It's hard to be fluffy and efficient

The government has to decide whether it outsources for ruthless efficiency or its fluffy "big societ

Ben Phillips writes for Left Foot Forward:

One of the big ideas behind the government’s welfare reforms is that local charities would be better at getting the unemployed into work than government.

It just so happened that there would be a middleman – often a big contractor like A4e that. . . carries £200 million of public sector contracts.

Once the contractor takes on the case, they then find a subcontractor – the small local organisation – who will actually help secure employment for the jobseeker.

Except that specialist trade magazine Third Sector have reported the majority of welfare-to-work subcontractors in one survey have had precisely no client referrals.

This seems to be a pattern in initiatives aimed at harnessing the power of the "big society". It's fundamentally a mismatch between two competing – and contradictory – aims of outsourcing. Normally, the state outsources because it thinks the private sector can do a better job; if there's an element of publicity in it, its that governments sometimes like to be seen to be reducing the burden of the public sector.

Under the Conservatives, a second aim has been grafted on to that: make the government look fluffy. The rhetoric of the big society isn't just about removing the government, but also about putting power back in the hands of the people. Unfortunately, transferring control of, in this instance, the welfare-to-work schemes from a government to a massive outsourcing firm doesn't achieve that goal particularly well.

Hence this strange split-level structure. The government can't afford to deal with charities directly (literally can't afford – the administrative overheads for dealing with the hundreds of local operations would be prohibitive), so it contracts out the role to middlemen.

Unfortunately, it appears from Third Sector's report that the middlemen aren't particularly interested in boosting the big society agenda.

David Cameron launches Big Society Capital in April. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Commons Confidential: What happened at Tom Watson's birthday party?

Finances, fair and foul – and why Keir Starmer is doing the time warp.

Keir Starmer’s comrades mutter that a London seat is an albatross around the neck of the ambitious shadow Brexit secretary. He has a decent political CV: he was named after Labour’s first MP, Keir Hardie; he has a working-class background; he was the legal champion of the McLibel Two; he had a stint as director of public prosecutions. The knighthood is trickier, which is presumably why he rarely uses the title.

The consensus is that Labour will seek a leader from the north or the Midlands when Islington’s Jeremy Corbyn jumps or is pushed under a bus. Starmer, a highly rated frontbencher, is phlegmatic as he navigates the treacherous Brexit waters. “I keep hoping we wake up and it’s January 2016,” he told a Westminster gathering, “and we can have another run. Don’t we all?” Perhaps not everybody. Labour Remoaners grumble that Corbyn and particularly John McDonnell sound increasingly Brexitastic.

To Tom Watson’s 50th birthday bash at the Rivoli Ballroom in south London, an intact 1950s barrel-vaulted hall generous with the velvet. Ed Balls choreographed the “Gangnam Style” moves, and the Brockley venue hadn’t welcomed so many politicos since Tony Blair’s final Clause IV rally 22 years ago. Corbyn was uninvited, as the boogying deputy leader put the “party” back into the Labour Party. The thirsty guests slurped the free bar, repaying Watson for 30 years of failing to buy a drink.

One of Westminster’s dining rooms was booked for a “Decent Chaps Lunch” by Labour’s Warley warrior, John Spellar. In another room, the Tory peer David Willetts hosted a Christmas reception on behalf of the National Centre for Universities and Business. In mid-January. That’s either very tardy or very, very early.

The Labour Party’s general secretary, Iain McNicol, is a financial maestro, having cleared the £25m debt that the party inherited from the Blair-Brown era. Now I hear that he has squirrelled away a £6m war chest as insurance against Theresa May gambling on an early election. Wisely, the party isn’t relying on Momentum’s fractious footsloggers.

The word in Strangers’ Bar is that the Welsh MP Stephen Kinnock held his own £200-a-head fundraiser in London. Either the financial future of the Aberavon Labour Party is assured, or he fancies a tilt at the top job.

Dry January helped me recall a Labour frontbencher explaining why he never goes into the Commons chamber after a skinful: “I was sitting alongside a colleague clearly refreshed by a liquid lunch. He intervened and made a perfectly sensible point without slurring. Unfortunately, he stood up 20 minutes later and repeated the same point, word for word.”

Kevin Maguire is the associate editor (politics) of the Daily Mirror

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 19 January 2016 issue of the New Statesman, The Trump era