Posts Tagged ‘Welfare Fraud’

Cameron’s Distortion of the Figures for Welfare Fraud

March 11, 2014


Mike over at Vox Political has several times blogged on the way the government has distorted or even falsified statistics to justify their harsh policies towards the unemployed and disabled. Owen Jones’ book Chavs: The Demonization of the Working Class, provides one example of this in the way Cameron tried to justify a crackdown on benefit payments, citing the statistics for welfare fraud as the reason:

Soon after David Cameron came to power in 2010, he started selling the idea that people are out of work due to their personal inadequacies: a sentiment which is, of course, one of the pillars of the chav caricature. The prime minister pledged a crackdown on welfare ‘fraud and error’, declaring that it cost the taxpayer £5.2 billion. But he had cunningly combined the cost of fraud committed by welfare recipients (just £1 billion a year) with that of errors on the part of officials (amounting to the far more considerable sum of £4.2 billion a year). In doing so, he ensured that a much bigger headline figure associated with benefit fraud was lodged in the popular imagination. (p. 196).

To use Hunter S. Thompson’s description of one Richard Milhouse Nixon, this is a man so crooked he has to screw his pants on in the morning.

Immigration, ID Cards and the Erosion of British Freedom: Part 2

October 13, 2013

In the first part of this post I discussed the way successive administrations since Mrs Thatcher – those of john Major, Tony Blair, and now, possibly, the coalition, had planned to introduce ID cards. Privacy campaigners such as Simon Davies have opposed them, because of the immense potential they represent for human rights abuses, the mass surveillance of the population, and discrimination against immigrants and minorities. I posted it as a response to Mike’s piece on Vox Political, which I reblogged, on Theresa May’s latest campaign against illegal immigration, and the fears landlords and immigrants’ rights groups have about the terrible effect this will have on them. The landlords in particular were concerned that this would lead to the introduction of 404 European document-style ID cards. In this part of the post I will discuss the dangers ID cards present, and their failure to do what is often claimed for them, such as to prevent crime and illegal immigration.

It looks like illegal immigration will be the platform by which ID cards will be introduced in this country. Mike and a number of other bloggers have commented on the way recent statements and policies by coalition ministers to combat illegal immigration suggest that they plan to introduce ID cards as part of their campaign. Illegal immigration has been the main issue driving their introduction in Europe, America and some developing nations. Davies book on the growth of the surveillance society in Britain notes that as the European Union dissolves borders in Europe, so the police were given greater power to check people’s ID. As for fears that ID cards will somehow stop illegal immigrants from claiming benefits, this has been disproved in Australia. The Joint Parliamentary Committee on the Australia Card found that of 57,000 people, who overstayed their visa in New South Wales, on 22 were illegally claiming Unemployment Benefit.

Anti-racism campaigners are right to worry that ID will increase discrimination. ID cards carrying information on the bearer’s ethnic groups or religious beliefs have been used to discriminate against minority groups in many countries. The Japanese were accused of racism when they passed legislation forcing all foreigners to carry ID cards. The French police were similarly accused of racism in demanding Blacks and Algerians carry and produce ID cards. This was one of the reasons behind the race riots in France in the 1990s. In Greece, the authorities were also accused of using the religious information on the card to discriminate against those, who were not Greek Orthodox. Down Under, Aboriginal and Jewish Australians joined the campaign against the Australia Card from fear that they would also suffer discrimination. A few thousand miles across the Pacific in New Zealand, Kiwi trade unions and civil liberties groups also feared ID cards would lead to discrimination against minorities and the poor.

Contrary to the frequent claims made by various Right-wing governments like Thatcher’s, Major’s and Blair’s, ID cards don’t actually stop welfare fraud. Says Davies ‘the key area of interest lies in creating a single numbering system which would be used as a basis for employment eligibility, and which would reduce the size of the black market economy’. In Oz, the Department of Social Security stated that much less than 1 per cent of overpaid benefits came from identity fraud. The true figure for such crime is probably 0.6 per cent. Most fraudulent or overpaid benefit claims – 61 per cent – came from the non-reporting of variations in the claimant’s income.

ID cards also don’t stop crime. This is again contrary to the statements made by governments wishing to introducing them. The problem is not the identification of criminals, but in collecting sufficient evidence and successfully prosecuting them. The Association of Chief Police Officers in Britain concluded in 1993 report that burglaries, street crime and crimes committed by people impersonating officials could be reduced through ID cards. They did not, however, present any evidence for this. The Association did fear that the introduction of ID cards would make relations between the police and the general public worse. Davies considered that only a DNA or biometric database could possibly link perpetrators with their crimes.

The introduction of ID cards do, however, increase police powers. Police routinely ask for ID cards in all the countries that have them, and detain those, who don’t possess them. In Britain the wartime ID cards were removed in 1953 after a High Court judge ruled that their routine demand by the police was contrary to the spirit of the National Registration Act, and adversely affected the good relations between police and the public.

In fact, instead of helping to combat crime, ID cards actually help it. ID cards provide a ‘one-stop’ proof of identity, and this can and is used by criminal gangs in their crimes. The technology used to manufacture the cards is now available and used by such organisations. As ordinary organisations, such as companies and the state civil service increasingly rely on ID cards as the unquestioned proof of an individual’s identity, so they abandon the other systems used to check it that they have been using for decades. As a result, crimes using fake identities are actually easier with ID cards.

ID cards are a real danger to the privacy of personal information. About one per cent of the staff of companies involved in collecting the personal information used to construct the relational databases used in such cards are corrupt and prepared to trade confidential information. Each year, one per cent of all bank staff in Europe are dismissed for corruption. This is a minuscule percentage, it is true, but nevertheless it still presents a danger to the privacy and safety of the public. In Britain, computer crime amongst the civil services own ID staff massively increased in the 1980s and 1990s. The National Accounting Office estimated in March 1995 that hacking, theft and infection by viruses were all increasing on the IT network in Whitehall. In one year, for example, hacking rose by 140 per cent and viruses by a massive 300 per cent. Of the 655 cases of hacking in the Whitehall network identified by the NAO, most involved staff exceeding their authority to obtain the personal information of members of the public, which was they then passed on to outside individuals.

ID card schemes also tend to be much more expensive than governments’ estimate and allow for. Once again, Australia provides a good example of this. When introducing the Australia Card scheme, the Ozzie government failed to take into account training costs, and the expenses coming from administrative supervision, staff turnover, holiday and sick leave, as well as compliance, the issue of the cards overseas and fraud. They also underestimated the costs of issuing and maintaining the cards and how expensive they would be to private industry. In the first part of this post I mentioned how leading Australian bankers and financiers, such as Sir Noel Foley, were openly hostile to the scheme. This is not surprising, as the Australian Bankers’ Association estimated that the ID card their would cost Ozzie banks A$100 million over ten years. The total cost of the cards to the private sector was estimated at A$1 billion per year. At the time Davies was writing, the cost of the card system in the UK had not taken into account of administration and compliance costs. These could be as high as £2 – £3 billion. When Tony Blair launched his scheme to develop biometric ID cards, there was further embarrassment to the government when it was revealed by the papers that the scheme had also gone massively over its budget due to problems in developing the technology.

Another factor against the cards is the distress and inconvenience caused to the individual by their accidental loss or destruction. About five per cent of ID cards are either lost, damaged or stolen every year, and it can be several weeks before a replacement is received.

Governments have frequently insisted that ID cards will be voluntary. This was the stance taken by Tony Blair’s government on them. It is misleading. There is a tendency for them to become compulsory. Even in nations where they are voluntary, there is considerable inconvenience if they are not carried, so that they are actually compulsory in practice if not in law.

ID cards also have a tendency to become internal passports as they acquire other uses through function creep. These will include all government and a significant number of important, private functions.

Finally, opponents of ID cards object to them because they feel that they damage national identity and personal integrity. The movements against ID cards in America, Australia, Canada and New Zealand called attention to the fears of ordinary people that the introduction of such cards would reduce them to mere numbers. They were a symbol of oppressive authority, and represented popular anxieties that their countries were ruled, not by elected officials, but by bureaucracies driven by technology.

Actually, reading through all the considerable negative aspects of ID cards and the list of the dangers and damage they represent to society and the safety and privacy of its members, I can see why the Coalition government would see no problem in introducing them. After all, such schemes are inefficient, corrupt and massively expensive. They expand the power of the state and the police at the expense of the individual, and are used to persecute and victimise minorities and the poor. Pretty much like all the Coalition’s policies, then. And ID cards are exactly like IDS welfare schemes and workfare in that, undercover of eliminating welfare fraud, which they actually don’t do anything about, they’re really about controlling the movement of labour.

So, corrupt, authoritarian and discriminatory: just right for Theresa May and the rest of the Coalition then!