It is 80 years since Beveridge took on what he called the ‘five giants’ of want, disease, ignorance, squalor and idleness. His report has shaped British politics and society ever since its publication. As part of a project to assess where we stand today, Ashwin Kumar and I were commissioned to explore ‘idleness’.1 Is it a problem today? And if so, what should be done about it?
For Beveridge, who was writing after two decades of high unemployment, the problem was one of worklessness and a lack of jobs for male breadwinners. Today our labour market is very different: rates of employment are historically high, many more women are in paid work, but alongside this we have record levels of in-work poverty and endemic labour market inequalities along the lines of gender, ethnicity and disability. The UK is stuck in a low-pay, low-productivity rut, but the political rhetoric on both sides has not caught up.
A key factor underlying our underperforming labour market is power. It's something that unemployed people and low-paid workers are sorely lacking. The balance of power between workers and employers has also shifted decisively towards the latter. People are forced into taking jobs that don't match their skills and needs, trapped by both a lack of progression opportunities within their current workplace, but also a lack of alternative jobs that offer a better future. Employers have no incentive to improve job quality if they know their workers have few alternatives.
The state should play a key role in redressing this power imbalance. Being pro-economy isn't necessarily being pro-business, and government should be backing and investing in the unemployed and low paid, rather than treating them as a problem to be managed. But in our book we show that time and again, in policy areas as diverse as unemployment, childcare, transport, skills and regulation, the state conspires to constrain the labour supply of low-paid workers and reduces their power to reject poor quality work.
Our employment service needs urgent reform. For a long time, it has been unashamedly characterized as a “great big nagging service”,2 enforced through punitive sanctions and designed to make unemployment more uncomfortable than it already is.
Reform of this problematic approach has been needed for a long time. But at this juncture, when the DWP is beginning to think about engaging with people in work (an unprecedented shift made possible through universal credit's merging of in- and out-of-work benefits), policymakers need to recognise that we’ve reached the end of the road.
More of the same: a ‘work first, then work more’ approach, which simply requires workers to take on more work, while at the same time doing nothing about the quality of jobs available, just places more pressure on precarious workers. Employers don't welcome this approach either, voicing concerns about the adverse impact this could have on staff wellbeing and performance. 6