The Human Condition

The UK's welfare system is not "broken", as some Labour MPs have claimed. If it were, then you would expect it to be failing across the board in its core purpose, which is to stop people dying from hunger and neglect. At the margin there is certainly unneccesary suffering, often the result of prior attempts at the "reform" of conditionality and procedure, but that is a different matter, specifically a matter of efficiency. In terms of effectiveness, the system is robust and does what it is meant to do. The pragmatic discussion on welfare centres on the level of benefits, and sure enough the government's mooted plans for welfare reform have, beyond the rhetoric about "moral duty", boiled down to the question of real-term cuts. But the wider framing is of existential crisis, and that cannot be explained away as either the result of systemic failure or the product of waste, which is both a chronic issue (there will always be some fraud and error at the margin) and relatively small. There is plenty to criticise in the design and operation of the welfare system, but nobody can seriously claim that it fails to do the job given it by Parliament. So why do politicians, and Labour's backbench Get Britain Working Group in particular, think that the system is broken? The argument, outlined in a letter to Liz Kendall, the Secretary of State for Work and Pensions, stands on three claims. 

The first is the idea that "Britain faces a crisis of economic inactivity". Despite the passing reference to NEETs, the letter focuses on the fact that employment levels among disabled people are 30% lower than among the non-disabled. You might pause at this point and wonder if that is actually a problem. Surely levels are always going to be lower: many disabled people simply cannot work. Even if you accept that the gap might be reduced by 10%, you will then wonder just how many extra workers this would produce. A little under a quarter of the working-age population have a disability of some sort, and most of them already work. A 10% change in employment levels would thus equate to roughly a 2.5% increase in the working population. That's not to be sniffed at, though as we're talking about marginal labour it is likely that the consequent output gain would not be proportionate. In other words, a 10% improvement in employment levels among the disabled might increase GDP by only 1% or less. But given that growth is the chief goal of this government, that would still be a welcome contribution.

The second claim of the GBWG is that "The economic cost of this is staggering". Leaving aside the hyperbole, this is also questionable. Not only would any increase in GDP be marginal, but there are good reasons to suspect that the types of jobs that would be created will be at the bottom end of the pay-scale and that a rapid increase in available labour would, as a simple matter of supply and demand, have a dampening effect on pay growth. In other words, getting more disabled people into work is not, whatever its other benefits, going to raise aggregate skill levels or productivity and thus long-term pay rates. The final claim is that "the current system often acts as a barrier against finding work." Expanding on this, the GBWG insist that "Rather than empowering individuals, it traps them in precarity". This is an odd claim because insofar as the welfare system makes claimants lives precarious it is through conditionality and sanctions, including the threat of benefits clawback should they secure temporary work. In other words, the system is not preventing them finding casual employment, but it can penalise them when they do. The broader problem that paid work may lead to a negligible increase in income is an issue of low pay, not high benefits.

The letter talks of the security and dignity of employment but ignores that these ideals have been steadily eroded under neoliberalism to the point where they have been replaced by their opposites, rebadged as the ideal of "flexibility" and the "hack" of eating a cheese sandwich at your desk as you work through your lunch-hour. Precarity has become pervasive among lower income workers because of zero-hour contracts and the need to take multiple jobs to make ends meet, not because more disabled people are on benefits. It also ignores that chivvying the disabled into low-paid work is unlikely to increase their sense of security and doesn't look very dignified from any angle. If the letter was a transparent attempt to encourage backbench support for the government's plans to tighten the rules on eligibility for disabled benefits, in particular for the young with mental health issues (the solipsistic "snowflake" has leapfrogged the shameless skiver on the media's list of public enemies), the rumoured real terms cut in PIP looks like a dead cat that will now be consigned to the bin as a quid pro quo for allowing that tightening to proceed. 

Starmer's "private address" to MPs, which has been helpfully released to the press, echoed the letter in imagining a frustrated population of disabled people held back from fulfilling employment by a perverse welfare system: "Addressing a meeting of the parliamentary Labour party in Westminster, Starmer said the current system was “discouraging people from working ... And if you want to work, the government should support you, not stop you”." Continuing in this vein, "Starmer said the government would promise to “make work pay” for those who could work", which studiously ignores that we have had working tax credits for a quarter of a century because for too many people work simply does not pay. If his address had included a commitment to significantly raise the national minimum wage (arguably a smarter "tax" on employers than increasing NICs) then it would have been more coherent.

The idea that the state somehow discourages work is obviously absurd, but it's of a part with Starmer's more general claim that government is the problem. This doesn't mean he has taken a libertarian turn (the chat about "Project Chainsaw" is little more than a cruel joke by Morgan McSweeney), rather he is insisting that government must be more determined and effective at driving neoliberal restructuring, hence the related decision to further centralise power by abolishing NHS England. Undoing the Lansley reforms makes sense, but we shouldn't imagine that this dirigiste turn heralds the dismantling of the internal market, less reliance on outsourcing to the private healthcare sector, or a major programme of investment to address the physical decay of the last 15 years. Starmer's attempt to present himself as the Great Emancipator of the Civil Service, unshackling the talent, is simultaneously undermined by his naive belief that AI can do much of the work. What this confusion highlights is that he remains a process guy, not a people guy, something that should give the swooning fans of his shuttle diplomacy pause for thought.

There is a general confusion in the Labour Party these days over its purpose and this is reflected in the understanding of work. Some see Labour as the party of work, in the sense of a managerial class seeking to optimise labour as a factor of production (the Fabian legacy congruent with neoliberalism). Others see Labour (still) as the party of workers (or at least "working people") and thus a class formation. This isn't a simple right-versus-left dichotomy as many on the party right, particularly those formed in the trade union movement, still see Labour as the workers' party. Likewise, some on the left, influenced by the tradition of social liberalism, have seen work in terms of self-actualisation rather than collective progress. It's perhaps worth pausing at this point and considering a distinction made by Hannah Arendt in The Human Condition between "animal laborans" (engaged in the brute struggle to secure shelter and food) and "homo faber" (making the world in the form of useful goods). She also included a third category, political activity or "action". In its classical origins, this was limited to the elite, but by 1958, when the book was published in an era of material plenty and high employment, there was a recognition that civic society was expanding through greater democratisation to include groups hitherto marginalised, such as the working class, women and ethnic minorities.

Arendt's progressive hierarchy was typical of postwar thinking, though it should be noted she was warning of its problems: the trivialisation of life as necessity recedes and the subsititution of action by consumption. In the optimistic telling, technology and superior management would gradually do away with the necessity of animal laborans (like AI will do away with civil servants) but it would also allow homo faber to progress to a more active civic life. What has happened since is a collapse of the boundaries between the three conditions. The hard division between venal business and the elite practice of politics, first established in the Greek city states of the Classical era, has evaporated as politics has adopted the theory and manner of business. But just as significantly the neoliberal era has seen the boundary between necessity and productivity erode. In the early industrial era, as analysed by Marx and others, necessity was reduced to the mimimum needed to keep workers alive while maximising production. The reaction to that inhumanity (the Polanyian counter-movement) led to the creation of a clear boundary between necessity and productivity: the Factory Acts, the 8-hour day, public services beyond the mere reproduction of labour. Necessity became a social concern.

What we have seen since the 1970s is an attempt to make necessity once more the responsibility of the individual, most obviously (in the UK at least) in the context of shelter. The rhetorical division of society into strivers and shirkers is not about the creation of a new class consciousness among the former but instead the atomisation of society into individuals whose own efforts constantly determine their categorisation. Labour's plans for the disabled are consistent with this, an initiative that will ignore individual circumstance (critics loudly citing specific cases of potential injustice are wasting their breath) while simultaneously denying the individual identification with anything other than the nebulous "working people" beloved of Starmer's speechwriters. Though the positive language of "security, dignity and agency" remains, it is clear that work is seen less as a route to self-actualisation than as an obligatory contribution to the economy. We have a moral duty not to treat people instrumentally, but that clearly isn't a guiding principle at the DWP, while the very name of the Get Britain Working Group of MPs subsumes the interests of both the individual and the working class in the greater glory of national GDP.

In Arendt's day it was still possible to imagine the civic sphere in the idealistic terms that would have been familiar to Pericles, despite the jarring reality (McCarthyism, venality, jobbery). No longer. Politics today is performed by managerialist drones like Wes Streeting and Liz Kendall, who celebrate their lack of idealism as maturity, while the real power in the land, the nexus of private wealth and corporate influence, avoids the public square. The postwar dream of welfare as the auxiliary support for homo faber, banishing necessity and encouraging civic participation, has given way to a revival of the Victorian principle of "less eligibility", but this time without the commitment to at least provide animal laborans with the shelter of the poor house.