This article was written by Larry Elliott, economics editor, for The Guardian on Monday 17th March
The scale of Britain’s growing inequality is revealed today by a report from a leading charity showing that the country’s five richest families now own more wealth than the poorest 20% of the population.
Oxfam urged the chancellor George Osborne to use Wednesday’s budget to make a fresh assault on tax avoidance and introduce a living wage in a report highlighting how a handful of the super-rich, headed by the Duke of Westminster, have more money and financial assets than 12.6 million Britons put together.
The development charity, which has opened UK programmes to tackle poverty, said the government should explore the possibility of a wealth tax after revealing how income gains and the benefits of rising asset prices had disproportionately helped those at the top.
Although Labour is seeking to make living standards central to the political debate in the run-up to next year’s general election, Osborne is determined not to abandon the deficit-reduction strategy that has been in place since 2010. But he is likely to announce a fresh crackdown on tax avoidance and measures aimed at overseas owners of high-value London property in order to pay for modest tax cuts for working families.
The early stages of the UK’s most severe post-war recession saw a fall in inequality as the least well-off were shielded by tax credits and benefits. But the trend has been reversed in recent years as a result of falling real wages, the rising cost of food and fuel, and by the exclusion of most poor families from home and share ownership.
In a report, a Tale of Two Britains, Oxfam said the poorest 20% in the UK had wealth totalling £28.1bn – an average of £2,230 each. The latest rich list from Forbes magazine showed that the five top UK entries – the family of the Duke of Westminster, David and Simon Reuben, the Hinduja brothers, the Cadogan family, and Sports Direct retail boss Mike Ashley – between them had property, savings and other assets worth £28.2bn.
The most affluent family in Britain, headed by Major General Gerald Grosvenor, owns 77 hectares (190 acres) of prime real estate in Belgravia, London, and has been a beneficiary of the foreign money flooding in to the capital’s soaring property market in recent years. Oxfam said Grosvenor and his family had more wealth (£7.9bn) than the poorest 10% of the UK population (£7.8bn).
Oxfam’s director of campaigns and policy, Ben Phillips, said: “Britain is becoming a deeply divided nation, with a wealthy elite who are seeing their incomes spiral up, while millions of families are struggling to make ends meet.
“It’s deeply worrying that these extreme levels of wealth inequality exist in Britain today, where just a handful of people have more money than millions struggling to survive on the breadline.”
The UK study follows an Oxfam report earlier this year which found that the wealth of 85 global billionaires is equivalent to that of half the world’s population – or 3.5 billion people. The pope and Barack Obama have made tackling inequality a top priority for 2014, while the International Monetary Fund has warned that the growing divide between the haves and have-nots is leading to slower global growth.
Oxfam said the wealth gap in the UK was becoming more entrenched as a result of the ability of the better off to capture the lion’s share of the proceeds of growth. Since the mid-1990s, the incomes of the top 0.1% have grown by £461 a week or £24,000 a year. By contrast, the bottom 90% have seen a real terms increase of only £2.82 a week or £147 a year.
The charity said the trends in income had been made even more adverse by increases in the cost of living over the past decade. “Since 2003 the majority of the British public (95%) have seen a 12% real terms drop in their disposable income after housing costs, while the richest 5% of the population have seen their disposable income increase.”
Osborne will this week announce details of the government’s new cap on the welfare budget and has indicated that he wants up to £12bn a year cut from the benefits bill in order to limit the impact of future rounds of austerity on Whitehall departments.
Oxfam said that for the first time more working households were in poverty than non-working ones, and predicted that the number of children living below the poverty line could increase by 800,000 by 2020. It said cuts to social security and public services were meshing with falling real incomes and a rising cost of living to create a “deeply damaging situation” in which millions were struggling to get by.
The charity said that starting with this week’s budget, the government should balance its books by raising revenues from those that could afford it – “by clamping down on companies and individuals who avoid paying their fair share of tax and starting to explore greater taxation of extreme wealth”.
The IMF recently released research showing that the ever-greater concentration of wealth and income hindered growth and said redistribution would not just reduce inequality but would be economically beneficial.
“On average, across countries and over time, the things that governments have typically done to redistribute do not seem to have led to bad growth outcomes, unless they were extreme”, the IMF said in a research paper. “And the resulting narrowing of inequality helped support faster and more durable growth, apart from ethical, political or broader social considerations.”
Phillips said: “Increasing inequality is a sign of economic failure rather than success. It’s far from inevitable – a result of political choices that can be reversed. It’s time for our leaders to stand up and be counted on this issue.”
Landed gentry to self-made millionaires
Duke of Westminster (Wealth: £7.9bn)
Gerald Grosvenor and his family owe the bulk of their wealth to owning 77 hectares (190 acres) of Mayfair and Belgravia, adjacent to Buckingham Palace and prime London real estate.
As the value of land rockets in the capital so too does the personal wealth of Grosvenor, formally the sixth Duke of Westminster and one of seven god parents to the new royal baby, Prince George.
The family also own 39,000 hectares in Scotland and 13,000 hectares in Spain, while their privately owned Grosvenor Estate property group has $20bn (£12bn) worth of assets under managemenSpaint including the Liverpool One shopping mall, according to leading US business magazine Forbes.
Reuben brothers (£6.9bn)
Simon and David Reuben made their early money out of metals. Born in India but brought up in London, they started in local scrap metal but branched out into trading tin and aluminium.
Their biggest break was to move into Russia just after the break-up of the Soviet Union, buying up half the country’s aluminium production facilities and befriending Oleg Deripaska, the oligarch associate of Nat Rothschild and Peter Mandelson.
The Reuben brothers are still involved in mining and metals but control a widely diversified business empire that includes property, 850 British pubs, and luxury yacht-maker Kristal Waters. They are also donors to the Conservative party.
Hinduja brothers (£6bn)
Srichand and Gopichand Hinduja co-chair the Hinduja Group, a multinational conglomerate with a presence in 37 countries and businesses ranging from trucks and lubricants to banking and healthcare.
They began their careers working in their father’s textile and trading businesses in Mumbai and Tehran, Iran but soon branched out by buying truck maker, Ashok Leyland from British Leyland and Gulf Oil from Chevron in the 1980s, while establishing banks in Switzerland and India in the 1990s.
The family’s London home is a mansion on Carlton House Terrace, overlooking St James Park and just along fromclose to Buckingham Palace, which is potentially worth £300m. They have links with the Labour party.
Cadogan family (£4bn)
The wealth of the Cadogans family is built on 90 acres36 hectares of property and land in Chelsea and Knightsbridge, west London.
Eton-educated Charles is the eighth Earl of Cadogan and ran the family business, Cadogan Estates, until 2012 when he handed it over to his son Edward, Viscount Chelsea.
Charles, who is a first cousin to the Aga Khan, started in the Coldstream Guards before going into the City.
He was briefly chairman of Chelsea Football Club in the early 1980s and his family motto is: “He who envies is the lesser man.”
Mike Ashley (£3.3bn)
Ashley owns Newcastle United football club and became a billionaire through his Sports Direct discount clothing chain which he started after leaving school.
He was the sole owner of the fast growing business, which snapped up brands such as Dunlop, Slazenger, Karrimor and Lonsdale, until it floated on the stock market in 2007. He now owns 62%.
Ashley is a regular visitor to London’s swankiest casinos but is famously publicity-averse
Source – Welfare News Service, 17 March 2014
> At one time I’d have maybe filed a story like this under ‘Urban Myth’… nowadays, who knows ?
Britain today – everything is for sale.
Cash-strapped Britons are lining up to sell a kidney on the black market, a Sunday Post investigation has revealed.
Advertising organs for sale is illegal in the UK and anyone caught attempting it can face a three-year jail term.
But a Sunday Post investigation found people across the country so desperate for cash they were willing to flout the law.
Our reporter posed as the brother of a woman desperately needing a transplant and placed an advert on a Facebook page specifically set up to buy and sell organs.
Within a week he had received 11 offers from desperate people worldwide willing to risk their lives to drag themselves out of poverty.
Many of the black market operations take place in India, Pakistan or China in an underground industry controlled by ruthless gangs.
Donors from Britain would need to travel abroad to avoid tough checks — including medical assessments and in-depth interviews — carried out by the Human Tissue Authority (HTA) on all live donors in the UK.
Among the people to contact us was a man from north-east England who claimed he realised it “would be a big thing to do but for the right amount I would be willing”.
Our reporter held detailed discussions with the self-employed dad-of-three, including his blood type, the state of his health, a £30,000 payment for the donation and arrangements to meet in person.
A 22-year-old dad living in Northampton was happy to accept £20,000 for his kidney because he and his pregnant fiancee desperately need to raise enough money to return to their native Hungary.
The cash-strapped dad, who has studied at two colleges in Northamptonshire, became frustrated our reporter was not progressing the deal quickly enough and has since placed a new advert, wanting a sale “as soon as possible”.
Others to respond included three Indians willing to travel abroad, a Mexican man who revealed he was desperate for cash and a woman from Tanzania.
Meanwhile the site also contained recent adverts placed by desperate Britons willing to risk their lives and freedom for cash.
A 28-year-old man from Banchory, Aberdeenshire, placed a message online in which he claimed he would talk to anyone willing “to make an offer”.
The man who works as a chef in Scarborough, North Yorkshire, had several replies to his message.
A mum from Hampshire has placed two adverts online describing herself as having an O-negative blood type and “has a passport” suggesting she is prepared to travel abroad.
Experts at the World Health Organisation, which in 2012 revealed 10,000 black market operations involving organs were taking place every year, reacted with shock at our probe.
Luc Noel, a special advisor based in Switzerland, said: “Your Facebook experience is revealing. It demonstrates the vulnerability of some people and the power of easy money. This is one of the reasons to prohibit payment.
“Meeting patients’ needs also demands that there should not be any divide created by financial incentives.”
Jeff Powell, campaigns and policy director at anti-poverty charity War on Want, said: “It is shocking that people are so poor that they would be willing to sell a kidney for cash. This level of desperation is a direct result of governments, both at home and abroad, prioritising corporate profits and the interests of the rich over the fight against poverty and inequality.”
Alan Clamp, chief executive of the HTA which regulates live organ donations throughout the UK, said“It is illegal to offer or seek payment for organs for sale under the Human Tissue Act, and no operation from a living donor can go ahead without our approval.
“Before a transplant from a living donor goes ahead, the hospital transplant team will assess if the donor is suitable and run several tests to ensure the transplant will be as successful as possible.
“An independent assessor, acting on behalf of the HTA, will then carry out interviews with both parties and report back.
“We need to satisfy ourselves that the donor knows the risks involved, that the donor has given consent freely and no reward has been offered or received.”
Kidney transplants should take place when tests show the damage is so great the patient will require dialysis within six months.
But because of a chronic shortage of available organs this seldom happens, unless the patient receives a live donor from a family member of friend, with a compatible blood and tissue type.
The average wait for a transplant is three years but for people with rare blood groups and tissue types the wait can be much longer.
NHS Blood and Transplant has revealed across the UK there are currently 7,044 patients on the transplant waiting list of which 5,668 are for kidneys.
Currently there are around 10,000 people in the UK needing a transplant and three people die every day due to a shortage of organs. During 2012/13, 4,212 transplants took place, the majority of which were from dead donors, with 1,000 from living donors.
In 2011 broadcaster Jon Snow launched a campaign to encourage altruistic kidney donations after it was revealed wiping out the kidney transplant waiting list would save the NHS £650 million over five years.
The campaign led by Charity Give a Kidney — One’s Enough revealed the average cost of treating a patient in the final stages of kidney disease is £150,000 over five years.
By contrast, the average cost of transplantation per patient over five years is £50,000.
Source – Sunday Post 09 March 2014
A piece from RT.com by Tony Gosling, which pretty accurately sums up the current situation for many in “Great” Britain today.
Not satisfied with their seventh home, brace of sports cars and servants, the rich are paying Tory politicians, press and the City to grind the faces of Britain’s poor into the dirt.
Millions of hardworking families can no longer afford a social life, shoes for their children, to go swimming or to the cinema.
A depraved Sheriff of Nottingham is ruling Britain. While the superrich loan shark 0.001 percent are given the red carpet treatment to loot the family silver, Sheriff Cameron and his Bullingdon Club bullies are putting all the blame at the door of whom? The destitute and disabled.
Past recessions and the desire of businessmen to drive down wages and conditions have swelled the numbers of the unemployed in Britain to around 3 million. Since the post-World War II Labour Party ‘National Insurance’ and ‘Social Security’ laws, these jobless have always been given enough by the government to live on. But those days are over under this sheriff, the poor are being lashed.
Including government help with inflated housing costs, Britain has around 25 percent of the population dependent on various welfare payments. Cameron’s wheeze is an online ‘Universal Credit’ scheme to lump all these payments into one. After several hiccoughs and cost overruns the latest 140 million pounds (US$225 million) written off from this pilotless project just this week beggars belief. It could have provided a year of low paid public sector jobs for around 10,000 people languishing on the dole and saved the taxpayer a cool 300 million pounds altogether.
It has been left to the poorest in society, struggling after being stripped of their statutory legal aid, to challenge these attacks in the courts. Last month forced laborer Cait Reilly won a Supreme Court challenge and her slavery scheme was ruled unlawful. Now this week government abolition of ‘Independent Living Allowance’ for disabled people has also proved Sheriff Cameron and his poor-bashing henchman Iain Duncan-Smith have been breaking the law.
This week figures emerged too that a staggering 700,000 of Britain’s poorest unwaged, while denied work, have had their subsistence payments removed for not complying with a privatized scheme called the ‘Work Programme’, designed to bully them into low paid work.
Undercover recording back in 2012 revealed privatized employment staff being trained to regard the jobless as not deserving anything to live on at all. Job advisers were told by training staff to regard clients as ‘benefit scrounging scum’.
My own experience on this scheme verifies consistent bullying tactics are being used daily on the thousands of the weakest in society. The complaint system which I tried to use turned out to be a crooked sham, but the private company running my scheme, Seetec, still stands to be rewarded with approximately 15,000 pounds of taxpayers money for doing nothing to help me find work at all.
While on the program I witnessed one unwashed, educationally subnormal young man of about 25 arrive for his interview in clothes that looked as if they hadn’t been changed in weeks. Just before he sat down, his ‘job adviser’ yelled at him in front of the whole open plan office, “Back again are you? You said you would. Why haven’t you got a job yet?!”
The young man visibly shrank back from the chair as if he was preparing himself to receive a physical punch, his eyes were darting around as if for a safe place to run to, or perhaps someone he could trust.
The young woman who had stopped talking to me, my adviser, visibly cringed. Not saying anything she made it clear to me she didn’t approve of her colleague’s behavior – the cruelty was naked and inexcusable. She left the job shortly afterwards.
Before I left that day another client told me the police had been called to deal with a fight earlier, but as he was telling me the story I had to get up and move away. Another client started swinging his right arm back and forth, remonstrating about how he had been practicing throwing hand axes, grinding his teeth as he described what a mess they made of someone you didn’t like when lodged in their back.
On the way out that final day I got chatting in the lift to a 50-year-oldish woman who told me she had a degenerative nervous disease. Government contractors ‘Work Capability Assessment’ company, ATOS had certified her ‘fit for work’ so she had to struggle into Bristol City center three times a week to apply for jobs she knew – in competition with able bodied young people and migrants – she could never get.
Since Britain has enjoyed such high living standards and maintains its position as one of the wealthiest handful of countries in the world, we are feeling the ‘pinch’. The sense of injustice and moral outrage has become palpable on the BBC TV’s weekly ‘Question Time’ which nowadays breaks out into angry exchanges despite the producers largely keeping the socialist left off the panels.
It’s a policy designed to start a second civil war, threatening ordinary people with starvation, prison or eviction seems to be all Britain’s coalition government can think of to ‘motivate’ the populace.
Just as Switzerland’s wicked Gessler had his William Tell and France’s Villefort family had their Count of Monte Cristo, quietly Britons are beginning to see Robin Hood’s Merry Men coming together.
The market’s nightmare vision is for a Big Brother technocrat and authoritarian regime. But what Britain and the rest of the NATO zone really needs is a reasserting of the Universal Declaration of Human rights, a united front for an updated set of universal social standards with no sinister strings attached.
Switzerland and Cyprus are now proposing one excellent solution, the basic income, but go one stage further and we can guarantee citizens for free what that basic income is supposed to provide.
As its first priority the state should abolish the threat of eviction, instead making the dignity and subsistence the order of the day. Water, food, healthcare, energy and a rent-free roof over every head. Above and beyond that people will have plenty of time to work and better themselves, with taxes kicking in as families pursue more luxurious lifestyles.
A nationalized banking system that goes hand in hand with good government would force the moneychangers out of the temple, to serve the people once more. We’d have no more of their weasel words: ‘There’s not enough money for that!”
Original article – http://rt.com/op-edge/britain-poor-denied-work-425/