The poll that shows Labour can win the argument over benefits

The better educated people are about the benefits system, the less likely they are to support the coalition's reforms.

At first glance, the latest poll on the government's benefit cuts might appear discouraging for opponents of the coalition's approach. YouGov's survey for the TUC found that 48 per cent of people support George Osborne's plan to cap benefit increases at 1 per cent for the next three years, with 32 per cent opposed. However, their support is based on the false belief that the unemployed will be most affected by the move (64 per cent believed they would be). When informed that the cap will also affect low-paid workers receiving in-work benefits (60 per cent of the cut falls on working families), support for the policy falls to 30 per cent and opposition rises to 40 per cent.

Ahead of next Tuesday's vote on the government's Welfare Uprating Bill, which will enshrine in law Osborne's plan to raise benefits by 1 per cent, rather than in line with inflation (which currently stands at 2.7 per cent), the poll should stiffen the resolve of Labour, which has vowed to oppose the legislation. The clear evidence is that the better educated people are about the benefits system, the less likely they are to support the coalition's reforms. The moral and political duty for Labour is to raise the public's level of understanding. The poll reveals how widespread ignorance about the welfare system is:

  • On average, people think that 41 per cent of welfare spending goes on benefits to the unemployed. The actual figure is three per cent.
  • People believe that 27 per cent of benefits are claimed fraudulently. The goverment's own figure is 0.7 per cent.
  • On average, people think that almost half (48 per cent) of those who claim Jobseeker's Allowance do so for more than a year. The true figure is 27.8 per cent.
  • People guessed that an unemployed couple with two school-aged children would receive £147 a week in Jobseeker’s Allowance. They would actually receive £111.45.

Significantly, the poll found that while 53 per cent of those who gave the least accurate answers believe that benefits are too generous, less than a third (31 per cent) of those who gave the most accurate answers think that they are. As TUC general secretary Frances O'Grady says, it's not surprising that voters generally favour punitive welfare cuts - "They think the system is much more generous than it is in reality, is riddled with fraud and is heavily skewed towards helping the unemployed, who they think are far more likely to stay on the dole than is actually the case."

But as long as Labour continues to emphasise that the main victims of the real-terms cut will be the working poor, while also reminding the public that the majority of the unemployed have worked or will work again soon, there is good reason to believe that it can win the argument.

British musicians Miss Dynamite (5th L) and Charlie Simpson (6th L) join unemployed young people as they stand in line outside a job centre in central London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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