Workfare goes underground as Holland and Barrett pull out

DWP pitches for small businesses instead

Holland and Barrett, one of the largest companies using unpaid workers from the government's various employment schemes, has pulled out, citing the bad press and in-store protests its participation prompted. It will now pay its workers on through government's apprenticeship program, guaranteeing them a wage of at least £2.60 per hour.

The company made the announcement on its Facebook page, writing that:

At Holland & Barrett, we take our responsibilities as a retailer and employer very seriously, and any possible compromise to the safety of our staff and customers from opponents of our work experience scheme is treated with great importance.

This factor, together with the planned introduction of a new full time, salaried apprentice scheme, means that the 60 people currently undertaking the work experience scheme will be the last to complete the eight week placement. After this time Holland & Barrett will not participate further in that scheme.

Speaking to Shiv Malik at the Guardian, Solidarity Federation (Sol Fed)'s Jim Clark, one of the organisers of the series of protests, responded:

Holland & Barrett's claim that pickets of stores could offer a possible compromise to the safety of staff and customers is completely baseless. On our pickets, the first people we spoke to were the staff, many of whom told us they agreed with the aim of our campaign and that overtime was no longer available in some stores as it was being done by unpaid workfare labour instead.

The workfare program has been a mess for the government since attention was first drawn to the compulsory nature of some of the unpaid work this spring. The Department for Work and Pensions was revealed to be telling claimants on one of the "voluntary" schemes that attendance was mandatory, and a number of high-profile companies stopped taking on workers under the schemes after a fraught meeting with Chris Graying, the minister in charge. And last month, the government's own research showed that mandatory work activity is "largely ineffective", according to NIESR's Jonathan Portes, who wrote:

Briefly, what the analysis shows is that the programme as currently structured is not working. It has no impact on employment; it leads to a small and transitory reduction in benefit receipt; and worst of all, it may even lead to those on the programme moving from Jobseekers' Allowance to Employment and Support Allowance.

Despite that, the government has decided to expand the MWA scheme; but it appears that the government is attempting to avoid the PR hits that has often come with businesses taking on workers from the scheme. Various small businesses have reported being offered participants directly, in a move which is seemingly an attempt to drive participation underground. If campaign groups like Boycott Workfare have to protest 60 businesses each with one worker, rather than one with 60, they will have their work cut out to effect a change.

That said, it is probably the case that if government is having to enact policy designed around making it difficult to protest, that is at least a symbolic win for the protestors. Gettin an actual win, however, will get a bit harder.

Chris Grayling, Minister for Work and Pensions. 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.

Photo: Getty
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As long as the Tories fail to solve the housing crisis, they will struggle to win

The fall in the number of homeowners leaves the Conservatives unable to sell capitalism to those with no capital. 

For the Conservatives, rising home ownership was once a reliable route to government. Former Labour voters still speak of their gratitude to Margaret Thatcher for the Right to Buy scheme. But as home ownership has plummeted, the Tories have struggled to sell capitalism to a generation without capital. 

In Britain, ownership has fallen to 63.5 per cent, the lowest rate since 1987 and the fourth-worst in the EU. The number of private renters now exceeds 11 million (a larger number than in the social sector). The same policies that initially promoted ownership acted to reverse it. A third of Right to Buy properties fell into the hands of private landlords. High rents left tenants unable to save for a deposit.

Rather than expanding supply, the Tories have focused on subsidising demand (since 2010, housebuilding has fallen to its lowest level since 1923). At a cabinet meeting in 2013, shortly after the launch of the government’s Help to Buy scheme, George Osborne declared: “Hopefully we will get a little housing boom and everyone will be happy as property values go up”. The then-chancellor’s remark epitomised his focus on homeowners. Conservative policy was consciously designed to enrich the propertied.

A new report from the Resolution Foundation, Home Affront: housing across the generations, shows the consequences of such short-termism. Based on recent trends, less than half of millennials will buy a home before the age of 45 compared to over 70 per cent of baby boomers. Four out of every ten 30-year-olds now live in private rented accommodation (often of substandard quality) in contrast to one in ten 50 years ago. And while the average family spent just 6 per cent of their income on housing costs in the early 1960s, this has trebled to 18 per cent. 

When Theresa May launched her Conservative leadership campaign, she vowed to break with David Cameron’s approach. "Unless we deal with the housing deficit, we will see house prices keep on rising," she warned. "The divide between those who inherit wealth and those who don’t will become more pronounced. And more and more of the country’s money will go into expensive housing instead of more productive investments that generate more economic growth."

The government has since banned letting agent fees and announced an additional £1.4bn for affordable housing – a sector entirely neglected by Cameron and Osborne (see graph below). Social housing, they believed, merely created more Labour voters. "They genuinely saw housing as a petri dish for voters," Nick Clegg later recalled. "It was unbelievable." 

But though housebuilding has risen to its highest levels since 2008, with 164,960 new homes started in the year to June 2017 and 153,000 completed, this remains far short of the 250,000 required merely to meet existing demand (let alone make up the deficit). In 2016/17, the government funded just 944 homes for social rent (down from 36,000 in 2010). 

In a little-noticed speech yesterday, Sajid Javid promised a "top-to-bottom" review of social housing following the Grenfell fire. But unless this includes a substantial increase in public funding, the housing crisis will endure. 

For the Conservatives, this would pose a great enough challenge in normal times. But the political energy absorbed by Brexit, and the £15bn a year it is forecast to cost the UK, makes it still greater.

At the 2017 general election, homeowners voted for the Tories over Labour by 55 per cent to 30 per cent (mortgage holders by 43-40). By contrast, private renters backed Labour by 54 per cent to 31 per cent. As long as the latter multiply in number, while the former fall, the Tories will struggle to build a majority-winning coalition. 

George Eaton is political editor of the New Statesman.