This unease takes Balls to what he regards as one of the most important Labour goals – not implemented entirely with success – which is being abandoned by the Conservative-Liberal Democrat coalition. That is the ambition of achieving "progressive universalism" in which the welfare state helps society from the sick, to the less well-off, to the struggling middle classes.
Balls, who played a key role in devising tax credits which top up the pay of the less well-off rather than handing out benefit cheques, admits that Labour was too focused in the early period on those further down the scale.
"In the early period we focused rightly on long-term unemployed and youth unemployment, but people did not believe we had not done enough on incapacity benefit.
"Part of our problem was that we had a national minimum wage, and tax credits for the whole country that meant people in the south that were seemingly on higher incomes were actually – due to higher living costs – feeling they were struggling, but tax credits were not getting to them."