The Philpott case shows us that the welfare state is our better self

We can't simply rely on the kindness of strangers. The welfare state is there to help the people we are too flaky or prudish to reach out to.

 

There are about 2,000 families in the UK with eight or more children. There are more than 20,000 primary schools in England alone. That makes the school my children attend a weird outlier, because at the time my son started there, there were two of these big families connected to the school.

I found this out in pretty embarrassing fashion, at a party I was invited to a few weeks into my residence in the city (it was one of those try-out social occasions, to see if and where I'd fit). The guests were all mothers, and the conversation rotated around the safe, stock maternal subjects: how was the birth, did you go back to work, are you having any more?

I am very happy with my two. I want no more and no fewer. We are perfectly proportioned. But, not wanting to accidentally slight the family size of anyone present, I decided to make a joke: maybe I'd have more, I laughed, just a couple; I mean, I don't want 12 or anything crazy. Everyone laughed – a warm laugh, but a laugh that indicated my joke hadn't quite landed where I expected. "Not like Mrs Parker, then," smiled my closest friend at the table.

Mrs Parker and Mr Parker, it turned out, did have 12 children. 12 beautifully turned out children, the eldest helping to raise the youngest and the youngest playing alongside their nieces and nephews. I see them in the mornings, always on time and always smiling, while I am cursing and late with just two to take care of. At the basest biological level, I confess that I cannot understand this family.

My children are loved and wanted, but I find pregnancy tedious and childbirth appalling, and the replacement of my babies with witty, warm and clever independent beings has been like the lifting of a suffocating curtain on my life. I mean, I like babies all right, but they're bloody demanding, and I do not have the wherewithal to supply those demands again. Yet there the Parkers are, not like me and doing marvellously.

"Oh, but Mrs Parker doesn't think everyone should have lots of children," laughed my friend, and the gathering inched together conspiratorially. "She says she doesn't know why the Clarks can't just stop." And then there was a moment of sad reflection for the ten Clark children, in which I was unable to partake because I had not yet encountered them.

Actually, I ended up being a neighbour of the Clarks. Their home was round the corner from mine. In fact you may have seen it, because they featured in a tabloid a few years ago. This was after they'd been moved out the house near me and into bigger accommodation in a nearby city. I think it was their former landlord who went to the press: he was unhappy about the state of the house, and understandably.

I mean, I'd love to take the side of the poor family against the private property owner, but it was squalid. I once saw a midwife knock on the door and smile as she was admitted, and two thoughts rushed on me: firstly, they're having another one; secondly, how can she smile going into that? The smell of too many humans and too many cats in too small a place drifted into the street. It made me feel dirty just to look at.

And the children, with their grey and dirty faces, their stained and washed-out school uniform. They were scratching all the time, from lice. (But how could you keep down an infestation in a house like that?) I would like to say I was kind to them, but I wasn't, or not nearly so kind as they needed. This is the truth about me: I didn't want to touch them, and I was scared to let them close to me or my children, because I knew that what they wanted was touch. Affection. Intimacy. Care.

I caught one of them anyway. By accident. Actually, it was worse than an accident: it was a horrible, ironical distortion of my intentions. I told him off, because he was throwing gravel. "Don't do that," I said, curtly – more curtly than I would have done to any other child, I think. (But what other child would have been throwing handfuls of gravel, uncurtailed by a parent?) I avoided the dad for a few days after in case he was angry with me for speaking sharply to his child, but I don't think he'd noticed.

That was enough: the boy was mine after that. On the way to school he attached himself to my tiny train of three (me, my son, my daughter in her buggy) – slipping away unmissed from his great mass of siblings. He would talk and I would respond, but beside me my son would be anxious: he wanted my attention, and here was this interloper. One day I heard the Clark boy tell my son: "I want to marry your mum." All this, remember, because I told him off for chucking stones.

I spoke to the dad sometimes. Not the mum, she never left the house – I only saw her on the doorstep, a woman of large and sloping volume in dirty, shapeless clothes. (I read in the paper that she had spinal problems and depression.) Every so often I would think to myself: "You must warn him that the press will come for them. They're a story waiting to happen, and no one has ever told them not to talk to reporters. You ought to say something."

I never did. Even that one small, impersonal favour I could have done, I failed to do. Because I didn't want to get close enough to talk. Because I didn't like them. Because they weren't clean. Because I didn't want them to be my problem, even though they were there on my doorstep and the neglect was so obvious. And then they were in the paper, lined up for the camera, expectantly.

I don't see them since they moved, of course, apart from one time when I bumped into the dad at the bus stop. I asked how he was doing and he said, well. He said, I'm training to be an accountant. I thought, you can't be an accountant, you can't even count your children.

But I think about them this week. That family was not the Philpotts, size aside: what their children suffered was neglect, not abuse. All the same, when the Mail and the Chancellor turn on the Philpotts and say, we gave them too much, I know that's not true. People say, he wouldn't have had those kids if benefits hadn't paid for them, as if parents who set fire to their children care whether they can feed them or not. We didn't give those children too much: we gave them too little. 

I don't feel happy moralising about dead children, but in this case, it's mostly because the moral is a rebuke to my own failings. I should have given more. I may not have been near enough to fail in person, but I know I would have done: they would have disgusted me, and I would have pushed them away, like I did the Clarks.

The fact that their parents were shitty doesn't make these children less our problem: it means they should have been in our care, in all our care, government and society acting together to discharge our communal duty to the unhappiest of all. That's what the welfare state is there to do, so no child has to rely on the flaky charity of neighbours like me. The welfare state is our better self, and if we turn against it because of the Philpott case, we let one man's murderous cruelty infect all of us.

Two young boys climb on a fence in a street in the Govan neighborhood of Glasgow. Photograph: Getty Images

Sarah Ditum is a journalist who writes regularly for the Guardian, New Statesman and others. Her website is here.

Ralph Orlowski / Getty
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Labour's investment bank plan could help fix our damaging financial system

The UK should learn from the success of a similar project in Germany.

Labour’s election manifesto has proved controversial, with the Tories and the right-wing media claiming it would take us back to the 1970s. But it contains at least one excellent idea which is certainly not out-dated and which would in fact help to address a key problem in our post-financial-crisis world.

Even setting aside the damage wrought by the 2008 crash, it’s clear the UK’s financial sector is not serving the real economy. The New Economics Foundation recently revealed that fewer than 10% of the total stock of UK bank loans are to non-financial and non-real estate businesses. The majority of their lending goes to other financial sector firms, insurance and pension funds, consumer finance, and commercial real estate.

Labour’s proposed UK Investment Bank would be a welcome antidote to a financial system that is too often damaging or simply useless. There are many successful examples of public development banks in the world’s fastest-growing economies, such as China and Korea. However, the UK can look closer to home for a suitable model: the KfW in Germany (not exactly a country known for ‘disastrous socialist policies’). With assets of over 500bn, the KfW is the world’s largest state-owned development bank when its size is measured as a percentage of GDP, and it is an institution from which the UK can draw much-needed lessons if it wishes to create a financial system more beneficial to the real economy.

Where does the money come from? Although KfW’s initial paid-up capital stems purely from public sources, it currently funds itself mainly through borrowing cheaply on the international capital markets with a federal government guarantee,  AA+ rating, and safe haven status for its public securities. With its own high ratings, the UK could easily follow this model, allowing its bank to borrow very cheaply. These activities would not add to the long-run public debt either: by definition an investment bank would invest in projects that would stimulate growth.

Aside from the obviously countercyclical role KfW played during the financial crisis, ramping up total business volume by over 40 per cent between 2007 and 2011 while UK banks became risk averse and caused a credit crunch, it also plays an important part in financing key sectors of the real economy that would otherwise have trouble accessing funds. This includes investment in research and innovation, and special programs for SMEs. Thanks to KfW, as well as an extensive network of regional and savings banks, fewer German SMEs report access to finance as a major problem than in comparator Euro area countries.

The Conservatives have talked a great deal about the need to rebalance the UK economy towards manufacturing. However, a real industrial policy needs more than just empty rhetoric: it needs finance. The KfW has historically played an important role in promoting German manufacturing, both at home and abroad, and to this day continues to provide finance to encourage the export of high-value-added German products

KfW works by on-lending most of its funds through the private banking system. This means that far from being the equivalent of a nationalisation, a public development bank can coexist without competing with the rest of the financial system. Like the UK, Germany has its share of large investment banks, some of which have caused massive instabilities. It is important to note that the establishment of a public bank would not have a negative effect on existing private banks, because in the short term, the UK will remain heavily dependent on financial services.

The main problem with Labour’s proposal is therefore not that too much of the financial sector will be publicly owned, but too little. Its proposed lending volume of £250bn over 10 years is small compared to the KfW’s total financing commitments of  750 billion over the past 10 years. Although the proposal is better than nothing, in order to be effective a public development bank will need to have sufficient scale.

Finally, although Brexit might make it marginally easier to establish the UK Investment Bank, because the country would no longer be constrained by EU State Aid Rules or the Maastricht criteria, it is worth remembering that KfW’s sizeable range of activities is perfectly legal under current EU rules.

So Europe cannot be blamed for holding back UK financial sector reform to date - the problem is simply a lack of political will in the current government. And with even key architects of 1980s financial liberalisation, such as the IMF and the economist Jeffrey Sachs, rethinking the role of the financial sector, isn’t it time Britain did the same?

Dr Natalya Naqvi is a research fellow at University College and the Blavatnik School of Government, University of Oxford, where she focuses on the role of the state and the financial sector in economic development

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