Understanding the Mixed Economy of Welfare by Martin Powell

Author:Martin Powell [Powell, Martin]
Language: eng
Format: epub
ISBN: 9781861347596
Goodreads: 13221575
Publisher: Policy Press
Published: 2007-02-27T00:00:00+00:00

Future prospects

It is worth noting that the role of the voluntary sector in the mixed economy of welfare has always attracted controversy from across the political spectrum, and particularly from those associated with the ‘traditional’ left and right. The Left has sometimes been wary of the sector’s role insofar as it is seen as a Trojan Horse for privatisation, softening up opposition to the abandonment of the vision of universal (state-led) public service; while for some within the sector the delivery role is perceived to undermine the ‘purity’ of independent social action (Rochester, 2013). Conversely, the right is wary of the dilution of free market principles and seeks to challenge special pleading for ‘good causes’, clientelism or the growth of a ‘charity industry’ (Whelan, 1999). But as this chapter makes clear, the history of the voluntary and community sector in the mixed economy of welfare shows such claims to be simplistic. A ‘third way’ interpretation posits that the sector could be something of a saviour of welfare, with it being well placed to pioneer and maintain associational and relational welfare, advance co-production, and enhance personalisation and accountability (Pestoff et al, 2012).

Meanwhile many voluntary sector commentators have been critical of both the embrace by the state of the voluntary sector within the mixed economy of welfare in the expansionary years of New Labour (Carmel and Harlock, 2008), as well as of the subsequent cuts and recasting of that role following the financial crisis, recession and the post-2010 austerity programme (Milbourne and Cushman, 2015). Again, as this chapter demonstrates, the aggregate picture of the sector’s experience as a whole should caution against deep pessimism. There is evidence of both stability and limited growth in particular sub-sectors, suggesting a certain degree of mutual dependence and indeed partnership underlying the mixed economy of welfare. Nor is it clear that, despite some high-profile casualties, those parts of the sector directly engaged in the mixed economy of welfare are irreconcilably damaged by involvement in the ways suggested by critics. Although these fears may come to be realised – and there are good reasons to remain cautious, including in the various ways that the changes to public services may have as much impact on service users and citizens – there insufficient empirical evidence to be confident about the future trajectory.

Indeed, the most salient feature of the current juncture is uncertainty, following the upheavals of the vote to leave the European Union in June 2016 and the relatively inconclusive outcome of the snap general election of June 2017. Clearly the Conservative government under Theresa May, and arguably much of the machinery of central government, is preoccupied with one very big issue: Brexit. There seem to be no flagship programmes for public service reform. What remains of the domestic social policy agenda looks set to be dominated by the National Health Service (NHS), schools and possibly prisons, typically fields without a large voluntary and community sector presence.

In contrast, although the Coalition government’s leitmotif was deficit reduction, it still managed

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