Britain’s benefits system may be doing something far worse than trapping people in poverty. It may be destroying the one resource they need to escape it.
A very informative article. I read this morning about Block cutting its workforce by 40% or 4,000 people due to the effects of AI which is a “white collar” issue. Having witnessed the mass deindustrialization in the 1980s of many British towns and communities, some of whom have never recovered and are in a welfare dependent stasis, it now seems that in the early stages of the AI “revolution” that many white collar jobs could become redundant. So what will all these people displaced by AI do for employment in the future and what impact will this have on their social capital?
Moving forward, what would your ideal modern state look like at the interface of the lowest paid jobs vs base level of unemployment benefit?
Although some people are doing 'well' on disability benefit etc. it's not actually that high a % of claimants. How much poverty & deprivation are we willing to inflict on those on unemployment benefit to push them into work. Or is the solution higher minimum wages - but the right seem very angry about this currently?
This is so refreshing: Fraser reports and analyses without ideology, without judging anyone - no polemics. Clearly more efforts to generate meaningful jobs, more effort to get people off medical disability (that mystifying and uniquely British outcome of the covid pandemic), a good hard look at how the tax system both punishes work and disincentivises initiative (the local pub example) would all help. No one says there are quick solutions or easy ones - this is a long journey. But the goal IS clear, and worthwhile.
I’m skeptical of comparisons with America which is an outlier in terms of social security compared to other developed countries: it does not have universal healthcare and much worse statutory rights for workers (paid holidays etc), to say nothing of its mad gun culture.
I’d be much more interested in comparing Britain with other European countries, such as ones with high welfare but low unemployment such as Denmark, and other countries with high unemployment but not the same social problems as the UK (less violence) such as Spain.
Have a look at the IPS system which views work as a good thing for Mental health and wellbeing and has a key principle of getting people intowork quickly (another of your points Fraser). Costs more in short term (lower caseloads and more aftercare), has higher success rate than traditional welfare to work services run by DWP and medium term savings across a range of services.
It is happening in the UK, but nowhere near enough. To declare an interest, I have been involved with charities/social enterprises delivering it for some years.
Let's hope someone follows your research suggestions. One thing to add: we'd like to know if higher social capital brings gains outside the various social dividing lines that aren't to do with class. Thinking about your 6 measures, rape gang members would seem to have enjoyed high social capital..
This is an important issue, but I think you are too quick to assume that the British welfare system is keeping its dependents out of work.
The escape rates from sickness benefits suggest otherwise!
Well, if you assume that is the benefits keeping them out of work, rather than the sickness!
A very informative article. I read this morning about Block cutting its workforce by 40% or 4,000 people due to the effects of AI which is a “white collar” issue. Having witnessed the mass deindustrialization in the 1980s of many British towns and communities, some of whom have never recovered and are in a welfare dependent stasis, it now seems that in the early stages of the AI “revolution” that many white collar jobs could become redundant. So what will all these people displaced by AI do for employment in the future and what impact will this have on their social capital?
Absolutely fantastic article.
Moving forward, what would your ideal modern state look like at the interface of the lowest paid jobs vs base level of unemployment benefit?
Although some people are doing 'well' on disability benefit etc. it's not actually that high a % of claimants. How much poverty & deprivation are we willing to inflict on those on unemployment benefit to push them into work. Or is the solution higher minimum wages - but the right seem very angry about this currently?
This is so refreshing: Fraser reports and analyses without ideology, without judging anyone - no polemics. Clearly more efforts to generate meaningful jobs, more effort to get people off medical disability (that mystifying and uniquely British outcome of the covid pandemic), a good hard look at how the tax system both punishes work and disincentivises initiative (the local pub example) would all help. No one says there are quick solutions or easy ones - this is a long journey. But the goal IS clear, and worthwhile.
This is not America.
I’m skeptical of comparisons with America which is an outlier in terms of social security compared to other developed countries: it does not have universal healthcare and much worse statutory rights for workers (paid holidays etc), to say nothing of its mad gun culture.
I’d be much more interested in comparing Britain with other European countries, such as ones with high welfare but low unemployment such as Denmark, and other countries with high unemployment but not the same social problems as the UK (less violence) such as Spain.
Have a look at the IPS system which views work as a good thing for Mental health and wellbeing and has a key principle of getting people intowork quickly (another of your points Fraser). Costs more in short term (lower caseloads and more aftercare), has higher success rate than traditional welfare to work services run by DWP and medium term savings across a range of services.
https://ipsgrow.org.uk/about/what-is-ips/8-principles-of-ips/
It is happening in the UK, but nowhere near enough. To declare an interest, I have been involved with charities/social enterprises delivering it for some years.
If it was we could at least say Britain was bowling. That's less awkward than explaining what it's currently doing.
Let's hope someone follows your research suggestions. One thing to add: we'd like to know if higher social capital brings gains outside the various social dividing lines that aren't to do with class. Thinking about your 6 measures, rape gang members would seem to have enjoyed high social capital..