Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page:

From The Socialist newspaper, 11 November 2010

What the capitalist cuts really mean

EVEN BEFORE the Con-Dem government's cuts hit hard, the economic crisis and neoliberal economic policies are cutting jobs and making job-seeking harder and even more exploited. From both sides of the counter, reports below show how vital it is to fight these vicious cuts and to fight for a socialist solution to joblessness, low pay and poverty.

SIGNING ON week six. 9.20am the door is locked. The laminated sign says: "Back to Work session 9.20am. If you are late you have missed your session. If you fail to carry out this Jobseekers direction you could lose Jobseeker's Allowance and National Insurance credits. If you are late go to the Job Centre immediately."

Nervous job seekers are panicking about the sign. At last we're welcomed in and the dread and uncertainty is over. "Welcome, you're here because you received a letter from the secretary of state outlining 'What we expect from you!'

"As your advisers we can support you, but you, yourself, need to take steps to find work and end the signing-on period. The new government has a new idea. Jobseekers will get results if they follow a three step plan."

A flickering powerpoint presentation reminds the audience of former workers of the steps we should take to make a "suitable effort to find work" while claiming Jobseeker's Allowance.

The phrase "work trial" ominously flashes against a white background. As our advisers stress - this is another new government idea and employers are "warming to it".

It sounds cosy. "Employers are being persuaded by Jobcentres but also by you the Jobseeker to trial JSA claimants". We learn the bosses themselves do not have to pay any wages or guarantee a job vacancy to the trialist.

"It is up to you to show the boss you're the best worker, that they do not need to think about employing anyone else. Many employers don't yet know about this new scheme. The Jobseeker can be the messenger! Explain to employers that you are willing to be put 'on trial' for any of their advertised vacancies."

I thought of the 1980s YTS schemes and the unemployed in the 1930s who showed their worn-out boots to prove to means testers that they'd walked miles offering themselves for work.

One adviser seems unenthusiastic about these ideas. Clearly an overworked, exploited public sector worker who has seen lots of new ideas rise and fall.

She explains that the Jobcentre now uses a private company JHP Employability instead of trained Jobcentre staff to match job seekers' skills with the job market. Public sector cuts mean overcrowded job centres but JHP happily step in for a lucrative contract.

Her powerpoint colleague says that, like us, he was once a jobseeker and found it hard. He gives a dose of reality "in these economic times finding work is hard" but employers still want workers. They want "flexible" workers who may expect less in terms of secure, well paid work. We just need to be open to the idea of discovering opportunities...

Emergency financial loans

Our system is in crisis!

I WORK in the crisis loan system, meant to provide emergency financial help for those in need, as a 'crisis loan decision maker' (CLDM). Our system is in crisis! In one week this August, the Social Fund Crisis Loans service line left around 30% of calls unanswered.

When 'customers' get through, having maybe waited 45 minutes, they're understandably angry. Imagine how much worse things will be if proposed cuts in public service staffing levels take place.

In 2008, when the recession kicked off, the capitalist media reported how Jobcentre Plus could not cope with the upturn in claims. This was due to tens of thousands of job cuts already made in the previous six years.

Management used this to privatise, giving Vertex, a private company providing call centres for credit card companies, the go-ahead to start performing basic job-seeking services (Jobseeker Direct) over the phone. Now they take most of these calls.

People claiming crisis loans don't have enough money for food, gas and electricity - they are very vulnerable. Most Jobcentre Plus staff want to provide an excellent service to them. But management's target-driven culture doesn't let us.

They unilaterally cut average call-handling times from a target of 22.5 minutes to 17.5 minutes. A few CLDM workers try to end the call as quickly as possible to meet their targets and avoid being hit with a disciplinary measure which could result in dismissal.

New security procedures mean CLDMs now have to ask more questions to verify a caller's identity before a claim can continue. So some CLDMs end the call quickly if correct answers aren't given. This is an unacceptable effect of unacceptable targets.

Some claimants have mental health problems, drug and alcohol dependency issues, and may live chaotic lives. So itemising what they received and spent in the last two weeks can be hard. Some people have not eaten for days and live in dark, cold homes as their gas and electricity meters have run out.

This constant barrage of misery can numb workers to the hardship. Some staff can be immediately sceptical about people's needs, especially if they give misleading and contradictory information about their circumstances.

In office, New Labour wanted to outsource Crisis Loans delivery to credit unions. This plan was shelved after it emerged that 'customers' could be forced to pay up to 24% interest, not 0% as currently! It would be a huge step backwards if this plan returns in the Con-Dems' 'Big Society'.

Already, many claimants seek help from companies such as Greenwoods and Provident and some end up repaying more than double what they borrowed! The vast majority pay for gas and electricity by pre-payment meter and are in their emergency credit facilities. Privatisation and deregulation of the utilities sector means the poorest now pay the most for their energy needs.

Harsh government policies have led to misery in many areas. Massive investment is needed in a public works scheme to build houses, repair and upgrade our public infrastructure, create jobs and solve our energy crisis.

Meanwhile, trade unions like PCS fight all cuts in benefits and public services, highlighting the damage both to those delivering and those using services like Crisis Loans and opposing privatisation too. Crisis loan workers deliver a crucial social role and need all the support we can get.

The enemy of poor benefit claimants is not the person at the other end of the phone, but the politicians and super-rich backers who create - and benefit from - such an unequal, poverty-stricken society.

Graduate unemployment

Fight for your future!

I'M KATIE, an unemployed graduate. I finished my degree a year ago but I'm still struggling to find work. Recently I handed out over 26 CVs and applied for six jobs. I was qualified for all of them but got none.

I had five interview offers, all in workplaces that wouldn't even need GCSE qualifications. They all paid minimum wage despite some jobs requiring great flexibility and physical stamina. I went for an interview in a coffee shop and got a two-hour trial.

As a psychology graduate this job was obviously not within my area of expertise! But I worked very hard, unpaid, for the two hours to prove I was suitable for the job. They told me they'd contact me the following day.

I waited by the phone but when in the end I rang them they told me I had been unsuccessful. I was gutted.

I then got a letter from the jobcentre telling me I wouldn't receive my jobseeker's allowance for that week for failing to attend a Jobcentre interview the month before. I missed this because I was busy going to job interviews and moving home.

The interview had been rescheduled and none of the Jobcentre staff knew I'd lose my allowance for that week. The decision was made miles away and the letter sent to me after I should have received my payment.

I had been struggling to feed myself already and spent the weekend with a friend in order to have proper meals. I'm trying to live off 100 a week and it's hard not to get angry. I feel as though three years of study and financial struggle only led to further financial struggle.

The government is destroying our future. Every young person should be out with their local trade union groups fighting the cuts and standing up for their future.

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.

In The Socialist 11 November 2010:

Socialist Students

9,000 student fees: we won't pay!

No to 9,000 tuition fees: Fight for your future!

Ireland: Largest student protest in a generation

Anti-cuts campaign

Stop the Con-Dems' slave labour scheme

What the capitalist cuts really mean

National Shop Stewards Network: Anti-cuts conference

Socialism 2010

Socialism 2010: An inspirational weekend


Youth Fight for Jobs and Socialist Students conference

Leeds: Stop the closure of Union Books

Goldsmiths students occupy town hall

Socialist Party editorial

London firefighters' dispute: the fight is not over

Massive anger must be organised into coordinated trade union action

Socialist Party workplace news

London tube strike - picket line reports

BBC staff fight for pensions: picket line reports

Protest at law centre closure

Fight the mail centre cuts

Socialist Party news and analysis

Vendetta continues against Tommy Sheridan, socialist fighter

Angry campaigners discuss Stroud fightback

NHS - workers looking for a fighting lead

Fast news

Socialist Party feature

Attacks on disabled people's rights

International socialist news and analysis

Scotland: potential to build a mass movement against cuts

US elections: Bankruptcy of Democrats leads to spectacular fall

Socialist Party review

Review: Call Mr Robeson: A Life, with Songs


Home   |   The Socialist 11 November 2010   |   Join the Socialist Party

Subscribe   |   Donate  

Related links:


triangleRussia, October 1917: When workers took power

triangleObesity epidemic: end food market anarchy

triangleTories torn - bin them now

triangleThe fight against racial discrimination is tied to fighting against capitalist austerity

triangleIMF helps cause inequality it slams


triangleNorth London hospital workers fight cuts and job losses

triangleNo cuts - hands off King George A&E!

triangleYoung people being strangled by debts

triangleTories scrap the NHS pay cap: now fight for real-terms pay rises!


triangleNasty party out the Tories

trianglePoverty, repression and fightback on the docks

triangleMajor attacks 'Universal Credit', half a million more face poverty


triangleNationalise to save jobs at BAE Systems

triangleBalloting members on the pay cap


triangleArriva North West bus drivers strike over pay


trianglePowerful picture of the Port Talbot steel workers' struggle


triangleFight expansion of disastrous 'Universal Credit' welfare system

Reports and campaigns

Reports and campaigns


North West

Arriva North West bus drivers strike over pay


Democratic rights

Conference on state spies: who's watching who?



Striking back against sackers' charter at Leeds Uni


Royal Mail

Royal Mail bosses block strike - back postal workers



Balloting members on the pay cap



'Dazzling' Bad Art show points to socialist future



Sheffield Labour council threatens peaceful protesters with prison


South West Wales

Hundreds turn out for rally aimed at removing west Wales Tory MP



Uprising to save the NHS!



Can you donate to the Socialism 2017 appeal?


East London

No cuts - hands off King George A&E!


North London

North London hospital workers fight cuts and job losses



Nationalise to save jobs at BAE Systems



Schools "can't go any further" - stop the cuts: set deficit budgets now



Socialist Students 'welcome' Hillary Clinton to Swansea

triangleMore Reports and campaigns articles...

Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party

triangle19 Oct Arriva North West bus drivers strike over pay

triangle18 Oct Russia, October 1917: When workers took power

triangle18 Oct Tories torn - bin them now

triangle18 Oct Royal Mail bosses block strike - back postal workers

triangle18 Oct Balloting members on the pay cap

triangle13 Oct The end of the Tories?

triangle11 Oct Nasty party out the Tories

More ...

triangle23 Oct Chesterfield Socialist Party: The continuing struggle for abortion rights

triangle24 Oct Liverpool Socialist Party: The October Russian Revolution 100 years ago to the day

triangle25 Oct Salford Socialist Party: The October 1917 Russian revolution

triangle25 Oct Swansea Socialist Party: Mother Jones - A US labour pioneer

More ...

Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube



October 2017

September 2017

August 2017

July 2017

June 2017

May 2017

April 2017

March 2017

February 2017

January 2017





















Platform setting: = No platform choice