Poverty: how well is DWP helping people?

Poverty in Britain remains horrifying. For example, about 7% of households cannot afford a single hobby or leisure activity and a quarter cannot manage to save £10 a month for rainy days or retirement.

Bleak.

But the DWP plans to spend just over £130 billion in 2008. Surely some mistake, so I did a quick calculation based on 2007 numbers:

Now, as a first estimate, it appears that DWP manages to spend almost twice as much as the poverty threshold for every person in poverty. This is optimistic too: I used the threshold figure for a single person with no children. If we took the figure of £260 per week for a couple with two children, and divided by four, it would appear DWP spends about three times the threshold per head.

These are devastating ratios, but worse, it is not working:

Using a still lower threshold of 40% of median income, however, the pattern is rather different: unchanged levels throughout the last decade. In other words, there has been no reduction in the numbers of very poor people.

Sustained misery, maintained at vast expense, is a tragedy.
Centre for Social Justice
Thank goodness, then, for Iain Duncan Smith’s Centre for Social Justice and for Chris Grayling. We are getting there.

A pity millions of people must wait for significant change to begin.

“Man cuts up car in clamp protest” – a hilarious reaction to an over-zealous state

A car is bought for restoration as a cheap runaround but it is beyond economical repair. It’s declared SORN, but parked with a small corner off a private drive. The busybodies turn up and clamp it, so the owner chops it in half to make the point brilliantly: how else would this nonsense have come to national prominence?

And to think we are paying for this ludicrous enforcement.

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HMRC: you couldn’t make it up

Without apparent irony, HMRC offer both an update on the personal information lost and warn of fraudulent attempts to obtain personal information:

HMRC Comedy

This front page has been up for a while.

Suffocation for business innovation

There is the potential for a long post here, but for the moment, I’ll stick to “Innovation grants”.

A small client worked for weeks, hiring consultants, to obtain an innovation grant for part of one R&D effort. They won a grant, and then spent the duration of the  project accounting for its use in excruciating detail. The person who did that accounting was a key employee: there was no one else available in such a lean and effective company. By the end of the period, they regretted the whole miserable episode and wished they had spent the time finding new customers and consulting instead.

There is already a well-established system that allows companies to raise funds: equities and bonds. If it’s too expensive for small firms to raise capital in the markets, maybe government has a role through investing in British entrepreneurs through a venture capital fund.

I’m reminded of Thomas Deacon city academy, where:

Britain’s most expensive state school is being built without a playground because those running it believe that pupils should be treated like company employees and do not need unstructured play time.   

And then people wring their hands over a lack of entrepreneurs. Absurd! 

The United Kingdom is labouring under a suffocating blanket of bureaucracy, which explodes year on year. Anyone who thinks it helps us compete with a well-educated, ambitious Asia is seriously misguided, at best.

Helping the homeless, the bureaucratic way.

There’s a homeless man I see every day, who sleeps in a subway. He’s pleasant and harmless. He used to be a promising chef apparently. People choose to give him money: he never asks. He keeps himself smart and clean, thanks to a nearby centre that opens in the week, during the day. He’s handing out Christmas cards to people who have helped him this year.

He was arrested this week for begging. He spent the night in the cells as bail was not granted. He claimed this was fine by him: a warm dry night with hot food and drink and he didn’t have to walk to court in the morning. The judge fined him £20 but dismissed it in recognition of the night in jail. He was straight back where he started, doing no harm, although now he is a trainee Big Issue seller.

He alleges that the following night, certain uniformed individuals approached him and offered that if he disappeared that night, they wouldn’t bother him for a year. Apparently that night was the night the homeless count was to be taken.

This seems to me quite evil. It’s bad enough that people get trapped on the street, without others fiddling the statistics. What happens when the area’s 500 (say) homeless find their centre is closed because it was funded for 50?