2 years ago

Welfare reform


Soundings on welfare

Soundings on welfare reformThe pioneering John Rogers of the Sheffield Welfare Action Network (SWAN)wrote presciently in 2006 of the ‘dread of things to come’. The isolation of thesecampaigners briefly changed when Compass pressure group ( joined with the Public and Commercial Services Union to campaignagainst what became Labour’s Welfare Reform Act 2009. The campaign didn’t gowell. Compass and the PCS had very different styles of working, and did not buildup a good enough relationship to weather the differences; and, while both theseorganisations opposed the Reform Bill outright, the NGOs and charities involvedin the campaign had different priorities - supporting some aspects of the Bill whileopposing others. The campaign petered out. It wasn’t until the emergence of a newgeneration of campaigners employing social media that a different voice - that ofusers themselves - began to make itself heard.Peter Beresford writes about the new generation of campaigners, beginningwith the extraordinary success of the Spartacus report ( in January 2012. A number of campaignsstand out: Carerwatch (, Diary of a Benefit Scrounger(, The Broken of Britain (, and Act Now ( They have filled the vacuum left by the charities and largerNGOs, who in seeking roles in the new welfare system have partially lost theirindependence and power of advocacy.Earlier this week I sat in the House of Lords listening to the debate onamendments to the Coalitions Welfare Reform Bill. Labour had already defeatedthe government in a series of amendments. It was about to do so again on theproposed benefit cap. But this success masked a problem. Labour suffered from alack of a story about the kind of welfare system it stood for. Just as Lord Freud hadmoved his allegiance from Labour to the Conservatives, so too his version of welfarereform felt like it belonged to the Conservatives, even though Labour had been itsarchitect. During the debate, it was two of Margaret Thatcher’s former ministers,Norman Fowler and Tony Newton, who convinced with their clear sense of the kindof welfare system they wanted. Labour peers sprung their litany of amendmentsbut they lacked a shared ideological project about the kind of welfare system theywanted. There was concern for fairness and compassion, a heartfelt fear of theimpact on children, and awareness of the spectre of homelessness. But what did6

IntroductionLabour want? It seemed to boil down to the Conservatives’ system but a bit nicerhere and there.This ebook is about the struggle now for decency and dignity and a modicum offairness for those who are sick and disabled. The larger questions about the futureof our welfare state remain. Labour will need to rethink its approach to welfare orrisk being sucked into the political slipstream of the Conservatives, and will finditself assenting to measures and then qualifying its assent. It has a political problembecause it is viewed by many as being soft on welfare, but it can never resolve thisproblem in the longer term by trying to out-nasty the Tories. Does it want to rebuildthe model of the liberal welfare state or try something different? The question needsserious consideration. Beveridge’s legacy does not look politically robust today. Itis not succeeding in protecting the most vulnerable. It risks being underminedby profit-seeking companies. Its safety net is mean and tattered. Who wants theimpoverishment of the Job Seekers Allowance or the humiliation and fear of the WorkCapability Assessment? Unlike the NHS, the welfare system lacks public support:in hard times and over longer periods of time, large fractions of the 80 per cent losetheir sense of obligation toward paying for the needs of the twenty per cent.In the coming period of austerity, welfare will be a critical political issue. Thechallenges of labour market volatility, of the soaring cost of pensions and an agingpopulation, of a tax system in need of redesign, and of restructuring capitalism forwealth creation and jobs, might be better met with a reciprocal, contribution-basedsystem of social insurance which ensures protection and is more politically robust.But it must be one that hard-wires compassion into its structure for those who,through no fault of their own, are unable to contribute. It would involve a massivechange, perhaps one that is politically impossible given the welfare traditions inthis country. But the present system is failing and the political prize for changing itwould be enduring and historical. The call belongs to Labour.Jonathan Rutherford, 27 January 2012.7

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