1. The Welfare State Is it time up?
Learning Intentions: To examine whether the welfare state will continue via “the Big Society”.
Is it time up?

2. 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.
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, 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.
Beveridge identifies five giant social evils which the welfare state should tackle (see next slide)

3. Five Giant Social Evils
Poverty (Want)
Bad Health (Disease)
Lack of education (Ignorance)
Bad housing (Squalor)
Unemployment (Idleness)
Poverty (Want), Bad Health (Disease), Lack of education (Ignorance), Bad housing (Squalor), Unemployment (Idleness)
Health care
The NHS was created to offer all British citizens equal access to health care, when they needed it and without having to pay. The private sector was still allowed to operate.
Education The pre-war education system in both Scotland and England was based on selection. This meant an exam.
The “11+” was used to decide between those who went to an academic school (the ones who passed) and those who failed and went to a vocational school. Northern Ireland still has the 11+ exam.
Many working class children failed the 11+ and the system was seen to be biased in favour of the middle classes.
In their place came “comprehensives”. These were (and still are) “catch all” schools who accept just about all pupils within a particular local authority catchment area.
Housing
Many houses were destroyed in the war. Others were slums which needed to be pulled down. The original solution was council housing. The aim was to offer houses owned by the local authority (council) made available for rent to those unable or unwilling to buy a house.
Council houses were built all around Britain. “New Towns” were created in Scotland (East Kilbride, Glenrothes, Cumbernauld and Irvine) due to the demand for new housing.
Unemployment/Poverty While all the Giants are connected, solutions to these last two remaining Giants are most closely connected.
In the post war period the two main parties accepted a large role for the Government in creating jobs to keep people out of poverty. Key industries, such as coal, steel, rail, telecommunications were nationalised. Benefits were available to those out of work.

4. 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.
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.
Education
The Conservatives introduced the “Parent’s Charter”. This meant that parents now no longer had to send their children to the “local comp” but could choose another local authority school, which perhaps offered a better quality of education.
Healthcare
The Thatcher years saw reform of the health service. Many thought the NHS would be privatised. It was not.
The Conservatives did not believe in a link between poverty and bad health. They believed the poor made “bad lifestyle choices” such as smoking, drinking too much which led to lower life expectancy.
Housing
The Thatcher challenge to Beveridge was to introduce the “right to buy” council housing. Council tenants could now buy “their” council house at a discounted price.
For the first time, many working class people became property owners and could either sell and move up the property ladder or leave an asset for their children.
The phrase “property owning democracy” was seen as one of the key achievements of the Thatcher and Major Governments. The down side was that good quality, attractive, council houses were now in short supply for those unable to afford or unwilling to take out a mortgage.
Unemployment/Poverty
The Conservatives believed that the decline of British industry was due to the inefficiency of nationalised industry. High taxation and generous benefits had made too many people unambitious and lazy.
The solution was to withdraw Government support for failing companies and to sell off (privatise) as many nationalised industries as possible.
In the early years of the Thatcher era, unemployment rocketed to over 3 million. A pivotal moment was the miners strike of
Poverty increased in areas where workers whose factories had closed down.
By the mid 1990s, the economy had improved as new industries replaced the old, but the gap between rich and poor grew. Benefits for the unemployed had been cut. Taxes had been cut and the wealthier (the “yuppies”) prospered.
Privatisation, Consumerism and Thatcherism in the 1980s

5. New Labour and the 3rd 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”.
When Labour famously became “New Labour” in 1994, it abandoned traditional socialism. The “ Third Way”, whilst retaining “old Labour values” , the party allegedly 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”.

6. Welfare to Work
"The welfare state of the 21st century will not simply be a safety net but an enabler - a ladder out of poverty. It must embody the mutual acceptance of self-responsibility and the acceptance of responsibility for the well-being of others. "
David Blunkett
Welfare to Work is an umbrella term for all the various initiatives the Labour Governments, both in Westminster and at Holyrood, have taken to move people from welfare to work.
New Labour believed that to tackle the five giant evils, people, if they are fit and able, need to be working. Therefore financial incentives were put in place to get people back to work, such as the National Minimum Wage and a variety of Tax Credits.
New Labour and the Welfare State
"The welfare state of the 21st century will not simply be a safety net but an enabler - a ladder out of poverty.
It must embody the mutual acceptance of self-responsibility and the acceptance of responsibility for the well-being of others. "
David Blunkett
Welfare to Work
This is an umbrella term for all the various initiatives the Labour Governments, both in Westminster and at Holyrood, have taken to move people from welfare to work.
New Labour believes that to tackle the five giant evils, people, if they are fit and able, need to be working.
Therefore there are financial incentives to get people back to work, such as the National Minimum Wage
Disease (bad health care)
New Labour has 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 will exceed 9%.
National Insurance contributions have been raised, rather than Income Tax (critics would say it amounts to the same thing) to pay for improvements in health care.
New Labour has used Public Private Partnerships to renovate old hospitals or build completely new ones.
New Labour has acknowledged the link between poverty and bad health. It has embarked on a “welfare to work” strategy to improve incomes (see below).
Want (poverty)
New Labour seek to tackle poverty, or in its wider definition, social exclusion, by welfare to work strategies. There are also other strategies to help people living in poverty.
Squalor (Bad housing)
New Labour has retained the “right to buy” but there is no longer a rush to buy council houses as most of the desirable ones have been bought.
However, New Labour has introduced a “new” type of housing; part private and part public – Housing Associations.
  Idleness (Unemployment)
New Labour has succeeded in lowering unemployment to its lowest level since World War 2, and most experts agree, lifted significant numbers out of poverty.
The main reason for this is the “welfare to work” strategy. New Labour believes the best way out of poverty is through work.
Former Chancellor Gordon Brown introduced The New Deals (for Lone Parents, 18-25s, over 25s) The Working Tax Credit and The National Minimum Wage.

7. New Labour and the Welfare State
The New Deals
Yvette Cooper was responsible for the delivery of the Welfare Reform Acts of 2007 and 2009 which sought to reduce the numbers of people on long term benefit.
New Labour, under Tony Blair and Gordon Brown believed that their government was “modernising” the welfare state while retaining its founding principles.
Under then Chancellor Gordon Brown, New Labour took up many American themes in language and philosophy and practice. Government benefits should be a “hand up, not a hand out”. The Labour Party used phrases such as “welfare dependency” and sought to bring in “welfare to work” programmes. Such as the “New Deals”.
Universal benefits were to be trimmed back and more use was to be made of “means tested” benefits in the form of, and again, note the Americanism, “tax credits”.
No benefit system can rely wholly on social insurance benefits; some payments must be means-tested. The question is where do you draw the line?
New Labour wants to ensure that all who are able to work do. There will be support for those who cannot.
Labour intends to offer the “carrot” of training and improved incomes for those who try to get back to work, but the “stick” of benefit cuts for those who try to abuse the welfare state. New Labour has even floated the idea of introducing lie detector tests to claimants.
In March 2007, Labour launched a new bid to get the long term unemployed back to work (see hyperlink, 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 has been hugely successful. Nearly 200,000 people have informed on friends, colleagues and family to the taxman.
The Welfare Reform Act seeks to reduce the numbers of people on long term benefit.

8. SNP’s Collectivist policies
The SNP Government has been remarkably collectivist. Prescription charges have been cut and will be phased out completely by 2011.
The Graduation tax has been abolished and Scotland still has no tuition fees for higher education.
Free school meals for S1-S3 are planned(subject to funding!)
The SNP Government have been remarkably collectivist in their short term as government of Scotland. Prescription charges have been cut and will be phased out completely by The Graduation tax has been abolished and Scotland still has no tuition fees for higher education. Free school meals for S1-S3 are planned
Critics say that the money would be better targeted at those in need and that those in most financial need already receive free school meals. The same is true with prescriptions. Those in most need already receive free prescriptions.

9. Do we have a Nanny State?
Kenny MacAskill on the Test Purchasing scheme
In June 2008 the Scottish Government launched a consultation on tacking alcohol misuse.
The proposals, which are being debated in the Scottish Parliament, include:
Raising the minimum age for off-sales alcohol purchases to 21
Setting a minimum price at which a unit of alcohol can be sold
Ending 'three for the price of two' type promotions, which encourage impulse buying of extra alcohol
A 'social responsibility fee' for some alcohol retailers to help pay for the consequences of alcohol misuse and reduce the burden on the general taxpayer
A large part of New Labour’s approach to welfare reform, is to try to get individuals to take more responsibility for their health. New Labour would claim this maintains the original idea of the NHS, which was to “prevent rather than cure” ill health. The Scottish Government, led by the SNP, is also trying to change people’s lifestyles.
There have been complaints that the Government is going too far and is “interfering” with people’s private lives.
Health Inequalities
Those who can least afford to smoke are smoking the most.
Death rates are highest in areas of poverty. People living  in Easterhouse, Glasgow, spend an average of £584 per year on cigarettes. (This figure includes those who do not smoke!) out of an average household income of £16,813.
By contrast, those living in Bromley, Kent have an average income of almost £50,000 and the average spending on smoking is just £67. Average life expectancy for men in the east end of Glasgow is lower than that in war torn Iraq.
90% of all lung cancer deaths are caused by smoking. Glasgow has the highest rates of smoking in Scotland and the highest rates of lung cancer. 145 out of every 100,000 men in Glasgow are diagnosed with lung cancer every year.
Alcohol Scotland’s “bevvy culture”
Alcohol related problems cost Scotland around £1.1 billion per year. Most adults enjoy a drink but the scale of Scotland’s alcohol problem is no joke.
Deaths from liver disease have doubled in the last 10 years. Crime and violence is closely associated with binge drinking. Car accidents and divorces are all part and parcel of our “bevvy” culture.
A decade ago most people in hospital with alcohol problems were men in their 60s who drank a bottle of spirits a day. Today the hospital wards are full of people in their 30s with advanced liver disease.
Alcohol consumption is much more common throughout the social classes. The middle classes are more likely to drink wine at home and stick closer to recommended weekly intakes.
In June 2008 the Scottish Government launched a consultation on tacking alcohol misuse.
Key proposals in the consultation document include:
Raising the minimum age for off-sales alcohol purchases to 21
Setting a minimum price at which a unit of alcohol can be sold
Ending 'three for the price of two' type promotions, which encourage impulse buying of extra alcohol
A 'social responsibility fee' for some alcohol retailers to help pay for the consequences of alcohol misuse and reduce the burden on the general taxpayer
Introducing alcohol-only checkouts in large off-sales premises, so that alcohol, like cigarettes, is thought of as a special case and not 'just another product'

10. 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 and knife crime?
Beveridge had nothing to say about these issues. They just weren’t on the agenda in 1945.
They are now.
Most politicians, across the political parties, accept that something needs to be done.
Do we have more than 5 giant evils?
What about racism? Obesity? Drug abuse? Knife crime?

11. 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.
Where you live can affect the treatment you receive from the NHS. The “postcode lottery” is a much used phrase. Different health boards have different rules regarding access to treatment.
Expensive treatments such as fertility treatment may be free in one part of the country, but not in another.
A shortage of NHS dentists has been a particular problem in rural areas of Scotland.
An investigation by the Sunday Times in January 2004 found that there was not one dentist in the whole of Dumfries and Galloway who could take on a new NHS patient.
The Scottish Government has introduced cash incentives for dentists to set up practices in more remote areas of the country.
Yet, a study published in July 2006 by the National Dental Inspection programme found that children living in deprived communities are twice as likely to suffer from tooth decay as those in wealthier areas.
64% of children from deprived areas had decay in their permanent teeth by primary 7 age. That compared with only 30% of children in the wealthiest parts of Scotland.
Still Dead Poor
“People and Places” was a survey on health care carried out in It was published It paints a picture of a widening gap between rich and poor.
The percentage of the country’s wealth held by the top 10% increased from 47% to 54% between 1997 and 2004 (Institute for Public Policy Research).
The UK’s great Northern cities, Glasgow, Liverpool, Manchester are poorer and their populations are in decline. 41% of Glasgow’s households live in poverty.
Glasgow is not alone. West Dunbartonshire, Dundee, North Lanarkshire and Inverclyde all make it into the top 20 of the UK’s poorest areas.
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.

12. 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.
Conservative leader David Cameron is pursuing his own third way; between the individualism of Margaret Thatcher and the government help for those in need. His idea of the “broken society” refers to social evils such as long term unemployment, crime and poverty. Cameron seeks to “heal” the so-called broken society by encouraging greater individual responsibility ( a traditional Conservative approach) yet offering state help to those prepared to face up to their problems (very New Labour).
Former Conservative leader Iain Duncan Smith’s work in Easterhouse, Glasgow persuaded the new Conservative leadership to offer greater government support to the poor.
In reality there is a great deal in common between the two major UK parties. There is a consensus that there is a new group of “hard to reach” people (e.g NEETs) who are becoming increasingly trapped by poverty, a lack of skills, a lack of education and lack of role models. Neither the collectivist or individualist ways of old appear to answer a solution. The differences between labour and Conservative are, in reality, those of specific policies, rather than overall direction. Sometimes, even only the soundbites are different.

13. Big Society Solutions The Big Society
“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

14. How the Big Society will work
The Government will set up “vanguard communities”. In these 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.
A "big society bank” will be established to finance charities and voluntary groups.
A new Welfare Reform Bill will also be passed which will make it tougher to claim out-of work benefits, especially Incapacity Benefit. Welfare Reform will be led by Iain Duncan Smith, left, who did a lot of poverty research in Glasgow, and Labour MP Frank Field.
Welfare Reform

15. 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?
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.
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.
What do you think? What should be done to tackle the five evils, plus the many new ones?
Is it time up for the welfare state?