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Social security in the UK under New Labour: what did the Third Way mean for welfare reform?

Author

Listed:
  • Mike Brewer

    (Institute for Fiscal Studies)

  • Tom Clark

    (Institute for Fiscal Studies)

  • Matthew Wakefield

    (Institute for Fiscal Studies)

Abstract

In 1997, the Labour Party was elected in the UK with few explicitly articulated ideas about social security reforms. This paper reviews the large number of subsequent reforms to social security, and argues that some consistent themes have emerged. A commitment to keep to the tight spending plans of the previous, Conservative, administration left little scope for increases in benefit spending during the first two years in office. Since that time, increases in the generosity of some social security programmes have been directed towards achieving certain goals. An emphasis on encouraging paid work has been a consistent theme, whilst aims of reducing poverty rates for children and pensioners have been emphasised since 1999. Spending to achieve these goals has often been directed through means-tested programmes, and there has been a related weakening of the link between paid National Insurance contributions and benefit entitlements. It remains to be seen whether reforms to the process of income assessment will increase take-up.

Suggested Citation

  • Mike Brewer & Tom Clark & Matthew Wakefield, 2002. "Social security in the UK under New Labour: what did the Third Way mean for welfare reform?," Fiscal Studies, Institute for Fiscal Studies, vol. 23(4), pages 505-537, December.
    • Handle: RePEc:ifs:fistud:v:23:y:2002:i:4:p:505-537
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    Citations

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    Cited by:

    1. Albani, Viviana & Brown, Heather & Vera-Toscano, Esperanza & Kingston, Andrew & Eikemo, Terje Andreas & Bambra, Clare, 2022. "Investigating the impact on mental wellbeing of an increase in pensions: A longitudinal analysis by area-level deprivation in England, 1998–2002," Social Science & Medicine, Elsevier, vol. 311(C).
    2. Gregg, Paul & Waldfogel, Jane & Washbrook, Elizabeth, 2006. "Family expenditures post-welfare reform in the UK: Are low-income families starting to catch up?," Labour Economics, Elsevier, vol. 13(6), pages 721-746, December.
    3. Kenneth Nelson, 2004. "The Formation of Minimum Income Protection," LIS Working papers 373, LIS Cross-National Data Center in Luxembourg.
    4. Paul Gregg & Jane Waldfogel & Elizabeth Washbrook, 2005. "Expenditure Patterns Post-Welfare Reform in the UK: Are Low-Income Families Starting to Catch Up?," The Centre for Market and Public Organisation 05/119, The Centre for Market and Public Organisation, University of Bristol, UK.
    5. Mike Brewer & Tom Clark, 2002. "The impact on incentives of five years of social security reform in the UK," IFS Working Papers W02/14, Institute for Fiscal Studies.
    6. Brewer, Mike & Duncan, Alan & Shephard, Andrew & Suarez, Maria Jose, 2006. "Did working families' tax credit work? The impact of in-work support on labour supply in Great Britain," Labour Economics, Elsevier, vol. 13(6), pages 699-720, December.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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