‘It is time for radical rethink of the welfare state’: Senior Labour MP calls for dramatic shake-up of benefits system

  • Work and pensions spokesman Liam Byrne hints at jobless having to work after fixed period
  • He says system not meant for mass unemployment

Last updated at 12:43 AM on 4th January 2012


Liam Byrne has said the Labour Party must rethink its position on the welfare state

Liam Byrne has said the Labour Party must rethink its position on the welfare state

The welfare state has drifted too far from its founding principles and must be overhauled, a senior Labour MP has said.

Work and pensions spokesman Liam Byrne said the benefits system has ‘skewed social behaviour’ and provides too much ‘unearned’ support.

Byrne argues that William Beveridge’s 70-year-old system was not designed to accommodate extended mass unemployment.

He writes: ‘Beveridge would have wanted reform that was tough-minded and asked everyone to work hard to find a job.

‘He would have worried about the ways his system had skewed social behaviour because he intended benefits to help people who had their earning power interrupted because of illness, industrial injury or the capriciousness of the trade cycle. He never foresaw unearned support as desirable.’

Mr Byrne hints at being keen on a requirement for the unemployed to work after a fixed period.

He points out that Beveridge himself wrote: ‘Unemployment benefit after a certain period should be conditional upon attendance at a work or training centre.’

His view is a significant redrawing of Labour’s current position on the provision of welfare.

Party leader Ed Miliband has been reluctant to engage in anti-welfare rhetoric, despite it being seen by many as a key policy area that could help win back votes.

But over the next few months Mr Byrne will seek to reposition Labour.

He claims that to win back support the party must recast the welfare state to meet the original intentions of its founder.

He admits the choices are ‘difficult’ but that they are necessary for Labour to be taken seriously on the issue.

Mr Byrne says the problems are caused by long-term mass unemployment

Mr Byrne says the problems are caused by long-term mass unemployment

In an article for the Guardian, marking the 70th anniversary of the Beveridge report, Mr Byrne suggests the ever-increasing housing benefit budget and benefits for long-term unemployment are major flaws in the system.

He also highlights the lack of proper incentives to reward responsible long-term savers as helping fuel the benefit culture.

He writes: ‘Beveridge would scarcely believe that housing benefit alone is costing the country over £20billion a year. That is simply too high.’

‘One more heave behind our old agenda won’t do.’

He would like to see the contributory principle once again restored so there is a more defined link between what people put in and what they in turn receive from the system.

Mr Byrne believes the centre ground of politics has shifted to the Left on issues such as bankers and equality, but that many voters – even traditional Labour supporters – believe there needs to be a tough line on welfare.

Labour believes that as the Tory cuts bite through 2012 people will look at how the pain is distributed through society and Labour must not be seen to be protecting what Mr Byrne describes as the appalling benefits bill.

And he suggests the time is right as the Government is ‘simultaneously presiding over an exploding welfare bill while cutting back on contributory benefits and services like childcare – vital if we are to ensure that the rhetoric on making work pay becomes a reality for all’.

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Liebour can be AC or DC it all depends on what the electorate wants. New Liebour are a bunch of lying hypocrites, who see their chances of winning the next eletion as zero.

So, the Labour Party is finally waking up? The Labour Party’s core voters abandoned it when it became the party of metropolitan liberal effluence (oops I mean affluence……same thing!). It’s the party of publically-employed, politically-correct, unmarried, white, urban middle-class graduates who’ve never had to face the consequences of 30 years of its utterly self-serving social and economic policies. Labour will not gain power for at least 10 years and they know it. Meanwhile the vile Tories will continue to widen the enormous gulf between the wealthy 10% who own and control everything and the rest of us. Like millions of others I utterly despair of ever seeing pragmatism, fairness and common sense in British political life again
– Chris, Oxford, 03/01/2012 18:08
Well why doesn’t your lot stop economically screwing up the country so the Tories don’t have to keep coming in and putting it right? Liebours are the true nasty party.

blaming the unemployed for being unemployed is insulting, the unemplyed and
others with no hope have had to adjust to the benefit system and then they get blamed for this adjustment. i would say to all unemployed dont work for dole it
will become a cash cow for those who can work the system after all why employ
someone for a barely living wage when when they can get someone to work for nothing. this is happening now, companies take the young people from the
dole and are subsidised by the tax payer to to employ them then after about 3 months they lay them off and employ another set of unemployed. they are all on the con, i could talk at length about this but it might be wasted.

Duh ! This is not an exactly a revelation for the public. Why has it taken this long for these gormless politicians to realize this?

8 million inactivive people of working age, am I expected to believe that 8 million people have made a life style choice to be on benefits, it is ludicrous.
Benefit knocking is a pass time for the healthy employed it seems , please keep a copy of your comments to refer to when you become unemployed or ill as 60% of you surely will before you retire .
This country has been a Welfare state since the War do not knock the system if you do not understand it fully, it is there for You and Yours in times of need (which often cannot be time limited) when it is gone it will never return , please explain what will happen then ?
Neither the unemployed or the sick and disabled set the rules for benefits , politicians did, they must have been acceptable sometime ,why not now?

The Labour party have just sewn their doom.

Tory’s create poverty, riots, cut services take OAP;s homes away to pay for care and creat wars but cutting the armed services – What a shower !

Beverage would also be very shocked at the greed and fiddling that goes on in the house of liars and lords ..and the money you mps scrounge for second homes and your first class rail travel….im sure he would expect you band of thieves to sort yourselves out first before you continue in your witch hunt on the poor old sick and disabled …you bunch of thieving hypocrites the lot of you have run this country into the ground in your quest for power and riches…it will be the poorest in this country that will oust you from your power.

“I chose the way I lived my life and have enjoyed all of it. its a shame you seem to be unable to enjoy the life you have chosen.” – Doom and Gloom, Heathfield East Sussex, 3/1/2012 22:56 —- That’s just it. I haven’t chosen any of it. I was born into a firmly middle class family. I won a scholarship to private school at 6. I passed 13 O levels and 3 A levels grade A. In between taking A levels and starting university I caught a glandular fever type illness which left me to this day with post viral fatigue syndrome although now I have it fairly well managed it has impacted on all aspects of my life from me not finishing education to having to take endless successions of rubbish jobs as good jobs are not part time. I worked throughout my illness until 2007 when the work just disappeared. I am 41, have a partner and a 13 year old daughter and I am still financially reliant on my parents. I should be financially secure by now but instead live in poverty which is not by choice at all.

well that took long enough ,the ordinary people of this country have been saying this for years ,its only the politicians who are worried about being re elected that didn’t want to listen.

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