Labour begins to turn against universal benefits

Welfare spokesman Liam Byrne says that benefits to the elderly will need to be "looked at".

Last week, we heard Nick Clegg question the future of universal benefits for the elderly such as the winter fuel allowance and free bus passes, and now Labour is doing the same. On the Today programme this morning, Liam Byrne suggested that a better "balance" needed to be struck between means-tested and universal benefits. The shadow work and pensions secretary said:

There has always been a balance in the welfare state between universal benefits and targeted benefits and I'm afraid as part of Ed's zero-based review that balance has got to be looked at

To date, Ed Miliband's leadership has been characterised by a strong defence of universal benefits, most obviously in the case of child benefit. He believes, as Richard Titmuss put it, that "services for the poor will always be poor services" and that "middle class benefits" are important to sustain public support for the welfare state. But such is the fiscal mess that Labour will inherit (the latest independent forecasts suggest the deficit will be £99.5bn in 2015) that this stance will become harder to defend. As Clegg quipped last week, "at a time when people’s housing benefit is being cut", Labour wants to protect "Alan Sugar’s free bus pass". While there are many on the left who will rightly argue that the cuts to working-age benefits are not a reason to reduce support for the elderly, there are others who will sympathise with Clegg's argument.

Owing to David Cameron's pre-election pledge to protect benefits for the elderly, there is no prospect of the coalition restricting eligibility before 2015. But it does now look as if all three of the main parties will go into the next election promising, to varying degrees, to limit universal payments.

Shadow work and pensions secretary Liam Byrne warned that Labour would need to make cuts to welfare. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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This is no time for a coup against a successful Labour leader

Don't blame Jeremy Corbyn for the Labour Party's crisis.

"The people who are sovereign in our party are the members," said John McDonnell this morning. As the coup against Jeremy Corbyn gains pace, the Shadow Chancellor has been talking a lot of sense. "It is time for people to come together to work in the interest of the country," he told Peston on Sunday, while emphasising that people will quickly lose trust in politics altogether if this internal squabbling continues. 

The Tory party is in complete disarray. Just days ago, the first Tory leader in 23 years to win a majority for his party was forced to resign from Government after just over a year in charge. We have some form of caretaker Government. Those who led the Brexit campaign now have no idea what to do. 

It is disappointing that a handful of Labour parliamentarians have decided to join in with the disintegration of British politics.

The Labour Party had the opportunity to keep its head while all about it lost theirs. It could have positioned itself as a credible alternative to a broken Government and a Tory party in chaos. Instead we have been left with a pathetic attempt to overturn the democratic will of the membership. 

But this has been coming for some time. In my opinion it has very little to do with the ramifications of the referendum result. Jeremy Corbyn was asked to do two things throughout the campaign: first, get Labour voters to side with Remain, and second, get young people to do the same.

Nearly seven in ten Labour supporters backed Remain. Young voters supported Remain by a 4:1 margin. This is about much more than an allegedly half-hearted referendum performance.

The Parliamentary Labour Party has failed to come to terms with Jeremy Corbyn’s emphatic victory. In September of last year he was elected with 59.5 per cent of the vote, some 170,000 ahead of his closest rival. It is a fact worth repeating. If another Labour leadership election were to be called I would expect Jeremy Corbyn to win by a similar margin.

In the recent local elections Jeremy managed to increase Labour’s share of the national vote on the 2015 general election. They said he would lose every by-election. He has won them emphatically. Time and time again Jeremy has exceeded expectation while also having to deal with an embittered wing within his own party.

This is no time for a leadership coup. I am dumbfounded by the attempt to remove Jeremy. The only thing that will come out of this attempted coup is another leadership election that Jeremy will win. Those opposed to him will then find themselves back at square one. Such moves only hurt Labour’s electoral chances. Labour could be offering an ambitious plan to the country concerning our current relationship with Europe, if opponents of Jeremy Corbyn hadn't decided to drop a nuke on the party.

This is a crisis Jeremy should take no responsibility for. The "bitterites" will try and they will fail. Corbyn may face a crisis of confidence. But it's the handful of rebel Labour MPs that have forced the party into a crisis of existence.

Liam Young is a commentator for the IndependentNew Statesman, Mirror and others.