From the Methodist News Service
Dear Mr Cameron
We are writing to express our concern that a number of recent Government announcements have had the effect of stigmatising the poor, especially those in receipt of out of work benefits. Our experience of working in deprived communities is that life on benefits is often a struggle, with difficult and stressful financial choices being a daily occurrence. We believe this reality is not well reflected in Government statements and needs to be at the heart of any debate on Welfare Reform
The stigmatising effect these announcements have had on the poorest and most vulnerable in society has been noted in a number of areas by the signatories of this letter, who may correspond individually at a later date. The single outstanding example has been Government rhetoric around benefit fraud. We in no way condone benefit fraud and would wish to see this reduced to zero, but we question the Government’s public emphasis placed upon it. For the financial year 2009-2010, the NAO estimates fraud to be 0.6% of the DWP benefits bill, while errors make up more than double this figure. The tendency to emphasise fraud when poverty and welfare reform are discussed often distracts attention from getting resources to those genuinely in need, which accounts for the other 99.4% of benefit spending.
The most important example of this misrepresentation occurred when your Chancellor conflated benefit fraud and error during his speech announcing the Comprehensive Spending Review on October 20th 2010.
He said:
“Nor will fraud in the welfare system be tolerated any more. We estimate that £5 billion a year is being lost in this way - £5 billion that others have to work long hours to pay in their taxes. This week we published our plans to step up the fight to catch benefit cheats and deploy uncompromising penalties when they are caught.”
As I trust you are aware the £5 billion figure is a three fold exaggeration of the true Government estimate of benefit fraud. The publication referred to above confirms that benefit fraud is estimated at £1billion, and tax credit fraud is estimated at £0.6 billion, making a total of £1.6 billion. The exaggerated figure is derived by adding the fraud estimates to the error estimates.
We agree with the Government that benefit fraud is a serious offence, but implying that the poorest perpetrate this offence three times more than is the case is clearly unjust. We also agree with you that the CSR will dramatically affect the lives of a generation, but the fact that issues around welfare reform are vital to the social and economic future of this country means it is imperative that the debate is informed by accurate information.
As speeches in the Commons are matters of public record we would ask that you instruct the Chancellor to correct his statement of 20th October. We would also ask that the Ministerial forward to the publication ‘Tackling fraud and error in the benefit and tax credits systems’ published last week by the DWP and HMRC, is similarly corrected, as it makes the same error.
We would ask for a speedy response as the debate on welfare reform is moving rapidly and deserves to be informed by the best and most accurate information possible.
Yours sincerely
Revd Martyn Atkins General Secretary The Methodist Church
Simon Loveitt Public Issues Spokesperson The United Reformed Church
Revd Graham Sparkes Head of Faith and Unity The Baptist Union of Great Britain
Rev. Ian Galloway Convener, Church and Society Council The Church of Scotland
Lt Col Marion Drew The Salvation Army
Niall Cooper National Co-ordinator Church Action on Poverty
Alison Gelder Director Housing Justice
{ 8 comments… read them below or add one }
Chris H 10.29.10 at 7:52 am
Good to see the churches showing their concern for the poor and disadvantaged. Couple of the larger denomonations missing though!
dh 10.29.10 at 6:43 pm
One can’t deny that fraud can happen anywhere. To suggest or imply that fraud is not at a certain level or that certain groups do not propagate fraud is just as hasty as people who say all poor people propogate fraud. Also to suggest that the figures are an exaggeration then one must look at all of the evidence.
Tony Buglass 10.29.10 at 9:47 pm
The evidence is clear. The Tories have got the sums wrong, and they’re blaming the poor for what the rich did. Typical Tory rubbish.
dh 10.29.10 at 10:32 pm
Tony, that’s totally your opinion based on your predisposition against the Tories. You may want to continue to deny the facts but the fact of the matter is that fraud can happen anywhere and to deny or ignore wherever it happens is being ignorant of all of the places and possibilities of where this occurs.
DaveW 10.30.10 at 9:15 am
dh,
Did you actually read the letter. The governments own published figures say benefit fraud is £1bn and tax credit fraud is £0.6bn ie a fraud total of £1.6bn.
In the speech on the Comprehensive Sending Review George Osborne say benefit fraud was £5bn.
If your own figures say £1.6bn but you tell the public it is £5bn then
a) you are lying
b) you are stigmatising all people on benefits by making them look like cheats. They are not.
These are facts.
Financially it means you make mistakes, you spend lots of effort chasing a small amount of money when Vodaphone have £7bn of tax evasion and total tax evasion is at least $40bn (some say £70bn).
Tony Buglass 10.30.10 at 6:39 pm
As DaveW has just pointed out - what I said was based on the facts. The evidence is clear - they got the sums wrong. Further, most of the rhetoric surrounding the current round of cuts has been to blame benefit fraud for our problems, and ignore the fact that the problems were caused by he bankers. They have also ignored the fact that their rich supporters have cost us far more in tax evasion/avoidance than the poor have ever cost in benefits. But who’s bearing the biggest share of the burden of retrenchment? Not the rich, that’s for sure.
You’re right that I have a disposition against the Tories. What you need to remember is - sometimes one can be biassed and right. Biassed or not, in this case I am right.
Joe 11.08.10 at 12:45 pm
David Cameron is correct, the poor have only themselves to blame.
Im 51 and always worked since 14 years of age, I once got made redundant in 1980 and never got any benefit, the benefit office blamed me as they said there was no record as i had never claimed before.
Years later due to an industrial accident I am now unable to work.
For years I work for low wages just enough to raise a family and get by but not enough to save, now I find myself depending on benefits.
I blame myself’ what a mug ive been paying taxes etc never been in trouble with the law and neither have my children, if i had the time over again I would have been the biggest crook going and would be more respected.
So they can withdraw my benefits and force me out to work but I’ll never take a low paid job again because if you lose it you are at the mercy of the tories, no I will starve first but I’ll steal rob do anything to eat I have told my children the same, they have moved the goalposts, so now im moving the goalposts the old rules no longer apply and once they stop my benefits they no longer represent me and its a free for all.
Its not benefit claiments who are the scum I know who the real scum are
Alec 11.08.10 at 1:07 pm
Where is the additional £3.4 billions coming from? I doubt it’s a lie rather than massaging figures, like the incapacity benefit scam in the early 1990s.