I had an excellent time last week joining the Weekly Economics Podcast as their first ever guest. This week I was talking about the Women’s Budget Group response to the Budget 2015 and what ‘social infrastructure’ really means. I’ll be sure to link to the podcast once it’s published.
I was really delighted to be part of this book. I’ve written an essay on how care work makes the world go round and it’s part of this collection. We’re crowd funding for the £2k publishing costs to get it out as a free e-book and although we have some of the costs covered by the publisher we still need a bit of money. Here is the blurb, please consider giving some money there are some awesome perks!:
Resist! is the third book in the Radical Future series: publications written and edited by young* activists, journalists and artists calling for radical alternatives to the status quo. We’re interested in social justice, liberation and collectivity, and the ways young people are organising to create change. If you think mainstream politics is a dismal failure and you still have hope we can do better, this book is for you.
The first book in the series, Radical Future: Politics for the next generation, was written before the 2010 election (remember back when things were bad, but we had no idea how much worse they were going to get?). The follow up, Regeneration, was published in 2012, and received over 50,000 downloads.
Resist! includes chapters about youth activist movements, re-envisioning work, feminist economics, direct action against the housing crisis, alternative media and organising after the London riots, from contributors like feminist campaigner Polly Trenow, activist Wail Qasim and openDemocracy journalist Adam Ramsay. It is edited by journalist and openDemocracy editor Ray Filar.
We’re really excited about this next book and can’t wait to get it published.
But to get there, we need your help.
Like the first two books in the series, we want to make Resist! as accessible as possible by also offering it as a free ebook (as well as a paperback version). But ironically, publishing a free ebook is expensive. The publisher, Lawrence & Wishart, is covering most of the costs, but we need help with the final £2000. And we need it sharpish to get it out before the general election. So that’s why we’re asking you to donate. Your money will go towards typesetting, copy editing, proofing, and promotion.
We’ve put together some amazing rewards. As well as beautiful merchandise designed by our talented cover artist Yoav Segal, we’re harnessing the talents, pub-debating skills and canal boats of our contributors. We’re offering prints that you can put on your wall, and tote bags with our cover art on. You’ll also find a great selection of workshops, excursions and experimental fun, all there to encourage you to part with your cash.
If we get more money than our target, we’ll divide it up to pay everyone who has given their time for free. Anything over that we’ll put towards the next book in theRadical Future series. You can read the first two books in the series right now. For free!
The full list of contributing authors to Resist! Against a Precarious Future are:
Sarah Allan, Craig Berry, Matthew Cheeseman, Rhiannon Colvin, Sean Farmelo, Ray Filar, Robbie Gillett, Deborah Grayson, Noel Hatch, Izzy Koksal, Ben Little, Wail Qasim, Adam Ramsay, Niki Seth-Smith, Mike Shaw, Polly Trenow, Matt Adam Williams.
*in some cases, at heart
Last month I was delighted to be invited to present at Unison Women’s Conference in
Southport on behalf of the Women’s Budget Group. Last year I also presented at the Local Government Conference and there was a lot of enthusiasm for my analysis of local government spending and the impact on gender equality. I also gave a similar talk to the Essex Feminist Collective who were the ones who recommended me to speak at Unison.
It was a fascinating morning as the caucus passed motions. Much to my delight
one of these motions was a call to continue to work closely with the Women’s Budget Group on the ongoing impacts of austerity on women, which was an
excellent start to the day.
In the afternoon I was presenting in the main conference hall which was slightly terrifying. We first looked at some of the problems with economic theory which is predicated on the household male-breadwinner model and does not have any means for understanding how resources are split within the household. Secondly there is a total failure by mainstream economics to take into account the impact of unpaid care work. We then moved to local government and looked at equality impact assessments. These can be quite dry but they are a good tool to show how the basics of gender budget analysis works.
It was a fantastic day and I am looking forward to working with Unison more closely this year.
I was delighted to be invited to present at the Amiel and Melburn Trust weekend where campaigners, activists and thinkers were brought together to exam contemporary capitalism and the economic crisis.
The Trust was founded in 1980 by Norman Melburn and named for his friend and fellow Marxist, the lawyer Barry Amiel. The general objectives of the Trust are to advance public education, learning and knowledge in all aspects of (a) the philosophy of Marxism (b) the history of socialism, and (c) the working class movement.
I talked about capitalism and gender inequality and had a great response to my talk. Gender often gets left out conversations of the economy I was glad to be there and hope to work with the Amiel and Melburn Trust again soon.
On announcing the Transferable Tax Allowance, David Cameron said: “I believe in marriage, I believe marriage should be recognised in the tax system. I see this as….a start of something I would like to extend further.”
The TTA (or Marriage Tax Allowance) is a scheme that allows the high-earning partner of married couples (or those in a civil partnership) to use some of their low/non-earning partners’ tax-free allowance.
The move promises to reward couples that have taken a vow of commitment to each other but on closer inspection the policy is deeply flawed. Leaving aside the morality of using fiscal policy to shape interpersonal relationships and the radical departure this represents from the Conservative policy of independent taxation, the benefits of this scheme are frankly, unequal.
New analysis from the Women’s Budget Group using data provided by the Institute of Fiscal Studies shows that, far from helping families, the beneficiaries of the TTA are actually 85% male. Women are more likely to be the low-earning partner in couples for reasons including (but not limited to) the fact they tend to work part-time or not at all to care for children or relatives. It is mostly men who are the high-earning partner in couples and, therefore, men who will benefit from this tax break.
Proponents have argued that a tax break for one partner is saving for all the family. But the idea that an individual’s income is split equally with their partner is questionable.
Financial power dynamics between couples are complex and often unequal. There is little evidence to suggest that men split their income equally with their spouses. In fact available evidence suggests that men are more likely than women to use their income for personal spending. This gendered tax relief is therefore unlikely to benefit the rest of the household.
It is important not to overstate the impact of this policy, as the rewards are relatively meagre. High earners will be able to transfer £1000 of their annual personal allowance of tax-free income between themselves, as long as neither pays income tax at more than the basic rate. This will mean the high earner in eligible couples will pay up to £200 less tax a year or around £4 a week.
Given Cameron’s commitment to extending the tax allowance in the future, this announcement is only the thin end of the wedge. Yet increasing this type of tax allowance will only create further economic disparity between men and women and put increasing pressure on low earners, namely women, to remain unemployed or in part-time work.
The limitations also mean that very few married couples will actually benefit. If both partners earn over the income tax threshold it won’t apply. The poorest families (where both partners don’t earn enough to pay tax) also won’t benefit, even though they are most in need of support.
Moreover, only 18 per cent of families with children will be eligible, calling into question the Conservative pledge to do “everything [they] can to support families during tough times”. This is because of the eligibility criteria outlined above, but also because many couples with children are not married including the 2 million single parents in Britain today.
Finally as couples will need to apply to receive the their tax allowance, this automatically reduces uptake for the sizeable proportion of those who don’t know or don’t know how, to claim.
Stranger still, this policy represents a radical departure from Conservative party ideology.
Prior to the 1980s, a married woman’s income was treated as her husband’s. Following a consultation on the matter, the Conservatives (along with all the other major parties) rejected a transferable tax allowance, opting for independent taxation instead. The move made sense.
Marriage has no financial need in and of itself and independent taxation is better for women’s economic autonomy. So why this sudden shift? Few couples will actually benefit from the TTA and those who do, will receive only a token amount.
The £700 million that it will cost to fund the TTA could be used instead to tackle some more urgent social needs. For example, this figure could be used to make up for two of the four years for which child benefit has been frozen or raised by less than inflation.
Alternatively, the money could be used to reinstate child benefit as a universal benefit for all children. The higher income charge was projected to take £690 million from parents in 2013/14, almost exactly the same amount as would be paid out to married couples through TTAs from 2015/16.
Rather than further reducing the incentive for women to return to work, the money could also be spent on improving childcare, the cost and availability of which remains one of the biggest hurdles for women returning to the workforce after childbirth.
Only £200 million – about one third of the amount being spent on TTAs – would be needed to extend the proposed additional childcare help in Universal Credit to all, rather than restricting it to those earning above the tax threshold, as currently proposed.
Sue Himmelweit of the Women’s Budget Group said that it was:
“both morally suspect and almost certainly counterproductive to bribe people into marriage.”
And given how few married couples will actually benefit from the programme, this can only be seen as Cameron’s attempt to appeal the social conservatives of his party.
Yet the announcement of the Transferable Tax Allowance in the Autumn Financial Statement passed with little remark from either public or press. Perhaps it was seen as small fry compared to the other headline-grabbing commitments of continued austerity or perhaps the public doesn’t see it as a threat.
Either way, if this really is the thin end of the wedge, we should be concerned. The government would be better off helping the most vulnerable in our society rather than using tax to reward one type of living arrangement over another.
This morning’s Autumn Statement felt rather too familiar. Not only because the headlines were leaked to the press in advance but also because, once again, women were left behind.
Osborne congratulated himself on the indicators of recovery, but at the Women’s Budget Group we asked, recovery for who?
Unemployment is falling, yet women’s unemployment has fallen by less than 4% since 2011, half as fast as men’s (9%). Real earnings are not recovering; instead they have continued to fall for both men (0.4 % for gross hourly earnings) and for women (0.7%). As the cost of living rises and progress on the gender pay gap stalls, inequality only becomes further entrenched.
Yet again the Chancellor’s announcement focused on investment in physical infrastructure and said nothing about care services for children, elderly and disabled people. Investment in social infrastructure is just as important for the long-term health of the country and the further £3 billion cuts in public spending will continue to hurt women the most.
The £700 million married couples tax allowance would be better spent elsewhere. Only 18% of families with children will benefit from this measure. This money will go to the higher earner (the vast majority of whom are men) which will worsen income inequality within married couples.
Taxation policy is no place for moralistic judgements and the tax allowance will not help Britain’s poorest families: couples where both partners earn below the basic tax rate or lone parents (92% of whom are women). What’s more it appears this announcement is only the thin end of the wedge as Osborne promises to extend this tax allowance in the future.
George Osborne claims Britain’s economy is on the up, but with low wages, spiraling costs of living and a dramatic decrease in social security, whose boat is lifted by the rising tide?
Women are feeling the pinch more than most, and the Autumn Financial Statement does little to alleviate the pain.
Women’s Budget Group press release on the Autumn Financial Statement
George Osborne claims Britain’s economy is on the up, but people are still struggling to cope with low wages, a rising cost of living, and a dramatic decrease in social security. Women are feeling the pinch more than most, and the Autumn Financial Statement does little to alleviate the pain.
Women’s unemployment has fallen by less than 4% since 2011, half as fast as men’s (9%). Real earnings are not recovering; instead they have continued to fall for both men (0.4 % for gross hourly earnings) and for women 0.7%. Progress on closing the gender pay gap has also stalled.
Yet again the Chancellor has focussed only on investment in physical infrastructure and said nothing about investing in care services for children, elderly, and disabled people. Making long-term plans investment in social infrastructure is just as important for the long-term health of the country. The cuts in spending continue with a further £3 billion over the next three years.
The £700m given away on the married couples tax allowance would be better spent on elsewhere. Only 18% of families with children will benefit from this measure. This money will go to the higher earner, the vast majority of whom are men, which will worsen income inequality within married couples.
Professor Diane Elson, chair of the Women’s Budget Group, said: “The chancellor talks of recovery but it to doesn’t feel like it to most people with real earnings still falling. The Autumn Financial Statement does nothing to ensure a recovery that supports gender equality”
The WBG’s Sue Himmelweit said: “Transferable Tax Allowances are a bad idea and we concerned to hear the Chancellor plans to build on them. Money given away on the married couples tax allowance would be better spent on real social priorities. One of these would be to extend help with unaffordable childcare costs to the lowest earners among families on Universal Credit, a measure that would cost just £200m.”
For further comment, please contact:
Sue Himmelweit : 07963951333
Jerome De Henua: 07860556254
NOTE: An in-depth analysis of the impact of the Transferable Tax Allowances will be published by Women’s Budget Group on Saturday 7th December 2013.
This post was first published by the F-Word a contemporary UK feminist site which I was delighted to blog for.
Though the Chancellor tried to make good headlines with his recent spending review announcement, it is clear that once again the budget has not been gender-proofed. Polly Trenow discusses the implications for women
On 26 June, George Osborne announced his spending review setting out the cuts and savings to be made between 2015 and 2016. With the general election due in 2015, there were few surprises in store: more cuts, more austerity and a couple of crowd-pleasers to keep the voting public on his side.
And like every good Treasury speech, Osborne ensured the bad news was sandwiched between his good news headlines: the NHS budget will be safe from cuts in that financial year and overseas development spending will remain at 0.7% of GDP. The Chancellor also told us that for every public sector job that has been lost, three private sector jobs have been created and announced a huge investment in physical infrastructure – roads, rail and nuclear power stations.
So not all bad then? Well not quite. Always the perfect politician, the Chancellor’s boasts of savings and spending hide a multitude of sins.
Despite decades of campaigning, the Treasury have continually failed to ‘gender-proof’ their budgets. The Equalities Impact Assessment for the spending review dedicated a whole seven sentences to the impact on women, all of which only highlight the benefits to women rather than exploring the possible negative consequences. Economic policies can have very different impacts on women and men, yet we rarely see any recognition of this during the budget-making process.
Local governments who have seen their budgets aggressively slashed in recent years face another year of austerity, with their spending reduced by a further 10%. Local authorities fund essential services for women and women’s organisations. Programmes like Sure Start Children’s Centres and the Supporting People programme which fund many sexual and domestic violence support services have already faced cuts of around 11% and now their future looks as uncertain as that of the women and children they support.
The Chancellor’s ring-fencing is too little, too late and makes no allowance for the fact that health service costs rise faster than inflation
Today, the organisation I work for – the Women’s Budget Group released a briefing outlining how austerity in the UK is hitting women harder than men. Though there are signs of economic recovery they are not yet apparent in the lives of real women. The briefing outlines what is needed to make recovery benefit men and women – plan f.
The briefing was also covered by the Observer and was timed with the Labour Party Conference in Brighton where they were also discussing of the economy. I was delighted to be invited by Caroline Criado-Perez to guest tweet for the Women’s Room on this subject. The conversation was fascinating we covered free school meals (one of Ed Milliband’s announcements today), child care, unconditional basic income, investing in social housing and making social housing accessible, apprenticeships and much, much more.
Come join the conversation on Twitter using the hashtag #planf, look forward to hearing your thoughts.