The UK establishment have intentionally created a scapegoating project. A dominant political and cultural narrative has targeted people needing social security support, constructing welfare folk devils and generating moral panic. This is to justify the dismantling of the welfare state, and to de-empathise the public to the plight of the poorest citizens. The government have misled the public, claiming social security provision leads to a “culture of dependency”. International research shows this is untrue.
Comparative research at an international level has undermined the government claim that the UK welfare state encourages “widespread cultures of dependency” and presents unemployed people with “perverse incentives”.
A study, which links welfare generosity and active labour market policies with increased employment commitment, was published in 2015. It has demonstrated that people are more likely to look for work if they live in a country where welfare provision is generous and relatively unconditional. Empirically, the research includes more recent data, from a larger number of European countries than previous studies.
The research also compared employment motivation in specific sub-sections of communities across countries: ethnic minorities, people in poor health, non-employed people and women, and adds depth to previous studies. It has been concluded that comprehensive welfare provision is increasingly seen as a productive force in society (Bonoli, 2012), that stimulates employment commitment (Esser, 2005) and supports individual inclusion and participation in society and the labour market, particularly among disadvantaged groups
Sociologists Dr Kjetil van der Wel and Dr Knut Halvorsen, from Oslo and Akershus University College, Norway, examined responses to the statement “I would enjoy having a paid job even if I did not need the money” presented to the interviewees for the European Social Survey in 2010.
In a paper published in the journal Work, employment and society, (published by the British Sociological Association and SAGE) titled The bigger the worse? A comparative study of the welfare state and employment commitment, sociologists compare the responses with the amount the country spent on welfare benefits and employment schemes, whilst taking into account the population differences between states.
The researchers found that the more a country paid to unemployed and disabled people, and invested in employment schemes, the more its population were likely to agree with the statement, whether employed or not.
They found that almost 80% of people in Norway, which pays the highest benefits of the 18 countries, agreed with the statement. By contrast in Estonia, one of least generous, only around 40% did. It’s also the case that the countries with the highest levels of financial support for those in need also have the highest employment rates, which challenges neoliberal antiwelfare narratives regarding so-called “perverse incentives” and their highly controversial and stigmatising “scrounger” rhetoric.
The UK was then considered average in terms of our generosity of benefit levels, and the percentage of subjects agreeing with the statement was almost 60%. However, this research was carried out in 2010, prior to the radical changes to the UK social security system that happened with the Coalition Welfare Reform Act in 2012 and subsequent Conservative policies.
The researchers also found that government programmes which intervene in the labour market to support unemployed people in finding work made it more likely that those people agree that they wanted to work even if they didn’t need the money. In the countries with the most interventionist states, around 80% agreed with the statement and in the least around 45%. The UK’s response, though one of the least interventionist then (and is even less positively interventionist now), was around 60%.
In the article, the researchers say: “Many scholars and commentators fear that generous social benefits threaten the sustainability of the welfare state due to work norm erosion, disincentives to work and dependency cultures.
A basic assumption is that if individuals can obtain sufficient levels of well-being – economic, social and psychological – from living off public benefits, compared to being employed, they would prefer the former. When a ‘critical mass’ of individuals receive public benefits rather than engaging in paid work, the norms regulating work and benefit behaviour will weaken, setting off a self-reinforcing process towards the ‘self-destruction’ of the welfare state. The more people are recipients of benefits, the less stigmatizing and costly in terms of social sanctions it is to apply for benefits.
However, other commentators suggested that because employment rates are higher in countries with generous welfare states, more people will have positive experience of work. People who receive generous benefits when out of work may feel more inclined to give something back to the state by striving hard to find work.
This article concludes that there are few signs that groups with traditionally weaker bonds to the labour market are less motivated to work if they live in generous and activating welfare states.
The notion that big welfare states are associated with widespread cultures of dependency, or other adverse consequences of poor short term incentives to work, receives little support.”
On the contrary, employment commitment was much higher in all the studied groups in bigger welfare states. Hence, this study’s findings support the welfare resources perspective over the welfare scepticism perspective.”
The UK government launched an unprecedented range of cuts on public services which happened between 2010 to 2015. However, the UK’s millionaires were awarded substantial tax cuts over that time period. George Osborne handed out a cut in tax that rewarded millionaires with £107, 000 each per year at the same time the welfare “reform” bill became policy.
The biggest percentage of cuts affected social security benefits and local government, which has adversely impacted on housing, local authority services and ultimately, on ordinary people in local communities. The cuts in social care and welfare fall disproportionately on two groups that overlap: people in poverty and disabled people. They fall hardest of all on people with the most severe disabilities, who need both benefits and social care.
Using an extremely divisive justification narrative peppered with words such as “workshy” and “scrounger”, and redefining what is “fair”, the government made out that UK tax payers were a discrete group from people needing welfare support, and that the latter group were a kind of economic free rider, sharing a “something for nothing culture”. The government intentionally fostered resentment in employed people “paying taxes to carry the burden of those who won’t work”.
The Conservatives have persistently claimed that there are moral hazards and adverse behavioural consequences attached to providing poverty relief. This is a view shared by other neoliberal nation states, such as the US.
Policies represent perceptions and establish state instructions regarding how various social groups ought to be perceived and treated. They reflect how a government thinks society should be organised. They encode messages about how people ought to behave and how our individual degree of freedoms are defined, extended or restricted. Policies are always intentional acts that shape socioeconomic organisation.
The government have colonised left wing rhetoric, and conflated social justice and inclusion with work, making citizenship and human rights conditional, and contingent on a person’s economic productivity. They claimed to be “the party of workers”, yet the Conservatives have legislated more than once to undermine collective bargaining and trade unionism more generally. There has been a marked downward shift in wage levels and working conditions over the past six years, as well as drastic reductions in welfare support.
The word “reforms” is now a euphemism for cuts. Words like “support” and “help” are used as techniques of neutralisation, to divert people from the coercive, punitive and targeted elements of the “reforms”. These are semantic shifts of Orwellian proportions.
The majority of unemployed people move in and out of work, indicating that policy, the economy and labour market conditions, rather than personal failings and dubious “cultures”, are the reason why people become unemployed. The tax payer/benefit claimant dichotomy is a false one. Everyone contributes to welfare, that is why national insurance was introduced: to pay for support provision that you may need in the future.
Furthermore, unemployed people pay taxes, and stealth taxes such as VAT contribute a significant amount to the Treasury. When social security benefits were originally calculated, they covered only the costs of food and fuel. It was assumed that people claiming support were exempt from council tax and paying rent. That is no longer the case, but benefit levels have not risen to adjust for this.
The highest welfare spending has actually been on pensions, followed by in-work benefits. The latter subsidises employers paying low wages that don’t support families in meeting the costs of living. However, under the new Universal Credit, in-work support will be conditional and significantly reduced, especially for those families on low pay with children.
The Conservative’s austerity cuts have disproportionally targeted the very people that a fair and civilised society should protect. This was justified partly by the global economic recession, though not everyone was expected to “live within their means” and contribute to reducing the national deficit. Remarkably, those that caused the recession appear to have got off free from obligation to contribute to the reduction of the debt, in a “low tax, low welfare society.”
The Conservative cuts were also justified by the perpetuation of a dominant neoliberal discourse based on small state ideology, antiwelfare myths and the purposeful creation of welfare folk devils and moral panic.
One consequence of the Conservative’s “reforms” has been the return of absolute poverty in the UK – some people cannot meet their basic needs and are going without adequate food and fuel. Many people have suffered distress, harm and some have died as a result of the government’s welfare regime.
The Samaritan’s recent study – Dying from Inequality – links suicidal behaviours with socioeconomic deprivation. Their report says: “Suicide risk increases during periods of economic recession, particularly when recessions are associated with a steep rise in unemployment, and this risk remains high when crises end, especially for individuals whose economic circumstances do not improve. Countries with higher levels of per capita spending on active labour market programmes, and which have more generous unemployment benefits, experience lower recession-related rises in suicides.”
There is also a further extensive cost to human potential. As Abraham Maslow indicated, if people cannot meet their basic physical needs, they are not likely to fulfil psychosocial ones.
Graphic courtesy of Dr Simon Duffy, The Centre for Welfare Reform.
A bad job is worse for your mental health than unemployment, say UK’s top psychologists
Dying from inequality: socioeconomic disadvantage and suicidal behaviour – report from Samaritans
The Minnesota Starvation Experiment provided empirical evidence that demonstrates clearly why welfare sanctions can’t possibly work as an “incentive” to “make work pay”
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16 thoughts on “Generous welfare benefits increase the work ethic. The government is wrong about ‘perverse incentives’”
thanks for these articles. the tories will argue that the british and in particular the english are somehow different from europeans. psychosocially we are lazy and feckless and have a predeliction for sitting around. a bit like how they often stereotype jamaicans and rastafarians. smoking weed all day and
avoiding “working for the man”.
from my point of view something such as a citizens income would free millions from insecurity and provide motivation to engage in more economic activity without fear of prosecution never mind persecution. this has long been green party policy.
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And they are concerned at the level of hate crime rising against the disabled, I wonder why that could be?
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As we face a loss of jobs to automation as one cause, we will need a system of welfare that pays out fairly and without the ‘nasty’ sanction that is the current ‘model.’
A universal payment of say 15k to anyone over 16 in work or not would be easy to administer. It would allow those unemployed who wanted to start a business but had financial risk worries to have a safety net to do so.
In time this would create wealth. Look at Franklin Mars or Mars confectionary, started his business in his mother’s kitchen. Look at it now worth Billions.
Some may choose not to do anything with their lives but the incentive would be there and those working would be quids in with a load of extra free money to spend which would further boost retail and our economy.
Give people money and they are likely to spend it!
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