Serious discussions of Social Security policy start from a few fundamental questions. One is the balance between contributions and means-testing as a basis for entitlement, another the balance between vertical redistribution, from richer to poorer, and horizontal redistribution, between different stages in the life cycle. A third is the relationship between the social security welfare state, operated through cash payments, and the parallel welfare state based on tax allowances.
Readers will search this National Policy Forum (NPF) report in vain for references to any of these. Contributions are not mentioned. Universal credit seems to be accepted in principle, suggesting general endorsement of means-testing, but this is an inference. The idea that tax allowances have a similar function to benefits seems unknown to the authors. An earlier consultation document pointed out that the dichotomy between ‘strivers’ and ‘skivers’ was false, implying a recognition that ‘workers’ and ‘claimants’ are not fixed groups. Most people are members of both groups at different points in their lives, and many at the same time. The final report could have built on this insight, but in fact drops it completely. Continue reading