(189) redesigning welfare (disability wales, october 2011)

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This presentation was given at the 2011 Disability Wales AGM and sets out the kind of systemic failings of the current welfare state, particularly as regards disabled people. It also decries the radical unfairness of the government's cuts programme and argues that we need a broad and positive campaign for fairer reforms.

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  • (189) redesigning welfare (disability wales, october 2011)

    1. 1. Real Welfare Reform Redesigning the Welfare State to Increase Social JusticeTalk for Disability Wales - October 2011
    2. 2. Dr Simon Duffy• Director of The Centre for Welfare Reform - genuinely independent R&D network based in Sheffield• ‘Invented’ Individual Budgets and Self-Directed Support• Founded Inclusion Glasgow, In Control, Shop4Support and many other charities and social enterprises• Honorary Senior Research Fellow at University of Birmingham’s Health Service Management Centre• Policy advisor to The Campaign for a Fair Society• Lives in Sheffield
    3. 3. The basic proposition1. The Welfare State is a good thing - it’s just designed wrong2. The current unfair cuts target disabled people3. This reflects a repeated pattern of discrimination against disabled people4. Its time to start building a broad alliance for a fairer system and a fair society
    4. 4. The welfare state is good...• We need a collective system of income security and rights• The post-war welfare state was a great achievement• The conditions that make the welfare state necessary have increased not diminished
    5. 5. ... but it’s designed wrong• Designed in a paternalistic and industrial age• It’s current design stigmatises and damages the poorest• It’s complexity and obscurity undermines citizenship for everyone• Let’s not just hark back - let’s build something better
    6. 6. Example 01: The Poverty Net
    7. 7. The poverty net means• 137 different ways to give people not very much• UK is the 3rd most unequal developed country• Confused: linked, means-tested, disability-related, family-sensitive or NOT• 100% tax on earning, 25%+ tax on families, taxes on savings• The poorest 10% pay the highest share of income in tax: 46.6%
    8. 8. The poverty net meansTeresa Perchard , Director of Social Policy, Citizens Advice:“Citizens Advice acknowledges that the £1.5 billion cost of fraudin 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 £3.7billion of the £5.2 billion figure quoted...“In the meantime, the £5 billion cost to government through fraudand error is dwarfed by the £17 billion of benefits and taxcredits that remain un-claimed every year, because peopledon’t know they are entitled to claim, or because the system is toocomplicated.”In other words: The government defrauds the poorat more than 11 times the rate at which the poordefraud the government
    9. 9. Example 02: Social Care• Weak and confused entitlements• Funding for segregated services not for people• Citizens are not in control of their own lives
    10. 10. ... and so, citizen-directed support • Current efforts to revise the old system • Some success in promoting control and creativity • Limited by legal framework and other rigidities My My Budget: Supp ort Plan £Clarify Entitlement Plan Together Support in Community Focus on Outcomes Resource Allocation System (RAS) £
    11. 11. The current cuts target disabled people
    12. 12. Its organised as a pincer attack: • Cuts to social care • that can be blamed on local or national governments • Cuts in direct income • that can be hidden within efforts to ‘reform’ the current system
    13. 13. Attack 01: social care cutsApproximately 1.5 million children and adults, including olderpeople, receive social care each year in the UK because ofsignificant disabilities. This group face social care cuts from: • Cuts to local government funding and funding for Scotland, Wales and Northern Ireland. • Cuts to Supporting People funding • Termination of Independent Living FundNote that: • Local government, by 2014, will have been cut by 20% • Social care is biggest role for local government (c. 40%) • 34% of all cuts fell on local government (excluding education) despite accounting for only 5% of government spending • over the long-run local government funding has been behind other public services
    14. 14. Central control - local weakness...UK is the most centralised welfare state in the world
    15. 15. social care cuts will mean:• Increases in eligibility thresholds - so some people stop getting support• Increases in charges - so people who are already poor will lose even more direct income• Cuts to local services, especially community organisations• Reduction in wages for staff• Reductions in individual budget levels• Attempts to rationalise services or contract out to private providers - limiting choice and damaging markets• Attempts to limit flexibility of how people can use their budgets - damaging creativity• Less preventive support - increasing crises and expensive placements
    16. 16. Attack 02: direct income cutsBenefits, tax credits and pensions take up c.£185 billion per year, c.18% of GDP. The major changes planned include: • Rolling income support benefits into Universal Credit • Rolling disability benefits into Personal Independent Payments • Cuts to Housing Benefit and Mortgage Interest ReliefAlready: • £6 billion a year to be saved by weaker indexation • Stricter medical tests delivered by ‘incentivised’ provider (ATOS) • Planned reductions in hyper-taxation on poor will be paid for by reducing benefit incomes rather than increasing DWP spendingNB: The poor can be very poor indeed - the poorest must live on£2,780 per year - compared to mean household income of £50,000per year (<6%).
    17. 17. Benefit (£ billions) 10/11 (mn) PARetirement Pension £72.4 protected 12,509,000 £5,787Tax Credits £24.0 protected 7,200,000 £3,333Housing Benefit £21.5 vulnerable 4,750,000 £4,530Disability Living Allowance £12.5 vulnerable 3,214,000 £3,879Attendance Allowance £5.4 vulnerable 1,635,000 £3,325Child Benefit £11.0 questionable 7,200,000 £1,528Income Support £5.8 vulnerable 1,746,000 £3,301Pension Credit £7.7 vulnerable 2,664,000 £2,880Council tax benefits £4.1 vulnerable 5,794,000 £705Jobseeker’s Allowance £4.8 questionable 1,402,000 £3,453Carer’s Allowance £1.0 vulnerable 566,000 £1,767ESA + IB £6.9 questionable 2,469,000 £2,782Independent Living Fund £0.2 terminated 21,000 £9,524TOTAL £177.245 2010-11 Figures from DWP for major benefits - child benefit and tax credits from other sources
    18. 18. Why do the cuts target disabled people?
    19. 19. Not just cuts - but targeted cuts Protected Cut Pensions Disability benefits Healthcare Social Care Education Social Housing £350 billion out of £500 £40 billionUniversal, mainstream, for Special, marginal, ‘the ‘ordinary people like us’ poor & unfortunate’ Delivered by nationalised Delivered by complexsystems with high visibility systems with low visibility
    20. 20. Political pandering
    21. 21. Tax Paid (%) Net Income50% £70,000 £60,00040% £50,00030% £40,000 £30,00020% £20,00010% £10,0000% £0 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th Source: ONS tax-benefit data 2007-08 - unadjusted household deciles
    22. 22. This is a long-standing issue1. No constitutional guarantees for citizenship - we have weak rights and only hazy responsibilities placed on multiple public bodies2. No natural justice - the courts apply ‘natural justice’ to define entitlements, but public bodies simply ration on the basis of ‘equitable charity’3. No support for families - families have to reach breaking point in order to be entitled to support, and then they are treated as ‘carers’4. No control guaranteed - funding is guaranteed to providers, but not to people, even with direct payments control is often limited5. No housing rights - many people end up in institutional settings, with no housing rights, no privacy or control over who they live with6. No decent incentives - the current benefit system punishes families, savers, earners and disabled people7. No universality - means-testing or charges are just an extra tax on groups who are already poor, this leads to many people making themselves poorer just to ensure they become entitled to social care
    23. 23. from the professional gift to citizenship
    24. 24. The Campaign for a Fair Society• Beginnings - began on 8th February 2011 by people horrified at the likely impact of the Spending Review• Members - Over 1,000 individuals and 100 organisations are members.• UK-wide - There are Scottish, Welsh & English Steering Groups - connected federally in a UK group.• Communications - information on web, twitter, facebook etc - www.campaignforafairsociety.org
    25. 25. CoreValuesEveryone is equal, no matter theirdifferences or disabilities. A fair societysees each of its members as a fullcitizen - a unique person with a life oftheir own. A fair society is organisedto support everyone to live a full life,with meaning and respect.
    26. 26. Scottish Campaign Manifesto - 7 Commitments1. to human rights2. to make the entitlement to support an objectiveright defined in law3. to provide families and individuals with earlysupport4. to put people back in control of their own life5. to good housing6. to a guaranteed minimum income free frommeans-testing7. to end the current super-tax on older and disabledpeople levied through local authority charges
    27. 27. It is time to campaign against unfair cuts and for a fair society
    28. 28. Decile Number Income plus Benefits less Taxes Net Income Tax1st 2,528,000 £2,043.00 £4,592.00 £3,092.00 £3,543.00 46.6%2nd 2,528,000 £3,738.00 £7,287.00 £3,274.00 £7,751.00 29.7%3rd 2,530,000 £7,464.00 £7,431.00 £4,642.00 £10,253.00 31.2%4th 2,527,000 £11,387.00 £7,702.00 £6,155.00 £12,934.00 32.2%5th 2,529,000 £18,354.00 £5,969.00 £8,656.00 £15,667.00 35.6%6th 2,530,000 £26,523.00 £4,093.00 £10,978.00 £19,638.00 35.9%7th 2,529,000 £33,862.00 £3,656.00 £13,379.00 £24,139.00 35.7%8th 2,525,000 £43,552.00 £2,743.00 £16,710.00 £29,585.00 36.1%9th 2,531,000 £56,842.00 £2,310.00 £20,833.00 £38,319.00 35.2%10th 2,531,000 £100,138.00 £1,958.00 £35,271.00 £66,825.00 34.5%Mean £30,390.30 £4,774.10 £12,299.00 £22,865.40 35.3%Sum 25,288,000 Source: ONS tax-benefit data 2007-08 - unadjusted household deciles
    29. 29. Decile Number Adjustment Cost Contribution Services Net Use Balance1st 2,528,000 £1,500 £3,792,000,000 £4,314 -£1,675 -£1752nd 2,528,000 £4,013 £10,144,864,000 £4,854 -£1,135 £2,8783rd 2,530,000 £2,789 £7,056,170,000 £5,503 -£486 £2,3034th 2,527,000 £1,547 £3,909,269,000 £5,839 -£150 £1,3975th 2,529,000 -£2,687 £6,795,423,000 £6,025 £36 -£2,6516th 2,530,000 -£6,885 £17,419,050,000 £5,908 -£81 -£6,9667th 2,529,000 -£9,723 £24,589,467,000 £6,281 £292 -£9,4318th 2,525,000 -£13,967 £35,266,675,000 £6,733 £744 -£13,2239th 2,531,000 -£18,523 £46,881,713,000 £7,473 £1,484 -£17,03910th 2,531,000 -£33,313 £84,315,203,000 £6,958 £969 -£32,344Mean -£7,525 £5,989Sum 25,288,000 £24,902,303,000 £215,267,531,000 £151,444,774,400Surplus £38,920,453,600 Source: ONS tax-benefit data 2007-08 - unadjusted household deciles
    30. 30. Household Income 1st Decile Adjusted ShareIncome 2043 3424 39%Retirement pension 2463 2048 23%Job seekers allowance (Contribution based) 61 72 1%Incapacity benefit 268 285 3%Widows benefits 59 35 0%Statutory Maternity Pay/Allowance 3 5 0%Income support and pension credit 468 651 7%Child benefit 87 422 5%Housing benefit 650 755 9%Job seekers allowance (Income based) 100 129 1%Carers allowance 9 36 0%Attendance allowance 7 2 0%Disability Living Allowance 144 204 2%War pensions/War widows pensions 11 2 0%Severe disablement allowance 2 1 0%Industrial injury disablement benefit - 2 0%Student support 26 73 1%Government training schemes 3 3 0%Tax credits 73 564 6%Other non-contributory benefits 158 107 1%Gross income 6635 8820 Source: ONS tax-benefit data 2007-08 - unadjusted household deciles

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