A new government bill would force banks to carry out “mass surveillance” of millions of innocent disabled people and other benefit claimants, MPs have been warned.
The measures in the bill would force banks to examine individuals’ accounts for potential breaches of benefit eligibility rules, and then pass that information to the Department for Work and Pensions (DWP).
…
Work and pensions secretary Liz Kendall told MPs on Monday that the measures would force banks to provide data to “help identify incorrect benefit payments people might be getting, including fraudulently, such as if someone has too much in savings, making them ineligible for a benefit, or if they are fraudulently claiming benefits abroad when they should be living in the UK”.
But independent MP Zarah Sultana said the “algorithm-driven financial surveillance” allowed by the bill would lead to errors that would disproportionately affect disabled and older people and “those already struggling to make ends meet”, and create “a two-tier justice system”.
She said: “Even a one per cent error rate in the AI system used by banks could lead to thousands of benefit recipients being wrongly flagged, unfairly investigated and forced into lengthy appeals.”
She said the bill would allow “mass surveillance” and was “deeply unjust” and would “subject millions of innocent people – disabled individuals, carers, jobseekers, pensioners and parents – to unwarranted financial surveillance, treating them as suspects by default, simply because they receive state support”.
It would, she said, turn banks into “agents of the state”.
Another independent MP, John McDonnell, the former Labour shadow chancellor, said the government was seeking powers for a “mass surveillance exercise”.
He said: “The reason why people will feel that it is unfair is that it specifically targets people who are often in desperate need.
“If there was a group of people whose accounts we would want to monitor because there has been a history of fraud, and who have had to pay money back – some have gone to prison – it would be MPs; I was here during the expenses scandal.”
FORMER Labour leader Jeremy Corbyn has hit out at the Met Police over its handling of a Palestine rally in London on Saturday.
More than 70 demonstrators were arrested on suspicion of breaching protest conditions after reportedly breaking through a police line as they marched from a rally in Whitehall.
Police clash with protesters at the rally (Image: Jeff Moore/PA Wire)
…
Corbyn, who sits as an independent MP, responded to a post from the Met Police on Twitter/X which said: “The group that forced its way through the police line is now held at the north west corner of Trafalgar Square.
“Anyone in that group should now disperse and leave the area. Anyone remaining in breach of the conditions, or inciting further breaches, will be arrested.”
In his response, the former Labour leader said: “This is not an accurate description of events at all.
“I was part of a delegation of speakers, who wished to peacefully carry and lay flowers in memory of the children in Gaza who had been killed.
“This was facilitated by the police. We did not force our way through. When we reached Trafalgar Square, we informed police that we would go no. further, lay down flowers and disperse.”
…
This is not an accurate description of events at all.
I was part of a delegation of speakers, who wished to peacefully carry and lay flowers in memory of children in Gaza who had been killed.
This was facilitated by the police. We did not force our way through.
Chancellor of the Exchequer Rachel Reeves at the Confederation of British Industry (CBI) conference at the QEII Centre, London, November 25, 2024
…
Leading left MP and former shadow chancellor John McDonnell issued the warning to Rachel Reeves as the Chancellor returned from her China trip to confront the bond market crisis.
Mr McDonnell, presently suspended from the Labour whip for opposing the cruel two-child benefit cap, told BBC radio: “There is obviously a problem.
“There’s turbulence in the international markets, and we’ve just got to see those through.
“You don’t turn to cuts, certainly, because not only will that be politically suicidal, that would undermine the political support upon which Labour got elected.
“In addition to that, you would be taking demand out of the economy, and you would be looking at turning a crisis into a recession.
“So I think you just have to see through the turbulence in the markets.”
Mr McDonnell also reminded the government that voters matter more than markets.
MPs show support for an immediate arms embargo outside parliamentPhoto: Jess Hurd
CROSS-PARTY MPs demanded action from the government today to put a halt to Israel’s onslaught in Gaza.
MPs debated petitions signed by over 100,000 people, calling for the immediate revocation of all arms export licences to Israel and 283,000 calling for the recognition of a Palestinian state, which were delivered before the general election
Since last October, at least 45,000 in Gaza have been murdered by Israel, in which Britain has been complicit through supplying arms.
In September, the Labour government eventually banned 30 out of 361 licences in a move labelled “tokenistic” by campaigners.
During the debate, Labour MP John McDonnell said: “I think history will judge us all for not doing enough to stop this.”
The former shadow chancellor said that while he was pleased that the petition is taking place “there’s a level of frustration now I don’t think we can contain any more.”
He asked: “Why isn’t democracy being exercised here to stop this?”
UK Foreign Minister David Lammy confirms that UK government and military are active participants in Israel’s genocides and that the F-35 parts that they suspended from supplying to Israel are instead simply diverted via the United States. He says see https://youtu.be/QILgUHrdWREGenocide denier and Current UK Prime Minister Keir Starmer is quoted that he supports Zionism without qualification. He also confirms that UK air force support has been essential in Israel’s mass-murdering genocide. Includes URLs https://www.declassifieduk.org/keir-starmers-100-spy-flights-over-gaza-in-support-of-israel/ and https://youtu.be/O74hZCKKdpA
Yet public ownership is opposed passionately by the Conservative government, while the leader of the opposition has said he is “not in favour” of it – despite his election on a platform that committed to “bring rail, mail, water and energy into public ownership to end the great privatisation rip-off and save you money on your fares and bills”.
Public ownership is on the media’s radar, too. When Labour leader Keir Starmer announced his policy to freeze bills this week, he was asked why he wouldn’t also nationalise energy, replying that: “In a national emergency where people are struggling to pay their bills … the right choice is for every single penny to go to reducing those bills.”
But so long as energy remains privatised, every single penny won’t. Billions of pennies will keep going to shareholders instead.
The energy market was fractured under the mass privatisations of the Thatcher governments in the 1980s. It contains three sectors: producers or suppliers (those that produce energy), retailers (those that sell you energy), and distribution or transmission (the infrastructure that transports energy to your home).
It is important to bear this in mind when we’re talking about taking energy into public ownership. We need to be clear about what we want in public ownership and why.
By 2019, Labour had a detailed plan on how to do this – worked up by the teams around then shadow business and energy secretary Rebecca Long Bailey and then shadow chancellor John McDonnell. The plan is not the only way, but it illustrates what exists and how one could go about re-establishing a public energy ecosystem, run for people not profit.
The recent TUC report shows the cost of nationalising the ‘Big 5’ energy retailers – British Gas, E.ON, EDF, Scottish Power and Ovo – to be £2.8bn, which would go on buying all the companies’ shares. That’s a lot of money, equivalent to more than the annual budget of the Sure Start programme in 2009/10 (its peak year). But it’s a one-off cost, not an annual one.
And it’s not like the current privatised system doesn’t have its costs: since June 2021, the UK government has spent £2.7bn bailing out 28 energy companies that collapsed because they put short-term profits ahead of long-term stability – companies like Bulb Energy. We have spent billions of pounds already to get nothing in return. So £2.8bn is not a large amount of money to pay to gain these assets, rather than just bailing them out.
The big energy retail companies made £23bn in dividends between 2010 and 2020 according to Common Wealth, and £43bn if you include share buy-backs. What you choose to do with that surplus in public ownership is another matter: you could use it to invest in new clean energy or to lower bills or fund staff pay rises, rather than subject your workers to fire-and-rehire practices as British Gas did last year.
Labour’s previous plan also involved taking the distribution networks – the National Grid – into public ownership. This would end the profiteering at this level, too – with £13bn paid out in dividends over the five years prior to 2019. As Long Bailey said at the time, we need “public driven and coordinated action, without which we simply will not be able to tackle climate change”. Like previous nationalisations, the purchase of the grid and distribution networks could be achieved by swapping shares for government bonds. By international accounting standards, the cost is fiscally neutral as the state gains a revenue-generating asset, which more than pays for the bond yield.
The final part of the plan – and the most complicated – is production and supply. It would be impossible to nationalise the oilfields of Saudi Arabia or Qatar – and for good reasons we should want to leave fossil fuels in the ground, anyway, rather than contest their ownership.
And so what Labour proposed in 2019 was a mass investment in new renewable energy generation projects, with the public sector taking a stake and returning profits to the public. For example, under the ‘People’s Power Plan’, we proposed 37 new offshore wind farms with a 51% public stake, delivering 52GW alone by 2030, equivalent to 38 coal power stations. There were additional proposals for onshore wind, solar, and tidal schemes, as part of a 10-year £250bn Green Transformation Fund, which included other schemes like the Warm Homes insulation initiative.
Labour’s new shadow chancellor Rachel Reeves has promised a similar level of investment – a £28bn a year climate investment pledge.
Any surplus energy would then be sold on international markets, with a People’s Power Fund – a sort of sovereign wealth fund – to deliver public investment in local communities’ social infrastructure: a genuine levelling-up fund, perhaps.
Many people will say this can’t be done, but of course it has been before. The 1945 Attlee government nationalised energy and successive Conservative governments – including those of Churchill, MacMillan and Heath – were happy to have a nationalised asset. Harold MacMillan famously accused Margaret Thatcher of “selling off the family silver” when she privatised state industries.
When I was born in 1979, the National Coal Board, British Gas and British Petroleum were all publicly-owned or majority publicly-owned companies. Between them, they were the major suppliers of our energy. Our gas bills came from British Gas and our electricity bills from our regional electricity board (in my case Seeboard, the South Eastern Electricity Board), and coal and oil fuelled our power stations.
The regional electricity boards had been brought into being by the Attlee government’s Electricity Act 1947, when electricity companies were forcibly merged into regional area boards and nationalised. The Coal Industry Nationalisation Act 1946 and the Gas Act 1948 had together brought energy into public ownership.
Seeboard was privatised in 1990, and later became part of EDF Energy – ironically, the nationalised French energy company, whose profits from the UK’s stupidity are used to subsidise French consumers.
The French government has now fully nationalised EDF (previously it was 84% publicly owned), and household energy bills rose by just 4% this year – compared to over 50% in the UK and a forecast 200% by January 2023.
If Starmer doesn’t want to listen to me (or his own commitments from 2020), perhaps emulating the centrist Emmanuel Macron in this instance would be palatable?
From the depletion of fish stocks to the burning of the Amazon, profit has proved a failed regulator for use of our natural resources
In his later years, Robin Cook argued: “The market is incapable of respecting a common resource such as the environment, which provides no price signal to express the cost of its erosion nor to warn of the long-term dangers of its destruction.”
From the depletion of fish stocks to the burning of the Amazon, profit has proved a failed regulator for use of our natural resources. The market has also failed to decarbonise at pace, or to end the scourge of fuel poverty.
On the media this week, shadow energy secretary Ed Miliband said Labour is “continuing to look at what the right long-term solution is for our energy system”. It is up to all of us to campaign for that solution to be public ownership – whether that’s from within the Labour Party (like me) or from the outside.
