Tagged: economic

Private company given contract to harass the long-term sick

Mike Sivier's blog

The Department for Work and Pensions is setting up a new “service” offering “advice” to people who are off work with an illness for more than four weeks.

No reference is made to improving people’s health.

It should also be noted that sickness absence in the UK is among the lowest in Europe, and has halved over the past decade.

The announcement was made on the BBC News website shortly after midnight. Nothing has appeared on the Government’s own website so it seems the Corporation has gone back to being Westminster’s poodle again – breaking news for the government in order to give spin doctors time to assess the reaction and then write a press release that is more acceptable to the public.

The Health and Work Service will be a privately-run operation covering England, Wales and Scotland, offering “non-compulsory” medical assessments and “treatment plans”. This is reminiscent of the…

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Increase minimum wage to win in North, Tory candidate tells Osborne

> Sure sign that there’s an election just over the horizon – out they come, offering bribes like the sleazy fixers they are…

A former Tory candidate in the North East is leading calls for the party to increase the minimum wage – to give it a chance of winning seats in Labour heartlands.

The campaign urging Chancellor George Osborne to increase the minimum wage has been launched by Renewal, a campaign group dedicated to broadening the appeal of the Conservative Party and giving it a chance of winning seats in regions such as the North East where the party has very few MPs.

Mr Osborne yesterday hinted that a rise from the current £6.31 an hour to £7 was indeed in the offing.

Renewal director David Skelton finished a distant second when he stood for the Labourstronghold of North Durham in the 2010 general election.

Renewal has launched a review called “Renewing Capitalism”, which will look at new ways to create a competitive economic environment in which the consumer and the low-paid are protected, competition is cherished and anti-competitive, monopolistic behaviour is cracked down on.

It will also explore ideas to create wealth in parts of the country that have been struggling to share in prosperity since the 1980s – notably deindustrialised towns in northern England.

> Yeah… might have been better if the Tories hadn’t wrecked the north in the first place perhaps ? Might be good if they weren’t cutting funding left, right & centre.

Renewal is also considering ways of changing the face of the Conservative Party by bringing in more working class MPs, including by introducing bursaries to help people on lower incomes stand for election.

> This is a wind-up, isn’t it ? Its certainly not the Conservative party.

Mr Skelton, who was born and grew up in Consett, County Durham, said:

“The Conservative Party needs to come to terms with the fact that many people, particularly the low paid, don’t think that capitalism is working for them.

“We need to do more to show that capitalism can work for everybody in every part of the country. Being pro-market isn’t the same as being pro-big business.

“Where there are instances of abuse – in either the public or the private sector – Conservatives should come down hard to protect the consumer.”

> I think we know perfectly well what capitalism is likely to do for – and do to – us.

The review could be seen as a response to Labour leader Ed Miliband’s focus on the cost of living and attack on “predatory” capitalism. Labour is arguing that the benefits of economic recovery are not being shared by most people – and is highlighting the fact workers in the North East on average are paid £1,300 a year less than they were in 2010, once inflation is taken into account.

Some Conservatives argue that putting up the minimum wage, currently £6.31 an hour for over-21s, would help ensure that working people enjoy an increase in their standard of living as the economy improves.

> Yes, but it doesn’t create new jobs, so those in work earn a few more pennies, but the high unemployment continues, and those on benefits will continue to be the scapegoats for a situation they had no hand in.

Speaking recently, Hexham MP Guy Opperman said: “I am a well known exponent of the voluntary living wage and am very keen for an enhancement of the minimum wage now that the economic conditions are beginning to ease.

“There is an ongoing campaign to see if the Chancellor is able to make such a change when we get to the Budget in March.”

Recommendations about minimum wage rate are made by the Low Pay Commission, an independent body set up by the Government.

Mr Osborne has said he will not increase the minimum wage if it will lead to job losses but there is speculation he could announce a simultaneous cut in taxes paid by employers such as National Insurance, allowing them to pay staff more while staying in profit.

> The cut in NI contributions makes sense in the light of current policy, which seems intent on making it impossible for anyone to actually claim benefits anyway.

Source – Newcastle Journal, 17 Jan 2014

Reframing ‘austerity’ as #economicviolence

Life Glug

Content warning: metaphorical depiction of bodily violence

Austerity is a horrible yet captivating story. As a narrative it’s cohesive, has strong emotional images and an active message – elements which clearly resonate with the public and lend legitimacy to government cuts.

The left’s response, for all its logical and ethical weight, remains fragmentary, dry and largely reactive. We are, in the words of Mark Fisher, merely firefighting the effects of government cuts, always left on the back foot. To create a stronger alternative, we need to build a vibrant, cohesive narrative to carry those logical and ethical arguments.

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Work Programme – What Was The Point ? (Part 1)

Whoopee ! I have now completed my two-year stint on the Work Programme (WP).

Looking back, my initial reaction is: “what the hell was the point of that ?

It is pretty difficult to see  much point to it, either personally or on a wider level. A 2012 report found that only 18,270 people out of 785,000 people enrolled on the WP had held down employment for six months or more – a success rate of 2.3%.

Given that 5% of the long-term unemployed would be expected to find employment if left to their own devices the WP can be considered less successful than doing nothing at all.

“Less successful than doing nothing at all.”  That says it all, really.

Of course it was always doomed to failure, simply because it was based on unrealistic expectations – that the only reason people are unemployed is because they are lazy / stupid / feckless, and all they need  is a kick up the arse.

There was a fatal flaw in their plans – simply that there is  something like  2.5 million unemployed and only 500,000 vacancieas. You can kick  arses until your foot drops off,  you still can’t fit a quart into a pint pot.

Mind you, my expectations weren’t very high anyway.

Prior to WP was New Deal (ND), and in this city we had two companies providing it. I had the chance to sample both, and found both to be pretty useless.

When I turned up for my WP induction I amused myself by spotting familiar faces –  just about all of the staff  in this new organization were formerly with one or other of the two crap ND companies that preceeded it.

And that’s how it works. A new company wins a contract to provide  WP or ND or whatever, but doesn’t actually have any staff or premises. So they rent some cheap office space  and re-employ all the crap advisers from the failing companies they replaced, and so the vicious circle starts all over again. Its the same old people, same old ideas (or lack of), same old same old…

The new WP provider with all the old faces in our town was called Ingeus. I was never quite sure how it was pronounced (in-ghee-us ?  in-jhee-us ?) but it’s a suitably ugly name for an ugly organization.

All these WP providers are for-profit companies, and you, the unemployed, are commodities. You might be the most wonderful, talented, compassionate  person but your value to them is purely financial. Get you into a job, any job, get paid for doing so.

Getting paid being by far the most important part from their point of view.

It has been argued that payment-by-results whereby companies only get paid for finding people work has meant that they focus on the “easiest” cases among the long-term unemployed with the most “difficult” effectively sidelined.

The term “creaming and parking” has been used to describe this process. The Department for Work and Pensions have denied that “parking” is an issue, but then they would, wouldn’t they ?

A study by the Third Sector Research Centre at Birmingham University found  widespread “gaming” of the Work Programme by private sector providers. They argue that because providers are not paid until an unemployed person has been in work for two years it makes little economic sense to concentrate on the most “difficult cases”.  study also found that the largest private sector providers known as “primes” were guilty of passing more difficult cases onto sub-contractors.

Furthermore “parking” means that charities are not getting referrals under the Work Programme as such customers are not considered likely to result in a payment for the provider.

One interviewee told the study:

“It’s not being PC but I’ll just say it as it is … you tend to get left with the rubbish; people who aren’t going to get a job … If the [prime] thought they could get them a job, they wouldn’t [refer them to] someone else to get a job.”

I got parked.  At least I assume that was the reason why I heard nothing from Ingeus for a period of 10 consectutive months in the middle of my 2 years. It goes without saying that that was probably my most productive time on the WP.

When I returned it was with a bang…

To be continued…