Miliband's welfare plan deserves the left's support

His plan to reward those in work is a reaffirmation of the founding principles of the welfare state.

Despite the headlines it has attracted this morning, Ed Miliband's plan to give workers priority over the jobless for social housing is not a new one. In the fine speech he delivered on responsibility in June, Miliband promised that Labour would be "a party that rewards contribution, not worklessness." He cited the approach of Manchester which, as well as helping the most vulnerable, gives priority to those who contribute the most to their communities, be it through volunteering or employment, and those who have been good tenants in the past.

In his speech at 2:15pm today, he will say: "The hard truth is that we still have a system where reward for work is not high enough, where benefits are too easy to come by for those who abuse the system and don't work for those who do the right thing." His ambition is for the entire country to emulate the Manchester model: "Our first duty should be to help the person who shows responsibility, and I say every council should recognise the contribution people are making."

Miliband's bid to put the contributory principle back at the heart of the welfare state hasn't been welcomed by all on the left. It is viewed by some as a reassertion of the crude distinction between the deserving and the undeserving poor. Buth both Lloyd George and Beveridge regarded the contributory principle as essential to preserve fairness, increase work incentives and maintain public support for the welfare state. Neither believed in a "take what you can" approach. As Beveridge put it in his 1942 report: "The correlative of the state's undertaking to ensure adequate benefit for unavoidable interruption of earnings is enforcement of the citizen's obligation to seek and accept all reasonable opportunities of work." (Although, of course, he assumed a system of full employment, hence the title of his second report in 1944: Full Employment in a Free Society.)

It's important to emphasise that Miliband isn't calling for the state to relinquish its duty to protect the poorest. Fears of workless families being evicted from their homes are wide of the mark. But he is proposing a radical reordering of our social contract. He recognises that an approach that focuses on need alone risks reducing the welfare state to an American-style safety net for the poorest. Miliband should now go further and take up James Purnell's proposal to extend the contributory principle to pension provision. Those who pay in should receive a higher pension than those who do not.

Liam Byrne, the shadow work and pensions secretary, recently observed that "Labour is behind on welfare reform. It must get back in front". Miliband's vision of a system that rewards those who give the most, rather than simply those who need the most, offers one way to do so.

George Eaton is political editor of the New Statesman.

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Brexit could destroy our NHS – and it would be the government's own fault

Without EU citizens, the health service will be short of 20,000 nurses in a decade.

Aneurin Bevan once said: "Illness is neither an indulgence for which people have to pay, nor an offence for which they should be penalised, but a misfortune, the cost of which should be shared by the community."

And so, in 1948, the National Health Service was established. But today, the service itself seems to be on life support and stumbling towards a final and fatal collapse.

It is no secret that for years the NHS has been neglected and underfunded by the government. But Brexit is doing the NHS no favours either.

In addition to the promise of £350m to our NHS every week, Brexit campaigners shamefully portrayed immigrants, in many ways, as as a burden. This is quite simply not the case, as statistics have shown how Britain has benefited quite significantly from mass EU migration. The NHS, again, profited from large swathes of European recruitment.

We are already suffering an overwhelming downturn in staffing applications from EU/EAA countries due to the uncertainty that Brexit is already causing. If the migration of nurses from EEA countries stopped completely, the Department of Health predicts the UK would have a shortage of 20,000 nurses by 2025/26. Some hospitals have significantly larger numbers of EU workers than others, such as Royal Brompton in London, where one in five workers is from the EU/EAA. How will this be accounted for? 

Britain’s solid pharmaceutical industry – which plays an integral part in the NHS and our everyday lives – is also at risk from Brexit.

London is the current home of the highly prized EU regulatory body, the European Medicine Agency, which was won by John Major in 1994 after the ratification of the Maastricht Treaty.

The EMA is tasked with ensuring that all medicines available on the EU market are safe, effective and of high quality. The UK’s relationship with the EMA is unquestionably vital to the functioning of the NHS.

As well as delivering 900 highly skilled jobs of its own, the EMA is associated with 1,299 QPPV’s (qualified person for pharmacovigilance). Various subcontractors, research organisations and drug companies have settled in London to be close to the regulatory process.

The government may not be able to prevent the removal of the EMA, but it is entirely in its power to retain EU medical staff. 

Yet Theresa May has failed to reassure EU citizens, with her offer to them falling short of continuation of rights. Is it any wonder that 47 per cent of highly skilled workers from the EU are considering leaving the UK in the next five years?

During the election, May failed to declare how she plans to increase the number of future homegrown nurses or how she will protect our current brilliant crop of European nurses – amounting to around 30,000 roles.

A compromise in the form of an EFTA arrangement would lessen the damage Brexit is going to cause to every single facet of our NHS. Yet the government's rhetoric going into the election was "no deal is better than a bad deal". 

Whatever is negotiated with the EU over the coming years, the NHS faces an uncertain and perilous future. The government needs to act now, before the larger inevitable disruptions of Brexit kick in, if it is to restore stability and efficiency to the health service.

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