Labour should respond to Osborne's benefits cuts with a jobs guarantee

A jobs guarantee would allow Labour to defend benefits from a position that resonates with the public.

Osborne has set Labour a trap. As Rafael Behr clearly explains, either Labour supports the benefits changes that see devastating real-term cuts to the most vulnerable, or they are left arguing in the Commons in support of people on benefits, playing into the hands of the worst stereotypes of the party in terms of public spending and supporting so called "scroungers". So what to do?

The party has to be clear about one thing. Work is the best way to support people out of poverty and get the economy moving again. Labour. The clue is in the name. Talk to some members, and you would think the worst news from the Autumn Statement for poorer people were the benefit cuts. It wasn’t. The worst news for poorer people was that growth will be negative this year and stagnate for much longer than we thought. Without jobs, there is no hope.

The first point the party has rightly emphasised is that most people being hit by these benefit cuts will be in work. Ed Balls has been good at articulating this so far, breaking down the false stereotype the chancellor presents us with between "strivers" and "scroungers".

But I'm not talking about that argument, which I believe we've already won with the public. I'm talking about how we defend benefits for those who are out of work. The "strivers" who spend eight to ten hours a day applying for jobs without so much as a word back. How do we make their benefits seem fair to the working person who lives next door?

One answer - which I’m putting out for discussion rather than a definitive solution - is a jobs guarantee. If someone capable of working has been unable to find work in a year, then the state guarantees them a job and pays them at least the minimum wage. Labour shouldn't support any further erosion of benefits in parliament until that promise has been kept.

Evidence suggests that this scheme worked well under the Future Jobs Fund, which offered a six month placement to unemployed young people until the government axed it. In fact DWP’s own research showed it delivered a net benefit of £7,750 per participant. Others such as Stephen Timms and Richard Layard have researched what it would be like to extend it to all ages.

Putting this suggestion to someone in Ed’s office, they reasonably argued that it still does nothing for those people who are in work on benefits. That's true, and a devastatingly sad reality for those struggling to afford Christmas and pay their bills in the new year. But as I’ve argued before, pushing the living wage is a much better way of helping the working poor than subsidising low wage jobs through tax credits, particularly when money is tight. 

Obviously the most important reason for a jobs guarantee is that it gives people a chance to help themselves. But it also has strategic advantages. It shows that Labour is being constructive and allows us to defend benefits from a position that resonates with the public. At a time when there are so many more claimants than jobs, it shows the Conservatives up for hitting people who are desperate to find work but can't find it. And on a deeper and more fundamental level, it may even cause a rebellion among the Liberal Democrats and give them cause to side with us in the Commons, defeating the government’s present measures altogether.

Labour leader Ed Miliband and shadow chancellor Ed Balls speak at a press conference at Labour headquarters. Photograph: Getty Images.

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

Photo: Getty
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The campaign to keep Britain in Europe must be based on hope, not fear

Together we can show the world a generous, outward-facing Britain we can all be proud of.

Today the Liberal Democrats launched our national campaign to keep Britain in Europe. With the polls showing the outcome of this referendum is on a knife-edge, our party is determined to play a decisive role in this once in a generation fight. This will not be an easy campaign. But it is one we will relish as the UK's most outward-looking and internationalist party. Together in Europe the UK has delivered peace, created the world’s largest free trade area and given the British people the opportunity to live, work and travel freely across the continent. Now is the time to build on these achievements, not throw them all away.

Already we are hearing fear-mongering from both sides in this heated debate. On the one hand, Ukip and the feuding Leave campaigns have shamelessly seized on the events in Cologne at New Year to claim that British women will be at risk if the UK stays in Europe. On the other, David Cameron claims that the refugees he derides as a "bunch of migrants" in Calais will all descend on the other side of the Channel the minute Britain leaves the EU. The British public deserve better than this. Rather than constant mud-slinging and politicising of the world's biggest humanitarian crisis since the Second World War, we need a frank and honest debate about what is really at stake. Most importantly this should be a positive campaign, one that is fought on hope and not on fear. As we have a seen in Scotland, a referendum won through scare tactics alone risks winning the battle but losing the war.

The voice of business and civil society, from scientists and the police to environmental charities, have a crucial role to play in explaining how being in the EU benefits the British economy and enhances people's everyday lives. All those who believe in Britain's EU membership must not be afraid to speak out and make the positive case why being in Europe makes us more prosperous, stable and secure. Because at its heart this debate is not just about facts and figures, it is about what kind of country we want to be.

The Leave campaigns cannot agree what they believe in. Some want the UK to be an offshore, deregulated tax haven, others advocate a protectionist, mean-hearted country that shuts it doors to the world. As with so many populist movements, from Putin to Trump, they are defined not by what they are for but what they are against. Their failure to come up with a credible vision for our country's future is not patriotic, it is irresponsible.

This leaves the field open to put forward a united vision of Britain's place in Europe and the world. Liberal Democrats are clear what we believe in: an open, inclusive and tolerant nation that stands tall in the world and doesn't hide from it. We are not uncritical of the EU's institutions. Indeed as Liberals, we fiercely believe that power must be devolved to the lowest possible level, empowering communities and individuals wherever possible to make decisions for themselves. But we recognise that staying in Europe is the best way to find the solutions to the problems that don't stop at borders, rather than leaving them to our children and grandchildren. We believe Britain must put itself at the heart of our continent's future and shape a more effective and more accountable Europe, focused on responding to major global challenges we face.

Together in Europe we can build a strong and prosperous future, from pioneering research into life-saving new medicines to tackling climate change and fighting international crime. Together we can provide hope for the desperate and spread the peace we now take for granted to the rest of the world. And together we can show the world a generous, outward-facing Britain we can all be proud of. So if you agree then join the Liberal Democrat campaign today, to remain in together, and to stand up for the type of Britain you think we should be.