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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Like it or hate it, it doesn't matter: Brexit is happening, and we've got to make a success of it

It's time to stop complaining and start campaigning, says Stella Creasy.

A shortage of Marmite, arguments over exporting jam and angry Belgians. And that’s just this month.  As the Canadian trade deal stalls, and the government decides which cottage industry its will pick next as saviour for the nation, the British people are still no clearer getting an answer to what Brexit actually means. And they are also no clearer as to how they can have a say in how that question is answered.

To date there have been three stages to Brexit. The first was ideological: an ever-rising euroscepticism, rooted in a feeling that the costs the compromises working with others require were not comparable to the benefits. It oozed out, almost unnoticed, from its dormant home deep in the Labour left and the Tory right, stoked by Ukip to devastating effect.

The second stage was the campaign of that referendum itself: a focus on immigration over-riding a wider debate about free trade, and underpinned by the tempting and vague claim that, in an unstable, unfair world, control could be taken back. With any deal dependent on the agreement of twenty eight other countries, it has already proved a hollow victory.

For the last few months, these consequences of these two stages have dominated discussion, generating heat, but not light about what happens next. Neither has anything helped to bring back together those who feel their lives are increasingly at the mercy of a political and economic elite and those who fear Britain is retreating from being a world leader to a back water.

Little wonder the analogy most commonly and easily reached for by commentators has been that of a divorce. They speculate our coming separation from our EU partners is going to be messy, combative and rancorous. Trash talk from some - including those in charge of negotiating -  further feeds this perception. That’s why it is time for all sides to push onto Brexit part three: the practical stage. How and when is it actually going to happen?

A more constructive framework to use than marriage is one of a changing business, rather than a changing relationship. Whatever the solid economic benefits of EU membership, the British people decided the social and democratic costs had become too great. So now we must adapt.

Brexit should be as much about innovating in what we make and create as it is about seeking to renew our trading deals with the world. New products must be sought alongside new markets. This doesn’t have to mean cutting corners or cutting jobs, but it does mean being prepared to learn new skills and invest in helping those in industries that are struggling to make this leap to move on. The UK has an incredible and varied set of services and products to offer the world, but will need to focus on what we do well and uniquely here to thrive. This is easier said than done, but can also offer hope. Specialising and skilling up also means we can resist those who want us to jettison hard-won environmental and social protections as an alternative. 

Most accept such a transition will take time. But what is contested is that it will require openness. However, handing the public a done deal - however well mediated - will do little to address the division within our country. Ensuring the best deal in a way that can garner the public support it needs to work requires strong feedback channels. That is why transparency about the government's plans for Brexit is so important. Of course, a balance needs to be struck with the need to protect negotiating positions, but scrutiny by parliament- and by extension the public- will be vital. With so many differing factors at stake and choices to be made, MPs have to be able and willing to bring their constituents into the discussion not just about what Brexit actually entails, but also what kind of country Britain will be during and after the result - and their role in making it happen. 

Those who want to claim the engagement of parliament and the public undermines the referendum result are still in stages one and two of this debate, looking for someone to blame for past injustices, not building a better future for all. Our Marmite may be safe for the moment, but Brexit can’t remain a love it or hate it phenomenon. It’s time for everyone to get practical.