Is Chris Grayling running scared of Margaret Hodge?

Justice Secretary accuses the chair of the Public Accounts Committee of "political grandstanding" after her committee described the performance of the Work Programme as "extremely poor".

Margaret Hodge, the redoubtable chair of the Public Accounts Committee, appears to have touched a nerve. In an interview on BBC Radio 5 Live Pienaar's Politics last night, the Justice Secretary, Chris Grayling, accused the Labour MP of "political grandstanding" and of failing to take "a proper and dispassionate view of her job".

It's unusual, perhaps even unprecedented, to hear such strident criticism of a select committee chair from a minister, so what could have provoked Grayling's ire? The answer is last month's Public Accounts Committee report on the Work Programme, for which he was responsible while employment minister. The scheme's performance was described by the committee (which has a Conservative majority) as "extremely poor", with only 3.6 per cent of claimants moved off benefits and into sustained employment. 

This success rate was less than a third of the DWP target of 11.9 per cent and even below the official estimate of what would have happened if the programme had never existed, prompting the famous claim that it was "worse than doing nothing". Not one of the 18 providers, such as A4e, Ingeus, REED and G4S, managed to meet its minimum performance targets, with the best provider moving five per cent of claimants into work and the worst moving just two per cent. 

And it is those most in need of help who are failing to get it. As Hodge noted, "of the 9,500 former incapacity benefit claimants referred to providers, only 20 people have been placed in a job that has lasted three months, while the poorest performing provider did not manage to place a single person in the under 25 category into a job lasting six months." Given the extent of the failure, Grayling was warned that there is a high risk of one or more of the providers going bust, or having its contract cancelled. "The Department must identify cases where a provider is at risk of failing and ensure there are specific plans in place to deal with this," the MPs said. 

Confronted by these uncomfortable truths, it's unsurprising that Grayling feels the need to lash out. But his discomfort is merely evidence that Hodge is doing her job: holding the executive to account for their use of taxpayers' money. While Grayling claims that the scheme, which pays providers by results, represents better value for money than the last government's Future Jobs Fund, this claim rests on a generous interpretation of the data. 

Ministers boast that the cost of every job secured under the Work Programme is just over £2,000, compared with a cost of almost £7,500 under Labour's scheme. But as Alex has previously noted, this takes no account of the fact that had the programme not existed, there would have been an extra 14,000 jobs created. As he concluded after crunching the numbers, "the Work Programme did not cost £2,000 per job. Instead, for every £4,600 it spent, it destroyed one participant's chance of employment."

The government points out that the orginal performance targets were set when growth was expected to be significantly higher than it is now. But given that the IMF, the National Institute of Economic and Social Research and others argue that the excessive pace of austerity is at least partly to blame for this, it's not clear why it regards this a legitimate excuse.

Rather than impugning Hodge's integrity, Grayling would do better to develop a Work Programme that actually works. 

Margaret Hodge, the Labour MP for Barking and the chair of the Public Accounts Committee. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Is Labour really as doomed as it seems? The polls have got it wrong before

Pollsters often overrate Labour's performance. But in two elections, the opposite happened. 

Few moments in the Labour Party’s history can have felt as gloomy as this one. Going into a general election that almost no-one expects them to win, their overall opinion polling is appalling. Labour seems becalmed in the mid-20s; the Conservative Party has rocketed into the mid- to high-40s, and has even touched 50 per cent in one survey.

The numbers underlying those voting intention figures seem, if anything, worse. The Conservatives have huge leads on leadership and economic competence – often even more reliable indicators of election results than the headline numbers. High turnout groups such as the over-65s have turned against Labour in unprecedented numbers. Working-class Brits have swung towards the Conservative, placing once-safe Labour seats in danger. There are limited, but highly suggestive, hints among the data that the swing against Labour is higher in its own marginal seats – a potentially toxic development for any party seeking to hang on to MPs, as Conservatives defending apparently impregnable majorities under John Major in 1997 would attest.

All the while, Labour seems confused about what it is really for. Try as he might, Keir Starmer’s term as Labour’s shadow Brexit secretary has been marred by a fatal confusion and indecision about the extent of the UK’s future engagement with the European Union’s single market. Labour seems neither the party of Brexit nor of Remain, but one determined to irritate as many voters as possible. A similar situation reigns in Scotland, where nationalists under Nicola Sturgeon face Conservative Unionists led by Ruth Davidson, and Labour struggles even to gain a hearing.

Many Labour policy offers – free primary school meals for all, the promise of free university tuition, nationalising the railways, upholding the triple lock of pensions, opposing National Insurance rises for the self-employed – are pleasingly universal, while in isolation appealing to different electoral groups. But together, they represent a massive shift of resources to higher-income Brits that would take huge tax rises to offset. Labour is dangerously close to offering a regressive package under the guise of left-wing radicalism. This is pretty much as far from the British people’s electoral sweet spot as it is possible to imagine.

It is therefore little wonder that Labour lags so far behind Theresa May’s Conservatives. Even some Labour strongholds appear likely to fall - regional polls from London and Wales suggest that many Labour seats will be lost in the party’s remaining citadels. Brutal stories are already coming in from the campaign trail. Rumours fly of truly epochal losses - though it is important to note that other anecdotes seem much less dramatic.

Still, there are other indicators – all too easily missed in the heat of the moment – that point in the other direction. Labour’s performance in local by-elections has been dire for the main opposition party, but the swing towards the Conservatives has been running at "only" just over 2 per cent. The party has certainly suffered some big swings against it, and it has lost wards to the Conservatives in local authorities as varied as Hertfordshire, Harrow and Middlesborough. But there is no evidence that its vote has collapsed on the scale that some of the polling suggests.

Relatively recent history should also give us pause before we write Labour off altogether. Consider the last two general elections in which Labour had near-death experiences, in both 1983 and 2010. Britain’s third party - first the Liberal-SDP Alliance, and then the Liberal Democrats - seemed about to overtake Labour in the popular vote, and steal scores of seats from the bigger progressive party. On both occasions, Labour was able to draw on hitherto unguessed-at wells of cultural identity and strength to pull away right at the campaign’s end. These are in fact the only elections in recent times when the polls have underrated, rather than overestimated, Labour’s likely score. It might be that the same phenomenon emerges this time.

The Conservatives’ huge lead right now has not resulted from a sudden collapse in Labour support, but rather from the United Kingdom Independence Party’s well-publicised implosion. If anything, after about a year of steady decline, the last week or two has seen Labour’s twelve months of slow deflation grind to a halt. Labour’s numbers have even ticked up a point or two as some voters appear to rally around "their" flag. It might be that, as you squeeze the Labour vote down, it becomes more resilient to further shrinkage.

As the Conservatives try to push into Labour’s heartlands, they might find it harder and harder to persuade voters across, from Ukip as well as from Labour. The Conservatives’ image is still far from good in such communities, whatever the underanalysed and separate appeal of PM May as a strong, considered leader in need of a negotiator’s mandate in Europe. Voters might be attracted to May, and repelled by Corbyn - that does not necessarily mean that they will actually vote Conservative. There is little evidence, so far, of any realignment in how voters see themselves – whether they "are" Labour or Conservative, rather than the more ephemeral question of whether they will simply vote for those parties.

Humans always look for patterns. Experts are no exception, while journalists and commentators can always jump to rapid – but wrong – conclusions in the overexcited heat of an election campaign. So it is with the threat of a Labour catastrophe on 8 June. The danger of just such a result is definitely there. But some of the data points we already have, and two recent elections at which Labour walked close to an abyss, cast a little bit of doubt on the inevitability of such an outcome. There are still just over six weeks to go. A Conservative landslide is still quite likely. But it is not certain. We should keep an eye out for the many hints that May’s gamble might end in a rather less crushing victory than we have been led to expect.

Glen O’Hara is Professor of Modern and Contemporary History at Oxford Brookes University. He blogs, in a personal capacity, at Public Policy and the Past. He is the author of a series of books about modern Britain, including The Politics of Water in Post-War Britain (Palgrave Macmillan: forthcoming, May 2017).

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