Friday 11 December 2009

Did Labour Really Create Welfare Dependency?

It’s a common criticism from Conservatives that Labour has created its ‘client electorate’ in the form of people drawing state benefits, that is, people dependent on the state for their beer, baccy and bingo money.

The reality is different. The Conservatives, between 1979 and 1997, created “welfare dependency” on a scale hitherto unseen. Take a look at the following table (numbers obtained from the Annual Abstract of Statistics for various years):

GDP

* (i) SSB: total social security benefits, cash

* (ii) RP: retirement pensions, cash

* (iii) total payments minus retirement pensions payments (cash paid to those commonly called ‘social security scroungers’, ‘layabouts’, ‘spongers’).

Now, if social security payments to the ‘scroungers, layabouts and spongers’ (SLS) increase as a proportion of GDP, only two possibilities exist: (i) the number of SLS has increased, or (ii) we are paying the SLS more. Personally, I would have thought that neither possibility would be an attractive contemplation for a Conservative.

National Statistics (ONS) changed the way that it reported Social Security spending (‘cash benefits’) after 2000/01. Table 10.24 in Annual Abstract of Statistics, 2009 shows that ‘total Government expenditure on social security benefits and administration’ was 11.5% of GDP in 2000/01, rising to 12.0% of GDP in 2003/04, and falling to 11.4% of GDP in 2006/07.

Then, take a look at the rows for 93/94 and 96/97, and compare to 78/79.

Did Labour create “welfare dependency?”

I think not.

Three by-Election Wins Sees BNP, Lib Dems and Tories beaten by Labour

Labour won three by-elections yesterday in Nuneaton, Dorset and Hampshire, with big swings from the Tories to Labour in both Westminster and Hastings.

Labour’s Ian Lloyd gained from the BNP in Camp Hill Ward for the Nuneaton and Bedworth Council, increasing the Labour vote by 17%.

Another gain for Labour was made by Kate Wheller in the Wyke Regis Ward by-election for Weymouth and Portland Council, who took the seat from the Conservatives with a swing of 17% since 2008.

In the Heron Wood Ward by-election for Rushmoor Council, Labour’s Alex Crawford won the seat from the Liberal Democrats, increasing the Labour vote by 11%.

Labour also held the seat in Queens Park Ward for Westminster Council, with Patricia McAllister increasing Labour’s vote by more than 10%.

In the St Helens Ward by-election for Hastings and Rye Councl, Michael Ward increased Labour’s vote by 12.5%.

Full details of yesterday’s by-election results.

Other news from Labour Matters

Learn more about Labour Matters