Poverty: fact, fiction and help

Myths proved and refuted by Frank Field

People are better off not working and drawing the Assistance.

Untrue. The Supplementary Benefits Commission operates the wage stop rule which prevents a man drawing more in assistance than he would gain from working at his normal job. Schedule 2 of the Ministry of Social Security Act 1966 reads:

(2) Where this paragraph applies, the weekly amount of any supplementary allowance payable to that person shall not, when added to the amounts mentioned in sub-paragraph (3) of this paragraph, exceed what would be his net weekly earnings if he were engaged in full-time work in his normal occupation.

It is, however, true where a man drawing supplementary benefit is offered a job paying less than the poverty line.

People can live off assistance and refuse work offered to them.

Untrue. The SBC operates what it calls "control procedures ". Until 1968 these were that — a weekly allowance may be refused at the outset of a claim; -an allowance may be made conditional on attendance at a re-establishment centre; — an allowance may be made conditional on undergoing a medical examination; — a claimant, may be sued for nonmaintenance of himself and/or his family.

All these procedures still operate, together with the workshy rules which were announced in June 1968. The announcement by the Minister of Social Security, Judith Hart, is given below.

Mrs. Hart : I have become indeasingly concerned about the very small minority of people who are abusing social security provision. While established procedures have existed for many years to ensure prosecution in cases of fraud, or failure to maintain a family, I have been discussing with the Chairman of the Supplementary Benefits Commission what more should now be done, to check voluntary unemployment : that is, to ensure that supplementary allowances are not paid to those who, while unemployed, are not genuinely seeking new jobs.

Two new steps are to be taken whenever they are appropriate in the light of employment situation in the area. First, all new claims from unemployed persons under 45 who are drawing supplementary allowances will be individually reviewed after three months by one of my local officers. This ensures that no case escapes scrutiny. The review will entail in appropriate cases a searching and detailed interview, which will enable our officer to discover whether a man is simply not genuinely seeking work, or whether he has some disability or psychological handicap. This is a judgment which our experienced officers are very well able to make, and which they make with humanity and with skill.

If it appears that a man is not genuinely seeking work, he will be told very frankly that he must do so ; he will be told to take any suitable work which is available rather than waiting for a job which by its nature is hard to find. Most of those who are 'not genuinely seeking work are unskilled or semi-skilled : there will, of course be special consideration as there always has been for craftsmen and skilled workers who may need a longer time to find appropriate jobs. Where our officer decides that it would be justified, a man will be told that his supplementary allowance will not continue for more than four weeks.

Work will be rearranged in local offices as necessary to allow this work to be given the priority it must command. We snail apply this only when there are suitable jobs open to the claimants in question.

Second, when they first claim, most fit yo_ing single persons will be told',—Wrenever work is available in their locality, that they should be able to find work within four weeks and that after four weeks a supplementary allowance will not be paid to them. Again, there will be every safeguard in the mass of genuine claimants. For example, if a supplementary allowance is refused or terminated, there is, of course, a right of appeal to the independent local Supplementary Benefits Appeal Tribunal. There will, of course, be the fullest co-operation with the Department of Employment and Productivity.

The rules have now been extended to cover people over forty-five. Since 1968, over a quarter of a million claimants have had their allowances withdrawn after four weeks. The Department also engages the help of unemployment review officers who encourage unemployed claimants to find work. Their numbers are:

(House of Commons Hansard 16.12.71 Vol 828. Col 180) Large families are the major cause of family poverty.

Untrue. The major cause of family poverty is low wages. Here is what Sir Keith Joseph, Secretary of State for Social Services, said after he had looked at the figures:

First, I realised when I came closer to the figures that family poverty is not afflicting only families with large numbers of children. About one-third of families whose breadwinner is in work who are living below the supplementary benefit level are families with only one child.

Hansard November 10 1970 Vol 806 Col 218 It is also untrue that most families living on. social security have lots of children.

(All in thousands) No. receiving supplementary allowances (i.e. under pensionable age): 990 Number of children under 16 in family: 0 1 2 3 4 5 -i 566 167 116 69 40 32 Total with children under 16: 424

(From DHSS 1971 Annual Report Table 112) Some people live off social security for ever.

Partly true. But nearly a quarter of families drawing assistance have done so for less than three months and only 18 per cent have drawn benefit for five years or more. Retired claimants with little chance of improving their lot are the main beneficiaries of long-term assistance. However, with the high level of unemployment, a small but increasing number of families are becoming dependent on supplementary benefit for a longer period than is usual in times of good job opportunities. 46.5 per cent of old people drawing supplements to their pension have done so for five years or more.

You don't have to be destitute before being given Assistance.

Partly true. Under the Ministry of Social Security Act 1966, savings of less than £325 are ignored when a person's eligibility for benefit is being considered, for each £1 in excess of £800. But, the income of 5p a week is deducted from a claimant's allowances, and 121p a week for each £1 in excess of £800. But the figures show, nearly two thirds of claimants have no capital assets at all and, of this total, over four fifths of younger claimants have nothing to fall back on other than their weekly allowances.

Taxpayers pay out colossal sums each week to claimants drawing social security. True and untrue. Here are the weekly rates, which come into force on October 20: