The Maseres scheme for life annuities

I found a copy of Nicholls’ History of the English Poor Laws in a second hand shop, and it’s taken me a few months to get round to it.  My attention was caught by a couple of references to schemes for avoiding the Poor Law, which I hadn’t come across before.  One was Acland’s Universal Benefit Society, effectively a proposal in 1786 for  a scheme of National Insurance.  Another was proposed by Baron Maseres, who attempted in 1772 to create a universal savings plan which would deliver a lifetime annuity of between £5 and £20 a year for men over fifty, and women over 35.

Maseres worked out the costs scrupulously on the basis of actuarial tables of life expectancy.  He argued that

 The design of this bill was to encourage the lower rank of people to industry and frugality, by laying before them a safe and easy method of employing some part of the money they could save out of their wages, or daily earnings, in a manner that would be most strikingly for their benefit. …  if they saw an easy method of employing the money they could spare in such a manner as would procure them a considerable income in return for it in some future period of their lives, without any such hazard of losing it by another man’s folly or misfortune, it was probable they would frequently embrace it: and thus a diminution of the poor’s rate on the estates of the rich, an increase of present industry and sobriety in the poor, and a more independant and comfortable support of them in their old age than they can otherwise expect, would be the happy consequences of such an establishment.

The measure, watered down to allow for reluctant parishes to opt out,  passed the House of Commons,  but it was blocked in the Lords.  It’s not a Citizens Income scheme, but it has some of the characteristics and aspirations of a partial basic income, nearly twenty years before Thom Paine’s more radical and more universal approach.

Additional note:  I’ve appended an extract from Maseres’ text, where he explains the scheme,  in PDF form here.  

A dispiriting review of sanctions

David Webster’s 13th briefing on sanctions makes for disturbing reading.  The figures from DWP have consistently and substantially underestimated the numbers of people undergoing sanctions; the effect of taking account of the high rate of sanctions for Universal Credit claimants is almost to double the reported figures.  Key issues, such as suspension of Housing Benefit, have been misreported to Parliament.  Although the rate of sanctions has slowed, sanctions have by now been imposed on most longer term claimants of JSA, and 85% of those unemployed for more than three years.

0-3 months 3-6 months 6 months-1 year 1-2 years 2-3 years 3-4 years 4-5 years
% of individual claimants
36 19 20 15 6 3 1
% of these claimants sanctioned 6 15 24 37 49 85 n.a.

The long-awaited report from the Public Accounts Committee does not address these issues.  Their strongest criticism is that the DWP seem not to know what the effects of sanctions are.  They are attracted by the idea of a warning system, which has been trialled and, David argues, has already been shown not to work.    They call for greater evidence for consistency between offices – in other words, for targets.

Blair on Europe – almost right, but not quite

Tony Blair’s speech on Europe seemed to me to confuse two quite separate issues.  The first issue, on which he is absolutely right, is that  “the people voted without knowledge of the terms of Brexit”, and that “The road we’re going down is not simply Hard Brexit. It is Brexit At Any Cost.”  Accepting the (questionable) legitimacy of the Brexit vote is not equivalent to accepting the Government’s recipe for implementation.  The second issue, on which he is not right, is to assume that the alternative is to vote again and this time to vote the other way.   The main alternative is surely to address the terms of exit differently, including the extension of rights to EU nationals in Britain, membership of the EEA, and – probably most important – democratic deliberation at every stage of the process.   As Blair himself says,

it isn’t a question of just ‘getting on with it’. This is not a decision that once made is then a mere matter of mechanics to implement. It is a decision which then begets many other decisions. Every part of this negotiation from money to access to post Brexit arrangements is itself an immense decision with consequence.

There are however points on which I would part company from Blair altogether. One is his acceptance of the view that “Immigration is the issue. ”  It is for Theresa May, but this wasn’t a vote on immigration – it was only a vote where that played a part.  The other is his dismissal of the relevance of the ECJ, where he says:  “I would defy anyone to be able to recall any decisions which they might have heard of. ”    Try  Rüffert v Niedersachsen, 2008 C‑346/06, where the ECJ judged that national governments could not use contracts to  enforce collective wage agreements; or  Bundesdruckerei v Stadt Dortmund 2014 C549/13, which stopped German authorities from insisting that the minimum wage should be paid.  These decisions were appalling – quite as bad as the Lochner v New York in the USA, where dissenting judge Justice Holmes was moved to comment that the Constitution of the United States “does not enact Mr. Herbert Spencer’s Social Statics.” I wouldn’t expect most critics of the EU to be able to cite the specifics either, but they understand the general tenor.  The ECJ has been part of the neo-liberal domination of the EU, that has done so much to undermine the European ideal.   

A petition to the European Parliament

My petition to the European Parliament has at last, after more than six months, been approved for public view, and is now open to supporters.  The text is as follows:

As citizens of the European Union, the status of British nationals is protected by the Charter of Fundamental Rights. Citizenship is the right to have rights. If European citizenship is truly fundamental, not just a conditional privilege, no European citizen should have it withdrawn without consent or treated as if it never existed. When the UK ceases to be a Member State, the Parliament, as the guardian of Fundamental Rights, should ensure that European citizens of British nationality who wish to preserve their fundamental rights are able to retain their citizenship.

The petition, reference number 0922/2016, can be found here. To support a petition to the European Parliament – which is one of the basic rights of European citizens – you will need to register on the portal.

Analiza Politike za Praksu

I’ve just received a copy of the Serbian edition of  Policy Analysis for Practice.  It’s been translated into Serbian under the title Analiza Politike za Praksu, and my name is rendered as Pol Spiker.    Followers may prefer Socijalna Politika: teorija i praksa,  which covers most of the ground in this earlier book along with lots of other material.   The choice is yours.

“Fixing our broken housing market”

The Housing White Paper for England, Fixing our broken housing market, has generally been seen as a damp squib.   It’s not immune from ideological claptrap – for example, the assertion that “housing associations belong in the private sector” (p 51).  It must be welcome, though, that this is the first document in many years to recognise the fundamental problem: there are not enough houses.  Most documents on housing policy since the 1970s have been obsessed with the issue of tenure, which is a question of how the housing is distributed after it’s built, or affordable housing, which is about relative costs.  There has not been enough building for more than forty years, and by now Britain needs a couple of million more houses. The crude numbers matter, because wherever there is a shortage, people get left out.  If there are not enough houses, then some people will have nowhere to go, some will be excluded, and others will be forced to live in housing that is unfit.  Because it’s a market system, the people who this is most likely to happen to are those with the lowest command over resources – that is, the poorest.

The policies suggested in the White Paper – it’s more of a Green Paper, with some scope for consultation – are not going to fill the gaping hole in housing supply.  While the proposal to build 275,000 a year will help, there will have to be several years of continuous growth before the benefits are clearly felt. One of the problems is the reluctance of many of the main stakeholders – builders, local communities and banks – to do anything which might jeopardise house prices.  I was intrigued, then, at a suggestion from an unlikely source: the deeply Conservative Michael Portillo, speaking from the couch on the satirical programme This Week.  Portillo suggested that the building had to be done by the public sector, and then went further.  The sale of council housing had shown, he argued, that it was possible to feed council housing back into the private sector as the occasion demanded: so it would be possible to create a bank of public housing now, and slowly to release it for owner-occupation so as not to unsettle the private sector.  I doubt we would ever be able to do this with the fine degree of control that would be needed to manage the market, but the idea has a lot of merit.  In particular, that it could do something for the people who are excluded now.  Let’s build half a million new council houses right away, and then we can talk about what happens next.

What’s wrong with social security benefits?

What's wrong with social security benefits?: Book coverI’ve just received the first copies of my new book, What’s wrong with social security benefits? It’s a short book; Policy Press has it on sale at £7.99.

From the cover:

“In this thought-provoking book, Paul Spicker challenges readers to rethink social security benefits in Britain. Putting a case for reform of the system, Spicker argues that most of the criticisms made of social security benefits … are misconceived. … Spicker assesses the real problems with the system, related to its size, its complexity, the expectation that benefits agencies should know everything, and the determination to ‘personalise’ benefits for millions of people. This stimulating short book is a valuable introduction to social security in Britain and the potential for its reform.”

Brexit: the UK government alluringly takes off the first veil

The Government’s White Paper on Brexit has appeared, too late for the vote in the House of Commons but at least in time before the committee stage.   It has a few surprises; the biggest one to my mind was to discover that Ireland is no longer really part of the EU.  Here is one of the graphs that leaves out Ireland:

Here’s another:

The document explains that Britain has ‘historic ties’ with Ireland as well as the free movement of “goods, utilities, services and people”.  It will be intriguing to find out how that works without implying the movement of goods, utilities and services from Ireland to the rest of the EU.

It also seems that Britain already has a unique relationship with the EU, which looks like this:

The Government claims that “It is in the interests of both the UK and the EU to have a mutually beneficial customs arrangement to ensure goods trade between the UK and EU can continue as much as possible as it does now. ”  Other stakeholders in the EU have already made it pretty clear that this is not their view, and it’s not going to happen.

Some reflections on the Supreme Court judgment in Miller: European law is not foreign law

After a little delay, I’ve now read the Supreme Court judgement in Miller.  It’s different from other Supreme Court judgments I’ve viewed, because it doesn’t report the views of each judge separately, (with the exception of Lord Hughes’ muddled couple of pages), and it’s a better judgment for not doing so.  I was disconcerted, however, to find that none of the arguments, either from the the majority or the minority, referred directly to European law.  Both sides seem to construe EU law as a matter of obligations arising  under the treaties, and consequently refer only to UK decisions to establish the necessary principles.  However, as the majority recognises, the EU is in itself a source of law.  The central point about the European Union is surely that it is a union, and that within it citizens are directly subject to two legislatures.  Citizens are bound by the laws of  the EU  (Van  Gend en  Loos, European  Court of Justice  Case  26/2).   In cases of conflict of laws, European law is paramount (Costa  v.  ENEL,  6/64).  Those principles were established clearly before the UK joined.

Lord Reid, for the minority, argues:

In so far as the Miller claimants place reliance on rights under EU law as given effect in the legal systems of other member states, such as the right of UK citizens to live and work in Greece, there is no rule which  prevents prerogative powers being exercised in a way which alters rights arising under foreign law.

There is such a rule: it is explicitly stated in the Charter of Fundamental Rights of the European Union, which declares that “Every citizen of the Union has the right to move and reside freely within the territory of the Member States.”   Member states are further obliged by European law to “respect the rights, observe the principles and promote the application thereof in accordance with their respective powers.” The UK has no authority to change this law – which is why secession is necessary before it can be done.

The central problem here is a conceptual one: it lies in the word  “foreign”.   Lord Reid locates all authority for the recognition of EU law solely in the authority contained in the 1972 Act.  He refers to the rule of recognition, but he does not go on to consider Hart’s other rules – rules of change, and rules of adjudication – which at that point passed, along with the rule of recognition, to the European Community.  The 1972 Act was necessary to extend recognition, but as it did not establish the rules of change or adjudication it is not the source of all the subsequent law.  Britain joined a union, if not in 1972, then in 1986 with the passage of the Single European Act, which has been part of European and therefore British law for thirty years. European law is not a foreign matter; it is a domestic one.

There are many examples of states forming unions with other countries.  In most cases  the relevant legislation referred to is not the legislation of the state that is joining but the legislation passed by the body it joins – for example, the UK for Scotland, or the USA for Hawaii.   (I say ‘in most cases’ because there are also examples where the relevant legislation is made by other states again – the union of Newfoundland and Canada, for example, was passed in the UK parliament.)  Equally, there are examples of states leaving unions – for example, Ireland, Slovakia, Croatia.  If Scotland was to become independent, would that mean that the law of the UK was cancelled as part of an obsolete treaty obligation?  Of course it wouldn’t.  When states secede, the law of the preceding union isn’t presumed to have no further effect – that would leave a gaping hole in the laws.  Law continues to have effect until it is changed.  When the UK leaves the EU, Parliament will probably want to pass legislation forestalling the application of precedents based on existing EU  law.  Good luck with that.

The Big Questions

I was part yesterday of a studio discussion for “The Big Questions”, a Sunday morning TV programme. I’d been asked along to say something about Universal Basic Income, which was being put forward by Guy Standing and Glasgow councillor Matt Kerr. Other questions considered in the programme (each question gets twenty minutes) were about Scotland’s voice in Brexit, where I did get my oar in, and reparations for slavery, where I didn’t.  (There’s a hilarious take on the programme’s format here – I went in the full knowledge that it was going to be tough.)  The programme is on Iplayer for a little while.

I’ve said plenty about both Basic Income and Brexit on this blog, so let me fill a gap by saying where I stand on reparations for slavery.  While there’s no doubt about the depth of the historical injustice, I don’t think we can rewrite thousands of years of world history to rectify it.  I come from a long line of refugees.  I can’t accept the principle that I should be compensated for the injustice they suffered; I’ve done nothing to justify that.  (That also means, by the way, that I think the UN’s current position on hereditary refugee status is nonsense; if they’re right, I should be thought of as a refugee from three other countries.)  When my great grand father, grandfather and father came to Britain, the first in the 1880s and the others in the 1940s, they didn’t come to join a slave-traders’ club; they came to one of the few countries that had stood against slavery and oppression.  Britain has things to be ashamed of, sure enough, but it’s also got something to be proud of.