Purnell offers Labour a way forward on welfare

Purnell's vision of a narrower but deeper welfare state deserves attention from Miliband.

James Purnell has long been one of Labour's brightest and best thinkers, so it is right that his intervention on welfare policy has received significant attention. The former work and pensions secretary followed up his Times article (£) with a film for last night's Newsnight in which he outlined his proposal to recast the welfare state as a "protection state".

If people are to "fall back in love" with the welfare state, he said, it must offer benefits that they actually value. To this end, Purnell suggested a job guarantee for those unemployed for more than a year (those who refuse to work will lose their benefits), wage protection - the unemployed could receive up to 70 per cent of previous earnings for up to six months - and free childcare. To pay for all it, we should cut back on those benefits - free bus passes, free TV licences, the winter fuel allowance - that many, not least the well off, do not value. Even universal child benefit, Purnell says, should no longer be considered sacred. Alongside this, he argues, we should reassert the contributory principle by, for instance, ensuring that those who pay in receive a higher pension than those who do not.

After all, it was Beveridge who declared in his 1942 report: "The correlative of the state's undertaking to ensure adequate benefit for unavoidable interruption of earnings is enforcement of the citizen's obligation to seek and accept all reasonable opportunities of work."

The real question, as the Spectator's Peter Hoskin suggested yesterday, is whether any of Purnell's ideas will be taken up by the Labour leadership. Ed Miliband has long defended "middle class benefits" on the grounds that, as Richard Titmuss put it, "services for the poor will always be poor services". He opposed the government's decision to withdraw child benefit from higher-rate taxpayers and warned it not to cut the winter fuel allowance. By contrast, Purnell declares: "I have never bought the argument that universal benefits bind the middle classes in. It feels too much like taxing with one hand to give back with another."

It is Miliband who is closest to his party's centre of gravity. Most Labour activists are dismayed by the thought of cutting back the benefits that Blair and Brown championed for so long. Ken Livingstone, one suspects, spoke for many when he tweeted last night: "James Purnell on Newsnight saying maybe we shld end free bus passes. Must be fought all the way. It is a political dead end for Labour."

Miliband has, however, shown an interest in reviving the contributory principle. In his speech on responsibility last month, he argued that services such as housing should not only prioritise those in the greatest need but also those who contribute the most to their communities, be it through volunteering or employment. Whether he will consider some of Purnell's more heretical proposals remains to be seen. But there is no doubt that, as Liam Byrne, the shadow work and pensions secretary, observed, "Labour is behind on welfare reform. It must get back in front". Purnell's vision of a narrower but deeper welfare state offers one way to do so.

George Eaton is political editor of the New Statesman.

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PMQs review: Jeremy Corbyn prompts Tory outrage as he blames Grenfell Tower fire on austerity

To Conservative cries of "shame on you!", the Labour leader warned that "we all pay a price in public safety" for spending cuts.

A fortnight after the Grenfell Tower fire erupted, the tragedy continues to cast a shadow over British politics. Rather than probing Theresa May on the DUP deal, Jeremy Corbyn asked a series of forensic questions on the incident, in which at least 79 people are confirmed to have died.

In the first PMQs of the new parliament, May revealed that the number of buildings that had failed fire safety tests had risen to 120 (a 100 per cent failure rate) and that the cladding used on Grenfell Tower was "non-compliant" with building regulations (Corbyn had asked whether it was "legal").

After several factual questions, the Labour leader rose to his political argument. To cries of "shame on you!" from Tory MPs, he warned that local authority cuts of 40 per cent meant "we all pay a price in public safety". Corbyn added: “What the tragedy of Grenfell Tower has exposed is the disastrous effects of austerity. The disregard for working-class communities, the terrible consequences of deregulation and cutting corners." Corbyn noted that 11,000 firefighters had been cut and that the public sector pay cap (which Labour has tabled a Queen's Speech amendment against) was hindering recruitment. "This disaster must be a wake-up call," he concluded.

But May, who fared better than many expected, had a ready retort. "The cladding of tower blocks did not start under this government, it did not start under the previous coalition governments, the cladding of tower blocks began under the Blair government," she said. “In 2005 it was a Labour government that introduced the regulatory reform fire safety order which changed the requirements to inspect a building on fire safety from the local fire authority to a 'responsible person'." In this regard, however, Corbyn's lack of frontbench experience is a virtue – no action by the last Labour government can be pinned on him. 

Whether or not the Conservatives accept the link between Grenfell and austerity, their reluctance to defend continued cuts shows an awareness of how politically vulnerable they have become (No10 has announced that the public sector pay cap is under review).

Though Tory MP Philip Davies accused May of having an "aversion" to policies "that might be popular with the public" (he demanded the abolition of the 0.7 per cent foreign aid target), there was little dissent from the backbenches – reflecting the new consensus that the Prime Minister is safe (in the absence of an attractive alternative).

And May, whose jokes sometimes fall painfully flat, was able to accuse Corbyn of saying "one thing to the many and another thing to the few" in reference to his alleged Trident comments to Glastonbury festival founder Michael Eavis. But the Labour leader, no longer looking fearfully over his shoulder, displayed his increased authority today. Though the Conservatives may jeer him, the lingering fear in Tory minds is that they and the country are on divergent paths. 

George Eaton is political editor of the New Statesman.

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