Liam Byrne's last stand: five things we learned

The shadow work and pensions secretary took Ed Miliband's advice and referred to "social security", rather than "welfare".

Ahead of next month's shadow cabinet reshuffle, Liam Byrne's speech today was likely the last he will give as shadow work and pensions secretary. As I revealed earlier this week, the view in Labour is that Ed Miliband needs a spokesman the PLP can trust if he is to persuade it to accept his "tough but fair" approach to welfare. (Although Byrne wasn't short of praise for Miliband, describing him as a "man of courage and vision" who had done "extraordinary" things to set the agenda.) 

Unsurprisingly, then, his speech didn't contain any new policies but it was notable on several other fronts. Here are five points that stood out for me. 

1. It's called social security, not welfare

Ed Miliband has recently encouraged Labour MPs to refer to "social security", rather than "welfare", and Byrne is clearly one who got the message. While "social security" appeared 12 times in the speech, "welfare" appeared just once (in the final line: "their promised welfare revolution has collapsed"). In the Q&A that followed, Byrne succinctly explained the logic of this shift: "the words social security are important because they include the word security and because they imply a social contract". 

2. The bedroom tax: "It should be dropped, and dropped now" 

Byrne delivered one of the strongest attacks on the bedroom tax that we've heard from a Labour frontbencher, describing it as "the worst possible combination of incompetence and cruelty". He noted that "96% of those hit have nowhere to move to" (which means higher arrears and homelessness) and that it was "costing the public an extra £102.5 million to implement", concluding: "It should be dropped, and dropped now." This doesn't amount to a commitment to reverse the policy in 2015 but as I wrote last week, Labour will pledge to abolish it in 2015 and Byrne's speech revealed the grounds on which it will do so - that it costs more than it saves.

3. We support welfare cuts too

While Byrne's speech emphasised how Labour would seek to reduce social security spending by tackling unemployment (through its Compulsory Jobs Guarantee) and building more homes, it also highlighted several cuts the party supports. He reminded his audience that Labour has called for Winter Fuel Payments to be removed from the wealthiest 5 per cent of pensioners and that it would not "prioritise" the restoration of child benefit for higher earners.

Byrne also declared his support for "tightening up the rules on child related benefits for foreign workers." He explained: "Most people who come to Britain from Europe work hard and contribute more in taxes than they use in public services or claim in benefits, but we just don’t think it is fair that someone could move to London and leave their children in Paris or Prague and claim British family benefits and send them home."

4. Universal Credit - Labour would keep it

While deriding the government's dramatic retreat on Universal Credit, which will now apply to just ten job centres when it is rolled out this October (it was originally due to apply to all new claimants of out of work benefits), Byrne attempted to be constructive by calling for cross-party talks with civil servants "so that we can see exactly how bad things are and what's needed to fix them". It's not an offer Iain Duncan Smith is likely to accept (in an unsually personal attack on the Work and Pensions Secretary he said: "Something seems to be very wrong in the mind of the man at the helm of DWP") but it is an indication that the programme would likely survive a change of government. Byrne said that Universal Credit, which will replace six of the main benefits and tax credits with a single payment, was "a good idea in principle" and that "if Iain Duncan Smith won’t save Universal Credit, then Labour will have to prepare to clean up his mess."

5. The return of "full employment"

"Full employment" might be a phrase more associated with the Keynesian golden age than with recent British politics but under Ed Miliband it has been restored as an aim of Labour policy. The party views full employment (defined by William Beveridge as an unemployment rate no higher than 3%) as the foundation of a strong economy and the best way to reduce social security spending and narrow inequality. In his speech, Byrne promised that "over the weeks and months ahead", Labour would outline "a new approach that returns our country to full employment".

Shadow work and pensions secretary Liam Byrne speaks at last year's Labour conference in Manchester. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The Brexit ministers who just realised reducing immigration is a problem for them

Turns out there's a teeny tiny hiccup with reducing immigration...

On 27 December 2015, the then-backbencher MP David Davis declared he was "voting out" in the forthcoming EU referendum. Among his reasons was the "disastrous migration crisis". 

Fast forward 14 months. Now the minister responsible for Brexit, Davis has been spotted in the Latvian capital of Riga, with a slightly different message

He admitted it was not plausible that Brits would immediately take jobs in the kind of low-paid sectors like agriculture and social care currently staffed by migrant workers. 

Immigration restrictions "will take years" to be phased in, he added. 

Davis is only the latest minister in the Brexit government to realise that immigration might be down to more than some pesky EU bureaucrats. Here's when the penny dropped for the others: 

Andrea "Seasonal Labour"  Leadsom

During the EU referendum campaign, Brexit charmer-in-chief Andrea Leadsom told The Guardian that immigration from EU countries could “overwhelm” Britain, and that her constituents complained about not hearing English spoken on the street. 

But speaking to farmers in 2017 as Environment secretary, Leadsom said she knew “how important seasonal labour from the EU is, to the everyday running of your businesses”. She said she was committed to making sure farmers “have the right people with the right skills”. 

Sajid “Bob the Builder” Javid 

The Communities secretary Sajid Javid backed the Remain campaign like his mentor George Osborne, but when he was offered a job in the Brexit government, he took it.

Javid has criticised immigrants who don’t integrate, but it seems there is one group he doesn’t have any qualms about - the construction workers who build the homes that fall under his remit.

As early as September, Javid was telling the FT he wouldn’t let any pesky UK border red tape get between him and foreign workers needed to meet his housebuilding targets.

Philip “Citizen of the World” Hammond

So if you can’t kick out builders, what about that perennially unpopular group of workers, bankers? Not so fast, says Philip Hammond.

Just three months after Brexit, he said the government would use immigration controls “in a sensible way that will facilitate the movement of highly-skilled people between financial institutions and businesses”. 

As a Chancellor who personally backed Remain, Hammond is painfully aware of the repercussions if the City decamps to the Continent. 

Greg “Brightest and Best” Clark

The Business, Energy and Industrial Strategy secretary backed Remain, and has kept his head down since winning the meaty new industrial brief. 

Nevertheless, he seems willing to weigh in on the immigration cap debate, at least on behalf of international students. Asked whether the post-study work visa pilot should continue, Clark said the government wanted to attract the brightest and best.

He continued:

"We have visa arrangements in place so that people can work in graduate jobs after that, and it is important that they should be able to do so."

Jeremy "The Doctor" Hunt 

The Health secretary kept his job in the turmoil of the summer, and used his conference speech to toe the party line with a pledge that the NHS would rely on less foreign medical staff in future.

The problem is, Hunt has alienated junior doctors by imposing an unpopular contract, and even those wannabe medics that do sign up will have to undergo half a decade of studying first.

Asked about where he plans to find NHS workers in Parliament, Hunt declared: “No one from either side of the Brexit debate has ever said there will be no immigration post-Brexit.” He also remained “confident” that the UK would be able to negotiate a deal that allowed the 127,000 EU citizens working for the NHS to stay. 

So it turns out we might need agriculture and construction workers, plus students, medics and even bankers after all. It's a good thing the government already has a Brexit plan sorted out...
 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.