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The government is tripping up on welfare – a blessing and a curse for Labour

A slew of welfare stories this morning suggests the coalition is stumbling over its biggest bugbear: the benefits bill. Labour should play this carefully – in economic, not social, terms.

Work and Pensions Secretary Iain Duncan Smith. Photo: Getty
Work and Pensions Secretary Iain Duncan Smith. Photo: Getty

First, to untangle the welfare spending stories this morning:

  • Some leaked government memos show that the Department for Work and Pensions may be in danger of spending beyond the government’s self-imposed welfare spending cap. This is mainly due, according to civil servants, to rising claims of the Employment and Support Allowance (ESA), which was introduced in 2008 to replace the Incapacity Benefit.

    If the limit (£119.5bn) is breached, DWP ministers will have to answer to parliament and ask MPs to approve the additional cost, which the documents show it is “vulnerable” to having to spend.
     

  • Unfortunately for Work and Pensions Secretary Iain Duncan Smith, this leak comes on the day he’s announcing his new welfare scheme of Universal Credit will be rolled out to 90 jobcentres in northwest England. This process should get underway next week. Implementing this new system has been a notoriously haphazard and slow process, and the new plans for the northwest will do more for furthering the discussion about government incompetence than celebrating a supposedly more efficient state.
     
  • In another blow to the government’s welfare record, Westminster’s favourite inquisitor Margaret Hodge MP and her crack team on the Public Accounts Committee have reported that changes to disability benefits have caused a “fiasco” for sick and disabled people. The committee calls the reforms, in the form of the new Personal Independence Payment (PIP) – eligibility for which is assessed by the infamous Atos fit-to-work tests – a “rushed” change, which has had a “shocking” impact on claimants.
     

This is bad for the government. Its benefit reforms and spending cap are intended to toughen its stance on welfare, a path popular with voters, yet this clumsiness certainly doesn’t foster the tough, lean image it’s attempting to present.

However, it is up to the Labour Party to play this correctly so that the government doesn’t get away with smothering negative stories with fresh Universal Credit rollouts and condemnation of their "soft" opposition.

Having announced his own proposed changes to benefits yesterday, Ed Miliband is clearly trying to display a viable plan for the welfare state to complement our age of austerity. Essentially, he’s doing Labour’s version of being “tough on welfare”. So it can’t just be the same attacks on the government, as the PAC has voiced, using "shocking" personal stories of claimants, and accusing ministers of not caring for our most vulnerable. Instead, the message must be a condemnation of its vulnerability to over-spending taxpayers’ money. A purely economic, and arguably more rightwing, position than Miliband has yet been quite ready to adopt.

Tags:Welfare