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A tough year ahead for many

Posted by Kate Green, MP for Stretford and Urmston, at 09:29, Thu 3 January 2013:

My very best wishes to you all for a happy and peaceful new year.

But for many households, 2013 will be a very hard year. Public spending cuts will bite deeper than ever. Too many people remain in insecure jobs, or worried about loss of hours or pay freezes. The longer you’ve been out of work, the harder it is to find a job, and that is especially worrying for young people, desperate to get a start in life. And cutbacks to tax credits and help with housing costs that many families, including thousands in low-paid work, rely on will cause real hardship.

Ministers, notably Iain Duncan Smith, are now making it perfectly clear that cutting spending isn’t a matter of balancing the books, it’s all about a vicious and ill-evidenced ideology. Claiming that limiting the uprating of benefits to below inflation is fair because wages are also rising more slowly completely ignores that the majority of those hit by the uprating policy are in jobs, and so they’re being hit by a double whammy. Arguing that fraud is out of control when it is at a record low overlooks the fact that it is error by officials and benefits claimants that is actually on the increase – so much for making systems simpler for the claimant. And let’s remember it wasn’t out of control public spending that put the UK (along with the rest of Europe and the USA) into recession, but a banking crash that resulted from weak national and international regulation – regulation that the Tories said before they were in government should have been even less stringent.

In fact, the economic position’s been getting worse, not better, under the present government. Public sector net borrowing was higher in November 2012 than in November 2011. Having to pay out more in benefits to people who can’t find work because government policy has squeezed the economy so hard really isn’t sensible economic policy. Even apparent good news – increased private sector employment, and falling youth unemployment – come with a sting attached. Many of the new jobs are parttime, with people forced to take these jobs because they can’t get fulltime work. Only 20 per cent of the increase in employment in the last year has been as a result of full time employee jobs. And since 2008 there has been an 82 per cent increase in the number of temporary workers, so many of these new jobs don’t offer real security.

So families continue to face great uncertainty, and will struggle to make ends meet. Many will find the financial support they’re entitled to will be reduced as the government cuts back on benefits for disabled adults, disabled children, carers, and those who need help with council tax or rent. And many will also struggle to get access to the financial and other advice they need – in Trafford, the council is considering cuts to advice services of £250,000.

There’s no substitute for face to face advice when people are in real difficulty, coping with a host of complex problems. But with times so tough, I’ve been really pleased to work with charity Turn2Us, the Money Advice Trust and Money Advice Service to launch an online advice tool that my constituents and advisers can access by logging onto my website at http://www.turn2us.org.uk/kate_green/transition_page.aspx. This site provides loads of information about benefits, grants and debt advice that can help people to maximise their incomes, and claim all the help they’re entitled to. Please do take a look - I’d love to hear your feedback on the site, and hope you find it useful.

Kate Green

Member of Parliament for Stretford and Urmston

Shadow Minister for Equalities

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