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MP expenses scandal: Greed, not Need
By Maeve McGoldrick | May 14, 2009
As MP’s expenses hit the headlines this week, there is public outcry over the abuse of the current expenses system. It has been fascinating to watch the party leaders respond to what appears to be an inquiry lead by the media, on behalf of the public. First we heard about Labour MPs, then the Tories and now the Lib Dems and each time the tone has changed, but is ultimately wrong: remarkably casual. From discontent at a flawed system; to anger and frustration at the recklessness of politicians; to the recent demand that claims should be repaid but MPs not disciplined - that is until Elliott Morley’s suspension.
On the BBC Radio4 Today Programme John Humphreys (listen) interviewed the lawyer Steven Barker asking if this was a case for a fraud investigation. Mr Barker said that first we need to differentiate between a mistake and intent. Many MPs have blamed the complexity of the system for unintentionally abusing the expenses budget at the cost of the taxpayer. When asked if he thought they should be prosecuted Mr Barker said no, rather than see taxpayers’ money spent on a political show trial it would be better spent reforming the system.
A recently published DWP report “Factors affecting compliance with rules: Understanding the behaviour and motivations behind customer fraud” includes the following:
“The design of the benefits system probably enables some customers to hide behind the excuse of misunderstanding the system or being misinformed by benefits office staff” .
As the news came in of the ongoing revelations at Westminster this report quietly landed in my inbox. It begs the question if there was a report on MPs behaviour and motivations would it be fair to say the same about them; that they are using excuses, hiding behind complexity? It is hard to say, but as Mr Barker has recommended, ultimately the system needs to be reformed so that this activity is prevented in the future, MPs need to be more aware of the rules so the level of error and fraud are reduced and even eliminated. To tackle benefit fraud the report recommends that
- the benefits system is simplified
- easing the transition on and off benefit for people in temporary jobs
- raising awareness about what customers can report
One of the main findings was that “hardship is an important factor motivating people to commit fraud. The DWP could consider raising the limits on what can be earned without deductions from means-tested benefits.” In other words this means increasing the levels of Permitted Work Earnings Disregards.
The report suggests that most fraud occurs with JSA claimants and yet the DWP have increased the Earnings Disregard for lone parents and have today announced that Housing Benefit disregards will align Incapacity Benefit and ESA benefit disregards, so effectively government isn’t giving with one hand and taking with the other, increasing the incentive to take up formal employment. Yet why not extend this disregard to JSA which is currently at £5, less than one hours minimum wage and hasn’t changed since 1988?
Some condone fraud outright, while others condone it in certain circumstances. Is there a moral code about benefit fraud made on the basis of need or greed? Is there a comparison between the behaviour of people struggling on benefits, below the poverty line and working cash-in-hand for below the minimum wage with what is happening at Westminster? If so should the solution be the same for both; reform the system or prosecution? join us at www.neednotgreed.org.uk and have your say
Topics: Benefits, Informal Economy, Regeneration, Welfare, employment |
We spent a week debating the way poverty is portrayed in the media, generating over 20 fascinating posts from a wide range of authors. 
May 15th, 2009 at 10:37 am
[...] This post was Twitted by APB1212 - Real-url.org [...]
May 15th, 2009 at 2:08 pm
Interesting reflection from Laurence on the Senscot website on similar issues. See http://www.senscot.net/index.php
Greed often seems to be the reason for actions that transgress social norms. However the drive to “feather your own nest” is strong whether you are well-paid or living in poverty. The excuses are just more outrageous and untenible when the transgressors are well-connected, with good educational opportunities and established networks with influence. Excluded communities don’t have these characteristics; they are thrown back on their own resources.
May 15th, 2009 at 7:02 pm
[...] MP expenses scandal: Greed, not Need at linksUK Some reflections on the benefits system and parliamentary expenses claims Related posts (automatically generated):What does the MP expenses scandal mean for politics? [...]
May 18th, 2009 at 4:27 pm
Nothing is ever as it seems and I hope that just like the public ‘abhor’ benefits taken by the MP’s that the MP’s respond in kind , and ‘abhor’ benefits they dolled out to the masses and recall them all. That way we all have to work for our money like good honest citizens.
May 22nd, 2009 at 10:53 pm
Unbeleivable! Redaction was to doctor the MPs’ expenses list to hide fraudulent acts such as “flipping” which even the sanctimonious PM vehemently condemned, once it was exposed by the press. This surely indicates how treacherous the collusion of Parliament and Fees Office really is. What utter contempt of the taxpaying public! Unimaginable in what’s so proudly claimed the Mother of all Parliaments! This country is Great, not because of its governments, but because of people like John Wick (He is the real defender of democracy, not the parliament).The nation will be shocked; it will not accept the redacted list!
June 10th, 2009 at 7:28 pm
One law for MPs, another for the needy:
http://www.guardian.co.uk/commentisfree/2009/jun/07/expenses-fraud-prison
July 2nd, 2009 at 11:09 am
I’m just angry now when I see the DWP - Targeting Benefit Fraud posters and ads on TV.
So, “Posh Benefit Fraud” is ok - but struggling people on the poverty line are criminals and should go to jail.
You guys are doing such important work highlighting these issues.
Denise
November 7th, 2009 at 5:07 pm
Interesting to compare MP’s with neighbours on the continent.
see http://www.connexionfrance.com/news_articles.php?id=1182&PHPSESSID=c06085c05fb568a269d8e66ee1ceba35
Nicholas Sarcozy earns 253,596 Euro plus travelling expenses of 0.74m Euro and security of 488,000 Euro! And I wonder what else.