Back to work?

With the latest figures showing a rise in unemployment – but a fall in the number claiming unemployment benefit – it seems like there is an opportunity to momentarily shift discussion away from the Clegg bounce and leadership debates and towards welfare policy. So far the parties have largely focused on making sure voters know that they will be tough on welfare, but with unemployment at 2.5 million, this is insufficient.

Lots of similarities between Labour and Conservative welfare policies are evident from the manifestos, but also some important differences, in approach as well as policy.

There are similarities in the sound-bites: Labour aims for a ‘swift return to employment’ and the Conservatives want to ‘get Britain working again’. And in the headlines: both main parties are keen to offer more targeted and personalised support, focus attention on job creation and prevent a scarred generation of young people. There are similarities in flagship programmes, namely Labour’s Flexible New Deal and the Conservatives’ single Work Programme. And both parties talk of toughening up the system with proposals on sanctions and benefit cheats.

But there are also significant differences. Labour’s manifesto commitments include an extension to the Young Person’s Guarantee, a better off in work guarantee, a living wage in Whitehall, and rises in the National Minimum Wage. And the narrative of a ‘big society’ that underpins Tory proposals to tackle welfare dependency highlights different roles for the state, welfare to work organisations and individuals.

What of the Liberal Democrats? Well, their manifesto commitments on welfare are noticeably thin. There is a focus on supply-side measures such as job creation and especially green jobs, but proposals to tackle unemployment are mostly absent.

It is clear that many challenges remain around welfare reform. Amongst the most significant is personalising welfare. Emerging findings from ippr’s innovative Now it’s Personal research are highlighting the need for interventions that don’t just isolate employment support and that recognise a wider set of needs such as childcare and transport. Also needed are advisers who have good knowledge of the local environment and in particular good relationships with local employers and training providers. In addition a focus on supporting sustainable job outcomes with more support for people once they are in work to manage the transition as well as a volatile and flexible labour market.

A tougher welfare policy may seem like the right tactic to appeal to voters, but with 2.5 million people currently unemployed and with public sector cuts still to come, this will not be enough. More radical change is needed for the welfare system to be genuinely responsive, personalised and effective.

Dalia Ben-Galim