Why Labour would not reverse the coalition's child benefit cuts

The party believes in shifting spending from universal benefits such as child benefit and the winter fuel allowance to services such as childcare and social care.

After Ed Balls announced earlier this week that Labour would remove the winter fuel allowance from the wealthiest 5 per cent of pensioners, I wrote that it was a sign that the party would not seek to reverse the coalition's cuts to child benefit. Having made the argument against universalism in the case of winter fuel payments, it becomes harder to make it in the case of child benefit. 

This morning, the BBC has confirmed my suspicions, reporting that "a future Labour government would not reverse cuts to child benefit made by the coalition". This is partly for the obvious reason that it would be very expensive to do so. Given that public spending, as Balls indicated in his speech, will continue to fall under a Labour government, it will be hard to justify spending £2.3bn on restoring the benefit to individuals earning over £50,000 a year, who rank among the top 8 per cent of earners in the country. 

But the decision also likely reflects a wider shift in Labour thinking. Influential figures such as IPPR director Nick Pearce and Gavin Kelly, the chief executive of the Resolution Foundation, have recently argued that the party should switch spending from universal benefits such as the winter fuel allowance and child benefit to services such as social care and childcare. This is not just because the funds for improved provision cannot be raised through taxation alone, but also because universal services (most obviously the NHS, but also comprehensive education and Sure Start) have generated more enduring public support than cash benefits. It is notable, for instance, that while the government was able to win majority support for the cuts to child benefit, it could never hope to do so in the case of the NHS.

But despite the economic and political logic of the move, it will prompt anger among those such as Peter Hain, who retain a traditional social democratic commitment to universal benefits. The case of child benefit is a good example of what Richard Titmuss had in mind when he warned that "services for the poor end up being poor services". While removing child benefit from higher-earners, the coalition has simultaneously frozen it in cash terms for three years, a real-terms reduction of £1,080 for a family with two children. But rather than seeking to restore child benefit to its previous value, Labour, for the reasons I've outlined, is likely to focus on investing resources in childcare. 

Ed Miliband speaks at the CBI's annual conference on November 19, 2012 in London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty
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Like it or hate it, it doesn't matter: Brexit is happening, and we've got to make a success of it

It's time to stop complaining and start campaigning, says Stella Creasy.

A shortage of Marmite, arguments over exporting jam and angry Belgians. And that’s just this month.  As the Canadian trade deal stalls, and the government decides which cottage industry its will pick next as saviour for the nation, the British people are still no clearer getting an answer to what Brexit actually means. And they are also no clearer as to how they can have a say in how that question is answered.

To date there have been three stages to Brexit. The first was ideological: an ever-rising euroscepticism, rooted in a feeling that the costs the compromises working with others require were not comparable to the benefits. It oozed out, almost unnoticed, from its dormant home deep in the Labour left and the Tory right, stoked by Ukip to devastating effect.

The second stage was the campaign of that referendum itself: a focus on immigration over-riding a wider debate about free trade, and underpinned by the tempting and vague claim that, in an unstable, unfair world, control could be taken back. With any deal dependent on the agreement of twenty eight other countries, it has already proved a hollow victory.

For the last few months, these consequences of these two stages have dominated discussion, generating heat, but not light about what happens next. Neither has anything helped to bring back together those who feel their lives are increasingly at the mercy of a political and economic elite and those who fear Britain is retreating from being a world leader to a back water.

Little wonder the analogy most commonly and easily reached for by commentators has been that of a divorce. They speculate our coming separation from our EU partners is going to be messy, combative and rancorous. Trash talk from some - including those in charge of negotiating -  further feeds this perception. That’s why it is time for all sides to push onto Brexit part three: the practical stage. How and when is it actually going to happen?

A more constructive framework to use than marriage is one of a changing business, rather than a changing relationship. Whatever the solid economic benefits of EU membership, the British people decided the social and democratic costs had become too great. So now we must adapt.

Brexit should be as much about innovating in what we make and create as it is about seeking to renew our trading deals with the world. New products must be sought alongside new markets. This doesn’t have to mean cutting corners or cutting jobs, but it does mean being prepared to learn new skills and invest in helping those in industries that are struggling to make this leap to move on. The UK has an incredible and varied set of services and products to offer the world, but will need to focus on what we do well and uniquely here to thrive. This is easier said than done, but can also offer hope. Specialising and skilling up also means we can resist those who want us to jettison hard-won environmental and social protections as an alternative. 

Most accept such a transition will take time. But what is contested is that it will require openness. However, handing the public a done deal - however well mediated - will do little to address the division within our country. Ensuring the best deal in a way that can garner the public support it needs to work requires strong feedback channels. That is why transparency about the government's plans for Brexit is so important. Of course, a balance needs to be struck with the need to protect negotiating positions, but scrutiny by parliament- and by extension the public- will be vital. With so many differing factors at stake and choices to be made, MPs have to be able and willing to bring their constituents into the discussion not just about what Brexit actually entails, but also what kind of country Britain will be during and after the result - and their role in making it happen. 

Those who want to claim the engagement of parliament and the public undermines the referendum result are still in stages one and two of this debate, looking for someone to blame for past injustices, not building a better future for all. Our Marmite may be safe for the moment, but Brexit can’t remain a love it or hate it phenomenon. It’s time for everyone to get practical.