Right-whinger skinflints are perverting the contract between citizen and state

The architect of the contributory principle: Would William Beveridge approve of what has been said about the system he designed?

The architect of the contributory principle: Would William Beveridge approve of what has been said about the system he designed?

Vox Political supporter (and McKenzie friend at the recent Freedom of Information tribunal on benefit claimant mortality) Glynis Millward has provided an interesting follow-up on the article about cancer sufferer Pete Woodcock.

Some commenters on the original newspaper story claimed that Mr Woodcock, whose benefits had been cut, should be grateful for the “free” treatment he would receive from the NHS. The comment is despicable, as it misrepresents the contributory principle of ‘benefits in return for contribution’ (as framed by William Beveridge, who designed the Welfare State) to become “free allowances from the State”.

Glynis has sent us the following report, explaining why this is wrong. Unfortunately she has not said where she found it, so I cannot give it the proper attribution.

“Any discussion of Beveridge today needs to recognise that along with the erosion of the link between contributions and entitlements, the contributory principle has also been the victim of an extraordinary impoverishment of meaning.

“When Beveridge contrasted ‘benefits in return for contribution’ with ‘free allowances from the State’, his aim was to break with previous paternalist models of social protection: the new model turned on workers having an entitlement to the benefits for which they had paid.

“This did not mean that benefits were unconditional (Beveridge was clear that both unemployment and sickness benefits were conditional on making preparations to return to work except where this was ruled out by disability) but it meant that they were part of a deal between citizens and government: a social contract extending across the lifecycle and across generations.

“In contrast, when ‘the contributory principle’ is invoked these days it is often in terms of the policing of the benefit system, referring to little more than the idea that people who have not worked or fail to meet worksearch conditions should not be able to access benefits.

“This attenuation of the idea of contribution is an important development in the political language of welfare in the UK. It arises in part from the way the language of reciprocity came to be turned against the welfare state in earlier decades.

“The political fortunes of the phrase ‘something for nothing’ over the last twenty years are instructive. ‘The something for nothing society’ was introduced into the political discourse of welfare by Peter Lilley at the Conservative party conference in 1993; it was adapted by Tony Blair as ‘the something for nothing culture’ to frame New Labour’s welfare reform agenda in the late 1990’s. Variations on the phrase continue to frame policy statements on social security on both Labour and Conservative sides, reinforcing the message that the main problem faced by social security is one of non-reciprocity, of people taking out who have failed to put in.

“And policy under both the current and previous government has often seemed to have more to do with reinforcing the sense of a system subject to massive abuse than any genuine policy objective. It is hard to imagine Beveridge welcoming ‘lie-detector’ tests for benefit claimants, or proposals to cut benefits for the families of convicted rioters, or the existence of a benefit fraud hotline where people can denounce their neighbours under cloak of anonymity, with only 1.3 per cent of calls leading to the detection of any fraud.

“In the report we subject the ‘something for nothing’ perspective to a reality check and find it severely wanting. Perhaps the most heretical statement that could be made about the UK social security system is that it overwhelmingly does what the public want it to do: however, this would seem to be the case.

“Most people who claim benefits have ‘put in’ in the past and will do so in the future; most benefit claims are short-term; most long-term claims are for disabled people or carers.

“As for the social archetypes that haunt the contemporary welfare discourse – the families in which no-one has worked for generations, the areas where ‘nobody works around here’ – these bear virtually no relation to any identifiable social reality. To see ‘scrounging’ or benefit fraud as the main issues facing social security is about as realistic as seeing the theft of prescription medicines as the main issue facing the NHS.

“If the contributory principle is to play a serious role in future thinking about social security, we need to move away from the ‘something for nothing’ framing and address the ‘nothing for something’ problem of a system in which the great majority of people contribute but see little visible return for their contribution. In doing this, we should be alive to the full meaning of the principle that Beveridge set out when he talked of ‘benefits in return for contributions’.

“Although there were important limitations to Beveridge’s system which were to dog social security policy for decades – especially with regard to gender and disability – his contributory principle was nonetheless intended as a principle of inclusion. To use it to draw new lines of exclusion, as often seems to happen today, would be a poor tribute to his achievement.”

Possibly the most useful part of the above is the comparison with the NHS. Clearly the theft of prescription medicines is not the most important issue facing the health service – it is the effect of the shift to a privately-run healthcare system, its consequent burden on funds and its effect on treatment. Take that information back to the benefit system and there is a strong argument that all this talk of a “something for nothing” culture is an attempt to indoctrinate the public into accepting that they should contribute towards their own unemployment benefits by taking out insurance against losing their jobs – even though they have already contributed towards such a system, simply by paying their taxes. And remember – we all pay taxes; the government gains more revenue from indirect taxation (including, for example, VAT on goods purchased) than from Income Tax.

Your opinions are invited.

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9 Comments

  1. beastrabban May 4, 2014 at 4:35 pm - Reply

    Reblogged this on Beastrabban’s Weblog and commented:
    Glynis Millward here gives a very useful corrective to the Tories’ rhetoric about the ‘something for nothing’ culture. She shows that Beveridge, the architect of the modern welfare state, deliberately avoided creating one through the introduction of the contributory principle. The idea that you get ‘something for nothing’ exists only in the fevered imagination of Peter Lilley, he of the ‘little list’. It was then taken up by Blair in his attempt to appeal to the middle class. As for Lilley, the man’s contempt for the poor, sick and working class was so extreme and venomous that one the TV satirical shows once portrayed him as a very slimy Gestapo commandant. Though with his strutting about on-stage with his ‘little list’ at the Tory party conference in 1993 he reminds me not so much of The Mikado, but of Philip Madoc’s U-Boat commander taking names in Dad’s Army. He’s just as grotesque, but no where near as funny. Or as talented as the late Philip Madoc.

  2. thelovelywibblywobblyoldlady May 4, 2014 at 4:37 pm - Reply

    Sorry Mike, I got the report from the Public & Commercial Services (PCS) union website, but unfortunately, I don’t know where they got it from!

  3. leonc1963 May 4, 2014 at 4:48 pm - Reply

    I wonder if our wonderful Government would give me a rebate of the NI contributions I have paid after all they saw fit to stop my ESA?

  4. thelovelywibblywobblyoldlady May 4, 2014 at 4:52 pm - Reply

    Sounds good to me Rachel

  5. sdbast May 4, 2014 at 4:58 pm - Reply

    Reblogged this on sdbast.

  6. jess May 4, 2014 at 5:09 pm - Reply

    Might as well give a link to Beveridge too;

    http://www.sochealth.co.uk/resources/public-health-and-wellbeing/beveridge-report/

    ” November 27, 1942
    Beveridge: Three Guiding Principles of Recommendations

    6. In proceeding from this first comprehensive survey of social insurance to the next task – of making recommendations – three guiding principles may be laid down at the outset.

    7. The first principle is that any proposals for the future, while they should use to the full the experience gathered in the past, should not be restricted by consideration of sectional interests established in the obtaining of that experience. Now, when the war is abolishing landmarks of every kind, is the opportunity for using experience in a clear field. A revolutionary moment in the world’s history is a time for revolutions, not for patching.

    8. The second principle is that organisation of social insurance should be treated as one part only of a comprehensive policy of social progress. Social insurance fully developed may provide income security; it is an attack upon Want. But Want is one only of five giants on the road of reconstruction and in some ways the easiest to attack. The others are Disease, Ignorance, Squalor and Idleness.

    9. The third principle is that social security must be achieved by co-operation between the State and the individual. The State should offer security for service and contribution. The State in organising security should not stifle incentive, opportunity, responsibility ; in establishing a national minimum, it should leave room and encouragement for voluntary action by each individual to provide more than that minimum for himself and his family.

    10. The Plan for Social Security set out in this Report is built upon these principles. It uses experience but is not tied by experience. It is put forward as a limited contribution to a wider social policy, though as something that could be achieved now without waiting for the whole of that policy. It is, first and foremost, a plan of insurance – of giving in return for contributions benefits up to subsistence level, as of right and without means test, so that individuals may build freely upon it.”

    http://www.sochealth.co.uk/resources/public-health-and-wellbeing/beveridge-report/beveridge-three-guiding-principles-recommendations/

  7. stewilko May 4, 2014 at 7:06 pm - Reply

    Reblogged this on stewilko's Blog.

  8. amnesiaclinic May 4, 2014 at 8:59 pm - Reply

    Reblogged this on amnesiaclinic and commented:
    Very useful blog charting the rise of the something for nothing myth which has ironically become the nothing for something for those that have paid in over the years as well as all the indirect taxes paid and yet have their ESA stopped.

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