‘The richest fifth of the population are worse off now in terms of disposable income than they were before the 2007 financial crash, but the poorest fifth have typically become better off, according to official figures.’
“The economic downturn “had a negative impact on the incomes of all but the poorest fifth of the population” ONS
Remember this from last year? How times change…
https://www.youtube.com/watch?v=UGCp82eDlZg
A plan for working people, one purpose, one policy, one nation. Hurrah says IDS.
What hasn’t changed is the BBC narrative about austerity, tax cuts ‘for the rich’ and welfare cuts punishing the poor and that of austerity being a political decision not one based upon economic necessity….the BBC believing that we should borrow to spend and stimulate….Labour’s very own narrative….as the Telegraph amusingly suggests….Sketch: Labour should have chosen Iain Duncan Smith as leader, not Jeremy Corbyn
In fact here’s little Owen Jones, and Yvette Cooper, spinning that very line in 2012….note the subject, disability…note who defends the government and says he is proud of what the government is doing…
IDS has, as you may have noticed, resigned from his government post, and then gone nuclear much to Labour’s and the BBC’s delight. They, no doubt, cannot believe their luck that the former Work and Pensions Secretary should be parroting their narrative. Is it stupidity, foolishness, immense bitterness or a conscience driven self-immolation taking the Tory Party down with him?
Looking at the evidence it would seem to be a combination of all those things…he must know that all the points he states are Labour’s favourite attack lines and that the BBC would leap instantly upon them as indeed they have.
What do we have? The government is increasing unfairness and inequality, that it is not a one nation government, that austerity is a political decision and not a necessity, that reducing the deficit is important but the burden should be shared out more evenly, that the rich are not being made to pay to reduce the deficit.
Andrew Marr got the first interview.
Sue at is the BBC biased? says I thought Iain Duncan Smith was treated fairly. Personally I don’t. Marr didn’t really have to say anything just let IDS dig an ever deeper hole for the Tory Party. However Marr thought he could speed up the burial process..his first question being to ask IDS if he thought the disability cuts were immoral. This of course immediately indicates the Labour supporting Marr’s thinking….nowhere does IDS suggest the the disability reforms are immoral and yet throughout the interview Marr continues to frame the question in that way until IDS has to deny his position is based upon morality, however you would define that.
Did IDS really think the disability cuts were unfair? No, he supported them all the way…..read his letter and he merely says that he objected to the presentation of the cuts alongside the tax cuts for the better off….this made it hard to justify the disability cuts….but he still thought the cuts should go ahead….it was all a matter of perception.
IDS dodges about eluding the blame for any of the welfare policies it would seem despite, as Marr points out, having defended them and not objected to them at all vociferously.
IDS tells us that the welfare cap was ‘arbitrary’…well no, it’s not. There is a budget and that limits spending…the question then is how much of that budget does each department get…that decision is based upon a whole range of factors and can in no way be described as arbitrary, the money pot is not bottomless and cannot possibly meet all the needs or wants of all the people, therefore a cap has to be set at some point. IDS talks as if there is a limitless pot of money. All spending caps on such terms are ‘arbitrary’….who gets what is a judgement not a science.
IDS says that we must get rid of the deficit but the money must come from others and not just from working age benefit cuts….and finishes on the claim that the government is in danger of dividing the nation becasue of their policy of only using the benefit cuts to fund deficit reduction.
But how true is that? Marr wasn’t keen on questioning the claims so intent was he on claiming that ‘what’s happening now is immoral’ and that the government must change its austerity policy. How can he suggest the government’s policy is ‘immoral’ when they have raised the lowest paid’s disposable income, got millions more into work and made the rich pay far more than they were paying before?
We’ve seen IDS cheering madly the introduction of the living wage for the poorest in society, we’ve seen the lowest paid being taken out of income tax and we’ve seen millions of jobs created taking those reliant on benefits off those benefits and into the workforce along with higher tax credits and job seeker’s allowance. But what of the rich? They get away with it don’t they?
Did you ever see the BBC splashing the headlines with this in February?
Richest fifth in the UK worse off since financial crash, official figures reveal
The richest fifth of the population are worse off now in terms of disposable income than they were before the 2007 financial crash, but the poorest fifth have typically become better off, according to official figures which could spark controversy among anti-austerity campaigners.
The data from the Office for National Statistics, published on Tuesday, also reveals a generational split, with the average disposable income of retired households now higher than in 2007-08 – in stark contrast to millions of working households, who are typically around £900 a year worse off.
According to the ONS, in 2014-15 the typical household paid £7,700 in direct taxes, which includes income tax and council tax. After these are taken into account, the average income enjoyed by the richest 20% of households is around five and a half times that of the poorest 20% – £67,000 and £12,300 a year respectively.
However, the department said the economic downturn “had a negative impact on the incomes of all but the poorest fifth of the population”. It said the least well-off 20% of households were the only group whose average disposable income did not fall between 2007-08 and 2012-13. In 2014-15 the typical income of this group was £700 (5.8%) above its 2007-08 level.
By contrast, the average disposable income of the richest fifth of households fell the most following the downturn: by 3.2% between 2007-08 and 2014-15. It remains £2,000 below its previous peak.
The ONS said the increase for the poorest fifth was mainly due to an increase in average levels of pay for this group, along with higher benefit payments such as tax credits and jobseeker’s allowance.
How can IDS get that so wrong? The ONS says that “The economic downturn “had a negative impact on the incomes of all but the poorest fifth of the population” So the poorest in fact have been given a pay rise not a cut.
Even the BBC, in 2009, wanted to present the rich as paying their fair wack…a cynic might suggest they wanted to present Labour as a Party that made the rich pay…..but the Tories have made the rich pay even more and raised the disposable income of the poorest….and yet that’s ‘immoral’?…….
The people with the top 1 per cent of incomes pay very nearly a quarter of all the income tax, as the chart shows. So option d – the highest available – gets points. The other options are at best half the true amount.
We can also see from the chart that people with the top 10% of incomes pay more than half the income tax.
The Office for National Statistics’ annual publication about the effect of taxes and benefits (see internet links, above right) suggests that most people actually pay a similar share of their income in taxes when all taxes are taken into account, even up to the top 10 per cent as a whole.
It also says this….
Data suggest that people receive services from the state greater in value than the tax they pay up to about 70 per cent of the way up the income scale.
Here is the IFS, best beloved of the BBC, which asks, in 2010 just before the election..
Do the poorest really pay the most in tax?
The Liberal Democrats have, once again, claimed that the poor pay more of their income in tax than the rich, and that this gap has got larger under Labour.
The poorest fifth of households were clearly net beneficiaries from the tax and benefit system, to the tune of £2,151 a year, on average. At the other end of the scale, the richest fifth of households received £1,666 a year in income from the state, and so they are net contributors to the Government’s coffers, to the tune of £24,259 a year, on average.
These figures show what one would expect: the tax and benefit system as a whole takes money from the rich, and gives it to the poor.
In other words the poorest didn’t pay the most tax even as a proportion of their income…and you know what, that’s still the situation.
IDS seems to be as stupid as Osborne thinks he is, and the BBC is jumping for joy pumping out headlines like this…
Duncan Smith warns government risks ‘dividing’ society
Iain Duncan Smith has warned that the government risks dividing society, in his first interview since resigning as work and pensions secretary.
He attacked the “desperate search for savings” focused on benefit payments to people who “don’t vote for us”.
As I’ve said, it is curious that Marr never once challenged IDS’s claims and indeed went further trying to use them to portray the government as immoral. IDS has utterly betrayed the Tory Party and handed massive ammunition to its enemies in the Labour Party and at the BBC who are not at all eager to question anything he has said, happy to go along with the nonsense…..and the BBC were enthusiastically dodging the EU question on Saturday in relation to this but have since been forced to raise the matter as it is seen as central to the resignation by so many one way or another.
Finally here is IDS vigorously defending benefit sanctions as Labour claims people die due to them….