Social Security

Post WW2

Social Security: 'Monetary assitance from the state for people with inadequate or no income'.
National Insurance introduced in 1911 was further enhance to incorporate all workers.
Used to fund statuary sick pay.
Used to fund statuary maternity pay.
Used to fund employement benefit.
Pensions men 65, women 60.

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Payable to all parents who have children.
Paid for each child with a greater amount for the first than the preceeding ones.

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Job seekser allowance was introduced whcih meant that an individual had to be acitivley seeking work in order to claim benefits.
Real value of benefits declined, due to freezing of benefit levels.
Encouragement and incentives were provided for using private school education and private healthcare.
All measures designed to reduce dependency culture.

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Neo-liberals heavily criticised the changes made.
Beliefe that high levels of welfare and and an extreme benefits system are a disincentive for people to find work.
Welfare state is funded from taxation, but high levels of taxation can be a disincentive to work.
Too many benefits are paid to people who dont need them.

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1998 new deal for jobseekers
- Aimed at young people out of work for 5+ months
- Provided help for getting back into work along with unemployment benefits.
1998 new deal for lone parents
- Advice and support offered to lone parents trying to re-enter the workplace.
2000 new deal for over 50s
- Over 50s who had been out of work for 6+ months were offered help and support to get back into work.
- Benefits reduced if refusal to cooperate.
2003 new deal for the disabled
- Disabled people were offered the opportunity to get back into the workplace.
HOW SUCCESSFUL
- By 2008 a total of 1.8 million people had found work.
- This figure was given out by the Labour party and has been disputed by other parties.

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Aim: to provide an incentive to raise people out of the poverty trap.
Working family tax credits - for those in work but also earning a low income.
Child tax credits - for those responsible for children who are on a low income.
Pension credit - for thoe who have no other source of income apart from their state pension.
Tax credits attempted to alleviate the period of time in which no money would be earnt betweenr eturing to work and benefits being stopped.
Provided an incentive to work as supportive benefits would still be provided whilst working.

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