The sick man of Europe?

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The sick man of Europe?

For a long time now, the TPA has been calling out the sick note culture in the public sector, ([link removed]) with data regularly showing that public sector workers take far more days off ill than their counterparts in the private sector. Unfortunately, ever since the pandemic, this sick note culture has been spreading to all corners of the economy, leaving millions out of work, or claiming in-work benefits for various conditions. The cost to the public purse is eye-watering, and taxpayers are rightly asking how on earth this trend can continue.

Things seemed to reach a head this week with a shocking audit in the Daily Mail ([link removed]) into personal independence payments (PIP), which are designed to help with living costs for those with long-term health conditions. Spending on anxiety and depression has exploded from £11.7 million to £1.8 billion, part of a trend which means that 27.5 per cent of PIP awards are now for mental health conditions, up from 16 per cent a decade ago. Even more shockingly, an industry of consultants has now emerged to coach applicants for these payments on how best to secure them and avoid “trick questions.”

Our investigations campaign manager, Joanna Marchong, could barely contain her horror, telling the Daily Mail ([link removed]) : “The surge from millions to billions in certain disability benefits is making a mockery of the system, which is designed to help people in need. What will horrify Brits is that there is an industry of unscrupulous con artists masquerading as consultants, helping scroungers to swindle taxpayers.” She went on to tell ministers to “crack down on these practices and ensure only those who are genuinely deserving receive payments.”

It’s no wonder that the prime minister, Rishi Sunak, felt the need to address the nation on this very issue this week, telling the country in a speech ([link removed]) that we need to “change the sick note culture” and be “more honest about the risk of over-medicalising the everyday challenges and worries of life.”

Our head of research Darwin Friend was listening closely, and was quick out the blocks in his reaction. In comments picked up by the Daily Express ([link removed]) , Darwin welcomed the speech saying “the prime minister is right to call for an end to the ‘sick note culture’ that has contributed to the poor health of the economy.” But he also pointed out that “given the public sector continuously posts far higher levels of sick leave than the private sector, taxpayers will be questioning why ministers can’t even get their own house in order.”
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Producers were quick on the phone asking for more from Darwin. Appearing on GB News Darwin told presenters ([link removed]) Tom Harwood and Emma Webb that “what we need to remember throughout all of this, is it’s a cost to taxpayers and we’re seeing a forecasted extra two million extra people who are going to be on disability benefit by the end of this decade.”

Ensuring that taxpayers are front and centre of this discussion is going to be a huge challenge over the coming months. But with your help we can continue to make the case. Support our work by clicking here to donate ([link removed]) .
TaxPayers' Alliance in the news

HMRC overpaying their staff ([link removed])

It’s no secret that the taxman has really been raking it in recently. Despite recent cuts to national insurance, the tax burden remains at a seventy-year high. Imagine our shock then at the news that HMRC have been erroneously overpaying its staff ([link removed]) to the tune of over £12 million pounds. And despite expensive and time-consuming work to clawback some of these payments, £300,000 remains unreclaimed
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As our researcher, Jonathan Eida, told the Telegraph ([link removed]) , “Taxpayers will be fuming that tax officials have been filling their pockets with more than they’re entitled to, even if it’s by accident. To overpay staff is a shocking error, but even worse is the fact that a lot of the cash hasn’t been clawed back.”

Foreign aid still going to India ([link removed])

When it comes to payments that shouldn’t be happening, there aren’t many more clear cut cases than foreign aid to India, the world’s fifth largest economy and a country with its own space programme. Yet it was revealed this week that a shocking £91 million is still going to the country in aid payments.
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Our researcher Callum McGoldrick spoke for the nation live on TalkTV ([link removed]) , telling presenter Ian Collins that the payments are “outrageous” and that we should “abandon the promise to spend 0.5 per cent of GDP on foreign aid.”

Scottish government offices left empty ([link removed])

Something seems to be rotten in the state of Scotland. Analysis out this week ([link removed]) revealed that the vast majority of the Scottish government’s estate remains empty, with staff choosing to work from home and leaving taxpayers on the hook for expensive office space.

As John told the Daily Express ([link removed]) , “Scots will be furious that they're paying for empty desks to pick up cobwebs. And while bureaucrats love to insist that they work as well from home as they do in the office, taxpayers can see what has happened to public services since the pandemic.”
Blog of the week

Increasing defence spending isn’t a silver bullet ([link removed])

With all the talk of world war three, it’s no surprise that there are growing calls for a boost in defence spending. Just in the last few weeks, the defence secretary has called ([link removed]) for an increase to 3 per cent of GDP, while Labour have pledged ([link removed]) an increase to 2.5 per cent if they get elected. It’s very easy for politicians to demand more money, but who is asking whether we do the best we can with the money that’s available?

Fortunately our media campaign manager, WIlliam Yarwood, has done exactly that. In a fascinating blog ([link removed]) , William points out that Japan spends just 1 per cent of GDP on defence, yet on many metrics their military outperforms ours. As William puts it: “having a well-funded and strong military is one of the few things that all agree the state should spend money on. But until our political establishment gets to grips with our failed system we should question calls to increase the defence budget.”

Click to read more ([link removed])
War on Waste

It sometimes feels impossible to escape the surge in social media influencers. They seem to be everywhere nowadays, begging the question, where on earth do they get all their money?

Well it turns out they get a decent chunk from taxpayers. Northern Irish councils in particular were revealed this week ([link removed]) to have coughed up almost £70,000 to influencers such as “dish you were here”, “hello Erin”, and “enjoy everything Emma.” All of this after Northern Irish councils hit residents with yet another round of rate rises.

Councils should focus on frontline services, not gratuitous PR gimmicks.

Please send me your examples of wasteful public sector spending (mailto:[email protected])

Benjamin Elks
Grassroots Development Manager

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