Risks of welfare reform and challenges for civil society Eugene Nixon, Head of Strategy & Compliance Exchequer, Finance & Governance Southwark Council London Funders, 26th November 2018
What’s going on? welfare reform is not just about austerity rolling back the frontiers of the estate creating a “big society” “a high employment, low tax, low welfare economy” £12 billion in welfare cuts localism – “community resilience”
Future of public services The government’s vision for public services in the modern era is one of collaborative commissioning. This means that in the future local players will be involved in an equal and meaningful way in how services are created and delivered. It means that all the resources of a community, including public funding, will be deployed to tackle the community’s challenges. Civil Society Strategy: building a future that works for everyone (Department for Culture Media and Sport, Aug 2018)
Future of public services Big societal challenges, including the future of social care, community integration, and housing, are being tackled through solutions that bring together public services, businesses, and communities. New providers are taking responsibility for youth services, domestic abuse services, addiction services, and offender rehabilitation services. New models are developing for funding and running libraries as well as children’s services. Ministerial Foreword
A new model? Tax payer funded State provided Bureaucratic public service delivery model Philanthropy funded Civil society provided Voluntarist - social entrepreneurialism / commissioning
Universal Credit reducing dependency increasing personal responsibility making work pay conditionality cutting bureaucracy a different concept of social justice for working age people
Universal Credit – an acid test? the old system is being demolished all those in the old system and still needing support will have to move to a new system - which is still being built and where the building will not be complete before they move in they will be told when they need to move but actually moving will be their own responsibility managed migration will see millions required to move - including the most vulnerable, with health conditions - often mental health conditions
Current issues in UC “too difficult” to claim UC payment delays – by design deductions and sanctions austerity and benefit freeze not reflective of lived experience of claimants issues with debt, rent arrears and in some cases destitution
The managed migration challenge Is it deliverable? Is it likely to work or is it too complex or unwieldy? Is it explicable? Will those affected understand it and what they must do? Is it proportionate to the problem it is trying to solve? Is it fair? For example, does it unreasonably transfer the Government’s risks onto claimants? Is the Government doing enough to mitigate potentially negative outcomes for claimants? Does it impose disproportionate burdens on particular groups of people?