The problem with welfare reform? It's the market, not the benefits cap

Labour should focus on reforming the market to support the vulnerable without being labeled as profl

Labour should focus on reforming the market to support the vulnerable without being labeled as profligate.

Amanda Jacobs (not her real name) lives down the road from me in Peckham. It's a classic inner London location where deprivation soars as high as the rents. The state pays £900 a month to keep her and her daughter in a tiny, damp flat with failing heating. With 20,000 people on the waiting list, there's not much chance of a council house, and the jobs she's qualified to do would almost certainly leave her worse off.

"I want to work, and I've been looking," she says, "But there's no way I could afford the rent if I lost my benefit, and I have to think about her (my daughter) -- I don't want her changing schools again."

Talking to Amanda, you can't deny that some of the right's critique is spot on. It's true that the threat of losing benefit stops you working. It's true that paying £192bn a year in welfare is outrageous when you're trying to decrease debt. And it's true that the public is running out of sympathy for families like hers. Perhaps that's partly why in a week when the Tories have been talking about capping benefit, they have gained a five-point poll lead over Labour.

So what does the left do? It would fail people like Amanda to follow the coalition and suddenly limit their benefits. As Randeep Ramesh helpfully points out, the government itself acknowledges that this move is likely to increase child poverty and detrimentally affect some disabled groups and even those in work. But the left will also fail people if it leaves them in a position where work doesn't pay.

The answer is not to simply accept a watered down version of the government's proposals that allow a higher cap for higher rent areas like London, or even to just exclude child benefit from the equation. The answer is to change the market as well as the state.

First, we need to understand that the disincentive to work doesn't just come from high benefits from the public sector. It also comes from low wages in the private sector. For most people on benefits, the only jobs available are low skilled, badly paid, insecure and part time. If you had a living wage, regular hours and a chance of rising up through a company, you would be more likely to come off benefits, not because of the threat of eviction, but because of the rewards of employment.

Second, you need stricter regulation on the scandal that is the private rented sector. There is no way that Amanda's flat is worth £900 a month. In a world where housing is limited and ownership concentrated, we need much tighter regulation that so far we're failing to get. Otherwise we're just wasting our money and vulnerable people are still living in substandard housing.

Finally, we also need to promote alternative models of home ownership that give people a stake in where they live. Co-operatives, mutuals and community land trusts need to be much more accessible. What's happening in Rochdale -- where they have just created the largest housing mutual in the country -- is interesting. The left should remember its past and learn from it.

So the problem with welfare reform isn't so much the benefits cap, it's the failure to look at the problems of the market as well as the state. What I wanted to get across on the Sunday Politics this week but didn't have space to, is that the Tories have nothing to say about this. Reforming the market is fertile ground for Labour if the party wants to support the vulnerable without being labeled as profligate. And perhaps most importantly, such measures wouldn't just support Amanda, they'd also leave her more empowered.

Rowenna Davis is a journalist and author of Tangled up in Blue: Blue Labour and the Struggle for Labour's Soul, published by Ruskin Publishing at £8.99. She is also a Labour councillor.
 

Rowenna Davis is Labour PPC for Southampton Itchen and a councillor for Peckham

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UnHerd's rejection of the new isn't as groundbreaking as it seems to think

Tim Montgomerie's new venture has some promise, but it's trying to solve an old problem.

Information overload is oft-cited as one of the main drawbacks of the modern age. There is simply too much to take in, especially when it comes to news. Hourly radio bulletins, rolling news channels and the constant stream of updates available from the internet – there is just more than any one person can consume. 

Luckily Tim Montgomerie, the founder of ConservativeHome and former Times comment editor, is here to help. Montgomerie is launching UnHerd, a new media venture that promises to pull back and focus on "the important things rather than the latest things". 

According to Montgomerie the site has a "package of investment", at least some of which comes from Paul Marshall. He is co-founder of one of Europe's largest hedge funds, Marshall Wace, formerly a longstanding Lib Dem, and also one of the main backers and chair of Ark Schools, an academy chain. The money behind the project is on display in UnHerd's swish (if slightly overwhelming) site, Google ads promoting the homepage, and article commissions worth up to $5,000. The selection of articles at launch includes an entertaining piece by Lionel Shriver on being a "news-aholic", though currently most of the bylines belong to Montgomerie himself. 

Guidelines for contributors, also meant to reflect the site's "values", contain some sensible advice. This includes breaking down ideas into bullet points, thinking about who is likely to read and promote articles, and footnoting facts. 

The guidelines also suggest focusing on what people will "still want to read in six, 12 or 24 months" and that will "be of interest to someone in Cincinnati or Perth as well as Vancouver or St Petersburg and Cape Town and Edinburgh" – though it's not quite clear how one of Montgomerie's early contributions, a defence of George Osborne's editorship of the Evening Standard, quite fits that global criteria. I'm sure it has nothing to do with the full page comment piece Montgomerie got in Osborne's paper to bemoan the deficiencies of modern media on the day UnHerd launched. 

UnHerd's mascot  – a cow – has also created some confusion, compounded by another line in the writing tips describing it as "a cow, who like our target readers, tends to avoid herds and behave in unmissable ways as a result". At least Montgomerie only picked the second-most famous poster animal for herding behaviour. It could have been a sheep. In any case, the line has since disappeared from the post – suggesting the zoological inadequacy of the metaphor may have been recognised. 

There is one way in which UnHerd perfectly embodies its stated aim of avoiding the new – the idea that we need to address the frenetic nature of modern news has been around for years.

"Slow news" – a more considered approach to what's going on in the world that takes in the bigger picture – has been talked about since at least the beginning of this decade.

In fact, it's been around so long that it has become positively mainstream. That pusher of rolling coverage the BBC has been talking about using slow news to counteract fake news, and Montgomerie's old employers, the Times decided last year to move to publishing digital editions at set points during the day, rather than constantly updating as stories break. Even the Guardian – which has most enthusiastically embraced the crack-cocaine of rolling web coverage, the live blog – also publishes regular long reads taking a deep dive into a weighty subject. 

UnHerd may well find an audience particularly attuned to its approach and values. It intends to introduce paid services – an especially good idea given the perverse incentives to chase traffic that come with relying on digital advertising. The ethos it is pitching may well help persuade people to pay, and I don't doubt Montgomerie will be able to find good writers who will deal with big ideas in interesting ways. 

But the idea UnHerd is offering a groundbreaking solution to information overload is faintly ludicrous. There are plenty of ways for people to disengage from the news cycle – and plenty of sources of information and good writing that allow people to do it while staying informed. It's just that given so many opportunities to stay up to date with what has just happened, few people decide they would rather not know.