How are you going to end the "sense of entitlement" of some welfare claimants, a woman in the audience asks.

 Yvette Cooper says "clear rules" are needed and that she believes in people's responsibility to work to support themselves. She goes on to say that she was off work sick for a year 20 years ago (she suffered from ME), relying on welfare, and "as a result, I would never say that people who can't work are workshy". The language used has to be "responsible", she adds.

It will be interesting to see what the reaction from Labour MPs to the Newsnight debate is on Twitter. Will any change their minds or stick to cheering along campaign lines such as these:

An audience member says Labour are seen as "nice but incompetent", while the Conservatives might be nasty but they "get things done".

Jeremy Corbyn says achieving a budget surplus is not the most important thing to aim for. 

 "I don't agree with Jeremy on this," says Liz Kendall. People didn't trust us with their finances, she says. "We have to back businesses."  

Asked if he really believed he could win the election Jeremy Corbyn says he did not "borrow" any votes to get on the ballot paper (some MPs lent him their votes to get him over the required threshold). He says he is putting forward a valid point of view, adding:

The next questioner asks what qualities the panel share with Scottish First Minister Nicola Sturgeon, which would make them a successful party leader. Yvette Cooper says she respects Ms Sturgeon, saying it would be "fantastic to smash the final glass ceiling" and appoint a female leader. But she declines to endorse Ms Kendall if she isn't successful just so Labour has a woman in charge.

The panel is now debating immigration. Liz Kendall says she will never try to "out UKIP UKIP". Andy Burnham says the "undercutting" of British wages by foreign workers has to stop. A man in the audience then tells the panel:

He says he's seen nothing to convince him so far, and says an "infrastructure" is needed to "absorb" the large numbers of immigrants coming to the UK. Jeremy Corbyn asks him what sort of NHS there would be with no migration. Migrants add to the economy and claim less in benefits, he adds.

A fireman in the audience says he voted UKIP at the election as a protest vote over public sector cuts. Liz Kendall says the UK must live within its means, and says this is a Labour, not a Tory value.

One audience member in Nuneaton says the lines between Labour and the Conservatives have blurred and calls for a distinct voice from the party. In his answer Jeremy Corbyn says Labour is still "paying the price" for the "illegal" Iraq war. Labour has an "opportunity to rediscover its principled roots", he says.

Let's build on Labour's past successes, says Andy Burnham. Liz Kendall says she has no "baggage" unlike Mr Burnham and Ms Cooper. Ms Cooper, however, says she makes no apology for having run a multi-million pound government department.