Ed Miliband shows his hand on child benefit

Miliband defends the universal welfare state in his first post-conference interview.

Ed Miliband took to the This Morning sofa today, for his first big post-conference interview and finally passed comment on the child benefit fiasco.

The increasingly impressive Yvette Cooper, who is likely to top the shadow cabinet poll today, has so far led Labour's attack, denouncing the cuts as an anti-family measure. But one sensed that many Labour MPs were waiting for Miliband to lead the way. After all, some in the press had suggested that the Labour leader would struggle to oppose a measure that only penalised the top 15 per cent of earners.

But Miliband, who mounted a strong defence of the universal welfare state during his leadership campaign, finally showed his hand today.

He said: "All families need support. I am against the changes that the government is making to child benefit ... The way they have gone about them has caused huge anxiety, particularly for mums who are staying at home while maybe their husbands are going out to work."

And, in recognition of the fact that child benefit remains one of the essential pillars of the Beveridge model, he added:

But when it comes to child benefit which has gone to all families for 60 years in this country - it was a legacy of the Second World War - I think it is really important to support families in this country and I think child benefit is a good way of doing it.

He didn't, as he has done before, quote Richard Titmuss's wise assertion that "services for the poor will always be poor services", but it was clear that he remains a passionate universalist. As a classic social democrat, Miliband understands that the decision to make child benefit universal was never just a matter of income, rather it was an act of social solidarity that bound rich and poor alike into the welfare state.

The key dividing line of this Parliament -- a universal welfare state versus a residual one -- remains in tact.

George Eaton is political editor of the New Statesman.

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There's nothing Luddite about banning zero-hours contracts

The TUC general secretary responds to the Taylor Review. 

Unions have been criticised over the past week for our lukewarm response to the Taylor Review. According to the report’s author we were wrong to expect “quick fixes”, when “gradual change” is the order of the day. “Why aren’t you celebrating the new ‘flexibility’ the gig economy has unleashed?” others have complained.

Our response to these arguments is clear. Unions are not Luddites, and we recognise that the world of work is changing. But to understand these changes, we need to recognise that we’ve seen shifts in the balance of power in the workplace that go well beyond the replacement of a paper schedule with an app.

Years of attacks on trade unions have reduced workers’ bargaining power. This is key to understanding today’s world of work. Economic theory says that the near full employment rates should enable workers to ask for higher pay – but we’re still in the middle of the longest pay squeeze for 150 years.

And while fears of mass unemployment didn’t materialise after the economic crisis, we saw working people increasingly forced to accept jobs with less security, be it zero-hours contracts, agency work, or low-paid self-employment.

The key test for us is not whether new laws respond to new technology. It’s whether they harness it to make the world of work better, and give working people the confidence they need to negotiate better rights.

Don’t get me wrong. Matthew Taylor’s review is not without merit. We support his call for the abolishment of the Swedish Derogation – a loophole that has allowed employers to get away with paying agency workers less, even when they are doing the same job as their permanent colleagues.

Guaranteeing all workers the right to sick pay would make a real difference, as would asking employers to pay a higher rate for non-contracted hours. Payment for when shifts are cancelled at the last minute, as is now increasingly the case in the United States, was a key ask in our submission to the review.

But where the report falls short is not taking power seriously. 

The proposed new "dependent contractor status" carries real risks of downgrading people’s ability to receive a fair day’s pay for a fair day’s work. Here new technology isn’t creating new risks – it’s exacerbating old ones that we have fought to eradicate.

It’s no surprise that we are nervous about the return of "piece rates" or payment for tasks completed, rather than hours worked. Our experience of these has been in sectors like contract cleaning and hotels, where they’re used to set unreasonable targets, and drive down pay. Forgive us for being sceptical about Uber’s record of following the letter of the law.

Taylor’s proposals on zero-hours contracts also miss the point. Those on zero hours contracts – working in low paid sectors like hospitality, caring, and retail - are dependent on their boss for the hours they need to pay their bills. A "right to request" guaranteed hours from an exploitative boss is no right at all for many workers. Those in insecure jobs are in constant fear of having their hours cut if they speak up at work. Will the "right to request" really change this?

Tilting the balance of power back towards workers is what the trade union movement exists for. But it’s also vital to delivering the better productivity and growth Britain so sorely needs.

There is plenty of evidence from across the UK and the wider world that workplaces with good terms and conditions, pay and worker voice are more productive. That’s why the OECD (hardly a left-wing mouth piece) has called for a new debate about how collective bargaining can deliver more equality, more inclusion and better jobs all round.

We know as a union movement that we have to up our game. And part of that thinking must include how trade unions can take advantage of new technologies to organise workers.

We are ready for this challenge. Our role isn’t to stop changes in technology. It’s to make sure technology is used to make working people’s lives better, and to make sure any gains are fairly shared.

Frances O'Grady is the General Secretary of the TUC.