What does it mean to make work pay?

Increasing the amount of better quality jobs in the UK is key to addressing low pay.

A key argument in the welfare debates this week has centred on ‘making work pay’. The Government argues that changes to tax and welfare will improve the lot of low and middle income working households. Though curiously, this came as suggestions surface the minimum wage could be frozen or cut.

Alongside others, we have shown that the increase in the personal tax allowance is roughly cancelled out by reductions in tax credits and other benefits. But there is a more fundamental flaw in the way this argument has been conducted.  It has focused purely on the role of the tax and benefit system with no discussion of how to make work itself pay.

This flaw was also evident in two other inputs into the debate in the last couple of weeks, both of which were otherwise useful and interesting.

First, a report on Improving Progression in the UK labour market by Policy Exchange. It’s encouraging to see work addressing the core issue of how we support people to not only get work but keep it and progress in it. This will let them end up earning enough to live decently, ideally without needing tax credits. The introduction of Universal Credit gives the opportunity for the Welfare to Work system to address this issue for the first time.  The report estimates that, under the new system, around 1.3 million people will become subject to some kind of in work requirements and support. 

This is a diverse group, with a mixture of ages and family types. Most work between 15 and 24 hours a week and over half are in fairly stable employment. Some have characteristics which will restrict the amount of work they can do: around a third have dependent children, over half are over 45, some are likely to have some health or caring related issues. Nearly 45% also have relatively low or no formal qualifications.  Most are apparently not actively looking for more or better work, although the reasons for this are not clear. The report makes some very sensible recommendations for improving the incentives for Jobcentre Plus and Work Programme providers to give real attention to progression in work. It also suggests piloting various other measures, including greater sanctions, to persuade more people to actively try to increase their hours and pay. 

However, the report seems to assume that there are abundant opportunities for more hours and progression, if people could only be motivated to look for them. This contrasts with our research showing that there are already 1.4 million people who want to work full time but are working part time because no full time job is available, the highest figure in 20 years.

At a Resolution Foundation seminar, Conservative MP and Skills Minister Matthew Hancock set out his agenda for tackling low pay. He argued that actively tackling low pay was vital and set out three ways of doing so: defending and strengthening the minimum wage; creating a tax system which supports low paid workers; and increasing productivity - by freeing businesses to compete, having good matching of jobs to applicants and increasing skills and human capital.

Both Mr Hancock and the seminar respondents (Allister Heath, City AM editor, Nicola Smith of the TUC and Ryan Shorthouse of Bright Blue) agreed that increasing the amount of better quality jobs in the UK was key to addressing low pay. But there was almost no discussion about how to do this. The debate was all about supply-side measures – tax, benefits, skills. All this is vitally important, but is highly unlikely to work without getting to grips with the demand side.

Only then can work truly pay – giving the ‘hard working families’ politicians talk so much about a real chance for independence and security.

Photograph: Getty Images

Helen Barnard is a Policy and Research Manager for the Joseph Rowntree Foundation.

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The joy of only winning once: why England should be proud of 1966

We feel the glory of that triumphant moment, 50 years ago, all the more because of all the other occasions when we have failed to win.

There’s a phrase in football that I really hate. It used to be “Thirty years of hurt”. Each time the England team crashes out of a major tournament it gets regurgitated with extra years added. Rather predictably, when England lost to Iceland in Euro 2016, it became “Fifty years of hurt”. We’ve never won the European Championship and in 17 attempts to win the World Cup we have only won once. I’m going to tell you why that’s a record to cherish.

I was seven in 1966. Our telly was broken so I had to watch the World Cup final with a neighbour. I sat squeezed on my friend Colin’s settee as his dad cheered on England with phrases like “Sock it to them Bobby”, as old fashioned now as a football rattle. When England took the lead for the second time I remember thinking, what will it feel like, when we English are actually Champions of the World. Not long after I knew. It felt good.

Wembley Stadium, 30 July 1966, was our only ever World Cup win. But let’s imagine what it would be like if, as with our rivals, we’d won it many times? Brazil have been World Champions on five occasions, Germany four, and Italy four. Most England fans would be “over the moon” if they could boast a similarly glorious record. They’re wrong. I believe it’s wonderful that we’ve only triumphed once. We all share that one single powerful memory. Sometimes in life less is definitely more.

Something extraordinary has happened. Few of us are even old enough to remember, but somehow, we all know everything that happened that day. Even if you care little about the beautiful game, I’m going to bet that you can recall as many as five iconic moments from 50 years ago. You will have clearly in your mind the BBC commentator Kenneth Wolstenholme’s famous lines, as Geoff Hurst tore down the pitch to score his hat-trick: “Some people are on the pitch. They think it’s all over. It is now”. And it was. 4 - 2 to England against West Germany. Thirty minutes earlier the Germans had equalised in the dying moments of the second half to take the game to extra time.

More drama we all share: Geoff Hurst’s second goal. Or the goal that wasn’t, as technology has since, I think, conclusively proved. The shot that crashed off the cross bar and did or didn’t cross the line. Of course, even if you weren’t alive at the time, you will know that the linesman, one Tofiq Bakhramov, from Azerbaijan (often incorrectly referred to as “Russian”) could speak not a word of English, signalled it as a goal.

Then there’s the England Captain, the oh-so-young and handsome Bobby Moore. The very embodiment of the era. You can picture him now wiping his muddy hands on his white shorts before he shakes hands with a youthful Queen Elizabeth. Later you see him lifted aloft by his team mates holding the small golden Jules Rimet trophy.

How incredible, how simply marvellous that as a nation we share such golden memories. How sad for the Brazilians and Germans. Their more numerous triumphs are dissipated through the generations. In those countries each generation will remember each victory but not with the intensity with which we English still celebrate 1966. It’s as if sex was best the first time. The first cut is the deepest.

On Colin’s dad’s TV the pictures were black and white and so were the flags. Recently I looked at the full colour Pathe newsreel of the game. It’s the red, white and blue of the Union Jack that dominates. The red cross of Saint George didn’t really come into prominence until the Nineties. The left don’t like flags much, unless they’re “deepest red”. Certainly not the Union Flag. It smacks of imperialism perhaps. In 1966 we didn’t seem to know if we were English or British. Maybe there was, and still is, something admirable and casual about not knowing who we are or what is our proper flag. 

Twelve years later I’m in Cuba at the “World Festival of Youth” – the only occasion I’ve represented my country. It was my chance to march into a stadium under my nation’s flag. Sadly, it never happened as my fellow delegates argued for hours over what, if any, flag we British should walk behind. The delegation leaders – you will have heard of them now, but they were young and unknown then – Peter Mandelson, Trevor Phillips and Charles Clarke, had to find a way out of this impasse. In the end, each delegation walked into the stadium behind their flag, except the British. Poor Mandelson stood alone for hours holding Union Jack, sweltering in the tropical sun. No other country seemed to have a problem with their flag. I guess theirs speak of revolution; ours of colonialism.

On Saturday 30 July BBC Radio 2 will commemorate the 50th anniversary of the 1966 World Cup Final, live from Wembley Arena. Such a celebration is only possible because on 16 occasions we failed to win that trophy. Let’s banish this idea of “Fifty years of hurt” once and for all and embrace the joy of only winning once.

Phil Jones edits the Jeremy Vine Show on BBC Radio 2. On Saturday 30 July the station celebrates the 50th anniversary of the 1966 World Cup Final live from Wembley Arena, telling the story of football’s most famous match, minute by minuteTickets are available from: www.wc66.org