Generation Strains

The generational divide isn't just in how much we get, but also how much we want to give.

Ed Miliband’s comments in a recent interview that "redistribution is important but it's not the only route to social justice" could be more important than even he realises. New research shows not just that there has been an overall decline in support for redistribution of wealth through the tax and benefits system, but that we may be witnessing a generational shift in attitudes. Younger generations are less supportive of redistribution than their parents.

The overall decline in support for redistribution is relatively well understood. The percentage of the population agreeing with the statement, "the government should spend more money on welfare benefits for the poor, even if it leads to higher taxes," peaked in 1989 and has been on a broad, downward trajectory ever since. More people disagreed than agreed with the statement for the first time in 2007.

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But it is the second, generational, aspect that poses perhaps the most profound, long-term questions about Britain’s welfare settlement. Not only are younger generations less supportive of redistribution than older ones, but attitudes appear to remain steady within cohorts over time. There is little sign of a "lifecycle effect", in which our attitudes become more like those of our parents as we grow older. The implication is that the declining public support for redistributive policies may not be cyclical but rather a glimpse of the future.

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These are the initial findings of an ongoing study of attitudes towards welfare. Should this generational shift be replicated across the welfare state – with, for example, greater scepticism towards public pensions and elderly care – the implications could be seismic. Redistributive policies in particular and welfare state in general, require buy-in from significant proportions of society to remain sustainable. Changes in attitudes are therefore at least as important as demographic and financial pressures – not least because they will shape our collective response to them.

In the short-term the government has guaranteed a "triple lock" to protect the generosity of pensions; in the medium term a "triple block" of austerity, ageing and attitudes could force us to reconsider our current models of provision. In such a scenario, policymakers would have no option but to face up to some big questions. What has caused this fragmentation of support between the generations? Is it linked to people’s own experiences of the welfare state, or to wider social currents that policy has far less purchase on? Can it be reversed? If not, what are the policy responses that are consistent both with changing attitudes and long-standing policy commitments?

"The social democratic project is not just about spending more money" Miliband recently insisted. "We have surely learnt that it is not enough merely to keep funding more and more generous tax credits", urged David Cameron before the last election. Governments cannot depend solely on "the power of the central state to shift money around", argued Nick Clegg in the same year. Miliband, Clegg and Cameron had all better hope they are right. Two "A"s – austerity and ageing – already cast a long shadow over social welfare policy. We may be seeing the emergence of a third equally significant pressure: attitudes.

Pensioners in Blackpool. Photograph: Getty Images

Bobby Duffy is managing director of the Ipsos MORI social research institute and Duncan O’Leary is deputy director of Demos.

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Why Angela Merkel's comments about the UK and US shouldn't be given too much weight

The Chancellor's comments are aimed at a domestic and European audience, and she won't be abandoning Anglo-German relationships just yet.

Angela Merkel’s latest remarks do not seem well-judged but should not be given undue significance. Speaking as part of a rally in Munich for her sister party, the CSU, the German Chancellor claimed “we Europeans must really take our own fate into our hands”.

The comments should be read in the context of September's German elections and Merkel’s determination to restrain the fortune of her main political rival, Martin Schulz – obviously a strong Europhile and a committed Trump critic. Sigmar Gabriel - previously seen as a candidate to lead the left-wing SPD - has for some time been pressing for Germany and Europe to have “enough self-confidence” to stand up to Trump. He called for a “self-confident position, not just on behalf of us Germans but all Europeans”. Merkel is in part responding to this pressure.

Her words were well received by her audience. The beer hall crowd erupted into sustained applause. But taking an implicit pop at Donald Trump is hardly likely to be a divisive tactic at such a gathering. Criticising the UK post-Brexit and the US under Trump is the sort of virtue signalling guaranteed to ensure a good clap.

It’s not clear that the comments represent that much of a new departure, as she herself has since claimed. She said something similar earlier this year. In January, after the publication of Donald Trump’s interview with The Times and Bild, she said that “we Europeans have our fate in our own hands”.

At one level what Merkel said is something of a truism: in two year’s time Britain will no longer be directly deciding the fate of the EU. In future no British Prime Minister will attend the European Council, and British MEPs will leave the Parliament at the next round of European elections in 2019. Yet Merkel’s words “we Europeans”, conflate Europe and the EU, something she has previously rejected. Back in July last year, at a joint press conference with Theresa May, she said: “the UK after all remains part of Europe, if not of the Union”.

At the same press conference, Merkel also confirmed that the EU and the UK would need to continue to work together. At that time she even used the first person plural to include Britain, saying “we have certain missions also to fulfil with the rest of the world” – there the ‘we’ meant Britain and the EU, now the 'we' excludes Britain.

Her comments surely also mark a frustration born of difficulties at the G7 summit over climate change, but Britain and Germany agreed at the meeting in Sicily on the Paris Accord. More broadly, the next few months will be crucial for determining the future relationship between Britain and the EU. There will be many difficult negotiations ahead.

Merkel is widely expected to remain the German Chancellor after this autumn’s election. As the single most powerful individual in the EU27, she is the most crucial person in determining future relations between the UK and the EU. Indeed, to some extent, it was her intransigence during Cameron’s ‘renegotiation’ which precipitated Brexit itself. She also needs to watch with care growing irritation across the EU at the (perceived) extent of German influence and control over the institutions and direction of the European project. Recent reports in the Frankfurter Allgemeine Zeitung which suggested a Merkel plan for Jens Weidmann of the Bundesbank to succeed Mario Draghi at the ECB have not gone down well across southern Europe. For those critics, the hands controlling the fate of Europe are Merkel’s.

Brexit remains a crucial challenge for the EU. How the issue is handled will shape the future of the Union. Many across Europe’s capitals are worried that Brussels risks driving Britain further away than Brexit will require; they are worried lest the Channel becomes metaphorically wider and Britain turns its back on the continent. On the UK side, Theresa May has accepted the EU, and particularly Merkel’s, insistence, that there can be no cherry picking, and therefore she has committed to leaving the single market as well as the EU. May has offered a “deep and special” partnership and a comprehensive free trading arrangement. Merkel should welcome Britain’s clarity. She must work with new French President Emmanuel Macron and others to lead the EU towards a new relationship with Britain – a close partnership which protects free trade, security and the other forms of cooperation which benefit all Europeans.

Henry Newman is the director of Open Europe. He tweets @henrynewman.

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