Professor John Bryson says that the Government needs to update its definition of working people if it wants its economic policy to be beneficial for all.
“In the run-up to their first budget, the Labour Government is in a considerable mess regarding the definition of ‘working’ people, after pledging not to raise taxes for ‘working people’.
Sir Keir Starmer noted in June 2024 that working people are ‘People who earn their living, rely on our [public] services and don't really have the ability to write a cheque when they get into trouble.’ Rachel Reeves has tried to define this group and to her ‘Working people are people who go out to work and work for their incomes.’ There are many problems with trying to define working people by confusing work, savings, and the use of public services.
Wealth creation and the world of work have changed, and so politicians need to alter how they define economic processes. This point was made in research I worked on back in 2002. We noted that ‘elephants are difficult to define’, and the same is true of work in this century. Work has changed and can no longer be defined using simplistic definitions based on where people work. Our paper outlined that too many academics and politicians experienced a form of work bias as they deployed images of work as it was in the 19th century. The current Labour Government has a very similar problem.
Work is best defined as processes that create value. This includes people who do not go out to work, but who stay at home and engage in activities that create value. This includes people who manipulate financial flows as well as people who manage physical assets, like rented housing. It is time for the Labour Government to come clean regarding their definition of work. To them there seem to be different types of work and some types are seen to be more desirable than others. They exclude the important work provided by home-based carers. These often unpaid carers play a critical role in the UK, but to the Government, this is not work.
No matter which workers are redefined as non-workers by this Labour Government, it is important to remember that all who create wealth support the provision of public services. The Government should have a real understanding of the nature of work in the 21st century.”
Chair in Enterprise and Economic Geography
Professor John Bryson is Chair in Enterprise and Economic Geography at the University of Birmingham, UK.
