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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How to think about the EU result if you voted Remain

A belief in democracy means accepting the crowd is wiser than you are as an individual. 

I voted Remain, I feel sick about this result and its implications for what’s to come. But I’m a believer in democracy. This post is about how to reconcile those two things (it’s a bit unstructured because I’m working it out as I go, and I’m not sure I agree with all of it).

Democracy isn’t just fairer than other systems of governance, it’s smarter. It leads to better decisions and better outcomes, on average and over the long run, than countries that are run by autocrats or councils of wise men with jobs for life. It is simply the best way we have yet devised of solving complex problems involving many people. On that topic, if you’re not averse to some rather dense and technical prose, read this post or seek out this book. But the central argument is that democracy is the best way of harnessing ‘cognitive diversity’ — bringing to bear many different perspectives on a problem, each of which are very partial in themselves, but add up to something more than any one wise person.

I don’t think you can truly be a believer in democracy unless you accept that the people, collectively, are smarter than you are. That’s hard. It’s easy to say you believe in the popular will, right up until the popular will does something REALLY STUPID. The hard thing is not just to ‘accept the result’ but to accept that the majority who voted for that result know or understand something better than you. But they do. You are just one person, after all, and try as you might to expand your perspective with reading (and some try harder than others) you can’t see everything. So if a vote goes against you, you need to reflect on the possibility you got it wrong in some way. If I look at the results of past general elections and referendums, for instance, I now see they were all pretty much the right calls, including those where I voted the other way.

One way to think about the vote is that it has forced a slightly more equitable distribution of anxiety and alienation upon the country. After Thursday, I feel more insecure about my future, and that of my family. I also feel like a foreigner in my own country — that there’s this whole massive swathe of people out there who don’t think like me at all and probably don’t like me. I feel like a big decision about my life has been imposed on me by nameless people out there. But of course, this is exactly how many of those very people have been feeling for years, and at a much higher level of intensity. Democracy forces us to try on each other’s clothes. I could have carried on quite happily ignoring the unhappiness of much of the country but I can’t ignore this.

I’m seeing a lot of people on Twitter and in the press bemoaning how ill-informed people were, talking about a ‘post-factual democracy’. Well, maybe, though I think that requires further investigation - democracy has always been a dirty dishonest business. But surely the great thing about Thursday that so many people voted — including many, many people who might have felt disenfranchised from a system that hasn’t been serving them well. I’m not sure you’re truly a democrat if you don’t take at least a tiny bit of delight in seeing people so far from the centres of power tipping the polity upside down and giving it a shake. Would it have been better or worse for the country if Remain had won because only informed middle-class people voted? It might have felt better for people like me, it might actually have been better, economically, for everyone. But it would have indicated a deeper rot in our democracy than do the problems with our national information environment (which I accept are real).

I’m not quite saying ‘the people are always right’ — at least, I don’t think it was wrong to vote to stay in the EU. I still believe we should have Remained and I’m worried about what we’ve got ourselves into by getting out. But I am saying they may have been right to use this opportunity — the only one they were given — to send an unignorable signal to the powers-that-be that things aren’t working. You might say general elections are the place for that, but our particular system isn’t suited to change things on which there is a broad consensus between the two main parties.

Ian Leslie is a writer, author of CURIOUS: The Desire to Know and Why Your Future Depends On It, and writer/presenter of BBC R4's Before They Were Famous.