DWP dumps on benefit watchdog and ignores plea for more help for victims of domestic violence

The Department of Work and Pensions has rejected any changes to its new minimalist regulations to exempt victims of domestic violence -mainly women – from paying the ” bedroom tax ” and helping them to find out how they could qualify to keep more of their benefits.

Ministry turns down plea from social security watchdog

As I reported ten days ago the release of minutes from the little known Social Security Advisory Committee revealed in July the body chaired by Stephen Brien who worked for Ian Duncan Smith’s think tank had written to the ministry criticising the proposed regulations for being too narrow and the ministry for not running a prominent campaign to let victims know they will now be exempt.

The exemption applies to anybody who wants to stay in their own home and has thrown out an abusive partner and enrols in a sanctuary scheme – which provides extra locks, a fireproof letterbox and in extreme cases a reinforced door to a ” panic room” should the abusive partner return and break into the house.

The problem is that not all women know about this and the exemption only applies to council homes and flats. Also abuse from stalkers or strangers is not covered by the new regulations.

Mr Brien wrote: “Given the vulnerable situations of those affected, there is a compelling case for the Department to examine what options exist in terms of proactively identifying those potentially affected. This should be supplemented by a strong communications strategy that sets out clearly the criteria for this exemption, along with guidance on how to access it.”
“There is a risk that a number of claimants entitled to take advantage of this scheme, particularly those who have already benefitted from a sanctuary scheme security adaptation prior to these regulations coming into force, will be unaware of this change.”

Ministry rejects plea to change the regulation

But the DWP has told me not only will there be no changes but they had already implemented the regulations which came into force on October 1.

A DWP spokesperson said:

“The Department offers support to victims of domestic abuse, whether in the private rented sector or not. The benefit system acts as a safety net for people who find themselves in need of financial support with living and housing costs for a variety of reasons. A range of Universal Credit measures are designed to support victims of domestic abuse, including special provisions for temporary accommodation, same day advances, easements from work-related requirements and signposting to expert third-party services.”

Now for these regulations to become law they have to be scrutinised by Parliament. So I looked up what had happened.

It turns out the ministry laid the regulations before the House of Commons and the House of Lords on September 9 – a Thursday evening just before MPs and peers went off for the weekend. They were laid under what is known as a negative statutory instrument – which means that unless a peer or a MP objects they automatically can become law three weeks later.

Not one MP or peer spoke up about this

The regulations were laid alongside numerous other regulations including changes to Covid 19 pandemic regulations. Not one MP or peer objected or even spoke about it.

They would not have known about the criticism from the watchdog body because its minutes had not been published then. Nevertheless this shows up the ineffectiveness of MPs and peers – who have more time – in scrutinising what the executive is doing.

Given the high profile issue of violence against women after the kidnap and murder of Sarah Everard by a serving Met Police officer it is pretty deplorable that a ministry can get away with this.

Benefits watchdog keeps mum

I sent the ministry’s response to the watchdog body – which regards scrutinising regulations as its main priority – and it decided not to comment, preferring to keep silent about its advice being ignored .I haven’t had a reply from the House of Lords on why the new regulations were missed.

However I have discovered the ministry has issued new advice six days ago to its housing benefit officers. It is here and victims of domestic abuse should challenge officials about getting an exemption.

For those in England I would suggest contacting Shelter. The charity has a comprehensive guide for victims of domestic abuse here. It includes a list of other charities who can help.

So if the ministry, the social security watchdog and Parliament are so ineffectual, at least this blog can highlight some information so more people know about it.

Previous Blog

https://davidhencke.com/2021/10/03/exclusive-half-baked-and-half-hearted-dwps-help-for-women-facing-domestic-abuse-and-violence/

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Bad news for fighting Climate Change: How Whitehall bungled first Green home insulation scheme

Sarah Munby, permanent secretary, BEIS, clearly not to up to the job over this

In a few weeks time Britain will be playing a pivotal role by hosting the Cop 26 international climate change conference in Glasgow.

Tight targets are going to be set which if not met will mean even more dramatic weather catastrophes than we are seeing now as the planet warms up.

So is Whitehall up to the job? If one takes the first example of action to save energy the answer is a resounding no.

A damning National Audit Office reveals an extraordinary poor performance by BEIS – the business and energy ministry – in getting 600,000 homes – mainly owned by low income families updated with new home insulation to cut their fuel bills and save energy.

The Treasury had earmarked £1.5 billion. The ministry ended up spending only £314 million. Its 600,000 homes target was missed by over 550,000. The administration costs were astronomical – for a scheme that provided grants of up to £5000 or £10,000 for low income income families – it cost over £1000 per house. Instead of of 600,000 saving up to £600 a year in fuel bills – only 47,500 will benefit.

And it should have provided a much needed job boost providing work for 82,500 people during a time when work was in short supply Instead it created just 5,600 jobs before the scheme was closed down last March.

Worse still both customers and contractors were badly treated. Delays paying contractors and customers getting their vouchers led to over 3000 complaints.

Why Sarah Munby is to blame for this fiasco

Who is to blame for such a mess? The answer must lie with the permanent secretary, Sarah Mundy. She is supposed to be this new business friendly appointment bought into government by the Tories to shake up Whitehall. Her biog on the gov.uk website said: “Sarah joined BEIS in July 2019 as Director General, Business Sectors. Before that, Sarah worked at Mckinsey, where she led their Strategy and Corporate Finance practice in the UK and Ireland.

“She has worked with some of the UK’s largest companies to change their strategic direction, and led much of McKinsey’s work on productivity across the UK economy.”

But she in no way lived up to her billing. To be fair HM Treasury gave the Department an over-ambitious 12-week timescale to design the scheme, consult with stakeholders and procure an administrator.

This came at a time when the Department was supporting vaccine procurement, and undertaking activities related to EU Exit. The Department accepted that delivering the scheme within this timescale posed a high risk, but judged it was justified by the need to support businesses in the wake of the COVID-19 pandemic.

A US global company’s cheapskate bid

But it is at the back of the NAO report that her real failings show up. She was obviously entranced by business to use a new state of the art digital voucher system and gave the contract to ICF, a US global consulting and technology company, based in Fairfax, Virginia. The report reveals they put in a cheapskate bid. Their technology was not up to the job as shown by repeated reviews of failures in the digital voucher scheme. This led to the scheme having to managed manually- which is why it cost £1000 per house.

The NAO said: “ICF’s proposed costs for the development of the digital solution were less than half that of the second cheapest bidder, triggering the need for a review under government contracting guidance. The Cabinet Office review concluded there was not enough information within the bids to understand specific costs, and thus whether any adjustment should be made for a low bid.”

But it came back to Sarah Munby. She ignored the Cabinet Office. Having chosen the contractor she was then warned by every single contractor asked to undertake the work that it couldn’t be done in time. But she still went ahead.

Whitehall sceptics ignored

And the same came from inside Whitehall. The Department presented the Scheme’s full business case to its Project and Investment Committee on the 28 September, ahead of the Scheme’s final approval for launch on 30 September last year. The Committee decided not to approve the full business case, raising concerns that the digital systems for the Scheme were not yet fully developed and tested. They were right but still she ignored them and went ahead. Within six months it had to be abandoned and it is largely her fault. As a result hundreds of thousands low income families have lost the chance of cutting their energy bills this winter.

One can only agree with the verdict of Meg Hillier, chair of the Commons Public Accounts Committee.

“The Green Homes Grant scheme was set up to fail, with an undeliverable timetable and overly complex design which took little account of supplier and homeowners’ needs….

Government cannot hope to achieve its net zero ambitions if it doesn’t learn the lessons from this botched scheme.”

Book review: Home Truths and the disaster facing the Tory Party if it can’t help Generation Rent

Liam Halligan Pic credit: Twitter

This is a humdinger of a book. Its author Liam Halligan – a cerebral Brexiteer rather than a flag waving, Rule Britannia supporter – exposes and then tries to solve – the biggest crisis facing the younger generation. They either can’t afford to buy their own home or haven’t a hope in hell if they are poor in getting social housing.

The huge hype in house and land prices – which is still going on despite the pandemic – is exposed in this book as part of deliberate policy by landowners and an oligopoly of huge house builders – to maximise profits, provide sub standard new homes and prevent any changes in planning laws which would release land for housing.

The government is committed to ” build, build, build” hundreds of thousands of new homes for the young generation who increasingly are having wait until they are 40, if they are lucky, to own their own home. Like many political promises this is unlikely to materialise under present government policies and he explains in graphic detail why this will not work.

Instead by subsidising buyers under the Help to Buy scheme they are fueling house price rises and only helping the better off – who also get help from the Bank of Mum and Dad – to acquire a home.

Home Truths book

This well researched book shows that Attlee’s government had the idea of how to both build a lot of council housing and incentivise builders to expand home ownership. But both aims have been destroyed by successive governments -including the error under Tony Blair and Gordon Brown – not to build any council houses.

The current Tory promise is undermined by the fact – exposed in the book – that the party is hamstrung by its donors – many of whom are committed to making more money by keeping house prices high and building land rationed. The big builders have also gobbled up many of the small builders – the very people who have incentives to build homes fast – to strengthen their monopoly.

The result was in 2017 that Jeremy Corbyn garnered votes from the young frustrated at having to eke out of their lives in either overpriced rent sharing properties or stay at home with mum and dad while they were in their 30s. Now without Jeremy Corbyn around to scare the Tories, the government might think they can still get away with it.

Ian Mulheirn Pic credit: Institute for Global Change

Labour need to step up to this problem. They are not financed by landowners. One thing they shouldn’t do is take any notice of the Tony Blair Institute. The former PM’s chief policy maker actually believes there is no housing shortage. Ian Mulheirn is using Blair’s platform to peddle the idea and argue that we should not build hundreds of thousands of new homes. Presumably he is happy for the young to pay ever increasing rents or stay with their parents., The big builders and private landlords must love him.

What is good about this book is that the author also proposes solutions which are pretty radical and involve a major reform of planning legislation ,changes to the value of land and penalties for builders who just hang on to sites. And a major social housing programme as well. Well worth a read. If the Tories don’t act they risk alienating a whole generation.

Electoral rolls falling and Millennials head for Spain

I have added a couple of my own blogs that illustrate the results that the author hasn’t mentioned. One shows the declining electorate in central London because so many properties are going to overseas buyers and are used as AirBnB’s. The others show that if we are not careful this permanently rising market could be used for property developers to take over the care home market. The third is a very recent article in the i paper showing that the millennials are voting with their feet and helping fuel a Spanish property boom. Talented tech savvy young Brits are finding you can rent a whole villa in Marbella for the price of a crummy flat share in London and they are basing themselves there. The country is starting to lose vital young talent.

https://bylinetimes.com/2019/12/05/zombie-neighbourhoods-londons-disappearing-voters/

https://davidhencke.com/2021/03/15/how-the-genteel-retiree-world-of-centenarians-was-shattered-by-the-ruthless-modern-model-of-social-care-capitalism/

https://inews.co.uk/news/uk/costa-del-covid-millennials-swap-uk-drizzle-work-remotely-spain-gain-post-brexit-rights-1003386

Labour: Revival or Nemesis?

Sir Keir Starmer: Labour leader Pic credit: BBC

Labour needs popular policies that attract people from Carlisle to Camden

It would rather cruel to say Sir Keir Starmer named after Labour founder Keir Hardie should be the leader that led to its nemesis. But the weekend’s election results in the North East and the Midlands show it is Boris Johnson’s Conservatives that are the new champions of working class voters there not Labour.

That is not to belittle Labour’s achievements in Wales, Cambridgeshire, the West of England and the South Coast. In Worthing for example, Labour has gone from having no councillors there for 51 years, to a place where the Tories are reduced to a majority of just one.

But it is to say that Labour have lost the plot. They are fighting quite a different Tory Party than under Theresa May or David Cameron and they don’t seem to have got the message. This Tory Party is a high spending, interventionist party wrapped up in the trappings of Rule Britannia and law and order. It is prepared to spend loads of cash in targeted working class areas where it can garner votes and is happy for an image of Gunboats at Dawn with the French in Jersey over fishing rights knowing that a NATO ally is unlikely to open fire.

For Labour there is a choice it can either ape the flag waving ,law and order, overseas aid cutting agenda of the Tories or it could look for new ground to take on the changed Tory Party.

I have four ideas for the latter and they all affect millions of people whether they live in the North, Midlands or South of the country. If successfully implemented they could change hearts and minds.

Having a decent affordable home for Generation Rent

The first is finding a home to live. For younger people under the age of 40 this is rapidly becoming an unobtainable dream as house prices continue to surge way above wages. They are either stuck in expensive flat sharing or forced to continue living in their parent’s home. No chance to aspire to start a family there. And with little council house building social housing is not easily available for the poor.

For a real analysis of this problem read a book called Home Truths by Liam Halligan. It is a comprehensive analysis of what has gone wrong. Labour could do little better than plagiarise the ideas in this book as part of their manifesto.

The Tories – though promising to build more homes- are on the back foot on this one. Their second largest group of donors are property developers – whose rationale has to be to get the most profits for their shareholders and investors. This, as the book explains, means ensuring that house prices continue to rise and they will only rise if they drip feed rather than grossly expand house building. So here’s one policy that will appeal whether you are in Brighton or Barnsley- and it can be sloganised in simple terms as it is both aspirational and a basic need.

Time for Labour to embrace the new world of freelance working

The second is the new world of work. The old huge battalions of workers in the mines, shipyards and even steel no longer exist – the new world of work is often hi tech , freelance contracts or new businesses or low paid work in Amazon or Deliveroo. Yet neither the outdated national insurance system nor employment law helps them. Ed Miliband promised a small step in reforming national insurance under his leadership – to ensure at least the self employed millions got basic help. And this group were the worst off under the furlough scheme. Again the government is weak in this area and whether you have a start up in Maidenhead or Middlesbrough you will benefit.

Women’s rights

Then there is the equality issue -particularly for women. Johnson is not particularly popular among women. And women are half the electorate. There are still issues of inequality, low pay and a law and order issue over women’s safety – so a women’s bill of rights to end injustice and make them safer in the streets would be very popular.

Equal access to the green revolution

Finally there is the issue of green policies. Yes the government is committed to these – but will help be distributed fairly or will electric cars be the prerogative for the better off. There is an area where carefully pointing out the problems and promising to do something about it will be attractive.

These are just some ides.. But whatever happens Labour has to up its game and get out of this continual internal battle talking to themselves and talk to the voters instead. Otherwise it will lead to its traditional male working class voters permanently voting Conservative and its more left wing voters backing the Green Party. It could disappear down a hole in the middle if it doesn’t get its act together and decide what it stands for.

How the genteel retiree world of centenarians was shattered by the ruthless modern model of social care capitalism

Mary Fielding Home, Highgate Pic credit: Mary Feilding Guild

This spring a group of very elderly, sharp minded and bright people will be evicted from a care home where they hoped they would end their lives by a ruthless capitalist who epitomises the new privatised world of social care providers.

The home is unusual in many respects. It caters for bright academics and authors and is a living community of a university of the third age – the oldest is 104 and still going strong. It also occupies a site on the borders of Highgate and Hampstead in London with a book value of £3.8m -a tempting find for any developer.

The group have been placed in this position by the failure of the unique trust, the Mary Feilding Guild, a charity set up in 1962 but dating back to 1882, to make ends meet. The combination of Covid 19, the closure of one of its properties on the site, not being in a position to take new residents, and the need for major modernisation all contributed. The value of the charity’s investments fell from £1.8m to £824,142 in one year.

So the trustees decided to sell it as a ” going concern ” with the aim of finding someone who would keep the residents there and have the funds to improve and modernise the home. Enter Mr Mitesh Kumar Dhanak or Mr Mitesh Girharlal Dhanak as he now prefers to be called. He offered to buy it as a going concern.

Mitesh Dhanak Pic credit: Precious Homes

Within five days of owning it for as yet undisclosed sum he decided to evict everyone by the end of May, declare the staff redundant, demolish the entire home and put a planning application for a new home to Haringey Council.

Mr Dhanak, 63 next month, is not a trained social care or health specialist. He is an accountant with a degree from Sheffield University. He set up his first business Precious Homes in 1994.

His views on the sector were outlined at a Care Conversation webinar on 14 October last year: ” “In terms of the KPIs ( Key Performance Indicators )that funds would look at, it’s property backed, it’s resilient cashflow, it’s government backed – it ticks all the right boxes.” He added later: “Unfortunately, the British press loves the horror stories. It’s about lobbying the government and making sure that our voice is heard and our contribution is recognised. It’s incumbent on all of us to try to do that.”

Now Mr Dhanak has created a complex group of interlocking companies – holding according to Companies House – 27 appointments. All of them are virtually one man bands – himself and a secretary and nobody else – making it difficult to follow his story.

They embrace a small number of care homes for adult care plus the elderly with Alzheimer’s Disease and a property company with investments from Neasden in North London to Barnsley and St Albans. He also got into an enormous tussle with Revenue and Customs when he moved some homes tax free into his pension based in Guernsey- but after a bitter battle he proved the tax people had made an error in law and he won.

The services he provides are rated Good by the Care Quality Commission and he has ploughed money from bank loans into providing a good standard. He also is a trustee of the Cheltenham Playhouse.

The centre of his operations are Precious Homes at Magic House close to Palmers Green. Each each company follows a similar pattern. They are £100 off the shelf companies and within days of him either setting them up or taking over from another operator their assets are mortgaged to the banks – his favourite ones being Coutts and Clydesdale Bank.

His latest £100 company which took over the Mary Feilding Guild home ,Highgate Care is a good example. He has already mortgaged the site to one of his own companies Precious Homes. But this time he has decided to go to a tax haven to get a second mortgage from the Waymade Capital, a Jersey based company run by brothers Vijay and Bhikhu Patel.

The company also has interests in health care, pharmaceuticals, and property and the brothers, both Kenya Asians, originally made their money by setting up a chain of pharmacies which they sold on to Boots. Vijay was awarded an OBE in 2019 under very controversial circumstances. An investigation by the Times revealed he had rebranded generic drugs and overcharged the NHS. This was not picked up by the committee awarding him the honour.

It wrote “Atnahs, a company he co-founded, acquired the rights to old medicines and increased prices by up to 2,500 per cent, costing the NHS at least £80 million. A packet of antidepressants rose from £5.71 to £154 and an insomnia drug soared from £12.10 to £138.” The company now has a financial interest in the Highgate home.

No answers to questions on finance or the price he paid

Mr Dhanak declined to answer through his communications agency any questions about the financing of his ventures or the price he paid for the property.

He did provide an explanation for his change of mind. “The team held meetings within days of completion as there was no desire to mislead residents or staff once a decision was made. Within five days, nearly 40% of the residents have already found potential new homes and we are confident that this trend will continue with the support of the Highgate House team.”

“Since the sale was agreed, the new owner in consultation with professional advisors reviewed the existing model and considered a number of options, including operating the home in its current format and concluded that regrettably it would not be possible to continue to provide care in the same way.  The home has been financially unsustainable for a significant period of time and the Mary Feilding Guild trustees would be aware that a new owner would have to make significant changes.”

owner intends to demolish property, says trust

The trust have also issued a statement: “We now understand that the new owner intends to demolish the existing property and build a completely new home on the site. Four days after completing the sale the purchaser announced a three-month notice period to the staff and residents after which the home will remain empty.

“However, it will take at least seven months to produce a detailed design, obtain planning permission, and commence construction. During this time the home could have been kept open for existing residents, and staff, rather than force them to move, and making staff redundant. The elderly residents will now be forced to seek alternative accommodation during the COVID restrictions, therefore severely limiting their choice.

Please don’t evict them by the end of May

” We are appealing to the new owner to reconsider this wholly unnecessary decision to shut the home immediately. We believe that it is not unreasonable to delay the closure procedure, to one month, before a start on site is possible. This would allow residents and staff reasonable time to consider their options, and by this time the pandemic should have eased.”

The lessons from this saga are two fold. The trust’s lawyers appears to me to have been very naive in not demanding guarantees for their residents in writing. And Mr Dhanak’s business strategy depends of an ever rising property market and ever bigger sums of money being available to local authorities for social care. If there is a major hiccup in either or both of these – the banks are going to demand their money back pretty sharpish and lot of vulnerable people are going to be evicted.

In the meantime Mr Dhanak can retire to his beautiful home in Hampstead Garden Suburb purchased for £2.5 million with a Clydesdale Bank mortgage, according to the land registry,. Here’s a nice picture of it.

Exclusive on Byline Times: Disappearing London voters as foreign buyers and new build AirBnBs flood neighbourhoods

110-112 Vauxhall Bridge Road; One of the AirBnBs block of apartments springing up in Westminster Pic credit: booking.com
The Surprise: This was the old pub that is now a new rebuilt AirBnb The original planning application was for it to be replaced by residential housing.

I have done a special investigation for Byline Times showing the extraordinary contrast between the decline of the electorate in Westminster and Kensington and the huge property and tourist boom bringing in non voting oligarchs, foreign buyers and purpose built blocks of AirBnBs.

This may have contributed to Labour winning Battersea and Kensington from the Conservatives at the last election. This time it is not so clear as Labour and the Lib Dems are vying for votes.

See my full story here.

On Byline Times: The failed Tory manifesto pledge that dashed the hopes of 200,000 first time buyers

Promised starter home? Pic credit; Money Which?

As the manifesto season gears up – a very timely report today from the National Audit Office. It reveals David Cameron’s 2015 manifesto pledge to build 200,000 homes for first time buyers has resulted in not a single starter home being built. The full facts of this failed pledge are on Byline Times here.

Revealed: The £200,000 food bank warehouse in Amber Rudd’s Hastings constituency caused by the Universal Credit debacle

amber rudd

Amber Rudd- former home secretary and MP for Hastings as the Universal Credit debacle rolls out in her constituency

CROSS POSTED IN BYLINE.COM

The  billion pound plus failure of the implementation of Universal Credit is rightly condemned by the National Audit Office in a report published today.

Aimed to save money, get everybody back to work, simplify a complex benefit system and to be easily implemented.  Instead it is going to cost more, is years behind schedule, discriminates against disabled and poorly educated people, and the government has plans to force the elderly not entitled to a pension to have to use it when it  changes entitlement to pension credit ( see my earlier blog here)

But it is also having appalling consequences for food banks, landlords, council and housing association tenants – as the example in Amber Rudd’s constituency ( details down below show).

In the meantime ministers today were patting themselves on the back today how successful it is while senior civil servants behind  it were awarded  bonuses worth up to £20,000 each for its botched introduction ( see an earlier blog  here and  an article in the Sunday Mirror).

The statistics are appalling. According to the NAO :

“In 2017, around one quarter (113,000) of new claims were not paid in full on time. Late payments were delayed on average by four weeks, but from January to October 2017, 40% of those affected by late payments waited in total around 11 weeks or more, and 20% waited almost five months. Despite improvements in payment timeliness, in March 2018 21% of new claimants did not receive their full entitlement on time with 13% receiving no payment on time.

The Department does not anticipate payment timeliness to improve significantly in 2018. On this basis, the NAO estimates that between 270,000 and 338,000 new claimants will not be paid in full at the end of their first assessment period throughout 2018. Those with more complex cases are more likely to be paid late.

The Department expected most claimants would have enough money to cope over the initial waiting period after their claim is submitted (previously six weeks, now five). In reality, nearly 60% of new claimants (around 56,000 a month) receive a Universal Credit advance to help them manage before receiving their first payment.But they have to pay it back which means deducting an average £43 a month from their benefit. 

But while the statistics are bad, the examples are worse.

12363209_1719999128235421_6846245651388343898_o

Hastings Foodbank

Appendix 5 of the report  reveals In  Amber Rudd’s Hastings  constituency for example, according to the NAO Hastings foodbank has increased its opening hours, needs around two tonnes of stock each week to meet demand, and is considering building more storage space, costing £200,000.”

Hastings Citizens Advice pays staff to deliver Universal Support delivered locally. It therefore needs to pay providers regardless of the number of people
that are referred for support. But its income from the Department is not guaranteed so it can’t plan

Hastings Citizens Advice is considering scaling back on what it does in order to cope with increased demand.

Similarly NHS Hastings and Rother Clinical Commissioning Group funds its local advisory services. But this takes time to identify and secure. This hampers the ability of organisations to employ high-quality advocates because of the uncertainty of future funding.

.Hastings and Rother Credit Union no longer accepts Universal Credit claimant because of the complications in dealing with the new benefit and the long time waiting for people to be paid it.

Other areas have also got problems.Landlords are carrying extra debt – Croydon’s rent
collection rate has fallen from 92% to 58%, and its bad debt provision has doubled to £8 million.
Sedgemoor Council  in County Durham reported an increasing unwillingness, even with social landlords, to take on low-income tenants or those claiming Universal Credit.

So the government has piled on misery upon misery for the claimants,. voluntary organisations, food banks, landlords, credit unions, local authorities and health services. Meanwhile ministers on excess of £100,000 a year go home to expensive houses, enjoy fine wines, expensive meals out and luxury holidays while boasting how they are helping the poor. Some sick joke. As Amyas Morse, head of the National Audit Office, said today:

“The Department has pushed ahead with Universal Credit in the face of a number of problems, but has shown a lack of regard in failing to understand the hardship faced by some claimants.

“The benefits that it set out to achieve through Universal Credit, such as increased employment and lower administration costs, are unlikely to be achieved, yet the Department has little realistic alternative but to continue with the programme and hopefully learn from past mistakes.”

 

Hypocrisy and double standards: How a Tory flagship council denies the ” just about managing ” their new homes

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Nickie Aiken – Westminster Tory leader and a bit of a hypocrite over housing

CROSS POSTED ON BYLINE.COM

Today Philip Hammond the Chancellor made a big statement aimed to help the young get on the housing ladder with promises to build hundred of thousands of new homes and no stamp duty for the first £300,000 of the cost of a first time buyer home.

At the same time the Tory flagship council of Westminster has just decided NOT to make available affordable homes for young people which  it could provide by legally demanding a deal with a developer to provide cash and new homes for ordinary people in the centre of London.

The development around Baker Street by Portman Estates will allow the company to make a mint by building 51 homes, new offices and shops in a part of London where flats easily go for over £1m and much more.

By law Westminster could demand that nearly a third of the homes are made available at affordable (still high) rents to ordinary people and that the developers given £12.5 m towards the council’s own affordable housing fund – this is used often to export the homeless to other cheaper places.

In fact council documents show Westminster is about to agree a deal to accept the wealthy developer’s offer of providing just ten affordable homes ( under 20 per cenr) and contribute less than half the £12.5m the council could demand  from them = by agreeing to their offer of £5m.

You might think that this is well par for the course for the council that was famous in the 1990s for the ” homes for votes ” gerrymandering scandal under Dame Shirley Porter. They tried to move out poor families by letting new council homes to the middle class in Tory marginal seats.

But the new feisty leader Nickie Aiken  – she gave a good compassionate speech at the Tory party conference in a local government fringe – has made the point of NOT being another Dame Shirley.

She has told the Financial Times in June : “My view is that too many times we have not always pushed back enough in requiring affordable homes on-site, have buckled on viability or surrendered to the idea that brutal market economics simply denies housing opportunities for most people and that is just a harsh fact of life.”

And in case you missed it told the London Evening Standard  the same thing in January this year.  They reported : She suggested she would do things differently by no longer accepting “cheques” from developers in lieu of building more affordable homes.

“I can tell you there will be a lot more built under me than today.”

Well really – what a hypocrite – obviously not accepting cheques from developers meant they needn’t pay her so much to make even more money.

Councillor Paul Dimoldenberg, Labour’s Business, Planning and Public Realm spokesperson, said:

 “Once again the Conservatives prove that they cannot be trusted on delivering new affordable homes for Westminster residents. The Conservatives talk tough but roll over when developers plead poverty on major multi-million pound redevelopment schemes. The Conservatives are giving the go-ahead to more luxury housing and failing those in need of an affordable home in central London.”

If anything he was probably being too polite. The Tory leader is very keen to show a compassionate face for next May’s elections. The trouble is deeds count much more than words for the plight of young people who can’t get homes. Hypocrisy is not necessarily a good vote winner. I bet you don’t see this story in the London Evening Standard.

The full details  of the planning application and Westminster’s recommendation are here.

 

Theresa May’s wasted £11.2 billion of taxpayers money on initiatives Tory youth doesn’t want

Adam-Smith-InstituteCROSS POSTED ON BYLINE.COM

The Tory conference was supposed to be the point when Theresa May announced a raft of policies to challenge Jeremy Corbyn’s wooing of the youth vote.

If she had  left the main platform of the conference and slipped into a packed Adam Smith Institute fringe meeting at the Manchester conference she would have been sorely disappointed.

The meeting chaired by a young Times journalist ,Grant Tucker, was meant to be a discussion on what  the millennial generation want and how they can get young voters away from Jeremy Corbyn.

Predictably it was hostile to any Corbyn programme of  rent control and nationalisation but what was extraordinary was the hostility to the May announcements earlier in the week.

The meeting was  heavily dominated by the housing crisis facing the young Tories – almost to a man and woman – all privately renting and paying up to 50 per cent of their monthly post tax income for small rooms in shared flats.

The £10 billion put aside to massively expand the Help to Buy programme was universally condemned from both the platform, by Madsen Pirie from the Adam Smith Institute, and by the audience as exactly the wrong thing to do.

Madsen Pirie

Madsen Pirie Pic credit: wikipedia

They saw it as putting up house prices even more beyond reach and doing nothing to aid the supply of affordable homes. Nor did they want a big council house building programme.

What they wanted was a liberalisation of the planning laws and a mass release of land to allow not a few thousands but a million, yes a million, homes built  in three years to totally change the affordability of housing and bringing back mass home ownership.

Nor were they impressed with a £1.2 billion spent freezing student loans at £9250 and raising the pay back level to £25,000. What they wanted was instead the abolition of the new 6.1 per cent interest rate on loans, pointing out that this could add £5000 to payments soon after students graduated.

So how has May got this so very,very wrong. The answer was plain to see. The Tory leadership is not listening to them. What came over to me was that thus young strand of the Tory’s future had no influence on what their leaders did and were very frustrated and even angry about it.

Unlike at Labour where it is clear that young people – as members of the party had an input – these young people seemed to be treated as election fodder to get the mainly elderly Tory vote out.

There was other thing I noticed at this gathering.There was not a black or brown face to be seen, they were universally white, again unlike Labour. Yet they were not all from the Tory shires, some were from multiracial Bristol, and another from Camberwell and Peckham. Given what diverse place this is, I was surprised there was no ethnic minority representation. I had seen a more diverse audience at an earlier fringe organised by Westminster council.

What this augurs for the future of the Tory Party is not good for them. Their membership is already elderly and falling. If they don’t take any notice of their young membership they are doomed to oblivion – just as Tory campaigner John Strafford said earlier this week.