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Predistribution 'creating fairer society'

2 October 2012 Last updated at 14:01 BST

Predistribution is one of the big ideas that have been outlined by Ed Miliband at the Labour conference in Manchester.

The man who came up with the idea, Professor Jacob Hacker from Yale University, told The World at One presenter, Martha Kearney, that governments should be thinking about increasing "equality of opportunity even before government taxes and benefits".

"The most serious threat to equality... is a runaway financial system that has created great rewards at the top and great risks for the rest of us" he explained.

"The current system does not allow people have equal influence."