A call to arms for Labour on welfare reform

Does Labour want to rebuild the model of the liberal welfare state or try something different?

Today the Welfare Reform Bill returns to the House of Commons to debate the amendments won in the Lords. To mark the occasion, Soundings journal publishes an e-book, Welfare Reform The dread of things to come. It is written by people who have spent years bringing public attention to the impact of welfare reform on the most vulnerable people in society.

Like the 1834 Poor Law Amendment Act, the Labour governments's 2009 Welfare Reform Act was provoked by a moral panic about the feckless poor, and the rising cost of welfare payments. Labour appeared unaware of the squeeze on wages for the bottom half of the working population. Globalisation and the economic boom were not trickling income and wealth down, they were spiralling upward to a small elite. Rising living standards for lower paid families were being sustained only by private borrowing and the growth in women's jobs. The result was growing indebtedness and increasing pressure on individuals and domestic life. Popular resentment toward people on benefits was being stoked by media stories of a dependency culture of welfare cheats. Rising immigration fuelled feelings of unfairness and resentment toward the political class and fed into the clamour against benefit scroungers.

Like the Poor Law, the target of welfare reform was the able-bodied worker who was considered to be shirking his or her duty to work. But Labour and coalition governments excluded the health dimension of the out of work problem. The large number of people living with limiting long term illness and its impact on individuals and their employability was not properly taken into account. It was politically expedient to focus on the supposed moral failings of the individual claimant, and the assumption that, contrary to the evidence, very large numbers were simply avoiding work.

A questionable evidence base and political calculation meant the design of welfare reform was organised around increasing conditionality. The lack of jobs, the inappropriate nature of many jobs for sick or disabled people, the considerable employer resistance to taking on the mentally or physically unwell, were downplayed in favour of a punitive approach to claimants. Like the poor law, welfare reform has ended up punishing the sick and disabled.

In the House of Lords, Labour has succeeded in defeating the government in a series of amendments. But this success masks a problem. Labour peers sprung a litany of amendments but they lacked a shared ideological project about the kind of welfare system they wanted. There was concern for fairness and compassion, a heartfelt fear of the impact on children, and awareness of the spectre of homelessness. But what kind of welfare system does Labour stand for? It seems to boil down to the Conservatives' system but a bit nicer here and there.

Whatever compromises emerge, the larger questions about the future of our welfare state remain. Labour will need to rethink its approach to welfare or risk being sucked into the political slipstream of the Conservatives. It will find itself assenting to measures and then qualifying its assent. It has a political problem because people do not know what it stands for and because it is viewed by many as being soft on welfare. It can never resolve its identity crisis nor sustain longer term popular support by trying to out-nasty the Tories.

By the time the Poor Law came into effect with its workhouses and principle of less eligibility hostility toward the poor had already peaked. Its cruelties and humiliations became notorious and it was met with considerable public resistance. A similar pattern is already emerging around welfare reform and its harsh and humiliating treatment of people who are ill or disabled.

Does Labour want to rebuild the model of the liberal welfare state or try something different? The question needs serious consideration. Beveridge's liberal legacy does not look politically robust today. It is not succeeding in protecting the most vulnerable. It risks being undermined by profit-seeking companies. Its safety net is mean and tattered. Who wants the impoverishment of the Job Seekers Allowance or the humiliation and fear of the Work Capability Assessment? Unlike the NHS, the welfare system lacks public support: in hard times and over longer periods of time, large fractions of the 80 per cent lose their sense of obligation toward paying for the needs of the twenty per cent.

In the coming period of austerity, welfare will be a critical political issue. The challenges of labour market volatility, of the soaring cost of pensions and an aging population, of a tax system in need of redesign, and of restructuring capitalism for wealth creation and jobs, might be better met with a reciprocal, contribution-based system of social insurance which ensures protection and is more politically robust. But it must be one that hard-wires compassion into its structure for those who, through no fault of their own, are unable to contribute. It will involve a massive change, perhaps one that is politically impossible given the liberal traditions of welfare in this country. But the present system is failing and the political prize for changing it would be enduring and historical. The call belongs to Labour, with its traditions of popular mutual aid and reciprocity.

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Who is the EU's chief Brexit negotiator Michel Barnier?

The former French foreign minister has shown signs that he will play hardball in negotiations.

The European Commission’s chief Brexit negotiator today set an October 2018 deadline for the terms of Britain’s divorce from the European Union to be agreed. Michel Barnier gave his first press conference since being appointed to head up what will be tough talks between the EU and UK.

Speaking in Brussels, he warned that UK-EU relations had entered “uncharted waters”. He used the conference to effectively shorten the time period for negotiations under Article 50 of the Lisbon Treaty, the legal process to take Britain out of the EU. The article sets out a two year period for a country to leave the bloc.

But Barnier, 65, warned that the period of actual negotiations would be shorter than two years and there would be less than 18 months to agree Brexit.  If the terms were set in October 2018, there would be five months for the European Parliament, European Council and UK Parliament to approve the deal before a March 2019 Brexit.

But who is the urbane Frenchman who was handpicked by Commission President Jean-Claude Juncker to steer the talks?

A centre-right career politician, Barnier is a member of the pan-EU European People’s Party, like Juncker and German Chancellor Angela Merkel.

A committed European and architect of closer eurozone banking integration, Barnier rose to prominence after being elected aged just 27 to the French National Assembly.  He is notorious in Brussels for his repeated references to the 1992 Winter Olympics he organised in Albertville with triple Olympic ski champion Jean-Claude Killy.

He first joined the French cabinet in 1993 as minister of the environment. In 1995, Jacques Chirac made him Secretary of State for European Affairs, teeing up a long and close relationship with Brussels.

Barnier has twice served as France’s European Commissioner, under the administrations of Romano Prodi and José Manuel BarrosoMost recently he was serving as an unpaid special advisor on European Defence Policy to Juncker until the former prime minister of Luxembourg made him Brexit boss.“I wanted an experienced politician for this difficult job,” Juncker said at the time of Barnier, who has supported moves towards an EU army.

 

Barnier and the Brits

Barnier’s appointment was controversial. Under Barroso, he was Internal Market commissioner. Responsible for financial services legislation at the height of the crisis, he clashed with the City of London.

During this period he was memorably described as a man who, in a hall of mirrors, would stop and check his reflection in every one.

Although his battles with London’s bankers were often exaggerated, the choice of Barnier was described as an “act of war” by some British journalists and was greeted with undisguised glee by Brussels europhiles.

Barnier moved to calm those fears today. At the press conference, he said, “I was 20 years old, a very long time ago, when I voted for the first time and it was in the French referendum on the accession of the UK to the EU.

“That time I campaigned for a yes vote. And I still think today that I made right choice.”

But Barnier, seen by some as aloof and arrogant, also showed a mischievous side.  It was reported during Theresa May’s first visit to Brussels as prime minister that he was demanding that all the Brexit talks be conducted in French.

While Barnier does speak English, he is far more comfortable talking in his native French. But the story, since denied, was seen as a snub to the notoriously monolingual Brits.

The long lens photo of a British Brexit strategy note that warned the EU team was “very French” may also have been on his mind as he took the podium in Brussels today.

Barnier asked, “In French or in English?” to laughter from the press.

He switched between English and French in his opening remarks but only answered questions in French, using translation to ensure he understood the questions.

Since his appointment Barnier has posted a series of tweets which could be seen as poking fun at Brexit. On a tour of Croatia to discuss the negotiations, he posed outside Zagreb’s Museum of Broken Relationships asking, “Guess where we are today?”

 

 

He also tweeted a picture of himself drinking prosecco after Boris Johnson sparked ridicule by telling an Italian economics minister his country would have to offer the UK tariff-free trade to sell the drink in Britain.

But Barnier can also be tough. He forced through laws to regulate every financial sector, 40 pieces of legislation in four years, when he was internal market commissioner, in the face of sustained opposition from industry and some governments.

He warned today, "Being a member of the EU comes with rights and benefits. Third countries [the UK] can never have the same rights and benefits since they are not subject to same obligations.”

On the possibility of Britain curbing free movement of EU citizens and keeping access to the single market, he was unequivocal.

“The single market and four freedoms are indivisible. Cherry-picking is not an option,” he said.

He stressed that his priority in the Brexit negotiations would be the interests of the remaining 27 member states of the European Union, not Britain.

“Unity is the strength of the EU and President Juncker and I are determined to preserve the unity and interest of the EU-27 in the Brexit negotiations.”

In a thinly veiled swipe at the British, again greeted with laughter in the press room, he told reporters, “It is much better to show solidarity than stand alone. I repeat, it is much better to show solidarity than stand alone”.

Referring to the iconic British poster that urged Brits to "Keep Calm and Carry On” during World War Two, he today told reporters, “We are ready. Keep calm and negotiate.”

But Barnier’s calm in the face of the unprecedented challenge to the EU posed by Brexit masks a cold determination to defend the European project at any cost.

James Crisp is the news editor at EurActiv, an online EU news service.