Opinion: Winning the next election – making poverty history

Winning power for the Liberal Democrats to form the next Government will depend on three main policy platforms.

First, ‘Making Poverty History’for the individuals and families in this country. Second, an effective NHS that delivers healthcare where it is needed and when it is needed; not a gravy train for employing administrators. And third, to maximise the freedom and security of our citizens while being in effective control of the country. Paradoxically, this will entail dismantling our 19th century bureaucracies and scrapping unnecessary regulation.

These policy platforms directly impact on peoples’ lives, unlike the issues of climate change and whether or not to renew Trident, important as those issues are.

As an individual – which for the government is the primary source of all data and information – passes through the health system, the education system; gets a job and enters the taxation system; loses a job and enters the benefit system; gets ill, and back into the healthcare system; starts a business, and gets more involved with the taxation system; retires and becomes part of the pension system: no wonder our government systems are overloaded. You have to multiply that one citizen by 60 million!

I have spent most of my life in poverty. By this I mean I am unable to take up pastimes and interests that I would want to do, such as sailing or gliding. Or travel once a month from North Devon to Birmingham to visit my mother in a nursing home. Or visit my grandchildren. It costs too much in fuel if I drive, or too much in time if we go by coach. Or afford a holiday every year.

Here are some issues which help to keep people in poverty: first, the benefit trap. The minimum wage is approximately £5.60 per hour. For a 37.5 hour week that comes to £210, out of which National Insurance contributions and income tax has to be deducted: say £175 net.

If one is on benefit and has children, and you want to keep everything ‘above board’, you have to notify your local council. This means your housing and council tax benefit is stopped until they work out what proportion of benefit you are entitled to. And they cannot do that until you provide them with at least three payslips. While you are waiting, you have to pay the full rent and the council tax. If you don’t, you get letters threatening court action and eviction.

If there is a partner on pension credit, like myself, all but £10 is deducted, so my £181 pension credit is reduced by the amount my partner earns. Plus paying full rent of £80+ per week. Of course, you can then apply for working tax credit… What a nightmare scenario!

All this is because we have muddled benefit system. On one hand it is based on individual need; on the other it is based on a couple’s income. In a sense, the whole benefit system should be scrapped. Either you are employed by a business or non-profit organisation, or you are “employed” by the state to earn your benefits.

People should be required to do voluntary work of their choice, Or study for their GCSE’s if they have not got them. Or undertake to attain a minimum standard of cardio-vascular fitness. In other words, the benefits system is not ‘a charter for dossers’. This could, of course, go hand in hand with the Liberal Democrat policy of empowering people. The smallest democratically elected, and funded, apolitical unit should be, in my view, the local residents’ association. Forget about grandiose regional assemblies: let each residents’ association have its own post office, hold community competitions for the areas with the best front garden, being litter free, the least vandalism.

If you want people to be resposible citizens, let us give them responsibility. Democracy depends on trusting the people.

I will write about the NHS in my next article. [Update: now posted here.]

* Bob Wootton blogs at A Lib Dem Vision.

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17 Comments

  • Andrew Duffield 3rd Dec '07 - 5:01pm

    CI is the answer; LVT the means to fund it. A brace of complementary Liberal policies in want of a party to take them forward!

  • Advice needed... 3rd Dec '07 - 6:08pm

    Does anyone have any advice about whether there is a way to replace a lost voting slip? (which, annoyingly, was filled in and ready to be posted)

    Im guessing the chances of getting another one are unlikely at this stage??

  • Geoffrey Payne 3rd Dec '07 - 6:17pm

    The premise that climate change will not affect people’s lives is false. We are seeing an increase in Extreme Weather Events (EWE) that scientists put down to global warming. This summer people were forced out of their homes due to flooding. It is possible that even those affected do not link climate change to the flooding, but we as Liberal Democrats should make sure that they do!
    I would argue that most issues in politics are important in some way, I wouldn’t reduce it down to 3.

  • Advice needed: contact [email protected] with full details as soon as possible. I’m not quite sure what the rules says on this, but that’s the way to get the definitive answer.

  • The housing benefit system makes it virtually impossible for anyone who is not in permanent paid employment to get work on a temporary, contract or casual basis. Dealing with housing benefits bureaucracy is a total nightmare and forces people into the black economy. The system was explicitly created by Margaret Thatcher to transfer money into the pockets of private landlords, a sector which was not of any great significance for housing provision prior to her ‘Right to Buy’ legislation which devastated local authority provision of housing. I don’t know what the Party’s solution to this aspect of the poverty trap is, but I would be delighted if we had one.

  • Giving people money is not going to end poverty.

  • Out with HARD labour for the british tax payers, out with subsidising immigrants and spongers, including politicians spending. IN WITH BNP!

  • Citizen’s Income is an interesting idea to solve poverty, but LVT is not going to provide adequate funding for it, is not it the fairest method of doing so, nor could it answer questions of hypothecation.

    Using taxation as a method to redistribute wealth as income fails to address the perpetuation of an unjustifiably unequal distribution of value across the economy, as well as opening up the possibility for those with the means and motivation to abuse the inevitable loopholes.

  • David Morton 1st Apr '08 - 7:23pm

    I think this is a strong article but a couple of points.

    1. i think adopting the “Make Poverty History” motif for UK residents is a bit crass.

    2. I don’t accept that Climate Change and Trident don’t effect ordinary people.

    3. compulsory work isn’t “voluntary”. I think you run the danger of creating hundreds of thoasands of in effect state employees dig holes and the half filling them in again.

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