The welfare reform minister's lament about the risk-averse poor is simply a rationalisation for a policy of deep cuts
Every once in a while, politicians take the time to remind us of the
duties of the poor. The latest to take the pulpit is the Tory peer Lord Freud,
a former city banker who has since advised both New Labour and the
Tories on "welfare reform".
This time, the poor are told they must take
more risks, abandoning the "lifestyle" of welfare for the adventure of
enterprise.
Before assessing this claim, it is worth asking who it
is that is taking risks with the livelihoods of the poor. Freud began
his work on welfare reform knowing, by his own admission,
nothing about welfare. In fact, it seems fairly safe to say that he
continued in this vein, as he continued to make utterly ignorant claims
about the system in order to justify government cuts.
Foolish they
may be; Freud's views have not been inconsequential. As an adviser to
the New Labour government, Freud played a critical role in arguing for
single mothers to be forced into work, and in persuading the government
to turn over aspects of welfare provision to the private sector.
This advice helped open doors for Atos,
the private sector bureaucracy which has been hired to tur people off
disability benefits.
It also provided a rationale for handing money to A4e, which has been the subject of repeated fraud allegations.
The poor, in effect, are now bearing the costs of systemic risk without
having enjoyed any of the rewards. And it is no more than predictable
that one of those who did reap the rewards in abundance is now charged
with ensuring that the costs of crisis are borne by those who were least
to blame and last to benefit.
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