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.

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John McDonnell praises New Labour as he enters conciliatory mode

The shadow chancellor sought to build a bridge between the past and the present by crediting the 1997 government. 

Ever since Jeremy Corbyn became Labour leader, John McDonnell has been on a mission to reinvent himself as a kinder, gentler politician. He hasn’t always succeeded. In July, the shadow chancellor declared of rebel MPs: “As plotters they were fucking useless”.

But in his Labour conference speech, Corbyn’s closest ally was firmly in conciliatory mode. McDonnell thanked Owen Smith for his part in defeating the Personal Independence Payment cuts. He praised Caroline Flint, with whom he has clashed, for her amendment to the financial bill on corporate tax transparency. Jonathan Reynolds, who will soon return to the frontbench, was credited for the “patriots pay their taxes” campaign (the latter two not mentioned in the original text).

McDonnell’s ecunmenicism didn’t end here. The 1997 Labour government, against which he and Corbyn so often defined themselves, was praised for its introduction of the minimum wage (though McDonnell couldn’t quite bring himself to mention Tony Blair). Promising a “real Living Wage” of around £10 per hour, the shadow chancellor sought to build a bridge between the past and the present. Though he couldn’t resist adding some red water as he closed: “In this party you no longer have to whisper it, it's called socialism. Solidarity!”

As a rebuke to those who accuse him of seeking power in the party, not the country, McDonnell spoke relentlessly of what the next Labour “government” would do. He promised a £250bn National Investment Bank, a “Right to Own” for employees, the repeal of the Trade Union Act and declared himself “interested” in the potential of a Universal Basic Income. It was a decidedly wonkish speech, free of the attack lines and jokes that others serve up.

One of the more striking passages was on McDonnell’s personal story (a recurring feature of Labour speeches since Sadiq Khan’s mayoral victory). “I was born in the city [Liverpool], not far from here,” he recalled. “My dad was a Liverpool docker and my mum was a cleaner who then served behind the counter at British Homes Stores for 30 years. I was part of the 1960's generation.  We lived in what sociological studies have described as some of the worst housing conditions that exist within this country. We just called it home.”

In his peroration, he declared: “In the birthplace of John Lennon, it falls to us to inspire people to imagine.” Most Labour MPs believe that a government led by Corbyn and McDonnell will remain just that: imaginary. “You may say I'm a dreamer. But I'm not the only one,” the shadow chancellor could have countered. With his praise for New Labour, he began the work of forging his party’s own brotherhood of man.

George Eaton is political editor of the New Statesman.