The bias towards traditional welfare threatens social justice

Rather than defending existing social security entitlements, politicians need to mobilise public support for a new set of social investment priorities.

Reinforced by the wave of austerity following the financial crisis, a new Policy Network/IPPR report shows that social attitudes to welfare are overwhelmingly biased towards a small ‘c’ ‘conservative’ view of the welfare state – implying protecting higher pension payments, social security entitlements, and public expenditure on healthcare. On the other hand, public support for welfare state policies that are geared towards tackling new social risks – relating to structural changes in labour markets and employability, demography, gender equality and family support that traditional protection systems are poorly equipped to provide – is relatively weak. This is the great dilemma at the heart of the politics of the welfare state, which the present debate about welfare reform in the UK scarcely addresses.

In the ongoing discussion about the future role of the state, defending existing social security entitlements, rather than targeting investment at families and children is the public’s preferred option in many European countries, as new comparative polling data from Britain, France and Denmark highlights. Negative sentiment towards growth-oriented, social investment policies in education, active labour markets and family assistance is occurring at a time when slower growth and productivity are increasing the pace of de-industrialisation among developed economies, to the advantage of the emerging powers. The evidence is that shifting expenditure towards these growth-oriented strategies would help to build human capital and increase the capacity for innovation, while supporting the ‘gender revolution’ in paid work and household labour.

Since 2009, every type of welfare regime, including Germany, Sweden and the UK, has chosen a path of budget consolidation that is leading to severe cuts in social investment as a response to the financial crisis. If we consider the survey data on public attitudes towards the welfare state, it is possible to infer that this is merely a rational response by vote-seeking politicians: it is easier to cut back on "family-friendly" service-oriented aspects of welfare rather than healthcare and pension entitlements, as older citizens are more likely to vote.

This preference for the "traditional" welfare state over growth-oriented social investment policies that enhance equity gives serious cause for concern. Growing inequalities in electoral participation might further entrench the welfare status quo, heightening the risk of intergenerational inequality. Given that electoral participation in advanced democracies is falling quickest amongst the young and least affluent, better off and older votes are able to have a greater influence in the political process. For example, spending cuts in the UK have had a disproportionate effect on the young and poor –two groups that tend to have the lowest voter turnout, while universal benefits for the elderly have been largely untouched.

Indeed, support for the ‘traditional’ welfare state is strongest among the more influential cohort of older voters. In Britain, these voters are most likely to support the NHS (51 to 37 per cent), state pensions (44 to 13 per cent) and policing (36 to 18 per cent) as major public expenditure priorities. Conversely, they are less likely to support increased investment in primary and secondary school education by 16 to 32 per cent, and support cutting back maternity and paternity benefit by 37 to 15 per cent compared to younger voters. 78 per cent of Britons and 80 per cent of French voters believe that social protection for families is already more than sufficient. The diverging support for "traditional" welfare provision and a "social investment state" between young and old voters reflects a political context in which the population in many EU member states is getting older, and voters over 50 are most likely to vote.

Worryingly, the financial crisis seems to be consolidating support for ‘old’ welfare state structures at a time when social investment to tackle ‘new’ social risks is of great importance. Europe’s welfare states should be adapting to conquer new structural challenges, which currently pose a major threat to future equity, growth and social sustainability. The biggest threat to social justice in Europe is not institutional change, but the frozen welfare state landscape, perpetuated by the support of major interest groups that are able to control how welfare states operate. Politicians need to show leadership in order to mobilise public support for a transition to a different model of welfare capitalism based on a new set of social investment priorities, looking ahead to the next decade and beyond.

Patrick Diamond is senior research fellow at Policy Network and co-author with Guy Lodge of European Welfare States after the Crisis: changing public attitudes

Students protest against the abolition of the Educational Maintenance Allowance (EMA) outside Downing Street. Photograph: Getty Images.
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Air pollution: 5 steps to vanquishing an invisible killer

A new report looks at the economics of air pollution. 

110, 150, 520... These chilling statistics are the number of deaths attributable to particulate air pollution for the cities of Southampton, Nottingham and Birmingham in 2010 respectively. Or how about 40,000 - that is the total number of UK deaths per year that are attributable the combined effects of particulate matter (PM2.5) and Nitrogen Oxides (NOx).

This situation sucks, to say the very least. But while there are no dramatic images to stir up action, these deaths are preventable and we know their cause. Road traffic is the worst culprit. Traffic is responsible for 80 per cent of NOx on high pollution roads, with diesel engines contributing the bulk of the problem.

Now a new report by ResPublica has compiled a list of ways that city councils around the UK can help. The report argues that: “The onus is on cities to create plans that can meet the health and economic challenge within a short time-frame, and identify what they need from national government to do so.”

This is a diplomatic way of saying that current government action on the subject does not go far enough – and that cities must help prod them into gear. That includes poking holes in the government’s proposed plans for new “Clean Air Zones”.

Here are just five of the ways the report suggests letting the light in and the pollution out:

1. Clean up the draft Clean Air Zones framework

Last October, the government set out its draft plans for new Clean Air Zones in the UK’s five most polluted cities, Birmingham, Derby, Leeds, Nottingham and Southampton (excluding London - where other plans are afoot). These zones will charge “polluting” vehicles to enter and can be implemented with varying levels of intensity, with three options that include cars and one that does not.

But the report argues that there is still too much potential for polluters to play dirty with the rules. Car-charging zones must be mandatory for all cities that breach the current EU standards, the report argues (not just the suggested five). Otherwise national operators who own fleets of vehicles could simply relocate outdated buses or taxis to places where they don’t have to pay.  

Different vehicles should fall under the same rules, the report added. Otherwise, taking your car rather than the bus could suddenly seem like the cost-saving option.

2. Vouchers to vouch-safe the project’s success

The government is exploring a scrappage scheme for diesel cars, to help get the worst and oldest polluting vehicles off the road. But as the report points out, blanket scrappage could simply put a whole load of new fossil-fuel cars on the road.

Instead, ResPublica suggests using the revenue from the Clean Air Zone charges, plus hiked vehicle registration fees, to create “Pollution Reduction Vouchers”.

Low-income households with older cars, that would be liable to charging, could then use the vouchers to help secure alternative transport, buy a new and compliant car, or retrofit their existing vehicle with new technology.

3. Extend Vehicle Excise Duty

Vehicle Excise Duty is currently only tiered by how much CO2 pollution a car creates for the first year. After that it becomes a flat rate for all cars under £40,000. The report suggests changing this so that the most polluting vehicles for CO2, NOx and PM2.5 continue to pay higher rates throughout their life span.

For ClientEarth CEO James Thornton, changes to vehicle excise duty are key to moving people onto cleaner modes of transport: “We need a network of clean air zones to keep the most polluting diesel vehicles from the most polluted parts of our towns and cities and incentives such as a targeted scrappage scheme and changes to vehicle excise duty to move people onto cleaner modes of transport.”

4. Repurposed car parks

You would think city bosses would want less cars in the centre of town. But while less cars is good news for oxygen-breathers, it is bad news for city budgets reliant on parking charges. But using car parks to tap into new revenue from property development and joint ventures could help cities reverse this thinking.

5. Prioritise public awareness

Charge zones can be understandably unpopular. In 2008, a referendum in Manchester defeated the idea of congestion charging. So a big effort is needed to raise public awareness of the health crisis our roads have caused. Metro mayors should outline pollution plans in their manifestos, the report suggests. And cities can take advantage of their existing assets. For example in London there are plans to use electronics in the Underground to update travellers on the air pollution levels.

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Change is already in the air. Southampton has used money from the Local Sustainable Travel Fund to run a successful messaging campaign. And in 2011 Nottingham City Council became the first city to implement a Workplace Parking levy – a scheme which has raised £35.3m to help extend its tram system, upgrade the station and purchase electric buses.

But many more “air necessities” are needed before we can forget about pollution’s worry and its strife.  

 

India Bourke is an environment writer and editorial assistant at the New Statesman.