Austerity Britain

What is austerity?

Austerity is the campaign of budget cutting. It was lead by the Conservative government and began in 2010 in the aftermath of the global financial panic of 2008, the most crippling economic downturn since the Great Depression. The NHS and education were protected by this cut, however, government spending was trimmed over the rest of society. For example, the police, road maintenance, libraries, courts, prisons and housing assistance for seniors.

Local governments suffered a decrease in revenue due to this.

Why was it seen as a solution for Britain's problems in 2010?

Austerity was seen as a solution to eliminate budget deficits (shortfalls) that arose due to unsustainable levels in the aftermath of the financial crisis.

The Conservative government saw austerity as a good thing. It diminished the roles of government bureaucracy (where the important decisions are taken by state officials rather than by elected representatives) and allowed for the 'Big Society' to come in. The government relied on grass-roots organisations, charities and private companies to step to the front to revive communities and deliver public services.

What were the criticisms of the system?

The economists at IMF (International Money Fund) delivered a strong warning that austerity policies can do more harm than good. They stated that rising inequality was bad for growth and that governments should use controls to cope with destabilising capital flows.

Furthermore, they said, “It turns out, however, that the cost could be large – much larger than the benefit. The reason is that, to get to a lower debt level, taxes that distort economic behaviour need to be raised temporarily or productive spending needs to be cut – or both. The costs of the tax increases or expenditure cuts required to bring down the debt may be much larger than the reduced crisis risk engendered by the lower debt.”

In what ways did it contribute to poverty in the UK, how much of a problem is poverty?

About 14 million people, 1/5 of the population, live in poverty. Also, 1.5 million are destitute, being unable to afford basic essentials. Philip Alston is the UN's rapporteur on extreme poverty and human rights. He stated, “It is patently unjust and contrary to British values that so many people are living in poverty,”. He added that compassion had been abandoned during almost a decade of austerity policies.

One of the most controversial aspects of austerity was the Work Capability Assessments that were rolled out - what was the system and why was it considered so unfair?

The Work Capability Assessment is used to decide whether or not you are fit for work for ESA and Universal Credit.

The first part is 18 multiple-choice questions, but it is incredibly flawed. Claimants are answering questions such as: 'Can you use a washing machine?' - relating to what they are able to do at home, not what they would have to do at work.

Social worker Andrew Wilks says the assumption that somebody’s abilities at home reflect their capabilities in the workplace is disastrous. He states that people at home are under no obligation to perform the tasks, and that their confidence may vary daily. “The skill gap between home and work is a major thing that [the Department for Work and Pensions (DWP)] are disregarding, or they’re blind to”.

Since this was introduced, 2,380 people have passed within two weeks of being found fit for work. An additional 1,340 have died within two weeks of appealing a fit-for-work decision.

In October, ministers promised to fix the assessments as part of proposals aimed to help disabled people find employment.