Labour outlines plan to tie benefits to contribution

Liam Byrne and Harriet Harman criticise "divide and rule" approach to welfare.

Writing in the Observer this weekend, Liam Byrne criticised the government's "divide and rule" approach to welfare, saying that both Osborne and Cameron had used the Philpott case to pit the rest of the public against benefits claimants. He said:

To distract the public from their failure to get the economy growing and control the rising bill for unemployment, they point the finger at families struggling to get by in an economy where opportunity has grown very, very thin.

He outlined a three-part plan for the welfare system, which intends to bring it back to the "old principle of contribution":

First, people must be better off in work than living on benefits. We would make work pay by reintroducing a 10p tax rate and supporting employers who pay the living wage. Second, we would match rights with responsibilities. Labour would ensure that no adult will be able to be live on the dole for over two years and no young person for over a year. They will be offered a real job with real training, real prospects and real responsibility. This would be paid for by taxing bankers' bonuses and restricting pension tax relief for the wealthiest. People would have to take this opportunity or lose benefits.

Third, we must do more to strengthen the old principle of contribution: there are lots of people right now who feel they pay an awful lot more in than they ever get back. That should change. We should start by letting councils give priority in social housing allocations to those who work and contribute to their community.

On the Today programme this morning, Harriet Harman expressed her support for the plans, saying:

He [Byrne] is talking about three principles which we’re working on up to the general election. One is that work should pay, secondly, there should be an obligation to take work, and thirdly that there should be support through a contributory principle for people putting into the system as well as taking out.

She also echoed Byrne's criticism of the government's "divisive" strategy:

Instead of just being divisive about it, which is what the government’s doing, they should actually be supporting the economy into growth. And also having a proper work programme, with a jobs guarantee, which is what we have been suggesting.

The "old principle of contribution" comes from the Beveridge Report, one of the documents on which the welfare state was founded after the Second World War.  It stresses that social security "must be achieved by co-operation between the State and the individual", through contributions from those who recieve benefits. The state "should not stifle incentive, opportunity, responsibility; in establishing a national minimum, it should leave room and encouragement for voluntary action by each individual to provide more than that minimum for himself and his family".

The report also famously identified "Five Giant Evils" in society: Squalor, Ignorance, Want, Idleness and Disease. It remains to be seen whether Labour will identify these as well.

Harriet Harman. Photograph: Getty Images
Photo: Getty
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Who will win the Copeland by-election?

Labour face a tricky task in holding onto the seat. 

What’s the Copeland by-election about? That’s the question that will decide who wins it.

The Conservatives want it to be about the nuclear industry, which is the seat’s biggest employer, and Jeremy Corbyn’s long history of opposition to nuclear power.

Labour want it to be about the difficulties of the NHS in Cumbria in general and the future of West Cumberland Hospital in particular.

Who’s winning? Neither party is confident of victory but both sides think it will be close. That Theresa May has visited is a sign of the confidence in Conservative headquarters that, win or lose, Labour will not increase its majority from the six-point lead it held over the Conservatives in May 2015. (It’s always more instructive to talk about vote share rather than raw numbers, in by-elections in particular.)

But her visit may have been counterproductive. Yes, she is the most popular politician in Britain according to all the polls, but in visiting she has added fuel to the fire of Labour’s message that the Conservatives are keeping an anxious eye on the outcome.

Labour strategists feared that “the oxygen” would come out of the campaign if May used her visit to offer a guarantee about West Cumberland Hospital. Instead, she refused to answer, merely hyping up the issue further.

The party is nervous that opposition to Corbyn is going to supress turnout among their voters, but on the Conservative side, there is considerable irritation that May’s visit has made their task harder, too.

Voters know the difference between a by-election and a general election and my hunch is that people will get they can have a free hit on the health question without risking the future of the nuclear factory. That Corbyn has U-Turned on nuclear power only helps.

I said last week that if I knew what the local paper would look like between now and then I would be able to call the outcome. Today the West Cumbria News & Star leads with Downing Street’s refusal to answer questions about West Cumberland Hospital. All the signs favour Labour. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.