Doubts about Miliband’s commitment to welfare reform go up in flames. In a good way, they hope.

The welfare line that Miliband is going to take owes a lot to the work that Liam Byrne has been doing.

So tomorrow, Ed Miliband will say something significant about welfare. Some of the outline has been briefed in advance and some has leaked out perhaps not so strategically. Either way, we know that the Labour leader is going to say something that he hopes will make it harder for his enemies to claim, as they often do, that he doesn’t want to talk about benefits.

In fact, his friends have privately said much the same too. More than once in recent months I’ve been told by Labour MPs, including shadow cabinet ministers, that the reason the party’s line on welfare is a bit foggy is that Ed himself "hasn’t properly made up his mind what he thinks." Well, it seems that now he has. And tomorrow, we’re going to find out the result of his meditations.

There isn’t much point in me going on at length about it here, not least because, judging by standard media-management practice, there will be some little surprise that Team Ed has held back and that everyone will be talking about tomorrow afternoon. The Labour leader likes to disappear into his cave to think very hard for weeks at a time and then emerge with something shiny so that his anxious tribe that was on the verge of panicking and the media are briefly dazzled and cry, "Oooh! We underestimated him. Again." (We’ll pass quickly over the fact that this technique – the meticulously planned set-piece intervention – may owe something to Miliband’s apprenticeship at the feet of one G Brown in the Treasury.)

A final observation: by the sounds of things, the welfare line that Miliband is going to take owes a lot to the work that Liam Byrne has been doing. That shouldn’t be a surprise, given that Byrne is shadow work and pensions secretary. Yet a feature of Labour’s welfare debate in recent years as been the shadow secretary of state coming out with speeches, statements and interviews on the need to restore the contributory principle; on "switch-spending"; on returning to Bevan’s original vision that coupled an individual’s responsibility to work with the state’s duty to guarantee full employment – and the leader’s office going eerily quiet. Meanwhile, the left piles into Byrne as a Blairite stooge.

So isolated has Byrne looked at times that I recently asked a senior Labour source in the leader’s office to confirm that what the Shadow Secretary of State for Work and Pensions said about benefits could actually be taken as a statement of current Labour party policy. "Absolutely," came the answer. "Ed thinks the same as Liam." When I then pointed out that it didn’t always come across that way, I got the answer: "Well we do have to work on getting our message across more clearly."

I put the same question to another senior shadow cabinet figure a week or so ago and was told: "Ed gets it now. He will deliver the message himself and it will be in neon and lit up like a firework." So tomorrow, it seems, is the day doubts about Miliband’s commitment to welfare reform go up in flames. In a good way, they hope.

 

Ed Miliband addresses workers at Islington Town Hall on November 5, 2012 in London. Photograph: Getty Images.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

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In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”