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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Richmond is a victory for hope - now let's bring change across the country

The regressives are building their armies. 

Last night a regressive alliance was toppled. Despite being backed by both Ukip and the Conservative Party, Zac Goldsmith was rejected by the voters of Richmond Park.

Make no mistake, this result will rock the Conservative party – and in particularly dent their plans for a hard and painful Brexit. They may shrug off this vote in public, but their majority is thin and their management of the post-referendum process is becoming more chaotic by the day. This is a real moment, and those of us opposing their post-truth plans must seize it.

I’m really proud of the role that the Green party played in this election. Our local parties decided to show leadership by not standing this time and urging supporters to vote instead for the candidate that stood the best chance of winning for those of us that oppose Brexit. Greens’ votes could very well be "what made the difference" in this election (we received just over 3,500 votes in 2015 and Sarah Olney’s majority is 1,872) - though we’ll never know exactly where they went. Just as importantly though, I believe that the brave decision by the local Green party fundamentally changed the tone of the election.

When I went to Richmond last weekend, I met scores of people motivated to campaign for a "progressive alliance" because they recognised that something bigger than just one by election is at stake. We made a decision to demonstrate you can do politics differently, and I think we can fairly say that was vindicated. 

There are some already attacking me for helping get one more Liberal Democrat into Parliament. Let me be very clear: the Lib Dems' role in the Coalition was appalling – propping up a Conservative government hell bent on attacking our public services and overseeing a hike in child poverty. But Labour’s record of their last time in office isn't immune from criticism either – not just because of the illegal war in Iraq but also their introduction of tuition fees, privatisation of our health service and slavish worship of the City of London. They, like the Liberal Democrats, stood at the last election on an austerity manifesto. There is a reason that we remain different parties, but that doesn’t mean we shouldn't also seize opportunities like this to unite behind what we have in common. Olney is no perfect candidate but she has pledged to fight a hard Brexit, campaign against airport expansion and push for a fair voting system – surely progressives can agree that her win takes us forward rather than backwards?

Ultimately, last night was not just defeat of a regressive alliance but a victory for hope - a victory that's sorely needed on the back of of the division, loss and insecurity that seems to have marked much of the rest of this year. The truth is that getting to this point hasn’t been an easy process – and some people, including local Green party members have had criticisms which, as a democrat, I certainly take seriously. The old politics dies hard, and a new politics is not easy to forge in the short time we have. But standing still is not an option, nor is repeating the same mistakes of the past. The regressives are building their armies and we either make our alternative work or risk the left being out of power for a generation. 

With our NHS under sustained attack, our climate change laws threatened and the increasing risk of us becoming a tax haven floating on the edge of the Atlantic, the urgent need to think differently about how we win has never been greater. 

An anti-establishment wave is washing over Britain. History teaches us that can go one of two ways. For the many people who are utterly sick of politics as usual, perhaps the idea of politicians occasionally putting aside their differences for the good of the country is likely to appeal, and might help us rebuild trust among those who feel abandoned. So it's vital that we use this moment not just to talk among ourselves about how to work together but also as another spark to start doing things differently, in every community in Britain. That means listening to people, especially those who voted for Britain to leave the EU, hearing what they’re saying and working with them to affect change. Giving people real power, not just the illusion of it.

It means looking at ways to redistribute power and money in this country like never before, and knowing that a by-election in a leafy London suburb changes nothing for the vast majority of our country.

Today let us celebrate that the government's majority is smaller, and that people have voted for a candidate who used her victory speech to say that she would "stand up for an open, tolerant, united Britain".  But tomorrow let’s get started on something far bigger - because the new politics is not just about moments it's about movements, and it will only work if nobody is left behind.

 

Caroline Lucas is the MP for Brighton Pavilion.