Poverty in the UK Fuel poverty What is fuel poverty? A household is said to be experiencing fuel poverty if it needs to spend more than 10% of its income on fuel to maintain an adequate level of warmth. In England, fuel poverty is modelled using the data from the English Housing Survey (EHS) It is estimated that around 6 million UK households are currently living in fuel poverty End Fuel Poverty - http://endfuelpoverty.org.uk/
  • 16. 2. Poverty in the UK Utility prices Soaring gas profits. An announcement in March 2013 Gas showed an 11% increase in profits for British Gas and its parent group, Centrica a staggering £1.3 billion promised to shareholders Terry Macalister (2013) - http://www.guardian.co.uk/business/2013/feb/27/centrica-british-gas-increase-profit Why? Poor regulation - Despite some new requirements on companies to publish the accounts of their retail businesses, the prices they pay for the gas they supply to customers remains unknown, even to Ofgem (which regulates the electricity and gas markets in Great Britain), which does not have jurisdiction beyond UK borders Tim Webb (2010) - http://www.guardian.co.uk/business/2010/nov/26/ofgem-intervenes-electricity-gas-profits
  • 17. 2. Poverty in the UK Utility prices Thames Water and Anglian Water Water paid no corporation tax on the profits. Indeed, in 2012 Thames Water enjoyed a £76m tax rebate. As a reward, Martin Baggs, chief executive, received a bonus of £420,000 on top of his £425,000 salary He is said to be in line for a further windfall of £1m based on company Daily Mirror › February 06, 2013 performance through to 2015 Daniel Boffey, Ian Griffiths and Toby Helm (2012) - http://www.guardian.co.uk/business/2012/nov/10/water-companies-tax
  • 18. 2. Poverty in the UK Food poverty What is food poverty? The Department of Health has defined food poverty as “the inability to afford, or to have access to, food to make up a healthy diet.”  Massive growth in foodbanks 2009: The Trussell Trust approved 28 food banks 2013: there are 325 foodbanks currently in operation + three more added weekly 2011-12: foodbanks fed 128,687 people nationwide The Trussell Trust - http://www.trusselltrust.org/foodbank-project USA - an estimated 37 million people receive charity food Canada - an estimated 900,00 people use food banks each month Some eligible children denied access to free school meals Patrick Butler (2013) - http://www.guardian.co.uk/society/2013/mar/07/children-ineligible-free-school-meals-poverty
  • 19. 2. Poverty in the UK Food poverty Bristol foodbanks - and other places - offering hot food: The Salvation Army - Bristol Citadel & Candle Community Centre Bristol Methodist Centre Bristol Soup Run Trust Churches Together Watershed Churches Together Broadmead Bus Station by subway Churches Together, Queens Road Julian Trust Matthew Tree Project Carpenters Foodstore, The Withywood Centre Matthew Tree Project Foodstore and central food hub Great George Street Mission Matthew Tree Project Foodstore, The Mede NW Foodbank
  • 20. 2. Poverty in the UK Housing/homelessness Homelessness on the increase 2012 - Dept for Communities and Local Government data shows a 14% rise in people classed as homeless – with 69,460 children/expected children are in homeless households. Charities warn the figure is much higher Simon Rogers (2012) - http://www.guardian.co.uk/society/2012/mar/08/homelessness-jumps-repossession-unemployment Centrepoint’s research estimates that roughly 60,000 young people are using hostels or sleeping rough - over three times higher than official figures
  • 21. 2. Poverty in the UK Housing/homelessness Homelessness on the increase According to the National Housing Federation, homeless families in Bed and Breakfast (B&B) accommodation has increase by 44% 20 councils warned by the government about housing families in B&Bs for Daily Mirror 18 February 2013 “unacceptably long time” Randeep Ramesh (2012) - http://www.guardian.co.uk/society/2012/sep/17/homeless-families-bed-and-breakfast
  • 22. 2. Poverty in the UK Housing/homelessness Housing picture in Bristol 6,500 private tenants face cuts of £15 to £25 per week in their Housing Benefit, forcing many into destitution or homelessness. Over 14,300 households are waiting on the Housing Register An average of nine people chase every private tenancy Bristol Poverty (Housing) Action - http://bristolpovertyaction.wordpress.com/
  • 23. 2. Poverty in the UK Debt UK Debt Statistics from Credit Action January – September 2013 - 8,308 new debt problems were dealt with by the Citizens Advice Bureau (CAB) each working day September - November 213 - 1,727 people were made redundant every day Every 16 min 4 sec - a property is repossessed Credit Action - http://www.creditaction.org.uk/helpful-resources/debt-statistics.html
  • 24. 2. Poverty in the UK Debt statistics for Bristol Clients seen by the Bristol Debt and Advice Centre January – December 2012 Of the total clients seen, 55% were women A breakdown of 1,140 female clients revealed the following: Note the number of Female clients with a long term 285 women with long illness term illnesses (25%) Female clients with a priority debt 567 and the total number Employment status of female Unknown: 21 in full and part-time clients Carer: 4 Training/Education: 12 employment - yet Other: 23 still in debt (31%) Unemployed: 533 Retired: 46 Unemployment is Self-employed: 29 key feature for Unfit for work: 113 women seeking debt Working full time: 137 Working part time: 222 advice and support (46%) (from Bristol Debt and Advice Centre)
  • 25. 2. Poverty in the UK Benefit changes There are too many changes to describe in detail but the following summary indicates the changes proposed/enacted: Migration of existing claimants to Employment Support Allowance - continues until April 2014 Increases to all working age benefits will increase by 1% annually until 2016. 10 million households effected Child benefit frozen for 3 years Maternity Grant restricted to first child only Taper on tax credits moved from 39% to 41% Childcare element of Working Tax Credit (WTC) reduced from 80% to 70% of costs (up to pre-set maximum) Local Housing Allowance capped Large increases of non dependent deductions for Housing Benefit recipients Local Housing Allowance – rates set at 30th percentile not 50th Educational Maintenance Allowance abolished Single-room rent restriction extended from people under 25 to people under 35 (From Jane Emanuel, Bristol Advice Network)
  • 26. 2. Poverty in the UK Benefit changes What’s been proposed from January 2013 onwards: ‘Affluence test’ for Child Benefit Council Tax Benefit handed to local authorities ‘Bedroom Tax’ for social housing sector (under-occupiers will have reduced housing benefit or have to transfer to smaller property) Working-age Disability Living Allowance recipients must apply for Personal Independence Payments Crisis loans and Community Care Grants abolished, budget reduced then passed to local authorities to devise their own scheme Household Benefit Cap for all except Disabled Living Allowance (DLA) recipients and war widows/widowers Universal Credit – replaces Income Support, Income-based Job Seekers Allowance (JSA), Employment and Support Allowance (ESA), Housing Benefit, Child Tax Credit and Working Tax Credit Pathfinders in the North to start this process which may begin in Southwest 2014? (From Jane Emanuel, Bristol Advice Network)
  • 27. 2. Poverty in the UK Benefit changes: two insidious changes 1. Universal credit scheme involves: 1 applying for benefits online 2 weekly payments being replaced with monthly payments 3 a single payment being issued per household The Women's Resource and Development Agency said: “It is estimated that in 80% of cases Universal Credit will be paid to the male partner in the household”. Rosa Prince The Telegraph - http://www.telegraph.co.uk/news/politics/9531622/Iain-Duncan-Smith-told-millions-will-struggle-to- claim-universal-credit.html This change is likely to impact negatively on women’s bargaining position and status within the family, particularly for women with no other independent income
  • 28. 2. Poverty in the UK Benefit changes: two insidious changes 1. Universal credit scheme 70 organisations submitted over 500 pages of evidence outlining concerns about the government's plans Benefits have to be applied for online Yet “The new universal credit system risks causing difficulties to the 8.5 million people who have never used the internet and a further 14.5 million who have virtually no ICT [internet + communications technology] skills” (CAB) Department for Work and Pensions (DWP) stated: “anyone without IT skills or access to a computer will be fully supported and we have processes in place to help them” but who will provide/fund this support? Rosa Prince (2012) http://www.telegraph.co.uk/news/politics/9531622/Iain-Duncan-Smith-told-millions-will-struggle-to-claim-universal-credit.html
  • 29. 2. Poverty in the UK Benefit changes: two insidious changes 2. The ‘bedroom tax’ New rules state that housing benefit and universal credit claimants deemed to have one unused bedroom in their council or housing association home will lose 14% of their housing benefit and those with two or more will lose 25% The ‘bedroom tax’ is likely to hit single parents and disabled people hardest Toby Helm and Tracy McVeigh (2013) http://www.guardian.co.uk/society/2013/mar/30/bedroom-tax-disaster-housing-chief
  • 30. 2. Poverty in the UK Other dangers – changes to the NHS But not without a fight . . . 15,000 protesters march to save Lewisham A & E and to stop © Jenny Fleming the downgrading of maternity services Oliver Letwin, Etonian, Tory Cabinet Minister and Chief of Policy boasted in 2004: “the NHS will cease to exist within 5 years of a Conservative victory”.
  • 31. 2. Poverty in the UK Other dangers – changes to the NHS The Health & Social Care Act 2012 Clauses that lead to the privatisation of health care could seriously reduce the quality and availability of health provision for people living in poverty or on low incomes On some nights the NHS out- Back door privatisation of-hours service in Cornwall, Britain's leading medical body, the run by the private company Academy of Medical Royal Serco, had only 1 GP to care Colleges, has expressed grave for 535,000 patients (BBC News 29 September 2012 concern that the government is http://www.bbc.co.uk/news/u planning to privatise large sections k-england-cornwall-19770029). of the NHS by the back door – in breach of previous promises to A recent poll surveyed by the limit the role of the private sector. Royal College of General This reneges on previous Practitioners revealed that ¾ agreements with the profession of GPs want health and Observer Sunday 3rd March 2013 social care bill withdrawn The Independent Sunday 3rd March 2013 The Guardian 12 January 2012).
  • 32. 2. Poverty in the UK Danger posed by privatisation It is worth remembering that the privatisation of social care has in places been disastrous. This article from the Financial Times shows how 5 Southern Cross executives sold shares before its value crashed and were legally able to walk away with £35m. Southern Cross provided care homes for older people and its crash led to a crisis for people who were living in these homes.
  • 33. 3. The price of inequality The poorest 10% will suffer 15 times more than the richest (False Economy website) What we are witnessing is the break-up of the welfare state The so-called ‘economic recession’ and financial ‘deficit’ are being used to justify cuts in the welfare budget and further privatisation of welfare and health provision
  • 34. 3. The price of inequality The big picture: inequality is on the rise in most counties within the Organisation for Economic Co-operation & Development [OECD] Increased inequality -- 2008 -- 1985 The OECD includes 34 countries (From: Divided We Stand: Why Inequality Keeps Rising © OECD 2011) http://www.bmask.gv.at/cms/site/attachments/0/7/9/CH2267/CMS1343644102547/oecd_divided_we_stand_2011.pdf
  • 35. 3. The price of inequality The share of top incomes increased, especially in English-speaking countries. The USA and UK have sharp rises for top income earners (From: Divided We Stand: Why Inequality Keeps Rising © OECD 2011) http://www.bmask.gv.at/cms/site/attachments/0/7/9/CH2267/CMS1343644102547/oecd_divided_we_stand_2011.pdf
  • 36. 3. The price of inequality This graph shows that greater the income gap between the richest and poorest 20% in a country, the greater the likelihood of health and social problems being intensified. This is detrimental not just to people living in poverty, but to the vast majority of society. This research suggest that many health and social problems, such as high levels of mental illness, numbers in prison, rates of drug and alcohol use, weight problems, and low levels of public trust tend to be worse in less equal societies http://www.equalitytrust.org.uk This graph is from Wilkinson and Pickett’s (2010) influential text The Spirit Level: Why Equality is Better for Everyone. London: Penguin. Wilkinson and Pickett are the founders of the Equality Trust. Equality Bristol is a local branch of the Equality Trust http://equalitybristol.wordpress.com/
  • 37. 3. The price of inequality This ‘Infographic’ on The Price of Inequality by Adam Frost and Rosie Roche is on the Equality Trust website http://www.equalitytrust.org.uk/ For an enlarged version of this chart, see http://i.imgur.com/Cufgf.gif Or The New Statesman http://www.newstatesman.com/economics/economics/2012/10/chart-day-price-inequality
  • 38. 4. Cuts are not the cure Cuts in Bristol An overview of Bristol’s population: 2011 Census Bristol’s population = 428,100 people Bristol is the 7th largest city in England and is one of 8 ‘core cities’ (+ Birmingham, Manchester, Liverpool, Nottingham, Leeds, Sheffield, Newcastle) 16% of Bristol’s population belong to a black/ethnic minority group
  • 39. 4. Cuts are not the cure Bristol advice centres and services Advice agencies are overwhelmed and struggling cope with the number of people seeking help Legal Aid cuts have led to redundancies in many centres Employment Support Allowance (ESA) appeals currently constitute more than 60% of specialist advice time. In Bristol area 85% of cases represented at Tribunal are successful
  • 40. 4. Cuts are not the cure Bristol advice centres and services Advice Centres for Avon (ACFA) Age UK Bristol Avon & Bristol Law Centre (ABLC) Bristol City Council Welfare Rights and Money Advice Service Bristol Citizens’ Advice Bureau (CAB) Bristol Debt and Advice Centre (BDAC) North Bristol Advice Centre South Bristol Advice Services St Paul's Advice Centre
  • 41. 4. Cuts are not the cure The deficit ‘The deficit is simply the gap between what the government spends each year and what it receives in tax . . . UK debt has grown in the recession but is much lower than in the past’ (from False Economy) False Economy - http://falseeconomy.org.uk This graph shows that for the UK, the National Debt has been much higher than it is today Quick fact Current UK national debt: 60% Average UK national debt 1988 -2010: 112% (from False Economy)
  • 42. 4. Cuts are not the cure The deficit grew because tax income fell If countries spend more than they get back from tax they normally have to borrow money to make up the difference. If the government covers a deficit by borrowing money, then that will increase the national debt. When times are good and tax income is higher than spending, governments can pay back part of the debt and it will come down. Our UK national debt is lower than in many other countries including France, Germany, Canada and the USA (from False Economy)
  • 43. 4. Cuts are not the cure The UK is the 7th richest country in the world but There is money . . . the allocation of resources and funding favours certain groups or vested interests over others e.g. Renewing Trident – experts state the UK's Trident nuclear deterrent will cost a minimum of £20bn plus £100bn to build and operate Subsidising the arms trade - the level of public subsidy (from taxpayers) is estimated to be £700m per year according to research by the Campaign Against Arms Trade (CAAT) Subsidising private schools – the current subsidy to private schools is estimated to be £100m of taxpayers’ money
  • 44. 4. Cuts are not the cure Banks and bankers A report from the London School of Economics revealed: London’s top 1,400 bankers take home an average £2 million a year including £568,000 “basic” pay London finance workers received 14.2% more in salary and cash bonuses in 2011 than 2008 average workers outside the City got 3.7% over the same period. This is equivalent to a 6% FALL because inflation rose by (9.7%) £1 in every £7 earned in Britain now goes to the top 1% of earners Brian Bell and John van Reenen (2013) http://cep.lse.ac.uk/pubs/download/occasional/op035.pdf
  • 45. 4. Cuts are not the cure Banks and bankers Guardian 24 February 2013 Daily Mail online http://www.dailymail.co.uk/news/article-2093630/Stephen-Hester-bonus-Top-RBS-bankers-follow-boss-example-says-Vince-Cable.html Taxpayers have a 83% stake in the Royal Bank of Scotland. In March 2013, 26 EU finance ministers imposed curbs on bankers' bonuses as a strategy to curb bankers’ incentive to gamble and repeating the excesses that led to the financial crisis. The UK opposed these curbs .
  • 46. 4. Cuts are not the cure Tax avoidance and evasion In 2010, the government, via Her Majesty's Revenue and Customs [HMRC], let Vodafone off a £6bn tax bill The tax gap (1) tax avoidance (finding loopholes e.g. tax havens) is estimated to be about £25bn per annum (2) tax evasion (breaking the law) is estimated to be about £70bn per annum according to World Bank data (3)unpaid and late-paid tax – currently evaluated by HMRC to be at least £26bn per annum Together, these figures = more than £120bn, ‘enough, at least in principle, to close the whole current government deficit’ (Murphy 2010) Richard Murphy (2010) http://www.guardian.co.uk/commentisfree/2010/aug/20/tackle-tax-gap-deficit-reduction Tax Research - http://www.taxresearch.org.uk/Documents/FAQ1TaxGap.pdf
  • 47. 4. Cuts are not the cure Tax avoidance and evasion Tax inspector job losses contribute to a failure to collect 1.1bn in taxes in 2004-5 staff were employed nearly 100,000 by June 2010 the numbers fell to 68,000 by 2015 the numbers are likely to fall to 55,000 (nearly half the 2005 number) Experts indicate that staff were not being properly trained and equipped for the job http://www.guardian.co.uk/business/2012/jun/23/tax-revenue-tribunals-staff-billions “Last year (2009) 5,000 frontline (tax inspector) staff went and more still are to go. This makes no sense: each frontline member of staff brings in on average 30 times in tax what it costs to employ them. The result is that tax that is so badly needed to keep services going is being given away” (Murphy 2010) Richard Murphy (2010) http://www.guardian.co.uk/commentisfree/2010/aug/20/tackle-tax-gap-deficit-reduction
  • 48. 4. Cuts are not the cure Tax reduction for companies - Top rate of tax reduced from 50% to 45% on salaries of more than £150,000 - No increase to Capital Gains tax, static at 28% - A £2,000 employment allowance allows a third of all employers to pay no National Insurance ‘ jobs tax' - Corporation Tax steadily reducing from 28% in 2010 to 21% in 2014 - one of the lowest corporation tax rates in the western world The authorative Institute of Fiscal Studies estimate that the poorest 10% of households will lose an average of £127 under the 2013 budget changes, while the richest 10% will gain almost 10 times that figure - £1,265. Families with children will be hit even harder, with the poorest 10% losing £236 a year
  • 49. Why is this happening? 15,000 protesters march to save Lewisham A & E and to stop the downgrading of maternity services The intention: to promote the breakup of the welfare state and to divert funding in order to support the profit motive and private enterprise
  • 50. Why is this happening? 15,000 protesters march to save Lewisham A & E and to stop the downgrading of maternity services The strategy: to overwhelm and overstretch public services with the sheer number of policy changes being set in motion
  • 51. Why is this happening? 15,000 protesters march to save Lewisham A & E and to stop the downgrading of maternity services The strategy: divide and rule by setting people against each other people on benefits versus ‘hard working people’ people on benefits versus ‘heroic’ soldiers one hospital (Lewisham) versus another hospital (S. London Healthcare NHS Trust) people who “deserve to be helped” versus “those who don’t”
  • 52. Divide and rule The impact of stigma and other social influences on applying for benefits – some research finding suggest that the public see claimants as less deserving than they did 20 years ago Negative reporting of benefit claimants in newspapers. From http://www.turn2us.org.uk/PDF/Benefits %20stigma%20Draft%20report%20v9.pdf http://www.guardian.co.uk/news/datablog/2012/nov/20/benefits-stigma-newspapers-report-welfare
  • 53. Unclaimed benefits Community Links, a coalition of 27 charities co-ordinated by the Citizens Advice Bureau, stated that in 2009 an estimated £16bn in welfare benefits and tax credits went unclaimed Community Care http://www.community-links.org/linksuk/?p=1531 BBC News 2010 http://news.bbc.co.uk/1/hi/business/8494105.stm
  • 54. The stigma of poverty feelings of shame self blame guilt secrecy powerlessness hopelessness despair injustice
  • 55. UK cabinet 2009: 23 millionaires out of 29 Only 4 female cabinet members!!
  • 56. Could Iain Duncan Smith (IDS), the current Work and Pensions Secretary, survive on £53 a week or £7.57 a day - a 97% reduction in his current income. As a cabinet minister, Duncan Smith earns £134,565 a year, which is £1,581.02 a week or £225 a day after tax* The Telegraph http://www.telegraph.co.uk/news/politics/9964767/Iain-Duncan-Smith-I-could-live-on-53-per-week.html Mr Duncan Smith lives in a 16th- century Grade-II listed Tudor house in Swanbourne which is said to be worth £2m. The property includes Photo - a swimming pool, tennis courts and Independent three acres of grounds. It belongs to Tuesday 2 April Mrs Duncan Smith's father, John 2013 Tapling Fremantle, the fifth Baron Cottesloe, who moved out of the house with his wife several years ago. Mr Duncan Smith is technically a tenant and living rent-free with his wife and children. The Independent http://www.independent.co.uk/news/uk/politi cs/george-osborne-mounts-fierce-defence-of- essential-cut-in-top-tax-8556168.html 300,000 people signed the petition at www.change.org
  • 57. As feminists we are known for our wonderful sense of humour . . . . © Jill Posener 1979
  • 58. We are also known for our determination to build a better and fairer society – for women, for children, for men - both at home and abroad . . . . Please join us . . . . © Jenny Fleming
  • 59. References Please see separate handout