Full employment and rising wages are the key to welfare reform

Iain Duncan Smith was once right about the need for drastic change - then he got everything else wrong.

When Iain Duncan Smith starting visiting to Easterhouse and steered the new Centre for Social Justice (CSJ) towards a Tory-analysis of poverty, he was hailed by many as a prophet. Finally, wrote breathless commentators, the ‘nasty party’ had found a route-map to Compassionate Converatism. Five years later, IDS is part of a government that is plunging one million children into poverty and is ramming through the House of Lords new laws that will cut help for 3.5 million disabled people. The Saint of Easterhouse has become the punch-bag of the Treasury. The route-map, is turns out, was a chimera.

But IDS is still standing in part because he stands on the foundations of the CSJ’s study. I might disagree about lots of their conclusions but I can respect the fact that they actually bothered to look at the problem. Reform of social security – currently one-third of public spending – is a big question. It demands and deserves deep thinking not a casual look. And that’s why the launch on 14 February of the Commission on the Condition of Britain is so welcome, and why I’ll be following its work so closely. Back in the 1990s, the Commission on Social Justice at the IPPR was critical to Labour’s social security reforms in office. I hope we’ll learn just as much from the IPPR’s second big look two decades later.

The truth is major reform of the welfare state is mission critical to rebuilding Britain after the global financial crash; it’s crucial to creating a country where we end the trauma of the living standards crisis, and it’s crucial to renewing a shared sense that we really are all in this together. This is the frame that Jon Cruddas set out for One Nation Labour in an important speech at the Resolution Foundation this week; ‘earning and belonging’.

When the Beveridge Report was published seventy years ago in the middle of World War Two, it was swept off the shelves by a British public thirsty for a vision of what would come when peace was won. At the heart of Beveridge’s argument was the idea we needed social insurance to help working families deal with the exigencies of life that caused new pressures (like the costs of children) or caused a loss of earnings , like the mass unemployment of the 1930s.

Today, the challenge for social security is not simply to minimise disruption to earnings, it is to help families maximise the potential of earnings. Beveridge’s world-view was set during the Devil’s Decade of the 1930s. Our world-view must be shaped by the gigantic squeeze on earnings that means living standards for ordinary working families might not recover, according to the Resolution Foundation, until the 2020s.

The reality for Britain today is that right now, productivity is going up; corporate profits are going up; companies are piling up cash in their bank accounts at a rapid rate of knots. Yet real wages are falling. In other words, workers are producing more and earning less. If we’re to reverse this giant trend, we are going to need new strategies for full employment – because full employment is the best guarantee of rising wages. We’re going to need new strategies to help working parents – especially mums – juggle childcare and sustain their careers. We need new ways to help the over 50s stay in work. And we need a radically new approach to disability policy so that government actually puts a team behind disabled people helping them get on in life, not a bureaucracy against them locking away help.

The IPPR’s work couldn’t come at a better time. Half way through the Parliament it’s now clear, the Conservatives so-called welfare revolution is collapsing in chaos. It doesn’t help working families get on. Its making poverty worse. The DWP is no longer even able to organise work experience in Poundland, never mind complex change like Universal Credit. We’re determined to offer a bold alternative, that staunches the cost of failures and puts social security once more, back on the side of working people.

The Easterhouse estate, Glasgow. Source: Getty

Liam Byrne is Labour MP for Birmingham Hodge Hill, and sits on the International Trade select committee. He is the cofounder of the UK-China Young Leaders Roundtable and author of Turning to Face the East: How Britain Prospers in the Asian Century.

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Theresa May’s stage-managed election campaign keeps the public at bay

Jeremy Corbyn’s approach may be chaotic, but at least it’s more authentic.

The worst part about running an election campaign for a politician? Having to meet the general public. Those ordinary folk can be a tricky lot, with their lack of regard for being on-message, and their pesky real-life concerns.

But it looks like Theresa May has decided to avoid this inconvenience altogether during this snap general election campaign, as it turns out her visit to Leeds last night was so stage-managed that she barely had to face the public.

Accusations have been whizzing around online that at a campaign event at the Shine building in Leeds, the Prime Minister spoke to a room full of guests invited by the party, rather than local people or people who work in the building’s office space.

The Telegraph’s Chris Hope tweeted a picture of the room in which May was addressing her audience yesterday evening a little before 7pm. He pointed out that, being in Leeds, she was in “Labour territory”:

But a few locals who spied this picture online claimed that the audience did not look like who you’d expect to see congregated at Shine – a grade II-listed Victorian school that has been renovated into a community project housing office space and meeting rooms.

“Ask why she didn’t meet any of the people at the business who work in that beautiful building. Everyone there was an invite-only Tory,” tweeted Rik Kendell, a Leeds-based developer and designer who says he works in the Shine building. “She didn’t arrive until we’d all left for the day. Everyone in the building past 6pm was invite-only . . . They seemed to seek out the most clinical corner for their PR photos. Such a beautiful building to work in.”

Other tweeters also found the snapshot jarring:

Shine’s founders have pointed out that they didn’t host or invite Theresa May – rather the party hired out the space for a private event: “All visitors pay for meeting space in Shine and we do not seek out, bid for, or otherwise host any political parties,” wrote managing director Dawn O'Keefe. The guestlist was not down to Shine, but to the Tory party.

The audience consisted of journalists and around 150 Tory activists, according to the Guardian. This was instead of employees from the 16 offices housed in the building. I have asked the Conservative Party for clarification of who was in the audience and whether it was invite-only and am awaiting its response.

Jeremy Corbyn accused May of “hiding from the public”, and local Labour MP Richard Burgon commented that, “like a medieval monarch, she simply briefly relocated her travelling court of admirers to town and then moved on without so much as a nod to the people she considers to be her lowly subjects”.

But it doesn’t look like the Tories’ painstaking stage-management is a fool-proof plan. Having uniform audiences of the party faithful on the campaign trail seems to be confusing the Prime Minister somewhat. During a visit to a (rather sparsely populated) factory in Clay Cross, Derbyshire, yesterday, she appeared to forget where exactly on the campaign trail she was:

The management of Corbyn’s campaign has also resulted in gaffes – but for opposite reasons. A slightly more chaotic approach has led to him facing the wrong way, with his back to the cameras.

Corbyn’s blunder is born out of his instinct to address the crowd rather than the cameras – May’s problem is the other way round. Both, however, seem far more comfortable talking to the party faithful, even if they are venturing out of safe seat territory.

Anoosh Chakelian is senior writer at the New Statesman.

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