Labour tries to avoid falling into Osborne's welfare trap

Balls signals that he is willing to support the Chancellor's new curbs on claimants, including a seven-day wait for benefits.

Every time that George Osborne announces new restrictions on benefits it has as much to do with tripping up Labour as it does with saving money. Aware of how much support the party's perceived softness on claimants cost it in 2010, he aims to paint it as "the welfare party". 

Having opposed most of the £18bn of cuts previously announced by the coalition, it is a trap Ed Miliband and Ed Balls are now keen to avoid. After Osborne announced in the Budget that he would unveil plans to cap Annually Managed Expenditure (AME) in the Spending Review, (the area of public spending that includes volatile and demand-led items such as welfare, debt interest and EU contributions), Labour pre-empted him by outlining its own cap on "structural" welfare spending and announced that it would remove Winter Fuel Payments from the wealthiest 5 per cent of pensioners, a (rather successful) attempt to redirect attention on to the main driver of higher social spending: an ageing population. 

In today's review, Osborne announced a series of tougher rules for claimants, including a seven-day wait before they can claim benefits, a duty to learn English (with benefits docked if they fail to attend language classes), the introduction of weekly, rather than fortnightly, visits to the jobcentre for half of all jobseekers, a requirement for all single parents of children aged three or over to prepare for work and a duty for individuals to prepare a CV and register for an online job search before they can receive benefits. 

In response, it was notable that Balls avoided opposing any of the measures outright. He told BBC News: 

We need to look at the detail, obviously. On the welfare things, English language for incoming migrants - definitely. For the seven-day - is it going to be a blank cheque for Wonga? Let's look at the detail. If it saves money and it works, fine.

So, while expressing some scepticism, Balls has essentially accepted the principle of a seven-day wait for benefits provided that it "saves money" (it will, but at a terrible cost to claimants forced to turn to foodbanks) and that it "works" (again, based on Osborne's definition, it will). Nor, the party signalled, will it oppose the requirement for single parents to look for work. 

In his statement, Osborne also served notice of the biggest welfare trap of all. He announced that his new cap on total benefit spending would be set in next year's Budget and would apply from April 2015. Expect him to adopt the toughest limit possible and then challenge Labour to match it. Should it do so, it will be accused of signing up to an unconscionable attack on the poorest. Should it not, it will be accused of failing to control runaway spending. Having signalled that it will not borrow more to reverse cuts to current spending (only to invest in capital projects such as housing), any difference will need to be funded through tax rises. 

Ed Miliband and Ed Balls at the Labour conference in Manchester last year. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Our union backed Brexit, but that doesn't mean scrapping freedom of movement

We can only improve the lives of our members, like those planning stike action at McDonalds, through solidarity.

The campaign to defend and extend free movement – highlighted by the launch of the Labour Campaign for Free Movement this month – is being seen in some circles as a back door strategy to re-run the EU referendum. If that was truly the case, then I don't think Unions like mine (the BFAWU) would be involved, especially as we campaigned to leave the EU ourselves.

In stark contrast to the rhetoric used by many sections of the Leave campaign, our argument wasn’t driven by fear and paranoia about migrant workers. A good number of the BFAWU’s membership is made up of workers not just from the EU, but from all corners of the world. They make a positive contribution to the industry that we represent. These people make a far larger and important contribution to our society and our communities than the wealthy Brexiteers, who sought to do nothing other than de-humanise them, cheered along by a rabid, right-wing press. 

Those who are calling for end to freedom of movement fail to realise that it’s people, rather than land and borders that makes the world we live in. Division works only in the interest of those that want to hold power, control, influence and wealth. Unfortunately, despite a rich history in terms of where division leads us, a good chunk of the UK population still falls for it. We believe that those who live and work here or in other countries should have their skills recognised and enjoy the same rights as those born in that country, including the democratic right to vote. 

Workers born outside of the UK contribute more than £328 million to the UK economy every day. Our NHS depends on their labour in order to keep it running; the leisure and hospitality industries depend on them in order to function; the food industry (including farming to a degree) is often propped up by their work.

The real architects of our misery and hardship reside in Westminster. It is they who introduced legislation designed to allow bosses to act with impunity and pay poverty wages. The only way we can really improve our lives is not as some would have you believe, by blaming other poor workers from other countries, it is through standing together in solidarity. By organising and combining that we become stronger as our fabulous members are showing through their decision to ballot for strike action in McDonalds.

Our members in McDonalds are both born in the UK and outside the UK, and where the bosses have separated groups of workers by pitting certain nationalities against each other, the workers organised have stood together and fought to win change for all, even organising themed social events to welcome each other in the face of the bosses ‘attempts to create divisions in the workplace.

Our union has held the long term view that we should have a planned economy with an ability to own and control the means of production. Our members saw the EU as a gravy train, working in the interests of wealthy elites and industrial scale tax avoidance. They felt that leaving the EU would give the UK the best opportunity to renationalise our key industries and begin a programme of manufacturing on a scale that would allow us to be self-sufficient and independent while enjoying solid trading relationships with other countries. Obviously, a key component in terms of facilitating this is continued freedom of movement.

Many of our members come from communities that voted to leave the EU. They are a reflection of real life that the movers and shakers in both the Leave and Remain campaigns took for granted. We weren’t surprised by the outcome of the EU referendum; after decades of politicians heaping blame on the EU for everything from the shape of fruit to personal hardship, what else could we possibly expect? However, we cannot allow migrant labour to remain as a political football to give succour to the prejudices of the uninformed. Given the same rights and freedoms as UK citizens, foreign workers have the ability to ensure that the UK actually makes a success of Brexit, one that benefits the many, rather than the few.

Ian Hodon is President of the Bakers and Allied Food Workers Union and founding signatory of the Labour Campaign for Free Movement.