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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 freeze
Abolition 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 ESA Transfer 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 changes Abolition 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
1.Subscribe to The Centre for Welfare Reform
www.centreforwelfarereform.org
1.Twitter users can follow #fairsociety
If you want to get more involved

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Thoughts on welfare reform

  • 1. Thoughts on Welfare Reform Dr Simon Duffy ■ The Centre for Welfare Reform ■ 30th April 2013 ■ The Poverty Network
  • 2. Logically, welfare reform implies making the welfare state better. Is that what is happening?
  • 4. 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.
  • 5. 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
  • 6. Even if cuts are necessary - there is no need to target cuts like this...
  • 7.
  • 8.
  • 10. Most cuts fall in two areas:
  • 11. Child Benefit freeze Abolition 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 ESA Transfer 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 changes Abolition of the Health in Pregnancy Grant Abolition of the Child Trust Fund Abolition of the ESA youth rules
  • 12.
  • 13.
  • 14. 60% of local government cuts (£16.2 bn.) must fall on social care = approx. £9.5 bn. by 2015
  • 15.
  • 16.
  • 17.
  • 18. Is this welfare reform or a war on welfare?
  • 19.
  • 20. What is wrong with the welfare state - if anything?
  • 21. 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.
  • 22. The welfare state is a good thing, its just designed wrong.
  • 23. 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
  • 24. Fear and insecurity breed scapegoating, terror, war & revolution
  • 25. [The ill-fated Pruitt-Igoe housing project] But current design is rooted in the paternalistic values of the 1940’s - the state knows best.
  • 26. The design is confusing and damaging...
  • 27. but it’s not too generous...
  • 28. it’s not riddled with fraud...
  • 29. and it’s not unfair to the rich.
  • 30. It’s failing to tackle inequality
  • 32. It’s far too centralised
  • 34. What kind of welfare state do we really want?
  • 35.
  • 36. 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
  • 37. 1.Join the Campaign for a Fair Society www.campaignforafairsociety.org 1.Subscribe to The Centre for Welfare Reform www.centreforwelfarereform.org 1.Twitter users can follow #fairsociety If you want to get more involved