Miliband must be bolder than Cameron on welfare reform

The Labour leader should look to reinvent the financing of all of the major pillars of the welfare state.

Ed Miliband’s self-identification with Margaret Thatcher has caught the imagination of many.  “She was a conviction politician and I think conviction really matters”, he has said.  Specifically she was able to rise “to the scale of challenge that the country faces” and “create a project that is genuinely going to make our economy work, not just for a few people but much more widely”.

The question is which challenge he would like to solve.  It’s not industrial relations this time.  In common with other developed nations, it is first the deficit and then the debt, and at the same time keeping the welfare state working effectively.    

The difficulty for all future political leaders of the UK is that the current structure of the welfare state will inexorably sweep away any reform efforts currently on the table.  The Office for Budget Responsibility predicts that net debt will bottom out at 60 per cent in 15 years’ time, which is still very high.  It will then reach 70 per cent in 2040, over 80 per cent in 2050 and over 100 per cent in 2060.  The big drivers of that increase will be health and pensions spending.  The net debt numbers of around 35 per cent in the 1990s and 2000s seem like a different world.

Other countries are better placed.  The Australian national debt will rise to only 20 per cent of GDP by 2050.  Like the UK, Australia guarantees all citizens health cover and a secure income in retirement.  Unlike the UK, the cost of paying for the welfare state is more evenly shared between Australian citizens and the government.  Australian citizens pay for nearly a third of health care themselves.  They contribute nearly 10 per cent of their income towards private pensions.   Four in five Australian pensioners receive a targeted state pension because of their other savings.  They also work longer: Australians retire at 65 against the UK norm of 63.

Some may see such a comparison as ideological.  Others will judge that “what counts is what works”.  The “project” is how to deliver security for households within a reasonable national budget constraint.  Speaking at the Labour Party conference, Liam Byrne said given the growth in the national debt, “savings are going to have to be made and I think there will be savings that are needed on welfare spending too”.

Others may say that it is politically impossible, or at the least so difficult that it should be left to future governments.  The trouble is that it will be even harder for those future governments: two in five voters today are aged over 55, rising to 45 per cent in 2020 and further after that.  The political window of opportunity is already narrowing.

Others will say that taxation should rise to meet the fiscal gap, and certainly some extra tax increases will be needed.  But this has to be kept in proportion because taxes on workers will already rise in future years as the tax base narrows (due to an ageing population).

As Thatcher drew up her industrial relations campaign, she was able to learn from the unsuccessful efforts of both the Wilson and Heath governments. Miliband can learn from the coalition’s fiscal policies. David Cameron has sought to limit the debate on the welfare state to changes to benefits for working-age people.  As a result his reforms will not rise “to the scale of the challenge that the country faces”, as measured by the fiscal position.  Miliband’s convictions should lead him to look wider and reinvent the financing of all of the major pillars of the welfare state.

Andrew Haldenby is director of the independent think-tank Reform.  Its new research report Entitlement Reform (#entitlementreform) is available at http://www.reform.co.uk/

Labour leader Ed Miliband speaks at the CBI's annual conference on 19 November 2012. Photograph: Getty Images.
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"We repealed, then forgot": the long shadow of Section 28 homophobia

Why are deeply conservative views about the "promotion" of homosexuality still being reiterated to Scottish school pupils? 

Grim stories of LGBTI children being bullied in school are all too common. But one which emerged over the weekend garnered particular attention - because of the echoes of the infamous Section 28, nearly two decades after it was scrapped.

A 16-year-old pupil of a West Lothian school, who does not wish to be named, told Pink News that staff asked him to remove his small rainbow pride badge because, though they had "no problem" with his sexuality, it was not appropriate to "promote it" in school. It's a blast from the past - the rules against "promoting" homosexuality were repealed in 2000 in Scotland, but the long legacy of Section 28 seems hard to shake off. 

The local authority responsible said in a statement that non-school related badges are not permitted on uniforms, and says it is "committed to equal rights for LGBT people". 

The small badge depicted a rainbow-striped heart, which the pupil said he had brought back from the Edinburgh Pride march the previous weekend. He reportedly "no longer feels comfortable going to school", and said homophobia from staff members felt "much more scar[y] than when I encountered the same from other pupils". 

At a time when four Scottish party leaders are gay, and the new Westminster parliament included a record number of LGBTQ MPs, the political world is making progress in promoting equality. But education, it seems, has not kept up. According to research from LGBT rights campaigners Stonewall, 40 per cent of LGBT pupils across the UK reported being taught nothing about LGBT issues at school. Among trans students, 44 per cent said school staff didn’t know what "trans" even means.

The need for teacher training and curriculum reform is at the top of campaigners' agendas. "We're disappointed but not surprised by this example," says Jordan Daly, the co-founder of Time for Inclusive Education [TIE]. His grassroots campaign focuses on making politicians and wider society aware of the reality LGBTI school students in Scotland face. "We're in schools on a monthly basis, so we know this is by no means an isolated incident." 

Studies have repeatedly shown a startling level of self-harm and mental illness reported by LGBTI school students. Trans students are particularly at risk. In 2015, Daly and colleagues began a tour of schools. Shocking stories included one in which a teacher singled out a trans pupils for ridicule in front of the class. More commonly, though, staff told them the same story: we just don't know what we're allowed to say about gay relationships. 

This is the point, according to Daly - retraining, or rather the lack of it. For some of those teachers trained during the 1980s and 1990s, when Section 28 prevented local authorities from "promoting homosexuality", confusion still reigns about what they can and cannot teach - or even mention in front of their pupils. 

The infamous clause was specific in its homophobia: the "acceptability of homosexuality as a pretended family relationship" could not be mentioned in schools. But it's been 17 years since the clause was repealed in Scotland - indeed, it was one of the very first acts of the new Scottish Parliament (the rest of the UK followed suit three years later). Why are we still hearing this archaic language? 

"We repealed, we clapped and cheered, and then we just forgot," Daly says. After the bitter campaign in Scotland, in which an alliance of churches led by millionaire businessman Brian Souter poured money into "Keeping the Clause", the government was pleased with its victory, which seemed to establish Holyrood as a progressive political space early on in the life of the parliament. But without updating the curriculum or retraining teaching staff, Daly argues, it left a "massive vacuum" of uncertainty. 

The Stonewall research suggests a similar confusion is likely across the UK. Daly doesn't believe the situation in Scotland is notably worse than in England, and disputes the oft-cited allegation that the issue is somehow worse in Scotland's denominational schools. Homophobia may be "wrapped up in the language of religious belief" in certain schools, he says, but it's "just as much of a problem elsewhere. The TIE campaign doesn't have different strategies for different schools." 

After initial disappointments - their thousands-strong petition to change the curriculum was thrown out by parliament in 2016 - the campaign has won the support of leaders such as Nicola Sturgeon and Kezia Dugdale, and recently, the backing of a majority of MSPs. The Scottish government has set up a working group, and promised a national strategy. 

But for Daly, who himself struggled at a young age with his sexuality and society's failure to accept it, the matter remains an urgent one.  At just 21, he can reel off countless painful stories of young LGBTI students - some of which end in tragedy. One of the saddest elements of the story from St Kentigern's is that the pupil claimed his school was the safest place he had to express his identity, because he was not out at home. Perhaps for a gay pupil in ten years time, that will be a guarantee. 

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