Sunday, September 23, 2012

Welfare Reform - The Labour way

Over the last two weeks I have chaired two Policy Forums on the hot topic of welfare reform. The first at the North West Regional Labour Party Conference with Kate Green MP, Vice Chair of the NPF as well as Cllr Anne Duffield, Shadow Cabinet member for Trafford. And the second at the Blackley and Broughton Constituency Labour Party again with Cllr Anne Duffield. Both were well attended with 60 or so delegates at each one and drew out lively discussions and debate.

A number of key messages were common in both Forums;

1) The Labour Party needs to raise its political game on this, standing up for the most vulnerable while developing an alternative credible welfare vision.

2) Labour councils need to work together with housing providers to highlight the implications for tenants, looking at measures to mitigate some of the damage (“a challenge to say the least”)

3) A future Labour government needs to regulate rents to bring down the housing benefit bill and use revenue savings to increase the supply of affordable homes (build more houses).

4) Legislate to curtail the loan sharks introducing a maximum Annual Percentage Rate on credit.

5) Make work pay through a living wage and fair taxation.

As a Manchester councillor I have already seen a marked change in some of the issues being presented to me at advice bureaus and through correspondence. The re-assessment regime targeted at those constituents on disability benefits is throwing up some surprising and unjustified results. I would be amongst the first to support reform that made the welfare state active, providing a helping hand into work, training and education opportunities.. The evidence presented to me so far is a reformed system that has a nasty edge shaped by ideological dogma in pursuit of at least £18 billion of cuts.

Unfortunately “we ain't seen nothing yet” with the impending bedroom tax,(effecting 14,000 tenants in Manchester) localised and cut council tax benefit (50,000 Manchester residents) and the introduction of the Universal Credit.(64,000 Manchester residents)

In my ward alone 208 Tenants will be affected by the bedroom tax, many facing a reduction in income by as much as £25 per week. On top of this they face cuts in council tax benefits and having payments provided directly on a monthly basis rather than to housing providers on a fortnightly basis. When faced with a choice between providing for the family or paying bills, many will put their loved ones first creating a deteriorating cycle of debt.

Please do email me with your ideas on welfare reform or get in touch if you need support.



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