(175) real welfare reform (june 2011)

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Presentation to Inside Government's conference on welfare reform - outlining a different path to promoting social justice.

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  • (175) real welfare reform (june 2011)

    1. 1. Real Welfare Reform orOne cheer for current government policy by Dr Simon Duffy, e Centre for Welfare Reform, Inside Government: Welfare Reform Event London 7th June 2011
    2. 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. 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
    4. 4. the welfare state is good
    5. 5. the welfare state is good
    6. 6. the welfare state is good but it is badly designed
    7. 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. 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. 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...
    10. 10. ...the poverty net
    11. 11. Some things to keep in1. 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. 12. One cheer - there is agrowing recognition thatthe tax-benefit system is1. e recognition that the poor are over-taxed2. at the benefit system is unfair and unduly complex3. at the benefit system is stigmatising4. at the tax and benefit systems should be integrated
    13. 13. 137 differentways...to give peoplenot verymuch...•linked or not•means-tested or not•tax credits or benefits•disability related or not•employment- seeking or not
    14. 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. 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. 16. One sigh - blaming thepoor gets you votes - ugly • benefit thieves • under-class • feckless and work shy • benefit dependency • failing families
    17. 17. One sigh - blaming thepoor gets you votes - ugly • benefit thieves • under-class • feckless and work shy • benefit dependency • failing families the impossible problem of the undeserving poor
    18. 18. Citizens Advice acknowledges that the £1.5 billion cost offraud in the benefit system must be recovered, but we are veryconcerned at the government’s persistent tendency to roll fraudand 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 throughfraud and error is dwarfed by the £17 billion of benefits andtax credits that remain un-claimed every year, because peopledon’t know they are entitled to claim, or because the system istoo complicated. e danger of making benefits more difficultto claim is that people in real need will not receive the moneythey need to pay their rent, keep their families warm, or feedtheir children. Teresa Perchard , Director of Social Policy at Citizens Advice
    19. 19. Government defrauds thepoor at more than 11 times the rate at which the poor defraud the government
    20. 20. constitutional flaw: pandering to the majority
    21. 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 benefitsServices perceived as universal are protected: pensions,NHS and schools - services that are perceived asmarginal are cut: social care, disability benefits,community spending...
    22. 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 benefitsServices perceived as universal are protected: pensions,NHS and schools - services that are perceived asmarginal are cut: social care, disability benefits,community spending... BUT they may not get away with it www.campaignforasociety.org
    23. 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. 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
    25. 25. Family Security System: • Universal income security • Fair taxes for all • Focus on women & family structuresUnderpinned by respect for human rights,constitutional reform and transparentsystems for defining entitlements andtaxes.
    26. 26. 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
    27. 27. A further question - whatrole will the welfare to workproviders play• Increased regulation or real innovation?• Profit for the wealthy or greater equality?• Centralisation or localism?
    28. 28. A further question - whatrole will the welfare to workproviders play• Increased regulation or real innovation?• Profit for the wealthy or greater equality?• Centralisation or localism? What were the lessons of
    29. 29. 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
    30. 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 Recognising that we already have the resources we need
    31. 31. From push to pull
    32. 32. RealWealth..
    33. 33. WomenCentrecreative and positive
    34. 34. 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%
    35. 35. built on hope & trust
    36. 36. For providersthe 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
    37. 37. Personalised Transition control: health,education & care
    38. 38. Thoughts for localcommunities • 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
    39. 39. The Centre for Welfare ReformThe Quadrant, 99 Parkway Avenue,Parkway Business ParkSheffield, S9 4WGT +44 114 251 1790 | M +447729 7729 41admin@centreforwelfarereform.orgGet a free subscription at:© Simon Duffy. Rights Reserved. Full copyright details at www.centreforwelfarereform.org

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