The Pickles Tax

The government, supported by much of the tabloid media, portrays those in receipt of benefits as workless and idle. The reality is that many of those benefits go to working families on low incomes, and they are going to be the hardest hit by a series of cuts in financial support.

Council Tax Benefit provides support to 5.9 million low-income families – including many pensioners- more than any other means-tested benefit or tax credit in the UK. The government is devolving decisions about and the budget for the benefit to local councils from next April. However, at the same time, the government is cutting 10 per cent off the funding it provides for council tax support, but limiting how local schemes can be constructed. Clearly the intention is that the government gets the credit for cutting welfare spending and councils get the blame for the cuts.

About 2 million low-income working households currently receive council tax benefit In fact, many more working households will be affected, as many low-income families experience temporary or short-term work and go in and out of benefit during the course of a year.

From next April, they will face a cut in that benefit of about £250 a year – for some it could be even bigger. Councils will be faced with the considerable expense of trying to collect £5 a week from millions of households. It’s little wonder that Conservative Lord Patrick Jenkin – who conceived the original Poll Tax – has described this as Poll Tax Mark 2. Personally, I think it should be called the Pickles Tax, after its originator Eric Pickles, the current Conservative Secretary of State for Communities and Local Government.

Now, after councils have ended consultations on local council tax benefit schemes, Eric Pickles has suddenly realized that his tax is heading for disaster and panicked. He’s suddenly announced a one year £100 million package – from the annual £500 million he’s cutting – to try to avoid the shambles ahead.

However, the conditions that Eric Pickles is proposing – and remember it’s only for one year – almost certainly mean that councils could only access these funds by increasing even further the cuts to other council services. Councils will be damned if they do, and damned if they don’t. Does Eric Pickles care? I doubt it.

Well, I’m badgered!

Mr Brock has received a stay of execution. At the last minute – just as the guns were about to fire - the government has announced it will delay its planned cull of badgers in England until next summer.

The Conservative Secretary of State, Owen Paterson said the cull "should have begun earlier this summer but had been delayed until after the Olympics and Paralympics, with recent bad weather also hampering preparations.”

Well, I have to say that the badgers were as surprised as me to learn these reasons. Were Mr Paterson’s ‘trained marksmen’ all competing in the pentathlon and shooting events? Were G4S meant to be making the security arrangements for them? Were the badgers all taking part in some Olympian underground event that the media failed to report?

The truth is that proposed cull is scientifically unjustified and the government's handling of the badger cull is simply incompetent and shambolic.  I’ve been telling the government for the last two years that a cull would be bad for farmers, bad for taxpayers, bad for wildlife and, most obviously, bad for badgers.

I’m not alone.

Professor Lord John Krebs, the Government’s own Chief Scientific Adviser and who led the 10 year trial of badger culling says  "The scientific case is as clear as it can be: this cull is not the answer to TB in cattle. The government is cherry-picking bits of data to support its case."

And Professor Lord Robert May, a former government chief scientist and president of the Royal Society says "It is very clear to me that the government's policy does not make sense."

As RSPCA chief executive Gavin Grant now says "We welcome this postponement, but this must not be a temporary reprieve, but must mark an end to all cull plans. Science, the public and MPs from all parties had said very clearly that a cull is no answer to bovine TB."

The cull’s postponement is just the latest episode in David Cameron’s omni-shambles. Why doesn’t he do the right thing for once and just permanently cancel the cull?

Young people paying the price

Sheffield’s young people are paying the price for this government’s economic failure, as long term youth unemployment in our area continues to soar.

Today’s national unemployment figures are masking an increasing crisis in Sheffield and our region.

There is no let up for young people in Sheffield who are increasingly shut out of the job market because of this Government’s economic failure.

Long term youth unemployment in Sheffield has increased by 149% - from 490 to 1220 - in the last year. Each of those is a tragedy, and the government’s lamentable failure to act leaves them with little hope.

And, there were just 3,652 vacancies for the 18,023 people looking for a job in the city.

 
There is now a real danger that Britain is becoming a very divided country. Yet the government is busily taking money – in local government, public health, transport, education and more - from the areas with the biggest challenges and giving it to those areas in the south-east with the least.

Long-term unemployment has risen yet again. The number of young people out of work and claiming benefits for more than a year went up yet again, and three-quarters of Britain has higher unemployment than at the election.

More than a third of people out of work have been jobless for more than a year in the clearest sign yet that the Work programme is not doing the job.

The national increase in people in jobs has come from an increase in those in part-time jobs or on temporary contracts.

Energy prices up – do something

Did you, like me, have a letter from your energy supplier this morning?

Did it tell you that prices are going up, but not by how much? Well, it’s an open secret that energy prices are likely to rise by 6-9% in the next two months.

Energy prices went up by 20% last year, and nearly 50% over the previous four years. Last year, the average duel fuel bill was £1345 per household and standard tariffs rose by £175 between May and October. Pensioners, families and businesses all felt the squeeze as electricity prices rose by 10% and gas by 17.4%.  Yet, energy companies had seen their profits soar in the same period.

And, what was the government’s response? It cut winter fuel payments by £50 for the over 60s and £100 for the over 80s. Most aged 60-79 got £50 less, and those who were 80 or older got £300 instead of £400. Before the last election, when challenged that a Conservative government would cut the winter fuel allowances, David Cameron had said “These are quite simply lies.” You can draw your own conclusion.

Energy bills are now one of the biggest costs facing households - but only 20% of people are currently on the cheapest deal. This isn’t surprising when research by consumer group Which? showed that, even when people try to shop around for a better deal, energy companies don’t give them accurate information in a third of cases.

It’s clear that hard-pressed families and businesses need more transparency on costs, pricing and profits to know whether they're getting a fair deal. But they’re clearly not going to get much help from this government, which shows no interest in protecting struggling households and vulnerable customers from being ripped off.

However, a new initiative launched today might just help. Switch Together helps people to club together to negotiate a cheaper deal with energy companies. You may have seen websites where you can compare energy costs to find the cheapest rate. But this is different because if lots of people get together and switch all at once, there is greater potential for a good deal. This is what Switch Together scheme does.

It's easy and safe, and support and guidance is available throughout the registration and switching process.

You need to register before 25^th November 2012. After the deadline they'll hold an auction with energy companies to find the cheapest deal - which will then be available to everyone who signs up. They’ll do all the work for you and let you know if you could save money.

There's no obligation to take it if it's not cheaper than your current deal - but the more people who sign up, the more likely it is that it will help households cut their costs over winter.
Sign up at www.switchtogether.org.uk before 25^th November 2012.

LINE UP – we’re being taken for a ride

This week, SKY announced that it will increase phone line rental charges by more than seven times the rate of inflation from December. The line rental charge will jump from £12.25 to £14.50 a month – that’s 18%. Sky is also increasing the cost of daytime calls, from 7.95p to 8.41p a minute and its call connection fee will go up from 13.1p to 13.87p.

Similarly, BT has announced a rise in line rental charges £14.60 a month to £15.45 from January 2013. And, BT’s call charges will also go up. Full-price daytime calls will rise from 7.95p a minute to 8.41p and the call connection fee will rise from 13.1p to 13.87p.

Virgin and TalkTalk have already implemented way-above-inflation increases in line rental charges, but BT and Sky are the dominant domestic telecoms suppliers.

There are a number of things that strike me about these announcements.

First, what is the justification for these inflation-busting increasing line charge rentals? I can’t think of one. One telecoms supplier – Primus – charges £8.25 a month. It uses the same infrastructure as the other suppliers. Is it subsidising its line rental costs? I don’t think so. So, why are the dominant suppliers charging nearly 90% more for that part of the bill which is inescapable?

Secondly, increasing the line rental charges means that those who make the fewest calls – typically pensioners on the lowest incomes – are facing the highest percentage increases in their bills.

Thirdly, in what the suppliers call a ‘highly competitive market’, how do BT and Sky manage to arrive at exactly the same costs for daytime calls and connection fees? Is it coincidence? I don’t think so.

That’s why I’ve called on the Competition Commission and the Secretary of State for Trade and Industry to launch an investigation into the telecoms’ suppliers and, particularly, these latest announcements.

The straw that breaks the camel’s back

90% of the benefit cuts, that the government has announced so far, are yet to be implemented. And, because the coalition government’s economic strategy has failed, David Cameron has announced that an additional £10bn cut in the welfare budget must be made. The media were briefed that these additional cuts would be targeted at financial support for people in work.

Already, changes in the rules on eligibility for working tax credits have had a big impact on families who have been unable to increase their working hours. From next year, changes in housing benefit and council tax benefit will hit many low income working families very hard.

Let me tell you about Janet.

She left school at 16 and went straight into full-time work. It was low-paid and the prospects were poor. Later, she started evening-classes, got some qualifications, but had to move away from home to get a better job, but her bigger income was swallowed up by rent and travel costs.

When she was 25, she met Paul. Like her, he’d also got on his bike to find a job. They saved up and got married 2 years’ later, but found that, despite both working full-time, they would never be able to buy a home in London and the high rent meant there was little spare cash.

Paul was offered a job back home in Sheffield. They jumped at the chance, found a private flat to rent and, after a couple of months, Janet also got a part-time job. House prices were increasing rapidly, again out of their reach. They put their name down on the council’s waiting-list.

Then, Martin arrived; they hadn’t planned to have a baby then, but they were delighted. Janet gave up work to look after him. When he was 5, they were offered a three-bed council house; it wasn’t in the area they wanted, but they’d make it their home. Janet went back to work part-time. They paid full rent and council tax. They put all their spare money in to decorating and furnishing the house just as they wanted; they never borrowed for anything.

And then, when Martin had just started secondary school, Paul became ill. The cancer was ravenous. He had to stop work and, as he became more ill, Janet gave up work to look after him. Last year, Paul died. Janet and Martin were devastated. The funeral costs wiped out their savings. Janet’s mum gave them a lot of support, travelling 30 miles to stay with them for two nights each week. They’ve had to make a new life.

Janet has now got a part-time job, but her employer can’t offer her the extra hours necessary for working tax credit. Financially, they can keep their head just above water. But, she’s worked out the sums. Next year, she’ll have to pay more council tax, because of the government’s cut in council tax benefit. And, now, they’re deemed to be living in a house which is too big for them; so, her housing benefit will be cut as well. Together, she’ll be about £20 a week worse off. If she moves to a smaller home – from the one they’ve carefully made into a home over the last 7 years – she can’t afford to re-furnish it, and her pensioner mother would have to sleep on the couch.

Janet and 39 other similar Janets will be facing financial catastrophe and family disruption so that a millionaire can have a £40,000 tax cut next year. For Janet, these cuts will be the straw that breaks the camel’s back.

Time to measure up

Any planning policy and system is all about trying to resolve the competing interests of individuals and organisations, in the context of history, addressing current and future social, economic and environmental needs. It’s a tricky balancing act. One person’s nightclub is another’s noisy nightmare.

In the 1980s, Margaret Thatcher thought that the solution to our economic challenges lay in us taking in each other’s washing. Now, David Cameron thinks that allowing everyone to build a house extension or conservatory is the answer to the UK’s lack of economic growth.

David Cameron has announced that everyone should be allowed to build large extensions to their homes without planning permission. Currently, homeowners can build a single- storey 10ft extension if they live in a terraced property and one of 13ft if they live in a detached house – all without planning permission. These limits came about after previous consultations had determined that this was about the right balance between individual freedom and the point where neighbours might reasonably expect their views to be taken into account. After all, any extension of most homes will have some impact on neighbouring properties, like access to light and overlooking. One person’s light is another’s darkness.

Now, the Prime Minister has decided that the limits for building without planning permission should be doubled to 20ft and 26ft for a three-year period only. And

Eric Pickles – the Coalition Government’s Environment Secretary - has gone so far as to declare war on councils opposing his planning free-for-all by urging residents to sue if they are not allowed to build large extensions in their back gardens. In a provocative intervention, Mr Pickles said those whose plans were turned down should seek damages against their local authority.

However, a growing number of  Conservative councils – including the planning minister Nick Boles’s own Lincolnshire council – have criticised the move, saying it will blight communities, slash house prices and set neighbour against neighbour.

Before you reach a view about whether the policy is good or bad, I suggest that you and your neighbours get your tape measures out and plot out 26 foot single-storey extensions for everyone.

Boost badgers; cull the coalition!

Not satisfied with launching attacks on students, council services, ordinary working families and many more, David Cameron and Nick Clegg have now decided to wage war on badgers.

The government has issued a badger culling licence to a consortium of landowners in Gloucestershire and a second licence will be issued to farmers in Somerset within days.

You might think that this might be justified if bovine TB was to be eradicated, but when you learn that the objective is to reduce TB in cattle by just 16% over nine years in the immediate area, you soon realise that the scheme is complete madness.

There is a long-standing problem with bovine TB in the UK. But, there is a huge amount of contradictory evidence about whether badgers give TB to cattle or cattle give it to badgers. 

There is also no scientific evidence that culling badgers actually deals with the problem of TB in cattle; indeed a past trial shows it could actually make it worse. That was why the last Labour Government decided not to cull badgers, but to look for vaccination as a long term solution, as there is considerable scientific evidence that that policy would work. As a result, plans to begin culling in Wales were recently abandoned by the Welsh Assembly in favour of a vaccination policy.

Now, Lord Krebs, the government's most respected scientific adviser says that the coalition government’s scheme is crazy. Not believing that anyone with a hint of common sense, let alone a full understanding of the science, could possibly go ahead with these proposals, he went public with his views. "I would go down the vaccination and bio-security route rather than this crazy scheme that may deliver very small advantage, may deliver none.”

The cull is bad for farmers, bad for taxpayers, bad for wildlife and especially bad for badgers.

Time to clean up

In 1936, George Orwell walked in to Sheffield over Wincobank Hill – he was writing The Road to Wigan Pier. He noted of Sheffield “It seems to me, by daylight, one of the most appalling places I have ever seen.  In whichever direction you look, you see the same landscape of monstrous chimneys pouring forth smoke which is sometimes black and sometimes of a rosy tint said to be due to sulphur.  You can smell the sulphur in the air all the while.”

The Clean Air legislation and policies of the 1950s had a dramatic effect upon pollution levels across the city, but particularly in the east end. Mind you, until relatively recently, some of the remaining industrial activities in the Don Valley meant that building new homes in Attercliffe was not an option.

But, whilst air quality has generally improved, some parts of the city have increasingly suffered from air pollution mainly caused by traffic. The pollution levels breach national and European thresholds. It is estimated to account for up to 500 premature deaths per year in Sheffield, with health costs of around £160 million per year. It has short and long-term health impacts, particularly for respiratory and cardiovascular health, including increased admissions to hospital.

People in Tinsley have been particularly affected by pollution from the M1, where traffic levels have continued to rise. It is clear that no real improvements can be made without government action. However, it has recently announced that it intends to introduce traffic management arrangements on the M1, including use of the hard shoulder during peak times. There is a real danger that this could worsen the situation, unless traffic speeds are reduced.

With the support of local Councillors, I am again pressing Ministers to come clean (sic) about the action that the government intends to take to ensure that the EU targets are met. I’ll keep you advised of the response.

From the Poll Tax to the Pickles Tax

Millions of people around the country are facing rises in their council tax from April 2013 on the orders of Eric Pickles, Secretary of State for Communities and Local Government.

Eric Pickles has lectured councillors that they have a moral duty not to increase council tax bills, whilst he has been planning a £450 million council tax bombshell of his own. But this is a bombshell that is to be paid totally by people on low incomes.

In a desperate bid to get councils blamed for this latest stealth tax, Mr Pickles has told councils that they can choose who gets the tax rise. But, it’s rather like offering the falsely condemned man the choice of being hanged or be-headed.

Councils are forced to choose between increasing  council taxes on the working poor – over 740,000 working families currently benefit because their income is low - or those of the disabled or of families with young children. As pensioners are protected, others face a 16-25% cut. In the most cruel twist, those living in the least wealthy communities will get the biggest cut.

And, just as happened with the poll tax, councils will be forced to spend a fortune chasing people on low incomes for relatively small amounts of money they simply don't have.

When taken together with cuts in housing benefit and working families’ tax credits and education maintenance allowances, it is inevitable that many low income working families, who so far have continually managed to keep their heads just above water, will now lose the struggle. They won’t be waving, but drowning.

The Budget killed off Nick Clegg's claim that we are all in this together. But, to see big tax cuts for millionaires and significant tax increases for those on low incomes planned to come in on the very same day next April tells us everything we need to know about whose side the coalition is on.