The Coalition Government and Social Policy: Restructuring the Welfare State by Hugh Bochel & Martin Powell

Author:Hugh Bochel & Martin Powell [Bochel, Hugh & Powell, Martin]
Language: eng
Format: epub
Tags: Political Science, Public Policy, Social Services & Welfare, Social Policy, Social Science, General
ISBN: 9781447324577
Google: XcytCwAAQBAJ
Goodreads: 26240269
Publisher: Policy Press
Published: 2016-03-24T07:29:38+00:00

The policy towards tax credits, prior to 2015, was to introduce a number of cuts and changes to what appear to be quite technical (or at least lesser-known) provisions. So, such measures include: reducing the disregard for in-year income rises from £25,000 down to £5,000 (saving about £0.5 billion a year); reducing the support for childcare costs from 80% to 70% (about £0.3 billion); increasing the withdrawal rate to 41% (£0.7 billion); and removing the ‘baby element’ of provision (about £0.3 billion). These imply quite widespread reductions in the generosity of tax credits, following a period of strong expansion.

Significant reforms also took place in relation to disability benefits; indeed, this was one of the most active areas of reform under the coalition, although disabled people were exempted from some changes (like the benefits cap). However, the move from Incapacity Benefit to Employment and Support Allowance included a change to just one year linked to contributions before being means tested. Disability Living Allowance is also being replaced by Personal Independence Payments – which are aimed to reach fewer people (Wood and Grant, 2010; UNISON, 2013).

While the benefit caps and changes to the ‘mainstream’ social security benefits have received much public attention, reforms to Council Tax Benefit and the Social Fund have also made a major difference to people. A cut of 10% was made to provision for paying council tax when Council Tax Support (previously Council Tax Benefit) was devolved to local authorities, each then applying different rules for entitlement. The Social Fund was also ‘localised’ in this manner from April 2013, with local authorities given freedom to make changes (many opting for loans and vouchers), but without (in time) any financial support for provision.

Alongside these attacks on universal and insurance benefits, Child Benefit was removed from those families with an earner receiving £60,000 a year, and started to reduce at £50,000. Finally, reforms have effectively abandoned any ‘asset-based welfare’ policies introduced or planned by the New Labour government. Child Trust Funds are no longer to be issued to new children (although accounts remain in place for those who already had them), and the planned roll-out of Saving Gateway was abandoned.

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