Welfare State- Labour

NEW LABOUR AIMS;
1. 2. Reducing Poverty.
2. 1. Benefits targetted towards the most in need, this became known as 'selective universality'.
3. 3. An end to the poverty trap by creating a greater incentive of people to take low paid employment rather than life on benefits.
How did they reform social security??
1. Welfare to work programme and system of tax credits.Welfare to work incorporated the 'new deal' and was based that it will be an incentive to work
  1. 1998- job seekers. Young people under 25 who had been out of work for over 6 months would be offered training and other health to improve their chances of securing employment. Those wh didn't cooperate would have reduction on benefits. Another programme for over 25's for unemployed over 2 years.
  2. 1998 Lone parents. who wanted to return to work they would be entitled to more advice and financial grants to subsidise child care.
  3. 2000- Over 50's. found themselves out of work for 6 months or more offered help and revieve higher benefit if cooperated.
  4. 2003 disabled. Offered opportunity to gain employment, refusal to take part would not result in reduction benefit.
CONSEQUENCES.
1. Labour claimed helped 1.8m found work. 500,000 parents brought into work force and 150,000 disabled found employment
2. However, opposition disputed these figures and argued that the increase in employment was more to do with unprecedented growth rather than the Labour gov.
Tax Credits were introduced in order to improve to incentive to work as low paid workers wold be able to receive a tax credit in order to ensure that their pay would be more than they would previously have received in benefits. The principle is that those who seek and find work will be considerably better off than those who do not and the system was also designed in order to reduce child and pensioner poverty.
1. 1. Child tax credit was made available for low paid workers who are parents or guardians of a child.
2. 2. Working family tax credits are available for low paid workers and the credit is greater for those who have children
3. 3. Pension credits are available for pensioners who have no other income apart from their state benefit.
In 2008 changes were introduced in order to tighten up the benefit system, introduction of sanctions for those who did not seek to find employment and attend job centre regularly. Disabled people assessed so that only those incapable of work would be offered unconditional benefit. Labour WAS radical in their approach critics argue that the benefits system is too complex and too reliant upon means testing, whilst those on the left argue that the system does not redistribute income enough but neo-liberals argue that the system is too generous to unemployed people.
FAILURES OF NEW LABOURS REFORM
1. Despite a lengthy period of low unemployment, welfare spending continued to grow. Yet the GB taxpayer and benefit recipient get less from each pound sent than almost anyone else in Europe. These are the defining characteristics of our welfare state; it is expensive, inefficient, bureaucratic and fails to deliver what it supposed to.
2. Spent more on education than on benefits. Reliance on benefits increased. 5% of men aged under 50 are classified ill or diasbled. 80% of benefits, 64 bn a year is still paid out on a backlack on a something for nothing basis.
3. Blair faced backlash from his own party when he did tentatively propose a few relatively unambitious changes.

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