THE WELFARE STATE Is it time up?

This presentation looks at The original ideals of the welfare state Challenges the welfare state faces Recent reforms to the welfare state in the UK and Scotland

ORIGINAL IDEALS The original ideals of the welfare state, as outlined in the post war Beveridge report were to provide a comprehensive system of social insurance 'from cradle to grave'. It proposed that all working people should pay a weekly contribution to the state. In return, the state would pay benefits would be paid to the unemployed, the sick, the retired and the widowed. Beveridge wanted to ensure that there was an acceptable minimum standard of living in Britain below which nobody fell.

FIVE GIANT SOCIAL EVILS Poverty (Want) Bad Health (Disease) Lack of education (Ignorance) Bad housing (Squalor) Unemployment (Idleness)

THE THATCHER CHALLENGE Margaret Thatcher identified the trade unions and organised labour as the barrier to her social revolution. A fight was picked with the most powerful union, the National Union Of Mineworkers. The miners defeat in the strike allowed the Conservatives to change the welfare state. Where Beveridge sought collective solutions, the Conservatives sought individual solutions. Privatisation, Consumerism and Thatcherism in the 1980s

NEW LABOUR AND THE 3 RD WAY When Labour famously became “New Labour” in 1994, it abandoned traditional socialism. The “Third Way”, whilst retaining “old Labour values”, embraced these in “a modern setting” to take in ideas which were previously seen as “Tory”. Labour could now reach out to voters who supported working with the private sector rather than against it. These voters were pro-business and disliked tax and spend economics. This meant that Labour could keep its traditional voters (in England and Wales at least) and now pull in Conservative voters into the “big tent”. New Labour believed in “welfare to work”.

SNP’S COLLECTIVIST POLICIES The SNP Government has been remarkably collectivist. Prescription charges have abolished. Road bridge tolls have been abolished. The Graduation tax has been abolished. The SNP has vowed never to introduce tuition fees for higher education.

DO WE HAVE A NANNY STATE? Smoking is now, of course, banned in all enclosed public spaces. There is also the possibility that soon it may be illegal to display cigarettes for sale in shops. Medical groups have called for smoking to be banned in all vehicles, parks and play areas. New York City has banned smoking in all its public parks. The Scottish Government has introduced minimum pricing for alcohol which has ended supermarket alcohol deals (except for online deals!). Scottish Government and Minimum Pricing

NEW SOCIAL EVILS? While we still struggle to eradicate the original giant evils, what about the new giant evils of today? How do we tackle racism, obesity, drug abuse, anti-social behaviour and knife crime? Beveridge had nothing to say about these issues. They just weren’t on the agenda in 1945.They are now. Politicians, across the political parties, accept that something needs to be done.

CONTINUED INEQUALITIES We also have chronic, and growing, wealth and health inequalities. The percentage of the country’s wealth held by the top 10% has increased. 41% of Glasgow’s households live in poverty. The highest life expectancy in Scotland is to be found in North East Fife (77.6 years on average), whereas in Shettleston in Glasgow, the average life expectancy for men is just under 64.

DAVID CAMERON’S “BIG SOCIETY” “Circumstances; where you’re born, your neighbourhood, your school and the choices your parents make have a huge impact. But, social problems are often the consequence of the choices that people make” David Cameron, Glasgow, July 2008 David Cameron on poverty Following on from his theme of “Broken Britain”, Prime Minister David Cameron has developed the idea of the “Big Society”. In some ways it is the Conservatives’ own third way; between the individualism of Margaret Thatcher and government help for those in need. Cameron seeks to “heal” the so-called broken society by encouraging greater individual responsibility (a traditional Conservative approach) and use of the voluntary sector to help those prepared to face up to their problems.

BIG SOCIETY IDEA “It’s time for something different, something bold – something that doesn’t just pour money down the throat of wasteful, top-down government schemes. The Big Society is that something different and bold. It’s about saying if we want real change for the long-term, we need people to come together and work together – because we’re all in this together.” David Cameron, July 2010 The Big Society

BIG SOCIETY SOLUTIONS The Government has set up “vanguard communities”. In these communities, individuals and voluntary groups are funded to take over duties previously provided by the state. These groups can run housing projects, schools, youth groups and cultural organisations. A "big society bank” has been established to finance charities and voluntary groups. Critics of the Big Society argue that The Big Society is a return to the days when charities performed the duties of Government. But voluntary organisations may not have the funds to do this job as they are struggling from lack of funding as donors tighten their belts. Others claim that only those with skills, time and contacts will be able to access the Big Society. The poor and the powerless will be left further behind, effectively ending the welfare state..

WELFARE REFORM The Welfare Reform Bill was given its Royal Assent in March It’s main features include: A single universal credit to come into force in 2013 Tax changes to enable people to keep more income Changes to the disability living allowance Private companies given contracts to get the unemployed back to work Those refusing to work facing a maximum three- year loss of benefits Annual benefit cap of about £26,000 per family Review of sickness absence levels Welfare Reform

TAX DODGERS 2012 was the year that the public grew angry at tax avoidance by the rich. As families across the land made sacrifices and cutbacks, the tax dodges and loopholes of the rich came under fresh scrutiny. Jimmy Carr was criticised by the Prime Minister personally. Benefit fraud costs the country £1.2 billion per year. But tax avoidance has been estimated to cost a staggering £69.9 billion. Tax avoidance

DEFICIT REDUCTION In June 2010, Chancellor George Osborne delivered his “emergency budget” to reduce the size of the country’s budget deficit. The UK, like most countries, has had a budget deficit for some time, but this boomed after the Labour Government spent money on saving the big banks during the “credit crunch” of The main aspects of the Coalition Government’s economic plan until 2015 are: VAT increase (back to 17.5%) Public sector pay freeze Child benefit cuts Housing benefit cuts Disability Living Allowance cuts Tax cut for lowest paid Capital Gains Tax increased Public sector workers have been protesting at cuts to services, proposed increases in pension contributions, the end of the final salary pension scheme and the raising of the retirement age.

2011 RIOTS The violence in English cities in August of 2011 appalled many people. The long term and short term causes of the riots are still being debated and investigated. Most rioters had a previous criminal record. Most were young, male, poor and had a record of educational needs. The Prime Minister stated that the riots were evidence not just of a “broken society” but a “sick society”. He believes that the many people who have supported victims of the riots are evidence of the big society too. Malaysian student robbed David Cameron “sickening scenes”

WHAT IS TO BE DONE ABOUT WELFARE? How do we get the long term unemployed, many of whom have serious mental health issues, back to work? Unemployment is rising and more job losses are on the way. Can the long-term unemployed really compete in the job market against skilled workers? What should be done to tackle the five evils, plus the many new ones? What about public finances? Can we afford pensions for public sectors? Should people pay more into their pensions schemes and retire later? Should income taxes rise? If so, for who? Are there indirect taxes which should rise or new taxes which should be created? Should taxes be cut? Is it time up for the welfare state? Do we have a “sick society”?