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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New Digital Editor: Serena Kutchinsky

The New Statesman appoints Serena Kutchinsky as Digital Editor.

Serena Kutchinsky is to join the New Statesman as digital editor in September. She will lead the expansion of the New Statesman across a variety of digital platforms.

Serena has over a decade of experience working in digital media and is currently the digital editor of Newsweek Europe. Since she joined the title, traffic to the website has increased by almost 250 per cent. Previously, Serena was the digital editor of Prospect magazine and also the assistant digital editor of the Sunday Times - part of the team which launched the Sunday Times website and tablet editions.

Jason Cowley, New Statesman editor, said: “Serena joins us at a great time for the New Statesman, and, building on the excellent work of recent years, she has just the skills and experience we need to help lead the next stage of our expansion as a print-digital hybrid.”

Serena Kutchinsky said: “I am delighted to be joining the New Statesman team and to have the opportunity to drive forward its digital strategy. The website is already established as the home of free-thinking journalism online in the UK and I look forward to leading our expansion and growing the global readership of this historic title.

In June, the New Statesman website recorded record traffic figures when more than four million unique users read more than 27 million pages. The circulation of the weekly magazine is growing steadily and now stands at 33,400, the highest it has been since the early 1980s.