Ed Miliband thinks a contributory principle in welfare is the way to show voters that his party supports a ‘something-for-something’ approach. Yesterday he proposed to restore that principle, with higher entitlements for those with good records. This was at the heart of the Beveridge settlement, but has been diluted by successive governments, the current one included.
Labour has to show that it can pay for this sort of system, though, and Miliband’s answer is to raise the hurdle for contributory welfare, so that claimants must have worked longer than the current two-year period to qualify for the contributory benefit. The implication is that more people will go straight through the means test. Fewer people will be eligible, so the system can afford to be more generous.
This sounds like a clever idea, but there is a catch.
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