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We all know a false economy when we see it – why doesn’t our government? We all know a false economy when we see it – why doesn’t our government?
(35 minutes later)
In our everyday lives, most of us are familiar with the idea of false economy. Ignoring a burst pipe might save you money on a plumber, but it’ll cost far more to deal with the damage caused by flooding. And I’ve lost count of the number of times I’ve purchased a tantalisingly cheap pair of shoes, only to see them fall apart three times as fast as a pair for double the price. Better quality products cost more upfront but often save you money in the long run – yet another way that people on low incomes are penalised.In our everyday lives, most of us are familiar with the idea of false economy. Ignoring a burst pipe might save you money on a plumber, but it’ll cost far more to deal with the damage caused by flooding. And I’ve lost count of the number of times I’ve purchased a tantalisingly cheap pair of shoes, only to see them fall apart three times as fast as a pair for double the price. Better quality products cost more upfront but often save you money in the long run – yet another way that people on low incomes are penalised.
Though there are many difficulties in comparing household budgets with national economies, in some instances similar logic does apply. As austerity is implemented across our essential public services, the Conservative government is discovering just how expensive cutting corners can be.Though there are many difficulties in comparing household budgets with national economies, in some instances similar logic does apply. As austerity is implemented across our essential public services, the Conservative government is discovering just how expensive cutting corners can be.
Today, new research by the Law Society has revealed how misguided cuts are costing the country. Legal aid cuts have led to increased spending in the long run because court disputes take months to resolve. Early professional legal advice (given within three months of a dispute arising) helps solve problems before they spiral and end up in court. The Law Society says this matters especially in disputes involving landlords and in family law. However, in 2013 the government slashed funding for legal help for those who can’t afford it. Today, new research by the Law Society has revealed how costly misguided cuts are to the country. Legal aid cuts have led to increased spending in the long run because court disputes take months to resolve. Early professional legal advice (given within three months of a dispute arising) helps solve problems before they spiral and end up in court. The Law Society says this matters especially in disputes involving landlords and in family law. However, in 2013 the government slashed funding for legal help for those who can’t afford it.
Earlier this year, an episode of the BBC’s Panorama covered the benefit cap. It featured a mother of seven named Sarah who’d had her benefits cut by £44 per week, leaving her with no way of making ends meet. She fell behind with her rent and lost her home, which left her unable to properly care for her family. She was forced to sleep on her sister’s sofa and her children were separated and sent to live with foster carers – costing the state more than £1,000 per week. Earlier this year an episode of the BBC’s Panorama covered the benefit cap. It featured a mother of seven named Sarah who’d had her benefits cut by £44 per week, leaving her with no way of making ends meet. She fell behind with her rent and lost her home, which left her unable to properly care for her family. She was forced to sleep on her sister’s sofa and her children were separated and sent to live with foster carers – costing the state more than £1,000 per week.
This is far from an isolated incident. Last month, the Association of Directors of Children’s Services said that austerity policies had led to record numbers of children being taken into care. “The unintended consequence of the government’s austerity programme has been to drive up demand for [child protection] services as more and more families find themselves at the point of crisis with little or no early help available,” it revealed in a report. This is far from an isolated incident. Last month the Association of Directors of Children’s Services said that austerity policies had led to record numbers of children being taken into care. “The unintended consequence of the government’s austerity programme has been to drive up demand for [child protection] services as more and more families find themselves at the point of crisis, with little or no early help available,” it revealed in a report.
It’s a similar story with disability benefit cuts. The Department of Work and Pensions decided to take away a multiple sclerosis sufferer’s Motability car in order to save £8,000. This left her stranded, and DWP officers ruled she did not qualify for help travelling to and from work. They agreed to pay for taxis for the 33-mile journey, at a cost of £65,000 annually. And last month, it was revealed that £40m of tax money was spent trying to deny sick and disabled people benefits they’re legally entitled to. The government lost the vast majority of appeals brought, suggesting the policy is failing in every respect. Not only are disabled people being forced to despair by the process, it’s wasting rather than saving money. Last month it was revealed that £40m was spent trying to deny sick and disabled people benefits they’re entitled to
As the evidence continues to accumulate, the government’s refusal to abandon austerity looks increasingly irrational. Cuts were always driven more by ideology than necessity, but when they’re actually costing more than they save what on earth is the rationale for continuing? Perhaps it’s about saving face. After all, U-turning now would mean admitting that Labour was right all along. But continuing to wreak economic havoc is hardly going to win them support. It’s a similar story with disability benefit cuts. The Department of Work and Pensions decided to take away a multiple sclerosis sufferer’s Motability car in order to save £8,000. This left her stranded, and DWP officers ruled she did not qualify for help travelling to and from work. They agreed to pay for taxis for the 33-mile journey, at a cost of £65,000 annually. And last month, it was revealed that £40m of tax money was spent trying to deny sick and disabled people benefits they’re legally entitled to. The government lost the vast majority of appeals brought, suggesting the policy is failing in every respect. Not only are disabled people being forced to despair by the process but it’s wasting rather than saving money.
Back in 2013, the head of the IMF, Christine Lagarde, warned that UK austerity had damaged economic growth. After seven years of pain, increasing numbers of voters are realising that the long-term gains we were promised are never coming. The false economy of many cuts to public spending shows that the Conservatives’ economic strategy simply isn’t working. The country is crying out for change. As the evidence continues to accumulate, the government’s refusal to abandon austerity looks increasingly irrational. Cuts were always driven more by ideology than necessity, but when they’re actually costing more than they save, what on earth is the rationale for continuing? Perhaps it’s about saving face. After all, U-turning now would mean admitting that Labour was right all along. But continuing to wreak economic havoc is hardly going to win them support.
Back in 2013 the head of the IMF, Christine Lagarde, warned that UK austerity had damaged economic growth. After seven years of pain, increasing numbers of voters are realising that the long-term gains we were promised are never coming. The false economy of many cuts to public spending shows that the Conservatives’ economic strategy simply isn’t working. The country is crying out for change.
• Abi Wilkinson is a freelance journalist based in London• Abi Wilkinson is a freelance journalist based in London