Social Security

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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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Child Allowance

  • 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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Conservative Reforms to Social Security

  • 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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Social Security Under Thatcher

  • 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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New Labour Aims

  • To reduce poverty - in particular child poverty.
  • to target benefits for the most needy - selective universality.
  • To combat poverty trap.
  • To use benefits system as an incentive for people to find work.
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Reforms Under New Labour

  • 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.
    • 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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Tax Credits

  • 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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Minimum Wage

  • Introduced in 1999 
  • Different levels depending on age or apprentice 

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