Privatising welfare is more about supporting the profits of the companies concerned than it is about helping recipients.
New Labour is no longer just disapproved of or simply unpopular, it is hated and despised on account of its corruption, lying and total betrayal of ordinary working people. Many would like to hang the lot of them from the lampposts on Whitehall.
That means that honest men and women can no long be the left wing of this monstrosity. If you want a hearing and you want to organise for ordinary working people, you need to break with the whole rotten New Labour edifice.