The revolt against workfare spreads

Grayling struggles to defend scheme as Poundland pulls out and Greggs raises concerns.

"A big internet campaign that's being run by an organisation that's a front for the Socialist Workers Party." That was how Tory welfare minister Chris Grayling described the revolt against the government's workfare scheme during his appearance on the Today programme.

Reports this morning suggest that Poundland has pulled out of the programme, while Greggs has raised concerns over its involvement. Grayling was unable to confirm which, if any, scheme Poundland had left (indeed, he insisted that "not one single company" had withdrawn) but he conceded that employers were "very jumpy". What began as a revolt against a Tesco job advert which notoriously offered a salary of "JSA + Expenses" has thrown the entire future of the programme into doubt.

The scheme, in brief, attempts to make jobseekers more employable by offering them "work experience" with companies like the ones above. The programme is voluntary, not least because participants will only be paid expenses for the 25-30 hours they work a week. However, should they pull out of the placement, for whatever reason, after more than a week has elapsed, they could lose their benefits. It's this draconian sanction that has led a significant number of companies (Argos, Waterstones, Maplin, TK Maxx) to reconsider their involvement. Tesco has already suggested to ministers that "the risk of losing benefits that currently exists should be removed", a demand now echoed by Greggs.

The bakery's chief executive Ken McMeikan told Newsnight:

If after a week or more you decide as an individual that it's not working for you and you leave the scheme, we don't believe at Greggs that the benefits should be taken away.

Our view is if they are volunteering to come on this scheme, and for whatever reason they come off, then they go back onto benefits.

If the government wants the scheme to survive, it's increasingly hard to see how it can avoid backing down. Large companies, for understandable reasons, are uncomfortable with the impression of slave labour created by the threat of benefits removal. And, contrary to Grayling, it isn't only Trotskyists who are troubled by the scheme. The element of compulsion involved (keep working or you'll lose your benefits) offends against basic fairness. Unless ministers concede this point, they could soon have a workfare programme without any work.

George Eaton is political editor of the New Statesman.

Photo: Getty
Show Hide image

Donald Trump's inauguration signals the start of a new and more unstable era

A century in which the world's hegemonic power was a rational actor is about to give way to a more terrifying reality. 

For close to a century, the United States of America has been the world’s paramount superpower, one motivated by, for good and for bad, a rational and predictable series of motivations around its interests and a commitment to a rules-based global order, albeit one caveated by an awareness of the limits of enforcing that against other world powers.

We are now entering a period in which the world’s paramount superpower is neither led by a rational or predictable actor, has no commitment to a rules-based order, and to an extent it has any guiding principle, they are those set forward in Donald Trump’s inaugural: “we will follow two simple rules: hire American and buy American”, “from this day forth, it’s going to be America first, only America first”.

That means that the jousting between Trump and China will only intensify now that he is in office.  The possibility not only of a trade war, but of a hot war, between the two should not be ruled out.

We also have another signal – if it were needed – that he intends to turn a blind eye to the actions of autocrats around the world.

What does that mean for Brexit? It confirms that those who greeted the news that an US-UK trade deal is a “priority” for the incoming administration, including Theresa May, who described Britain as “front of the queue” for a deal with Trump’s America, should prepare themselves for disappointment.

For Europe in general, it confirms what should already been apparent: the nations of Europe are going to have be much, much more self-reliant in terms of their own security. That increases Britain’s leverage as far as the Brexit talks are concerned, in that Britain’s outsized defence spending will allow it acquire goodwill and trade favours in exchange for its role protecting the European Union’s Eastern border.

That might allow May a better deal out of Brexit than she might have got under Hillary Clinton. But there’s a reason why Trump has increased Britain’s heft as far as security and defence are concerned: it’s because his presidency ushers in an era in which we are all much, much less secure. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.