In the wake of the 2024 election results, questions about Labour’s dedication to addressing poverty and inequality persist.
“But now our country has voted decisively. For change. For national renewal. And a return of politics to public service,” spoke the newly elected Keir Starmer in his first speech as Prime Minister. ‘Change’ was the bold, stand-alone theme of Labour’s campaign and manifesto, however, change alone isn’t a cure all.
As the dust settles from their election victory, questions over Labour’s stance on poverty and inequality remain. Campaign groups across the UK are already mobilising, closely watching these promised changes and preparing to fight for their share of the social safety net.
But the net, meant to bounce people back onto their feet, is not only sagging but has person-sized holes and one or two corners are on the floor already. The time for ‘a stitch in nine’ is long-passed.
Voters’ desires for significant change are set against a backdrop of record-breaking rent prices, NHS wait times, child homelessness rates, demand for emergency food parcels, and economic inactivity rates. Now, more than one in five people in the UK live in poverty. While poverty is arguably the most powerful force suppressing employment, health and educational outcomes, it’s hard to see where Labour is going to begin.
Starmer promised to be as ‘bold as Attlee’, with no return to austerity yet his manifesto lacked strong poverty mitigation measures. Campaign groups are cautiously optimistic that the new government will prioritise policies to tackle poverty more robustly than initially outlined.
SOS for Social Care
In an open letter organised by the Care and Support Alliance, 54 organisations and 24,000 individuals urged the upcoming government to prioritise social care reform and funding as 2.6 million people lack the care they need.
However, the 2024 Labour Manifesto, which in 2019 dedicated substantial attention to rebuilding public services and tackling social inequalities back, appears to have shifted focus.
Thea Stein, Chief Executive at Nuffield Trust, expressed disappointment over the omission of unpaid carers and commented on the lack of social care reform, stating, “The ambition of a national care service has little detail, isn’t well defined and there is no mention of a credible long-term funding model for social care.”
The manifesto did touch on key social care issues such as wages and costs, pledging to introduce fair pay agreements for adult social care workers and implement a lifetime cap on personal care. However, these pledges were also made by the Conservative government back in 2021 and criticised in a joint briefing by Nuffield Trust, the King’s Fund, and the Health Foundation. They argued, “These reforms and promised funding fall short of providing adequate care for all who need it, ensuring fair compensation for staff, and making necessary improvements to our social care system—significant challenges remain.”
Following the King’s Speech, the BBC reported, “No legislation was referenced on social care, amid reports the government is planning a cross-party review on reform options.”
The Cap Trap
One of the main issues groups are seeking policy reform is with regards to the two-child benefit cap, which if scrapped, would lift 250,000 out of poverty. Torsten Bell, the newly elected Labour MP for Swansea and former Chief Executive of the Resolution Foundation, argues for swift and modest policy shifts, including abolishing the two-child benefit cap, alongside longer-term strategies.
Dan White, campaign officer at Disability Rights, also called for improvements in the benefits system, saying, “Lack of immediate investment in disability and carer benefits and social care are major omissions.”
While Labour said they would “review Universal Credit so that it makes work pay and tackles poverty,” there have been no announcements of concrete policies on benefits as of yet.
New reports from within the Commons reveal increasing pressure from MPs towards the Prime Minister, with London MP Mr McDonell saying, “Most of us think this needs to be done sooner rather than later because of the immense suffering our children are going through.”
Building New Foundations
Many were encouraged by certain commitments laid out in the manifesto, such as Helen Barnard, Director of Policy at the Trussell Trust, the UK’s largest provider of emergency food bank relief.
Barnard highlighted the party’s promises to expand social housing and improve job security as effective approaches to reduce poverty. Mirroring Bell’s call for swift change, Barnard said, “What we need to see is fast action about how they’ll tackle hardship, and in their very first budget.”
Matt Downie, Chief Executive at Crisis, was also complimentary of Labour’s commitment to affordable and accessible housing, stating, “This level of aspiration to rebuild our depleted housing stock, with a priority on social housing, and bring down homelessness by drawing on the expertise of local communities is a game changer in our mission to tackle one of the greatest injustices of our time.”
Labour has pledged to build 1.6 million homes with a priority on social rented homes, a similar target to the previous Conservative government, who were unsuccessful in meeting their goals. Over twenty councils across the UK have warned Labour that their housing finances are at a “crisis point” as they can no longer borrow affordably.
Prescription for Change
One of Labour’s main priorities, outlined in their Manifesto, is building an NHS ‘fit for the future.’ Public satisfaction in the NHS is at an all time low with high waiting times being one of the biggest hurdles Labour will have to overcome.
Since the party has committed itself to maintaining rates of income tax, VAT, and national insurance, groups are eager to see a more detailed funding plan than seen in the manifesto, especially for ambitious missions such as reforming the NHS.
Sarah Wollnough, Chief Executive at the King’s Fund, noted that each government has attempted to make the NHS more efficient and sustainable, but ministers have not “put their money where their mouth is.” She continued, “If Labour really wants to come good on this promise and avoid repeating history, it must be more than warm words; they will need to take some tough decisions on where funding, staff, and political energy are directed.”
Good Work or Hard Labour?
None of this is to say Labour has no ambition to address poor living standards. Tackling economic insecurity through good work, better jobs, and employment support will be “the golden thread that runs through all of Labour’s missions” and their approach to tackling poverty and inequality, they say.
“Equal pay, new collective bargaining structures for care workers and school support staff, trade union access and simplifying union recognition will be life-changing for GMB members,” said Gary Smith, GMB General Secretary.
While “work first” policies implemented by previous Conservative governments did little to reduce record high economic inactivity rates, new approaches to get people back into work, could prove effective, as outlined in a new report published by the IPPR and Changing Realities.
The report, a research project looking into the lived experiences of people in poverty, revealed, “For too long, our welfare state has taken a punitive approach, ignoring individual motivations and challenges and wasting resources on approaches that simply don’t work.” (Something echoed in Quids in! editor Jeff Mitchell’s latest blog, If I were Sir Keir…).
Some of their key recommendations involve increasing the core entitlement on universal credit by £50 a month, removing the two-child benefit entitlements, and the benefit cap, which combined would lift one million people out of poverty. Implementing such measures will test the Labour government’s commitment to real change and its ability to translate promises into tangible results.
Turn and Face the Strange
The Labour Party’s campaign slogan, ‘change,’ was designed to resonate with a public yearning for a new direction after years of Conservative leadership. While the election victory marks a promising start, the real challenge lies ahead.
Advocacy groups, businesses, and individuals must continue to push for comprehensive policy reforms which address poverty, stitching the net back together. Only through sustained effort and public mobilisation can the Labour administration mend the holes and tauten the net, ensuring it can support and bounce people back onto their feet.
Image: Flickr
