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Thursday 4 December 2008

The cross-party consensus on welfare reform echoes the Gingrich–Clinton revolution

Fraser Nelson on the coming political week

This former banker has been transferred like a football star between warring teams. He was initially appointed by Tony Blair to produce a report which proposed mass privatisation of welfare provision. This did not endear him to Mr Brown, and he was given one dressing down by the then Chancellor that lasted 45 minutes. When Mr Blair resigned, Freud was cut adrift as Mr Brown’s intellectual purge — killing ideas that were not his own — began in earnest.

Like many homeless Blairites, Mr Freud was then given sanctuary by the Policy Exchange think tank, which debriefed him and repackaged his ideas for eager consumption by the Conservatives. And in January it was Chris Grayling, the shadow work and pensions secretary, who proposed to adopt his ‘work-for-dole’ system, and cut the benefits of those who refused to comply. To Mr Grayling’s surprise — and Mr Brown’s horror — this ‘tough love’ plan was given a warm reception.

What happened next gives a fascinating insight into Mr Brown’s psyche. Mr Purnell was given permission to lure Mr Freud back and to have him make his report on government policy. Things had changed, utterly. Once, civil servants joked that the way to get a plan past Mr Brown was to include a chart showing how it helped the poorest most. Now, it is enough to persuade him that a plan will hurt Mr Cameron. More or less anything will be approved if it meets this criterion — even plans that involve the mass privatisation of welfare provision.

So on Monday, Mr Freud will be witnessing the second incarnation of his plans thus far this year — but this time bearing a red rosette. He has been helping Mr Purnell draft the Green Paper, and every part of his wish list will be included. The Treasury has agreed to release cash from the welfare budget to private welfare-to-work providers (a key requirement) for three pilot cities. Anyone who has been unemployed for more than two years will be asked to perform community service, like cleaning parks or removing graffiti. Drug addicts will be refused welfare if they do not seek help.

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