One of the things which consistently keeps the Labour Left down, and undermines our arguments in the eyes of the non-Labour Left, is the way in which the Labour Right so skilfully manages to get airtime.
It is rarely (read: never) John McDonnell representing Labour on Question Time or Newsnight, but it is frequently ultra-Blairites like James Purnell.
The latest idea that these ultras appear to be proposing is a direct challenge to our existing welfare state’s fundamental principles- particularly those of universality.
Some of the ideas that Purnell has spoken about are possibly quite good. In particular, I feel it is necessary to echo his intentions when
he says:
“What I would love to see is Britain fall in love with welfare again, for the people to love the welfare state, as much as they love the NHS”
A lot of the rest of what he says is undiluted cow droppings, and what he said on Newsnights has to my mind been categorically demolished by the brilliant
Lisa Ansell.
However, his belief in contribution-based welfare and targeted benefits have since been promoted (in an extremely patronising manner) on Labour List by
Josh Eades. This, I feel, provokes a suitable response.
The concept of contribution-based welfare is one which might strike a chord which more advantaged voters, but which fundamentally will not work to protect the most vulnerable when enacted in practice.
Firstly, this is because many of those most in need will not have had the opportunity to contribute. If I am unable to find a job after leaving school or college or university, I will not have been able to pay into the benefits pot but will be no less in need of support during that difficult period.
Secondly, and more importantly, is how thoroughly disrespectful the language used is. Josh Eades, for instance, talks of “an obligation to work”, “a carrot and stick approach” and “an incentive for people to find work”.
Pretty clearly, this plays into the hands of the Conservative Party and their ideological allies in the press. Benefits, according to this warped view, are overwhelmingly sucked up by ‘scroungers’ who refuse to work even though there are jobs going for a ten a penny.
I’m sure I won’t need to explain how idiotic this perception is, but I will do so just to make sure. The Joseph Rowntree Foundation
found that the majority of benefit fraud was committed by “hard-working, ordinary people trying to survive day by day”. Far from paying for flat-screen TVs, they were paying for food and heating by taking on cash-in-hand jobs.
Furthermore, significantly more money goes unclaimed than is taken fraudulently, with £12.7bn means-tested benefits and £5bn tax credits unclaimed
in 2008/09- benefit fraud was predicted to cost approximately £900m in 2008/09 according to
Direct.gov.uk.
And when Ian Duncan Smith told unemployed people in Merthyr Tydfil to get on a bus to Cardiff to look for jobs- as if they were unemployed because of sloth or some sort of personality fault- it was
helpfullypointed out by PCS that there were 15,000 unemployed people in the Welsh capital chasing just 1,700 jobs.
However, whilst the Left might be quite willing to challenge the Right (Labour or otherwise) for these Daily Mail-style inaccuracies and slurs, it seems to be the case that we roll over and accept defeat whenever universality comes under serious challenge.
Josh Eades sets out this aspect of his argument in two paragraphs, the former of which I see little intrinsic problem with:
“Incentives like free childcare for all, flexible working hours, the right to do work from home and the right to job share, should be actively encouraged. Now some will ask how this is to be paid for, and this is where it becomes even more radical.
For the ideas to work, there will have to be cuts. But these can be done, and the initiatives I have set out can be paid for not by making ideological cuts, but by making redistribution cuts. Where the elderly don't need winter fuel allowance, we cut, we save and we invest, where the well-off don't need child benefit, we cut, we save and we invest. There are numerous examples out there....does Lord Sugar need winter fuel allowance? Do Victoria and David Beckham need child benefits? The answer is simply no, and by implementing a system of means testing, we save billions to invest in back to work schemes. These are not ideological cuts driven by dogma, they are essential cuts driven by desire to help those who need our support.”
The second paragraph, however, shows an immense ignorance with regards to the history of our welfare state. It also goes directly against the intentions outlined by James Purnell which I quoted close to the beginning of this blog.
The British welfare state is, according to
Esping-Andersen (1990), “social democratic”. This means that it is universal and based upon social rights (themselves derived from citizenship), and in essence it is the descendent of what Beveridge once argued for.
Increasingly however, and under pressure from right-wing ideologues such as Purnell and Eades as well as the more openly Thatcherite elements, the British welfare system has begun to take on characteristics of the ‘liberalist’ and ‘corporatist’ systems, as found (I believe) in the United States, Germany and Scandinavia.
It should probably be obvious that the social democratic/democratic socialist party- the Labour Party- should be supporting the original British social democratic system, but I accept that such labels do not go hand-in-hand with Blairism and therefore I will spell out its advantages more specifically.
Firstly, universal welfare is efficient- Beveridge considered the relatively low cost of the system as a merit, alongside the more apparent social benefits. The bureaucracy required to maintain means-testing is vast, and it is important to note that
Channel 4’s Fact Check blog identified the cost of errors in the benefit and tax credit system to be around £4bn (and thus significantly more than the cost of fraud).
Whilst universal-welfare might end up costing more money, it also means that a greater proportion of the money goes on helping people, as opposed to maintaining a system for allocating resources to those who are most in need.
Secondly, universal welfare is popular. The fact that Lord Sugar is entitled to winter fuel allowance might seem bizarre (I presume he could refuse it if he wanted to), but that’s an extreme case. There are many who would otherwise slip through the means-testing net.
I’ve blogged before on how
EMA should’ve been expanded, rather than cut, because many who should’ve benefited from it were unable to as a result of complicated living conditions or comparatively wealthy (yet stingy) parents.
Many from more affluent backgrounds also benefited or knew people that did, and this prevented them forming images of ‘EMA claimants’ as ‘scroungers’. I worry that, amongst other flaws, the replacement being introduced instead of EMA will be even easier for the Conservatives to dispose of because such a miniscule section of the electorate will be gaining through it.
“ippr are suggesting that what they call “little things which don’t mean much to people” are withdrawn, such as free bus passes for pensioners, and that means testing of universal benefits are extended.
Free bus passes for pensioners are probably the most popular part of the welfare state. Describing them as “little things which don’t mean much to people” is a one sentence electoral suicide note, and it is really rather troubling if Purnell thinks that taking bus passes off pensioners in exchange for jobs loans is an example of the centre left “regaining the initiative on welfare”.”
There is another reason to support universal welfare. Means-tested welfare is, by its very nature, extremely demeaning to have to claim. If you’re the only child in your school getting free-school-meals then you will unfortunately feel like you are less important than your classmates.
The impact upon self-esteem of weekly (!) appearances at a Job Centre just to get enough money to survive must be absolutely soul-destroying, to an extent which those of us who have never experienced it cannot even imagine.
In summary then, universal welfare is more efficient, less demeaning and easier to defend from the ravages of a right-wing government.
That is not to say that targeting and means-testing are never appropriate- childless families are unlikely to feel much need to get given Child Benefit. It was abhorrent for Conservative councillors to
argue that affluent children should be given completely equal provision of youth services as those from disadvantaged backgrounds (particularly using the language they did). It is possible for services to be universal (i.e. everyone should have access to a free school) and involved targeted-provision (i.e. areas of deprivation might require increased funding to education).
I’ve blogged
previously with my personal suggestions of how unemployment could be better prevented and solved within the context of universal welfare and a socialist economic system.
Suffice to say that far from being in need of pruning, our present universal welfare system does not spread far enough- unfortunately, successive governments retreated from the ideal of a universal housing system as the council estates, which Nye Bevan once envisaged as having “the working man, the doctor and the clergyman [living] in close proximity to each other”, were dismantled and sold off.
I will conclude by referring not to the great William Beveridge, but to the father of the Swedish Folkhemmet- Gustav Möller:
“1. There should be no stigmatization of the poor, no sorting out of those in need. Rich families as well as poor should have their children's allowance, old age pension and free medical treatment.
2. There should be as little bureaucratic paternalism and arbitrariness as possible. Preferably, the welfare assignments should be administered by the recipients themselves, as when unemployment allowances were administered by the trade unions. And allowances should always be cash.”
Certainly teachings which we, and especially the Labour Right, could learn from.
Solidarity,
Dan x