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Journal Articles
December 2002
Article
Social security in the UK under New Labour: what did the Third Way mean for welfare reform?
Type: Journal Articles
Authors: Mike Brewer, Tom Clark and Matthew Wakefield
ISSN: Print: 0143-5671 Online: 1475-5890
Volume, issue, pages: Vol. 23, No. 4, pp. 505-537
JEL classification: D31, H24, H53, H55, I30

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In 1997, the Labour Party was elected in the UK with few explicitly articulated ideas about social security reforms. This paper reviews the large number of subsequent reforms to social security, and argues that some consistent themes have emerged. A commitment to keep to the tight spending plans of the previous, Conservative, administration left little scope for increases in benefit spending during the first two years in office. Since that time, increases in the generosity of some social security programmes have been directed towards achieving certain goals. An emphasis on encouraging paid work has been a consistent theme, whilst aims of reducing poverty rates for children and pensioners have been emphasised since 1999. Spending to achieve these goals has often been directed through means-tested programmes, and there has been a related weakening of the link between paid National Insurance contributions and benefit entitlements. It remains to be seen whether reforms to the process of income assessment will increase take-up.

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