Thoughts on Welfare Reform

Dr Simon Duffy ￭ The Centre for Welfare Reform ￭ 30th April 2013 ￭ The Poverty Network

Logically, welfare reform implies making the welfare state better. Is that what is happening?

‘Austerity’ is not the problem.

The financial crisis was not caused by welfare spending. It was caused by over-lending to individuals to support excessive house price growth. It is a bubble politicians cannot afford to burst.

Then did all the grants and the subsidies, the benefits and the bargain offers pass over these poverty-stricken peasants when Ingolfur Angerson's ideals came to fruition? What is one to say? It so happens that it signifies little though a penniless crofter be offered a grant from the Treasury towards the cost of tractors and modern ploughs...

The fact is that it is utterly pointless to make anyone a generous offer unless he is a rich man; rich men are the only people who can accept a generous offer. To be poor is simply the peculiar human condition of not being able to take advantage of a generous offer. The essence of being a poor peasant is the inability to avail oneself of the gifts which politicians offer or promise and to be left at the mercy of ideals which only make the rich richer and the poor poorer.

Halldor Laxness

Even if cuts are necessary - there is no need to target cuts like this...

£72 billion of cuts

Most cuts fall in two areas:

Child Benefit freezeAbolition of Sure Start Maternity for second and subsequent children

Change to CPI indexation of benefits Reductions in support for carers

Replacing DLA with PIP Child Benefit clawback from higher rate taxpayers

Time-limiting of contributory ESATransfer of Social Fund to local government

Council Tax Benefit – 10% reduction and localisation

Extension of JSA lone parents with a youngest child aged 5-6

Housing Benefit cuts Household Benefit cap

Abolition of the Independent Living Fund

Continued use of ATOS or others

Universal Credit Reductions in ‘Access to Work’ funding

Closure of Remploy services Abolition of the Child Trust Fund

Tax credit changesAbolition of the Health in Pregnancy Grant

Abolition of the Child Trust Fund Abolition of the ESA youth rules

60% of local government cuts (£16.2 bn.) must fall on social care = approx. £9.5 bn. by 2015

Is this welfare reform or a war on welfare?

What is wrong with the welfare state - if anything?

The current situation is confused because many of us accept the need for welfare reform...

...but reject the idea that these changes are real

reforms.

The welfare state is a good thing, its just designed wrong.

Why the welfare state is good• Morality demands we create a fair

society

• Happiness demands security and freedom

• Efficiency demands we use all our talents

• Prudence demands we avoid fear & crisis

Fear and insecurity breed scapegoating, terror, war & revolution

[The ill-fated Pruitt-Igoe housing project]

But current design is rooted in the paternalistic values of the 1940’s - the state knows best.

The design is confusing and damaging...

but it’s not too generous...

it’s not riddled with fraud...

and it’s not unfair to the rich.

It’s failing to tackle inequality

There are many services, but often no support

It’s far too centralised

It’s very controlling

What kind of welfare state do we really want?

Citizenship is the key to reform

• Human rights at heart of system

• Minimum universal securities as rights

• Fair and integrated tax-benefit system

• Individual freedom for all

• Families and communities respected

1.Join the Campaign for a Fair Society

www.campaignforafairsociety.org

2.Subscribe to The Centre for Welfare Reform

www.centreforwelfarereform.org

3.Twitter users can follow #fairsociety

If you want to get more involved