Week 12: social policy FINAL

Social policy is designed to address the welfare and well-being of the population, often involving governmental structures. Key aspects involve the government’s role in promoting welfare, the influence of socio-economic factors, and the historical changes in social programs aimed at reducing inequality and social injustice.

Historical Context

19th Century Economic Shift

• Transition from agricultural to industrial economy

• International trade introduced vulnerability and competitiveness

• Emergence of working class sparked demands for improved conditions

• Britain now “at the mercy of vast economic

  changes beyond the control of …

  government”

Trade Unions

• Development of trade unions in late 19th century

• Actions for rights: strikes, boycotts, collective bargaining

• House of Lords fought trade union organizing

  and political engagement

  • Overturned by Commons

Political Developments

• Labour Party formation as a response to working class needs

• Diverse proposals from Liberals and Conservatives

  • Liberals: Progressive social programs to reduce poverty

  • Conservatives: Disraeli’s “One Nation” conservatism- Tariffs and restrictions to protect jobs

  • Notable shifts: Churchill's party switch reflects changing alliances- would leave conservatives for liberals to oppose tariffs

Social Programs Introduced

Early 20th Century Policies

• New Programs: Beginnings

  • Pensions (1908)

  • Minimum wages (1910

  • Health insurance (1911)

  • Increase in income tax and “death duties”

    (inheritance tax)

  • Taxing “unearned” income > “earned” income

  • Government “accepted it as a duty to promote

    the welfare of its citizens at the common

    expense”

  • Also: trains, trams, underground, and the

    growth of the suburbs

World War Impacts

• Total war effort shifted government’s social welfare role

• Involved the whole population

• Massive industrial and social transformation

• Leviathan of state power and collectivist

  control without precedent in UK history

Effects

Effects

• Impact on social welfare, housing policy,

status of women

• Government ownership of railroads, shipping

• Laissez-faire and free trade ignored or

bypassed

• Government negotiated with trade unions,

forbade strikes but guaranteed collective

bargaining

• Lloyd George: “make Britain a fit country for

heroes to live in”

Post-War Social Reform

• More than all the reforms achieved by half a

century of union and progressive efforts

• Fresh layers and greater numbers of

government administrative, bureaucratic, and

technical class

• Free elementary education (Fisher Act 1918)

• State subsidized housing

• Medical research

• Health care for children, seniors, and mother

Women

• New clerical and administrative jobs

• Munitions and engineering plants

• 1918 Representation of the People Act

  • Women 30 and over could vote

WWII

• Butler Education Act of 1944

• Primary and Secondary education reform and

  reorganization

• Three streams: grammar, secondary modern,

  and technical

• No secondary fees

• School leaving age at 15 (raised to 16 in

  1973)

• The Provision of Free Milk Regulations (1946

Post War

• “Moved more rapidly to the left than at any

  other period of its history”

• Gallup polls showed support

• Not only Labour in favor

• Reformist Conservative ministers, Liberal

  theoreticians, and apolitical technocrats alike

• In contrast to post-World War I, when many

  ideas poorly planned or ultimately unfunded

1945 Election

• 1906 Liberal victory

  • Labour 394 (+239)

  • Conservative 210 (-219)

  • Liberals 12 (-9)

  • Others 25 (+14)

    • Replacement of Winston Churchill with

      Clement Attlee

Post World War

• Labour government 1945-51

• New consensus

• Social democracy based on a mixed economy

  and a welfare state

• Lasted until new climate of 1970s

• Public ownership of 20% of nation’s industry

  • Coal, railways, road transport, civil aviation, gas,

    electric, wireles

The Welfare State

• “The Welfare State”

• National Health Service (1946)

  – “Single provider” insurance

  – Free at time of treatment (so no bills later)

  – Resistance from doctors

  – In compromise, private practice allowed

  – Similar to compromise whereby public schools

  continued along with new grammar schools

• polticial parties are incentivized- they alwsy want to help the nhs

Council Housing

• “Council Estates”

• 1 million new dwellings

  • original idea was for anyone wether wealthy or not and ended up being for low income

    • big demand for this

Greater Pensions

• massive decline in senior pverty

Increase in School Leaving Age

• from 15 to 16

Child Allowances

• if u have a child govt will pay u and used to be for anyone but then they tested it “means tested” so if u have higher income u dont get child allowence anymore

Despite Post-War Problems

• Huge national debt

• Shortages of raw materials and food

• Severe trade imbalance with USA

• Need for emergency loans and other funding

from USA

• British participation in Marshall Plan

• Rationing of food, clothes, petrol until 1954

Results

– Best wages for working class since 1930s

– Higher living, working, educational, and

environmental standards

– Football, cricket, cinemas, dance-halls

– Triumphant 1951 Festival of Britain

Conservatives Return to Power

– 1951-1964

• didnt change a lot but instead pussued social peace

• seen as a bipartisian time

– But pursued a policy of social peace

• Welfare state reinforced

• Full employment remained policy

• Trade unions allowed to develop

– “Mr Butskell” – hybrid of Conservative R. A.

Butler and Labour leader Hugh Gaitskell

• Represented the great deal of bipartisan consensus

of the times

– PM Harold Macmillan: “most of our people

have never had it so good” (1957

• ww1 vet and from a family that had company publishing house

Jones, Norton, and Hertner:

Chapter 26, Social Policy in the

UK (Anneliese Dodds)

• Policies “ostensibly” designed to improve

population well-being

• making a point that jus bc program is made doesnt mean it works- often in flux especially as financial burden increases

• Constantly in state of flux and reform

No Single Type of Social Program

– “Transfer payments”

Money received directly by individuals, such as

pensions

– “Tax expenditures”

Such as tax credits

– Services

Such as health care from NHS

Debate

– Spend more money or less?

– Does government make problems better or

worse?

– “Law” of unanticipated consequences?

– Administer directly through government, or via

private sector or charitable organizations?

– Introduce “choice” elements for individuals?

• lots of things competing for money like nhs and police- all funded by national govt, fighting for influence to be in tra=easury to be in budget

Unclear “Social Policy” Definition

– Giving money to individuals?

– Or anything government does that improves

population well-being?

– Provided solely by government, or also by

employers (“occupational welfare”)

• what is th rprivate sector vs the public for ex the train network—- should govt take over it? would it be more effieicent to have govt run it

- would having incentives for private companies programs be an option like giving them a tac credit

May Have Other Goals

– For many, it’s altruism, but not necessarily

– e.g. Some late 19th century reforms in

response to poor health of soldiers in Boer

War (1899-1902), not necessarily concern for

the poor generally

– e.g. Support for education, but to promote a

more skilled workforce

– e.g. Support for literacy, but to promote

religious goals

Has Multiple Implications

– May help one group at expense of another

– Consumes half of all government spending,

which limits ability to address other problems

– May shape whole economy by increasing

amount of money people have

– Employs a large share of the workforce

Almost six million people

- soical programs are about half of the budget and very impo

Development of Social Policy

– Policies have been collectively termed the

“welfare state”

– Social programs that operate within a

capitalist, democratic nation

– Occurred alongside development of

parliamentary democracy

– “Political rights” led to arguments for “social

rights”

– Reputation for central control, but began

locally

The Beginnings

– “Poor Laws” in mid-16th century

– Parishes required to collect and distribute aid

to “deserving poor”

– “Undeserving poor” were punished, ranging

from banishment to hanging

– Parishes had to provide work for unemployed

through “workhouses”

– Rising price of bread creates pressure for

reform in 19th century

19th Century

– End of feudalism; industrialization and

urbanization transform Britain

– Two-thirds of population living in urban areas

by 1900

– Researchers wrote reports that drew attention

to poverty and unemployment

– Prior policies and programs inadequate

– Some localities tried new programs, including

public works such as slum clearance and

public hygiene campaigns

- novalist were imporatant in the day

Early 20th Century

– Liberal Party landslide in 1906

Liberals: 397 (+214)

Conservative and Liberal Unionist: 156 (-246)

Irish Parliamentary Party: 82 (+5)

Labour Representation Committee: 29 (+27)

– Government commits to national social

programs, including:

Means-tested pensions (1908)

Labour exchanges (1909)

National Insurance Act of 1911

– Unemployment insurance, sick pay, health care

Free school meals (compulsory by 1914)

Early Consequences

– 1909 battle between Commons and Lords

over funding bill for these programs

– This is what led to elimination of Lords veto

via the Parliament Act of 1911

– These programs were just a small start to

what would become the social welfare state

– Main programs were not enacted and funded

until after World War I

William Henry Beveridge (Liberal MP)

– Wrote the Beveridge Report (1942), “Social

Insurance and Allied Services”

• Designed to create a social insurance program to

fight “five giant evils”

• Want, disease, ignorance, squalor, and idleness

• To protect citizens “from the cradle to the grave”

– Original idea: equal benefits for all, regardless

of social class or prior income/class

– Yet budget constraints led to “means testing”

for many programs, and from the start

- what will britian look like after the world

From the 1980s to Today

– Steady growth of welfare state, as many

predicted

– Attempts by Margaret Thatcher and then John

Major to reduce its size

– Only partly successful, and only in some

areas

– Increased as percentage of GDP

1980: 15.6%

2018: 20.6%

1) Transfer Programs: Pensions

– Largest single social program; about 1/3 of

expenditures

– “Contributory” scheme

But “pay as you go” in reality

– “Triple lock” means high cost of living

allowance (COLA in US) to keep up with

inflation

– Policy response to growing costs: increase

Other Transfer Programs

– Child benefit

Means tested

Limited to two children

– Unemployment benefit

Value reduced over time (one-tenth average wage)

Conditional on participation in training-education-

subsidized work schemes

No time limits (unlike US unemployment insurance

New: Universal Credit

– Fold many social programs into one

– Benefits taper off if you start working,

depending on income

Not immediately cancelled

In order to encourage work

– Must participate in job training etc. schemes

New concept of “workfare”

• required to do smoe type of program that will eventually make citizens get into the workfroce again

– Long and uneven implementation

Limited success in moving people into work

“Benefit Cap”

– A family can receive no more than £20k in

total government social program funds

Tax Credits

– Similar to US “Earned Income Tax Credit”

(EITC)

• guarentees u a mininmum for tax refund, tries to encourage ppl to stay in workforce and save govt money

– Still can get a refund if you work but earn little

– Amount reduced as a person’s income rises

Other Transfers

– Disability benefit

• controversial on how govt asses people

Controversy about assessments

– Housing benefit

Housing cost a major issue in UK

House prices and rent greatly increased, but wages

stagnated, in recent decades

(2) Services: National Health Service

– Primary, acute, and chronic care

– “Single-payer” system

– Largely free, but with national differences

e.g. free prescriptions in Scotland and Wales, but

not England

– Strong public support

Social Care

– Services beyond health care for elderly and

disabled

– In-home and residential care

– Local government responsibility

Challenges because of growing need and declines

in national government financial support

Related to “unfunded mandates” in US

– Challenge of aging population

Housing

– In 1981, about a third of housing provided by

government (“council estates”)

– Now, less than a fifth

– Thatcher’s “right to buy” program

About 2m homes removed from social housing

sector because of purchases

– Longer waiting list

– In general, how to increase housing

construction a major issue in UK politics

Education

– Pre-school

– Primary and secondary

– Tertiary (higher education)

– Continuing and vocational

– Grammar Schools: selective; academic

– Comprehensive Schools: for all

– Independent Schools: “Public schools

Higher Education

– Over time, more students and less

exclusive/elitist

– Ancient foundations

Oxford, Cambridge; Edinburgh; Dublin

– Redbrick Universities

Victorian era

Manchester, Birmingham

– Plate Glass Universities

1960s and later

New and “promoted” institutions

– Controversies over tuition levels

The UK Future: Demographic Challenges

– People living longer

– Aging population

– Declining population and birthrate

– Declining ratio of workers to retirees

– Policy response: Changes to pension age,

NHS reforms

– Generational conflict?

Boomers vs. newer generations

Assessing UK Social Policy

– “Liberal” welfare state

Transfers as last resort

For the worst off, and highly stigmatized

UK and US traditionally classified in this way

– “Conservative” regimes

Social insurance based on individual incomes

– Social Democratic regimes

High levels of benefits for all