General election 2017 – a CAP perspective
Click below to view the full party manifestos:
Labour | Conservatives | Liberal Democrats | Green | UKIP | Plaid Cymru | Scottish National Party
It seems like yesterday that Theresa May called a snap general election just two years after the last, but suddenly it’s just around the corner! Thursday 8 June will once again see millions of Britons turning out to vote for the next leaders of their communities, the country and our future.
You should be registered to vote by now (if not, oops – I’m afraid it’s too late to register to vote in this election, but learn from this and get sorted now for future votes by clicking here) and the decision on which candidate and which party to choose is likely to be laying heavy on your mind.
Ahead of the vote, the political parties have released their manifestos, outlining the ways they each plan to run the country. Whether you’re a long time supporter of CAP or you’ve just stumbled across this blog by chance, it’s likely you care about UK debt and poverty, as well as the treatment and rights of the poor, vulnerable and marginalised in our society, and these are points that each of the party manifestos discuss. From debt to employment to housing to social security, the choices we make on 8 June will inevitably have an effect on our clients, as well as those living on a low income or below the poverty line.
Here we’ve aimed to sum up the main CAP-relevant points from each of the ‘main’ party manifestos – that’s Labour, Conservatives and Liberal Democrats – to help you form your own decision. Of course, these three parties aren’t the only ones in the running so we’ve included links to the other parties' manifestos above for you to have a look at. Be sure to also do some research on the plans of each of your local candidates - you can look up who's running in your constituency here - before you head out to vote on 8 June to ensure you’re making a really informed decision.
First and foremost, CAP is a debt counselling charity. Our group services – CAP Job Clubs, CAP Release Groups, CAP Life Skills and the CAP Money Course – were all created with a view to preventing people from falling into debt in the first place. So it’s not surprising that we’re pretty bothered about how each of the political parties aims to tackle this issue. Thankfully, it crops up in all three manifestos in one way or another.
According to their manifesto, Labour plan to introduce a version of the Debt Arrangement Scheme, a process currently used in Scotland whereby payments are broken down monthly at a rate that suits the individual’s situation. Labour says the scheme will allow those struggling with debt ‘breathing space’ to step back, stop the problem getting worse and repay their debts at a manageable rate.
The Conservatives also refer to ‘breathing space’, proposing to introduce a scheme whereby those in debt will be safeguarded from potential abuse and have six weeks to get help with their debt before being offered a manageable ‘statutory repayment plan’.
As for the Liberal Democrats, the manifesto does mention concern that consumer debt is propping up the economy and that eight million people are in problem debt, although no specific policies are proposed to address the issue. There are policies on financial exclusion, however – including expanding the FCA’s remit to allow them to actively promote financial inclusion and taking forward recommendations of the House of Lords Select Committee on the issue.
Jobs and employment
There’s no doubt about it, unemployment is a significant cause of problem debt in this country. That’s why CAP Job Clubs was developed – to give people the skills and confidence to step back into work and ultimately get themselves a stable income. It’s a problem in itself, but still, simply being employed doesn’t necessarily mean everything is hunky dory, especially with widespread issues such as zero-hour contracts and adequate wages. The good news is that all three of the main parties have said they would tackle these problems in one way or another.
The Liberal Democrats say they will issue an independent review on the living wage - the living wage (about £8.45 per hour) is calculated as the bare minimum someone needs to afford all the things they need to survive, and currently the minimum wage of £7.05 per hour (£7.50 for the over 25s) is proving largely insufficient. The party also vows to tackle zero-hour contracts by giving workers the right to request a fixed contract.
Labour, on the other hand, want to ban zero-hour contracts entirely, as well as giving the same employment rights for all, whether you’re working full or part time, on a temporary contract or a permanent one. Their manifesto also states their plans to raise the minimum wage to the living wage for all workers over 18.
The Conservatives say they will look into changing the rules so that people working in the so-called ‘gig economy’ (temporary or freelance work rather than permanent employment) are protected and continue to increase the National Living Wage to 60% of median earnings by 2020.
Leading on nicely from employment, we come to income and the much-discussed issue of tax. Again, an insufficient income against rising expenditure is a significant cause of problem debt, so it’s very relevant to CAP and our clients.
As well as the proposed changes to the minimum/living wage, the Labour party has promised to not increase tax for those earning below £80,000 a year.
The Liberal Democrats are planning to fund social care and the NHS by increasing basic, higher and additional rates of Income Tax by a penny.
The Conservative manifesto outlines a plan to raise personal allowance to £12,500, as well as a number of points on the cost of living. These include investigating how price comparison websites can better serve consumers, showing service standards and complaint rates for each provider.
Social security is something that affects all of us, not least the poor, vulnerable and marginalised – the people CAP tends to work with. It’s all about making sure every person in society has enough money to live on in hard times. For an unabridged look at the parties’ plans around social security, we would recommend having a read of the full manifestos (links above) as we’ve just scratched the surface here.
Labour’s manifesto includes lots of policies on social security, many of which reverse cuts made by the previous two Governments. This includes scrapping the ‘Bedroom Tax’ (whereby a person’s entitlement to housing benefit is reduced if they have more bedrooms in their council house/housing association property than people living there) and reversing cuts to Employment Support Allowance. The red party also want to reinstate housing benefit for those under the age of 21 and review and reform Universal Credit.
The Liberal Democrats also have a lot to say about social security and similarly plan to reverse many of the cuts made in the last seven years. The party promises to ensure users of food banks are aware of their rights and how to access hardship payments and, like Labour, reverse cuts to housing benefit for people aged 18 to 21. They want to scrap the ‘Bedroom Tax’ too and encourage councils to help tenants downsize instead.
There is no mention of further social security in the Conservative manifesto.
Sadly, mental health and debt go hand in hand. Many of our clients say poor mental health was the cause of their money troubles, while others say the burden of debt was a significant cause of their mental health deteriorating. That’s why it’s positive to see this point discussed on all three of the main party manifestos.
The Conservatives want to increase basic public awareness of mental health, as well as invest a further £1billion of spending in this area by 2020/21. This will go towards promoting wellbeing support to prevent mental ill-health and better treatment by employers for those suffering.
The Liberal Democrats want to tackle the stigma around mental health, starting with the waiting time for care matching that of physical health problems and greater access to talking therapies. The party also has a lot to say around the topic of mental health and employment, stating their intention to promote support for sufferers in their workplace, helping them to stay in work, and to step up the implementation of Individual Placement and Support, a proven approach to getting people with mental ill-health back into employment. A public health campaign to improve mental resilience is also discussed on the Lib Dem manifesto.
As for Labour, the party wants to ringfence a mental health budget (which essentially means keeping the budget exclusively for mental health purposes), invest in early intervention and give the area the same priority as physical health.
CAP’s The poor pay more report highlighted the unfair deal the poorest and most vulnerable in society are getting when it comes to energy. So what do the main parties have to say about this?
The Conservatives want an independent review into the cost of energy and to introduce a price cap for people on default tariffs. Their manifesto also talks about examining regulation of utility providers to ultimately secure a better deal for customers, as well as ways to make switching energy providers easier and more reliable.
As for the Liberal Democrats, they want to tackle energy issues by expanding community schemes and generating energy locally. They also vow to back smaller energy firms, reducing the dominance of the ‘Big Six’ providers.
Labour are looking to regain control of energy supply networks and back more publically (rather than privately) owned companies. Their policies also include an emergency price cap to keep dual-fuel energy bills below £1,000 and plans to insulate four million homes.
Housing and renting
It’s an unfortunate reality that vulnerable people are at most risk of settling for an unfair deal on rent, mortgages and standards of living. Let’s see what the main three parties have to say about housing and renting.
The Liberal Democrats emphasise the problems faced in the rental market, stating their intention to ban letting fees for tenants, cap upfront deposits and increase minimum standards in rented accommodation. The yellow party also wants to make three-year tenancies the norm, with an inflation cap on rent increases. Plans are outlined to introduce a Help to Rent scheme, similar to Help to Buy, for young adults looking to get into the rental market. Their policies also cover the issue of homelessness, with plans to increase support for homeless prevention and funding for emergency accommodation.
In this area, the Conservatives place emphasis on securing a better deal for both tenants and landlords, with policies on increasing security for ‘good’ tenants and encouraging landlords to offer longer tenancies.
Similarly to the Liberal Democrats, Labour plan to make three-year tenancies the norm, again with an inflation cap on rent increases. There are also plans to begin the biggest council house building programme in the last 30 years and suspend ‘Right to Buy’ (a scheme which allows council tenants to buy their house at a lower cost). Labour also address homelessness, with a national plan to end rough sleeping.
The access, support and facilities people have in their immediate communities is vital, so it’s good to see this discussed in the main party manifestos too.
For the Conservatives, there are policies concerning the power of local government, with plans to hand over many functions of central government and continue to give greater control of the money they raise.
The Liberal Democrats want to remove the need for local referenda on changes to Council Tax and grant new powers to local authorities to limit the number of betting shops on high streets, also capping the maximum amount someone can bet on fixed odds betting terminals at one time to £2.
Labour is looking to give local government extra funding and review Council Tax rates. They also plan to end closure of Post Office branches and set up Post Bank, owned by the Post Office, to provide a full range of banking services in all communities. The manifesto outlines plans to ensure local libraries are updated with WiFi, increasing people’s access to (often essential) online services.
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