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Conference Papers
May 2002 (last revised June 2002 )
Article
The social security system under New Labour: What did the Third Way mean for welfare reform?
Type: Conference Papers
Authors: Mike Brewer, Tom Clark and Matthew Wakefield
Volume, issue, pages: 51 pages

Labour was elected with few specific proposals about social security reforms. But after over one parliament of reforms, we can clearly see explicit and consistent trends in welfare policy: there is a ѷork-first' focus; a new willingness to increase social security benefits; a desire to redistribute and to reduce poverty, although in a manner which focuses on particular demographic groups; increasing centrality for benefits which relate to ѮeedҬ which has involved expanded means-testing; and a downgrading of benefits that are contributory. Many of these characteristics of Labour policy are yet to show up in various aggregate data, although we argue this is due to various socio-economic changes since 1996/7. The ѳtructural' effect of policy considered in isolation has been to redistribute, reduce poverty and to increase and rebalance benefit expenditure significantly. Looking forward, further movement towards a ӷork firstԠapproach to managing claimants more actively, and the hoped-for reforms to the process of means-testing will be crucial for the success of Labour's programme of reform. The main parts of the social security system that remain unreformed but that manifest some characteristics that the Government has altered in other benefits are housing benefit and council tax benefit. If the Government chooses to deal with these benefits towards the end of its programme of reform, then altering them significantly is likely to be very costly or else to create low-income losers.

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