loans

Is Boris Planning to Force Poor to Take Out Loans instead of Unemployment Benefit?

Published by Anonymous (not verified) on Sun, 26/01/2020 - 5:29am in

I realise that this may strike some people as a somewhat petty and ill-tempered overreaction to a passing comment someone made, but it’s been annoying me ever since I heard it. And I’m afraid, if it’s true, it could mean further devastating cuts to our already underfunded and dysfunctional welfare state. And it is also a revealing insight into the mean-spirited, jealous mindset of the working class Tory voter.

I was on the bus coming home yesterday when I happened to overhear the conversation from the couple on the seats immediately behind me. From the tone of their voices and their conversation, it seems they were an older couple. The man talked about how families no longer properly looked after their elderly relatives, except in places like Scotland. He said, quite rightly, that retired people also stimulated the economy by going out and having meals or a cup of coffee. That didn’t annoy me at all. What did – and it made so furious I was tempted to turn around and put the old fellow right – was his comment immediately before those. He announced that he agreed with Boris Johnson that workers like brickies – at least, that’s what I think he said – shouldn’t be given benefit when they were unemployed. They should have to take out a loan. He then went on to explain that he’d worked for a certain time without claiming his holidays. Then he was laid off. When he tried to sign on, however, he was told that by the clerk that they had received information about him which meant that he wouldn’t get any money for three weeks. Since then, he said, he always took his holidays.

I don’t know if this remark of Johnson’s is true, or where it was reported. It might be garbled rubbish, or it might be solid fact as reported by the Scum or some other Tory rag. But if it’s true, then it’s dangerous.

It should immediately be apparent how weak the man’s own argument is. Builders, like other workers, contribute to their unemployment benefit through National Insurance and their taxes. They therefore have every right to claim such benefit when they’re unemployed. The fact that the man complaining about it wasn’t is unfortunately, but irrelevant. From the sound of it, when he was laid off he was paid in lieu of the annual leave he didn’t take, and this amounted to three weeks’ worth of money. Or at least, that’s what the Jobcentre was informed or chose to assume.

This country is also suffering under a mountain of debt. The book The Violence of Austerity has an entire chapter devoted to the ‘violence of debtfare’. This debt, from student loans for education, payday loans, mortgages and so on, is not only keeping people poor, in some cases the repayments are actually making them unable to pay for necessities like food and heating. The very last thing this country needs is for more of it. But this is what this gentleman thought Johnson was advocating, and with which he agreed.

I remember the Social Fund and the way it operated in the Benefits Agency in the 1990s. Thatcher’s and Major’s governments decided to replace the system of grants that had been in place to allow claimants to buy certain necessities with a system of loans. It’s not a scheme that worked well. Some long term claimants, I’m sure, would have been better served with grants, not least because the loan system meant that money was deducted from benefit that was already supposed to be the minimum an individual could live on. The current system of loans in the welfare system has exacerbated this, so that with the repayments some people have notoriously been left with only a few pounds to last them the week. But Johnson and this idiot believe that this is acceptable.

I am also disgusted by the attitude behind these comments, though not surprised. When I was at school I remember reading letters in the local paper, The Evening Post as it then was, by people of a certain age supporting Thatcher’s cuts to unemployment and other benefits. The attitude there was that they had never had the benefit of state aid in their youth, and so the younger generation shouldn’t either. And the same attitude and argument crops up again and again whenever the Tories announce yet another round of cuts. I also think that part of the problem is that some of those with this attitude still believe that suitable work is available for everyone, somehow. They’ve benefited from the period between the Second World War and the Thatcher’s election as Prime Minister, when the government was committed to a policy of full employment. And even after that policy was abandoned, there was still the illusion of plenty of employment opportunities. I can remember trying to tell one of my co-workers how difficult I had found it to get a job after graduating university. There didn’t seem to be anything to fit my qualifications. This was also at a time when jobs were so scarce, that there were so many applicants for particular jobs that frequently prospective employers didn’t even inform you if you had been unsuccessful. But nevertheless, my coworkers were sceptical, saying ‘There are plenty of jobs in the paper’. This man clearly assumed that anyone who was laid off would find themselves new work in a relatively short space of time. But that’s no longer guaranteed.

But it’s through such selfishness and the resentment of a certain section of the working class to anyone they feel is getting more state benefits than they are, which the Tories are using to generate support for their welfare cuts.

There is no other justification. The benefit cuts and consequent tax cuts to the rich haven’t boosted the economy. Even right-wing economists now deny that trickledown – the process by which the wealth accrued to the high earners would pass down through society to those at the bottom – works or that it was even a major part of neoliberal economics in the first place. And so they try to justify their cuts with spurious morality.

And to do this, they play on the worst parts of human nature. They encourage a resentment of those they brand less deserving – Blacks and Asians, the disabled, the unemployed, and the poor in a vicious strategy of ‘divide and rule’. And the logic is used to cut benefits to their supporters. I’m sure this man would have been outraged if someone told him that his pension would now be stopped for short periods, during which he would have to take out loans. Much of the Tories’ voting constituency is over 50, and so they have been reluctant to cut their benefits and pensions. This has happened nonetheless. Austerity has already claimed the lives of thousands of senior citizens.

But this will get worse, so long as the Tories are able to utilise that selfishness, fear and resentment to turn the working class and other marginalised groups against themselves. In the end, under the Tories, they will all lose.

It’s just idiots won’t see it, so long as the Tories are able to distract them by a false claim that the benefits system is treating someone else better.

 

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Published by Anonymous (not verified) on Thu, 05/03/2015 - 9:48am in