Labour promises higher benefits for older people, but who will pay?

Having pledged to stick to Osborne's spending limits, more generous benefits for some will need to be paid for by cuts or tax rises elsewhere.

In a speech later today, Liam Byrne will rightly highlight what he calls "the scandal of the silver scrapheap". Nearly half of all unemployed people in their 50s have been out of work for longer than a year and the over 50s now spend longer on Jobseeker's Allowance (JSA) than any other age group, an average of 32 weeks. 

As Byrne will argue, the social security system currently fails such people. Having paid an average of £100,000 in National Insurance, they find they are entitled to just £71.70 a week in contributory JSA and will lose all support after six months if they have savings of £16,000 or a partner who works more than 24 hours a week. While the welfare system is often accused of offering "something for nothing", for these people it's more like nothing for something. "It makes you wonder why we bothered paying in all those years" Byrne quotes one man as saying, "they don’t bother to look at our skills. They tell us to apply for anything. It’s just banging square pegs into round holes". With this in mind, the shadow work and pensions secretary will reaffirm Labour's commitment to examine a higher rate of JSA for those who have contributed more. He writes: 

I think social security should offer more for those that chipped in most either caring or paying in National Insurance. Our most experienced workers and carers have earned an extra hand. We should make sure there something better for when they need it. That’s why we’re looking at just how we put the something for something bargain at the heart of social security reform, starting with a new deal for the over 50s.

In addition, he suggests that the UK could follow countries like Japan, Canada and the US in developing specialised support services for older workers, such as training grants. In the long-run, he argues, such measures would pay in part or in full for themselves, nothing that "if we raised the employment rate amongst our over 50s to the level enjoyed by Japan, they’d be 438,000 more people in work, and £3 billion in extra tax flowing into the Treasury". 

But what Byrne doesn't say is how more generous benefits for older people will be paid for in the short-term. Having pledged to stick to George Osborne's 2015-16 current spending limits, any new spending promises will have to be funded by cuts or higher taxes elsewhere. In his recent speech on welfare, Ed Miliband suggested that the qualifying period for contributory JSA could be extended from two years to five years. In other words, the young will pay for the old. But not only is it questionable whether it's right to reduce support for the young at a time when so many suffer spells of unemployment (or to create a benefits system that favours the fortunate), it's also unclear how much money this reform would save. Young people are far less likely to have savings of £16,000 or more and/or a partner in work, meaning many will continue to qualify for means-tested JSA. If Labour wants to build a social security system that genuinely offers what Byrne calls "a new deal" for the over-50s, it will need to spend a significant amount. Until it makes it clear who will pick up the bill, the Tories will be able to charge Labour with promising more of the unfunded spending that "got us into this mess". 

Shadow work and pensions secretary Liam Byrne argues that "social security should offer more for those that chipped in most". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Theresa May’s stage-managed election campaign keeps the public at bay

Jeremy Corbyn’s approach may be chaotic, but at least it’s more authentic.

The worst part about running an election campaign for a politician? Having to meet the general public. Those ordinary folk can be a tricky lot, with their lack of regard for being on-message, and their pesky real-life concerns.

But it looks like Theresa May has decided to avoid this inconvenience altogether during this snap general election campaign, as it turns out her visit to Leeds last night was so stage-managed that she barely had to face the public.

Accusations have been whizzing around online that at a campaign event at the Shine building in Leeds, the Prime Minister spoke to a room full of guests invited by the party, rather than local people or people who work in the building’s office space.

The Telegraph’s Chris Hope tweeted a picture of the room in which May was addressing her audience yesterday evening a little before 7pm. He pointed out that, being in Leeds, she was in “Labour territory”:

But a few locals who spied this picture online claimed that the audience did not look like who you’d expect to see congregated at Shine – a grade II-listed Victorian school that has been renovated into a community project housing office space and meeting rooms.

“Ask why she didn’t meet any of the people at the business who work in that beautiful building. Everyone there was an invite-only Tory,” tweeted Rik Kendell, a Leeds-based developer and designer who says he works in the Shine building. “She didn’t arrive until we’d all left for the day. Everyone in the building past 6pm was invite-only . . . They seemed to seek out the most clinical corner for their PR photos. Such a beautiful building to work in.”

Other tweeters also found the snapshot jarring:

Shine’s founders have pointed out that they didn’t host or invite Theresa May – rather the party hired out the space for a private event: “All visitors pay for meeting space in Shine and we do not seek out, bid for, or otherwise host any political parties,” wrote managing director Dawn O'Keefe. The guestlist was not down to Shine, but to the Tory party.

The audience consisted of journalists and around 150 Tory activists, according to the Guardian. This was instead of employees from the 16 offices housed in the building. I have asked the Conservative Party for clarification of who was in the audience and whether it was invite-only and am awaiting its response.

Jeremy Corbyn accused May of “hiding from the public”, and local Labour MP Richard Burgon commented that, “like a medieval monarch, she simply briefly relocated her travelling court of admirers to town and then moved on without so much as a nod to the people she considers to be her lowly subjects”.

But it doesn’t look like the Tories’ painstaking stage-management is a fool-proof plan. Having uniform audiences of the party faithful on the campaign trail seems to be confusing the Prime Minister somewhat. During a visit to a (rather sparsely populated) factory in Clay Cross, Derbyshire, yesterday, she appeared to forget where exactly on the campaign trail she was:

The management of Corbyn’s campaign has also resulted in gaffes – but for opposite reasons. A slightly more chaotic approach has led to him facing the wrong way, with his back to the cameras.

Corbyn’s blunder is born out of his instinct to address the crowd rather than the cameras – May’s problem is the other way round. Both, however, seem far more comfortable talking to the party faithful, even if they are venturing out of safe seat territory.

Anoosh Chakelian is senior writer at the New Statesman.

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