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Real Welfare Reform
 or
One cheer for current government policy

                              by Dr Simon Duffy,
                              e Centre for
                              Welfare Reform,
                              Inside Government:
                              Welfare Reform Event
                              London 7th June 2011
The Centre for Welfare
 • Independent Research & Development Network
 • Founded upon belief in human equality and diversity
 • A community of 50 Fellows
 • Innovators who created individual budgets, self-
     directed support, support planning etc...
 •   Publications available at
     www.centreforwelfarereform.org
The Centre for Welfare
 • Independent Research & Development Network
 • Founded upon belief in human equality and diversity
 • A community of 50 Fellows
 • Innovators who created individual budgets, self-
     directed support, support planning etc...
 •   Publications available at
     www.centreforwelfarereform.org

                                 working to
                             democratise the
the welfare state is good
the welfare state is good
the welfare state is good




    but it is badly designed
the loud argument
• State = good      • Markets = good
• Markets fail      • States can’t plan
• Give help         • Give choice
• Increase services • Cut taxes
     that disguises
the quiet assumption of
 • Meritocracy - society should be led by the ‘best’
   people - politicians, civil servants or business men
 • People can’t be trusted - people must be
   governed by fear or greed
 • Economic growth is the goal - growth creates
   money for taxes and for profit
an alternative
• Democracy is vital - we cannot entrust our lives
  into the hands of an elite
• Citizenship is the means - we must be trusted to
  improve our own lives as part of our communities
• Social Justice is the goal - we need the rights and
  duties that enable and support citizenship

                           current flawed
                        system includes...
...the poverty net
Some things to keep in
1. e poor can be very poor indeed - the poorest must
   live on £2,780 per year - compared to mean
   household income of £50,000 per year (<6%).
2. e poor pay marginal taxes of around 100% on their
   earnings and they pay more tax as a percentage of
   their income than any other group (!!)
3. Poor lose income if they live together - 25% tax on IS
   and have no incentive to save or invest.
4. e UK is the third most unequal society aer USA
   and Portugal
One cheer - there is a
growing recognition that
the tax-benefit system is

1.   e recognition that the poor are over-taxed
2.   at the benefit system is unfair and unduly complex
3.   at the benefit system is stigmatising
4.   at the tax and benefit systems should be integrated
137 different
ways...
to give people
not very
much...
•linked or not
•means-tested or
 not
•tax credits or
 benefits
•disability related
 or not
•employment-
 seeking or not
Government Strategy

• Integrate benefits
• Improve incentives to work
• Increase penalties for ‘non-compliance’
• New regime to test ‘disability’
• New providers to help people into work
Government Strategy

• Integrate benefits
• Improve incentives to work
• Increase penalties for ‘non-compliance’
• New regime to test ‘disability’
• New providers to help people into work
     premise - poverty is largely
          motivational in origin
One sigh - blaming the
poor gets you votes - ugly
 • benefit thieves
 • under-class
 • feckless and work shy
 • benefit dependency
 • failing families
One sigh - blaming the
poor gets you votes - ugly
 • benefit thieves
 • under-class
 • feckless and work shy
 • benefit dependency
 • failing families
    the impossible problem of
        the undeserving poor
Citizens Advice acknowledges that the £1.5 billion cost of
fraud in the benefit system must be recovered, but we are very
concerned at the government’s persistent tendency to roll fraud
and error figures together. Errors account for the remaining
£3.7 billion of the £5.2 billion figure quoted...

In the meantime, the £5 billion cost to government through
fraud and error is dwarfed by the £17 billion of benefits and
tax credits that remain un-claimed every year, because people
don’t know they are entitled to claim, or because the system is
too complicated. e danger of making benefits more difficult
to claim is that people in real need will not receive the money
they need to pay their rent, keep their families warm, or feed
their children.

  Teresa Perchard , Director of Social Policy at Citizens Advice
Government defrauds the
poor at more than 11 times
 the rate at which the poor
  defraud the government
constitutional flaw:
      pandering to
       the majority
1.5 million people with the most
                           significant disabilities will lose:
                           • £4.6 billion in social care support
                           • £4 billion in disability living
                             allowance
                           • Termination of ILF
                           • Cuts to Supporting People
                           • Many further cuts in housing
                               support and other benefits
Services perceived as universal are protected: pensions,
NHS and schools - services that are perceived as
marginal are cut: social care, disability benefits,
community spending...
1.5 million people with the most
                           significant disabilities will lose:
                           • £4.6 billion in social care support
                           • £4 billion in disability living
                             allowance
                           • Termination of ILF
                           • Cuts to Supporting People
                           • Many further cuts in housing
                               support and other benefits
Services perceived as universal are protected: pensions,
NHS and schools - services that are perceived as
marginal are cut: social care, disability benefits,
community spending...
          BUT they may not get away with it
                     www.campaignforasociety.org
An alternative
• Growth has undermined older systems of security
    (the land, the Church, the family or the firm).
•   Growth will never provider sufficient income to
    keep the poorest from unacceptable poverty
•   As a community it is our role to make sure we
    safeguard everyone from poverty
An alternative
• Growth has undermined older systems of security
    (the land, the Church, the family or the firm).
•   Growth will never provider sufficient income to
    keep the poorest from unacceptable poverty
•   As a community it is our role to make sure we
    safeguard everyone from poverty


           premise - poverty can be
               limited by our social
(175) real welfare reform (june 2011)
Family Security
                 System:
                 • Universal income security
                 • Fair taxes for all
                 • Focus on women &
                   family structures
Underpinned by respect for human rights,
constitutional reform and transparent
systems for defining entitlements and
taxes.
Thoughts for government
• Start focusing not on benefit caps - but
    underlying security and key principles
•   Create a transparent process for defining
    underlying securities
•   Create legal rights - to realise human rights -
    and checks and balances to make rights real
•   Make the system of income security universal
A further question - what
role will the welfare to work
providers play
• Increased regulation or real innovation?
• Profit for the wealthy or greater equality?
• Centralisation or localism?
A further question - what
role will the welfare to work
providers play
• Increased regulation or real innovation?
• Profit for the wealthy or greater equality?
• Centralisation or localism?
                                What were the
                                   lessons of
Personalisation -
succeeded to the extent
 • People began to see themselves as citizens - resources
     they can control
 •   Professionals allow people to define outcomes that
     are meaningful to them
 •   Communities began to see these change as
     underpinned by principles of social justice
Personalisation -
succeeded to the extent
 • People began to see themselves as citizens - resources
     they can control
 •   Professionals allow people to define outcomes that
     are meaningful to them
 •   Communities began to see these change as
     underpinned by principles of social justice


       Recognising that we already
       have the resources we need
From push to pull
Real
Wealth..
WomenCentre
creative and positive
WomenCentre:
• Real Total Place innovation
• Slashed re-offending rates -
 to less than 5%
• Success in protecting
 women and children from
 abuse
• Significant improvements
 in mental health
• Modest funding - but now
 cut by 41%
(175) real welfare reform (june 2011)
built on hope & trust
For providers
the challenge is to
• Build on personal capacity
• Stimulate local solutions
• Challenge faulty tax-benefit system
• Help shi power back to local communities
• Resist the temptation to just play the system
Personalised
 Transition
 control: health,
education & care
(175) real welfare reform (june 2011)
Thoughts for local
communities
 • Protect flexibility of personalisation - don’t let
     personal budgets get restricted
 •   Work with schools and develop systems like
     Personalised Transition
 •   Protect and support local champions of change and
     innovation - don’t import providers
 •   Challenge central government and focus on
     protecting citizen’s rights
The Centre for Welfare Reform
The Quadrant, 99 Parkway Avenue,
Parkway Business Park
Sheffield, S9 4WG
T +44 114 251 1790 | M +44
7729 7729 41
admin@centreforwelfarereform.org
Get a free subscription at:


© Simon Duffy. Rights Reserved. Full copyright details at www.centreforwelfarereform.org

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(175) real welfare reform (june 2011)

  • 1. Real Welfare Reform or One cheer for current government policy by Dr Simon Duffy, e Centre for Welfare Reform, Inside Government: Welfare Reform Event London 7th June 2011
  • 2. The Centre for Welfare • Independent Research & Development Network • Founded upon belief in human equality and diversity • A community of 50 Fellows • Innovators who created individual budgets, self- directed support, support planning etc... • Publications available at www.centreforwelfarereform.org
  • 3. The Centre for Welfare • Independent Research & Development Network • Founded upon belief in human equality and diversity • A community of 50 Fellows • Innovators who created individual budgets, self- directed support, support planning etc... • Publications available at www.centreforwelfarereform.org working to democratise the
  • 6. the welfare state is good but it is badly designed
  • 7. the loud argument • State = good • Markets = good • Markets fail • States can’t plan • Give help • Give choice • Increase services • Cut taxes that disguises
  • 8. the quiet assumption of • Meritocracy - society should be led by the ‘best’ people - politicians, civil servants or business men • People can’t be trusted - people must be governed by fear or greed • Economic growth is the goal - growth creates money for taxes and for profit
  • 9. an alternative • Democracy is vital - we cannot entrust our lives into the hands of an elite • Citizenship is the means - we must be trusted to improve our own lives as part of our communities • Social Justice is the goal - we need the rights and duties that enable and support citizenship current flawed system includes...
  • 11. Some things to keep in 1. e poor can be very poor indeed - the poorest must live on £2,780 per year - compared to mean household income of £50,000 per year (<6%). 2. e poor pay marginal taxes of around 100% on their earnings and they pay more tax as a percentage of their income than any other group (!!) 3. Poor lose income if they live together - 25% tax on IS and have no incentive to save or invest. 4. e UK is the third most unequal society aer USA and Portugal
  • 12. One cheer - there is a growing recognition that the tax-benefit system is 1. e recognition that the poor are over-taxed 2. at the benefit system is unfair and unduly complex 3. at the benefit system is stigmatising 4. at the tax and benefit systems should be integrated
  • 13. 137 different ways... to give people not very much... •linked or not •means-tested or not •tax credits or benefits •disability related or not •employment- seeking or not
  • 14. Government Strategy • Integrate benefits • Improve incentives to work • Increase penalties for ‘non-compliance’ • New regime to test ‘disability’ • New providers to help people into work
  • 15. Government Strategy • Integrate benefits • Improve incentives to work • Increase penalties for ‘non-compliance’ • New regime to test ‘disability’ • New providers to help people into work premise - poverty is largely motivational in origin
  • 16. One sigh - blaming the poor gets you votes - ugly • benefit thieves • under-class • feckless and work shy • benefit dependency • failing families
  • 17. One sigh - blaming the poor gets you votes - ugly • benefit thieves • under-class • feckless and work shy • benefit dependency • failing families the impossible problem of the undeserving poor
  • 18. Citizens Advice acknowledges that the £1.5 billion cost of fraud in the benefit system must be recovered, but we are very concerned at the government’s persistent tendency to roll fraud and error figures together. Errors account for the remaining £3.7 billion of the £5.2 billion figure quoted... In the meantime, the £5 billion cost to government through fraud and error is dwarfed by the £17 billion of benefits and tax credits that remain un-claimed every year, because people don’t know they are entitled to claim, or because the system is too complicated. e danger of making benefits more difficult to claim is that people in real need will not receive the money they need to pay their rent, keep their families warm, or feed their children. Teresa Perchard , Director of Social Policy at Citizens Advice
  • 19. Government defrauds the poor at more than 11 times the rate at which the poor defraud the government
  • 20. constitutional flaw: pandering to the majority
  • 21. 1.5 million people with the most significant disabilities will lose: • £4.6 billion in social care support • £4 billion in disability living allowance • Termination of ILF • Cuts to Supporting People • Many further cuts in housing support and other benefits Services perceived as universal are protected: pensions, NHS and schools - services that are perceived as marginal are cut: social care, disability benefits, community spending...
  • 22. 1.5 million people with the most significant disabilities will lose: • £4.6 billion in social care support • £4 billion in disability living allowance • Termination of ILF • Cuts to Supporting People • Many further cuts in housing support and other benefits Services perceived as universal are protected: pensions, NHS and schools - services that are perceived as marginal are cut: social care, disability benefits, community spending... BUT they may not get away with it www.campaignforasociety.org
  • 23. An alternative • Growth has undermined older systems of security (the land, the Church, the family or the firm). • Growth will never provider sufficient income to keep the poorest from unacceptable poverty • As a community it is our role to make sure we safeguard everyone from poverty
  • 24. An alternative • Growth has undermined older systems of security (the land, the Church, the family or the firm). • Growth will never provider sufficient income to keep the poorest from unacceptable poverty • As a community it is our role to make sure we safeguard everyone from poverty premise - poverty can be limited by our social
  • 26. Family Security System: • Universal income security • Fair taxes for all • Focus on women & family structures Underpinned by respect for human rights, constitutional reform and transparent systems for defining entitlements and taxes.
  • 27. Thoughts for government • Start focusing not on benefit caps - but underlying security and key principles • Create a transparent process for defining underlying securities • Create legal rights - to realise human rights - and checks and balances to make rights real • Make the system of income security universal
  • 28. A further question - what role will the welfare to work providers play • Increased regulation or real innovation? • Profit for the wealthy or greater equality? • Centralisation or localism?
  • 29. A further question - what role will the welfare to work providers play • Increased regulation or real innovation? • Profit for the wealthy or greater equality? • Centralisation or localism? What were the lessons of
  • 30. Personalisation - succeeded to the extent • People began to see themselves as citizens - resources they can control • Professionals allow people to define outcomes that are meaningful to them • Communities began to see these change as underpinned by principles of social justice
  • 31. Personalisation - succeeded to the extent • People began to see themselves as citizens - resources they can control • Professionals allow people to define outcomes that are meaningful to them • Communities began to see these change as underpinned by principles of social justice Recognising that we already have the resources we need
  • 32. From push to pull
  • 35. WomenCentre: • Real Total Place innovation • Slashed re-offending rates - to less than 5% • Success in protecting women and children from abuse • Significant improvements in mental health • Modest funding - but now cut by 41%
  • 37. built on hope & trust
  • 38. For providers the challenge is to • Build on personal capacity • Stimulate local solutions • Challenge faulty tax-benefit system • Help shi power back to local communities • Resist the temptation to just play the system
  • 39. Personalised Transition control: health, education & care
  • 41. Thoughts for local communities • Protect flexibility of personalisation - don’t let personal budgets get restricted • Work with schools and develop systems like Personalised Transition • Protect and support local champions of change and innovation - don’t import providers • Challenge central government and focus on protecting citizen’s rights
  • 42. The Centre for Welfare Reform The Quadrant, 99 Parkway Avenue, Parkway Business Park Sheffield, S9 4WG T +44 114 251 1790 | M +44 7729 7729 41 admin@centreforwelfarereform.org Get a free subscription at: © Simon Duffy. Rights Reserved. Full copyright details at www.centreforwelfarereform.org

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