1. Individualism vs Collectivism
19/03/19
Individualism vs Collectivism
to understand the differences between individualism and collectivism in relation to the welfare state
Learning
Success
Describe the individualist standpoint
Describe the collectivist standpoint
Explain the various approaches taken by UK governments
Today
Take detailed notes on individualism and collectivism
Decide whether you personally hold more individualist or collectivist ideals.

2. BACKGROUND: Individual Personal Responsibility
Margaret Thatcher’s Conservative Governments represented the opposite approach to that of Beveridge: individual personal responsibility.
The Thatcher years saw the ideals of Beveridge challenged and the welfare state cut back in size and scope.
The Conservatives believed the welfare state had created a “dependency culture”, where people became lazy and relied on the “nanny state” to look after them.
Instead of collective solutions, the Conservatives offered individual solutions

3. Timeline Task
Over the next series of slides you will see information about successive UK Governments and the approaches they have taken in regards to the Welfare State. Create a timeline from 1997 – 2019 and take notes on the changes to the Welfare State over this period.
1997
2019

4. New Labour and the Third Way 1997 - 2010
New Labour adopted a so called ‘Third Way’ approach to running the Welfare State when they took office in 1997.
It was not the old Labour socialist values or the Conservative party’s individualist approach but somewhere in between. 
New Labour, under Tony Blair and Gordon Brown, believed that their government was “modernising” the welfare state while retaining its founding principles.
Government benefits should be a “hand up, not a hand out”.
The Labour Party, from 1997 onwards, used phrases such as “welfare dependency” and sought to bring in “welfare to work” programmes to encourage people to gain employment while receiving some benefits.

5. New Labour’s approach to the Welfare State
Universal benefits were to be trimmed back and more use was to be made of “means tested” benefits. New Labour wanted to ensure that all who are able to work actually worked. They sought to reduce the numbers of people on long term benefits.
Labour offered training and improved incomes for those who tried to get back to work and benefit cuts for those who tried to abuse the welfare state.
In March 2007, Labour launched a new bid to get the long term unemployed back to work – “Can work, won’t work?”
The “dial a cheat” tv and radio campaign which asked the public to “grass” those they believed were unfairly claiming benefits was hugely successful. Nearly 200,000 people informed on friends, colleagues and family to the taxman.

6. Why National Insurance?
Disease (Health Care)
New Labour invested a record amount of money in the NHS. In 1998, the UK spent less than 7% of GDP on health care. By end of 2007, this exceeded 9%.
National Insurance contributions were raised, rather than Income Tax to pay for improvements in health care.
Why National Insurance?
New Labour used Public Private Partnerships (PPPs) or PFIs to renovate old hospitals or build completely new ones.
Tony Blair was keen to expand the range of PPPs because he believed it is the best way to secure the improvements in public services, He believes private companies were more efficient.
PFIs- contractors foot the bill and the government “rent” these buildings. For example, St Joseph's Academy is a PFI.

7. Want (Poverty)
The long-term aim of the national minimum wage (NMW) is to remove the problem of ‘poverty pay’ that exists when earnings from paid work do not adequately cover living expenses and fail to push people out of poverty. It was introduced because of increasing:
income inequality
child poverty
burden on the state to provide in-work benefits.
The NMW was introduced in April The 2013 Low Pay Commission Report claimed that the NMW applies to over 1.3 million workers. It has reduced the gender inequality gap as women account for 59% of low paid jobs, which means the NMW plays an important role and has a greater impact on raising women’s earnings in comparison to those of men.

8. Idleness (Unemployment)
New Labour had succeeded in lowering unemployment to its lowest level since World War 2 and lifted significant numbers out of poverty.
The main reason for this was the “welfare to work” strategy. New Labour believed the best way out of poverty is through work.
Former Chancellor Gordon Brown introduced The New Deals (for Lone Parents, 18-25s, over 25s) and The Working Tax Credit system to encourage as many people as possible into work, whilst ensuring that the state provided a safety net” of sorts for them so as to ensure that a basic standard of living was achieved.

9. David Cameron PM: ‘The Big Society’ (Conservative/Lib Dem Coalition 2010-2015
Conservative leader David Cameron pursued his own “third way” when he became Prime Minister in This approach was somewhere between the individualism of Margaret Thatcher and the original ideals of the Beveridge report.
His idea of the “broken society” refers to social evils such as long term unemployment, crime and poverty.

10. David Cameron PM: ‘The Big Society’ (Conservative/Lib Dem Coalition 2010-2015
Cameron sought to “heal” the so-called broken society by encouraging greater individual responsibility yet offering state help to those prepared to face up to their problems (a previous New Labour approach).
The Government encouraged the set-up “vanguard communities”. In local communities, individuals and voluntary groups will be funded to take over duties previously provided by the state. These groups can run housing projects, schools, youth groups and cultural organisations.

11. Critics of the Big Society
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 they really compete in the job market against skilled workers?
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.
Many argue that this is the nail in the coffin for the welfare state.
Critics say the Big Society is either nothing new – the Labour Governments worked with voluntary groups too – or that the Big Society is simply a smokescreen for big cuts in public services (The Conservative’s “Welfare Revolution”).

12. Coalition Govt 2010-2015: ‘Welfare Revolution’
Since the 2010 election, the Coalition Government has embarked on the most radical reform to social welfare since the emergence of the Welfare State in 1948.
The 2008 economic crisis has resulted in the Government aiming to find £81 billion in public spending savings before 2015.
The Government was concerned about the ever-growing costs of welfare in the new age of austerity – overall spending on benefits was now three times higher in real terms than it was in the late 1970s.
The Government was also aware that the working public suffering from wage constraints and rising fuel bills supported a tough policy on welfare.
The Conservative slogan that the system should reward strivers not skivers met with general approval.

13. Coalition Govt 2010-2015: ‘Welfare Revolution’
The new policies introduced by the Coalition Government of 2010–15 to get people back into work and to tackle a ‘dependency culture’ in the
Welfare State.
The Welfare Reform Bill was given its Royal Assent in March 2012.
Removing the spare room subsidy (‘bedroom tax’)
Lowering of the limit on local housing
Allowance to people renting private homes rather than living in social housing
Introduction of a £500 per week benefit cap
Job-seeker sanctions
The annual increase for most welfare benefits to be capped at 1 per cent.
David Cameron Speech
Young People Not Entitled to Benefits

14. Welfare Cap
The Government reduced the Benefit Cap for families to £23,000 in London (£15,410 single claimants) and £20,000 for families in other parts of the UK (£13,400 single claimants)
The reduction mainly effects households with large numbers of children in areas where rents are expensive, because figures this high can in practice only be reached through child benefit and housing benefit.
In March 2014 when the original welfare cap was introduced, the charity Save The Children warned that 345,000 children would be pushed into poverty by it.
In 2015 a leaked DWP memo warned that the further reduction in the cap confirmed in the Budget would push a further 40,000 children into poverty.
Labour claims it is against child poverty but that it must accept the policy for strategic reasons.
The measure saves very little money as it only affects a very small number of people, albeit harshly.

15. Cuts to Disability Benefit
People claiming the disability benefit Employment and Support Allowance (ESA) will be getting £29.05 less each week if they are considered fit for Work Related Activity (WRAG).
This means instead of £ per week, this group of people will now receive £73.10 per week - which is the same amount as jobseekers’ allowance.
Youth obligation for year olds to "earn or learn". From April 2017 those aged who are on Universal Credit will have to apply for an apprenticeship or traineeship, gain work based skills, or go on a work placement 6 months after the start of their claims (exceptions will apply for those considered vulnerable)
Child Tax Credit - which is worth up to £2,780 per child per year - will now only be paid for the first two children in any family.
Previously there has not been a limit on how many children a parent can claim for.

16. However…
The Government claims that it is unfair for state support to outstrip wages.
Whilst the UK Government have reformed the benefit system, they have also introduced a new National Living Wage to combat income poverty.
From April 2016 the New National Living Wage was be introduced- starting at £7.20 an hour for workers aged 25 and above. Rising to £9.00 an hour by 2020.
Chancellor George Osborne said that anyone who is working full-time on the National Living Wage will be better off, after the tax changes are taken into consideration.
The amount anyone can earn before having to pay income tax - the personal allowance - rose to £11,000 in April 2016, with the aim of reaching £12,500 by 2020.
The Treasury says higher income tax thresholds have saved basic rate taxpayers £825 a year each since 2010, with 3.8 million people taken out of the tax system altogether.
David Cameron v Paxman