Labour has its welfare policy backwards

The policy announcements of Labour’s new Shadow Work and Pensions Secretary, Rachel Reeves, have attracted quite a bit of comment today for a number of reasons.

There are those, such as Owen Jones, who believe that Labour is effectively endorsing the “scrounger rhetoric” of the Tories, playing into their hands by allowing the Tories to set working-class people against one another. And there are others who have argued that, once you look beyond the headlines and examine the party’s policies in detail, that they are actually progressive, fair and far more workable than the disastrous Tory schemes that have already pitched thousands into poverty, and threaten to do the same to many more.

Both points have merit. The divide-and-rule tactics of the Tories have been clear for some time; Labour does itself no favours by endorsing them. And below the headlines, there are some positive grains to be found within the policies announced (or, more properly, reiterated, since there is little new here) today.

While it is true that the abolition of the hateful bedroom tax and an end to exploitative workfare schemes are welcome developments, I cannot endorse Labour’s policy of a “jobs guarantee” after two years of unemployment, with punitive sanctions for those who do not comply.

The reason is straightforward. Throughout their time in office, the Tories have demonstrated a lack of joined-up thinking, seemingly failing to realise that their assault on working people’s living standards will inevitably impact the amount of money they spend on goods and services, harming the economy – which is one of the key reasons why the UK’s recovery has been so sluggish.

Labour’s welfare policy demonstrates the same lack of coherent thought. It is not enough to say that we will guarantee a job for everyone who has been out of work for two years. We should not need to say this.

What we should be doing, instead, is to focus all of our energies on creating full employment as our central economic aim. There would be no need to “create jobs” for the long-term unemployed, because these jobs would have already created themselves, in an environment where job creation is the top priority.

Reducing unemployment to almost nothing is a noble aim for many reasons; it would improve purchasing power and lower the welfare bill, to name just two. It is wrong for welfare policies to punish those who are unemployed simply because of a lack of jobs in the economy; full employment would remove this contradiction, and the “carrot and stick” approach to welfare endorsed by all major parties would carry some moral weight.

The jobs guarantee smacks of the sort of wishy-washy tinkering around the edges that promises “real change” without ever actually delivering it. Rather than endorsing the Tories’ economic approach – that unemployment is just something we have to live with, even “a price worth paying,” as it was once infamously said – we should be challenging it, with radical ideas of our own.

Then, and only then, can we start the discussion on how best to deal with the “workshy.”

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1 Comment

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One response to “Labour has its welfare policy backwards

  1. Steve Hoyland

    The Labour Party needs to stop the “wishy-washy tinkering” inherent in social democracy and come up with a policy for dealing with the real “work shy” i.e. those in the City who simply make money by moving our money around, those in the aristocracy and landed gentry who wouldn’t know what work was if it hit them in the face ( now there’s an idea!!) and the rest of the ruling class who think that work consists of telling the rest of us what to do.

    And at the same time they need to apply themselves to considering how we achieve a socialist society rather than how we manage capitalism more efficiently so that it can continue to exploit us all into another century.

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