Tony Benn arrives to lay a wreath at the Cenotaph at a ceremony on August 17, 2009. Photograph: Getty Images.
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Thanks to Ed Miliband, Tony Benn died at peace with Labour

With Miliband as leader, Benn finally felt at home again in the party he served for so long.

In his ninth and final volume of diaries A Blaze of Autumn Sunshine (2013), Tony Benn predicted that he would not live to see the election of another Labour government. Sadly, this great democrat, socialist and internationalist has been proved right today. 

It was Labour that Benn, the son and grandson of Liberal MPs, devoted his political life to. He was elected as the MP for Bristol South East in a by-election in 1950 (becoming the "Baby of the House") and served almost continuously until 2001 (becoming the "Father of the House"). Despite his friendships with Communists and Trotskyists, he never abandoned his belief in Labour as the indispensable vehicle for socialism. 

At several points in history, there were many in the party who wished he had. Many never forgave him for his decision to challenge Denis Healey for the deputy leadership in 1981 (losing by just 0.8 per cent), in defiance of Michael Foot's appeal to unity, and for his refusal to "compromise with the electorate". By far the harshest words said about Benn today will be from his foes on the left, not those on the right. 

That Benn, unlike many of his comrades, chose to remain in the party throughout the New Labour era was partly because he refused to recognise Tony Blair as its leader. As he said many times, he regarded New Labour as a "new political party" - a quasi-Thatcherite sect that led Britain into illegal wars (he most commonly described Blair as a "war criminal"), demonised asylum seekers and privatised parts of the public realm that even the Conservatives dared not touch. Benn never left Labour - but he felt as if Labour had left him. 

He said of Blair last year: "We as a party had suffered greatly from the influence of Mr Blair. He was a man who became leader because he was a successful campaigner, but I don’t think he was ever truly a Labour man. The war in Iraq was a crime and now he has been put in charge of achieving peace in the Middle East, which obviously lacks any credibility. Labour had to get beyond Blair in order to ever have credibility with the electorate again. That’s what I think we are achieving now."

But with the election of Ed Miliband, who interned in his basement office at 16 and whose father he knew well, he finally felt at home again in the party. Unlike Blair and other New Labour figures, who treated him as an embarrassing uncle or simply ignored him all together, Miliband was prepared to embrace him as a fellow friend of democracy and socialism. I remember a touching moment at the Compass conference in 2009 when Miliband, speaking brilliantly without notes (the first time I witnessed that now-famous feat), referred with pride to Benn's presence in the front row and the hall erupted in applause. 

After his preferred leadership candidate John McDonnell failed to make the ballot in 2010, Benn happily endorsed Miliband as "the best candidate", one who cleansed the stains left by Blair. Following his first speech as leader he wrote: "It was a remarkable speech: it was based on his own experiences, and those of his parents during the war, and it will have an appeal well beyond the Labour party. His words on optimism were also important because the media concentrate on spreading pessimism about everything, claiming that new ideas won't work – so, instead of working to improve their lives, people can be dissuaded from making the effort. This speech will help to build up people's confidence in him. I've known him since he was a teenager – he came and worked for a month with me after his O-levels. I supported him for leader and he's justified every hope I had."

More recently, he praised Miliband's pledge to scrap the bedroom tax and his "vigorous" defence of his father. Asked last year whether he believed he could be the next prime minister he replied: "Of course. And he would be a very good one. I’m not in the business of predicting election results as that is always a very foolish thing to do. Whether or not he is left wing is not the point. The point is that he is a trustworthy and capable man that people respond to."

There could be no greater tribute to Benn than for Miliband to now fufil those hopes - and lead Labour to victory next year. 

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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A simple U-Turn may not be enough to get the Conservatives out of their tax credit mess

The Tories are in a mess over cuts to tax credits. But a mere U-Turn may not be enough to fix the problem. 

A spectre is haunting the Conservative party - the spectre of tax credit cuts. £4.4bn worth of cuts to the in-work benefits - which act as a top-up for lower-paid workers - will come into force in April 2016, the start of the next tax year - meaning around three million families will be £1,000 worse off. For most dual-earner families affected, that will be the equivalent of a one partner going without pay for an entire month.

The politics are obviously fairly toxic: as one Conservative MP remarked to me before the election, "show me 1,000 people in my constituency who would happily take a £1,000 pay cut, then we'll cut welfare". Small wonder that Boris Johnson is already making loud noises about the coming cuts, making his opposition to them a central plank of his 

Tory nerves were already jittery enough when the cuts were passed through the Commons - George Osborne had to personally reassure Conservative MPs that the cuts wouldn't result in the nightmarish picture being painted by Labour and the trades unions. Now that Johnson - and the Sun - have joined in the chorus of complaints.

There are a variety of ways the government could reverse or soften the cuts. The first is a straightforward U-Turn: but that would be politically embarrassing for Osborne, so it's highly unlikely. They could push back the implementation date - as one Conservative remarked - "whole industries have arranged their operations around tax credits now - we should give the care and hospitality sectors more time to prepare". Or they could adjust the taper rates - the point in your income  at which you start losing tax credits, taking away less from families. But the real problem for the Conservatives is that a mere U-Turn won't be enough to get them out of the mire. 

Why? Well, to offset the loss, Osborne announced the creation of a "national living wage", to be introduced at the same time as the cuts - of £7.20 an hour, up 50p from the current minimum wage.  In doing so, he effectively disbanded the Low Pay Commission -  the independent body that has been responsible for setting the national minimum wage since it was introduced by Tony Blair's government in 1998.  The LPC's board is made up of academics, trade unionists and employers - and their remit is to set a minimum wage that provides both a reasonable floor for workers without costing too many jobs.

Osborne's "living wage" fails at both counts. It is some way short of a genuine living wage - it is 70p short of where the living wage is today, and will likely be further off the pace by April 2016. But, as both business-owners and trade unionists increasingly fear, it is too high to operate as a legal minimum. (Remember that the campaign for a real Living Wage itself doesn't believe that the living wage should be the legal wage.) Trade union organisers from Usdaw - the shopworkers' union - and the GMB - which has a sizable presence in the hospitality sector -  both fear that the consequence of the wage hike will be reductions in jobs and hours as employers struggle to meet the new cost. Large shops and hotel chains will simply take the hit to their profit margins or raise prices a little. But smaller hotels and shops will cut back on hours and jobs. That will hit particularly hard in places like Cornwall, Devon, and Britain's coastal areas - all of which are, at the moment, overwhelmingly represented by Conservative MPs. 

The problem for the Conservatives is this: it's easy to work out a way of reversing the cuts to tax credits. It's not easy to see how Osborne could find a non-embarrassing way out of his erzatz living wage, which fails both as a market-friendly minimum and as a genuine living wage. A mere U-Turn may not be enough.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.