1. 1 Asset-based Welfare – steps towards a fourth pillar? Will Paxton and Dominic Maxwell Institute for Public Policy Research

2. 2 Three questions How important are assets in influencing life- chances? What are the options for the next steps with the Child Trust Fund and the Saving Gateway? How significant should asset-based welfare be in the long term? Should it be a fourth pillar of welfare?

3. 3 Assets and life chances 1 Intergenerational social mobility – importance of assets in early adulthood Intragenerational income and social mobility – assets can act as a buffer and open opportunities over the lifecycle Assets as a outcome – home ownership / shared ownership and tenant equity stakes Need for further research – forthcoming from LSE and IPPR

4. 4 Assets and life chances 2 Raises questions about inheritance and inheritance tax?

5. 5 Next steps 1: The Child Trust Fund 1)Generosity – sources of funding? Link to Inheritance Tax reform? 2)Progressivity – decisions on top-ups at ages of 7 and ? 3)Matched savings incentives for low income households 4)Stakeblowing – options for encouraging responsible use of funds

6. 6 Next steps 2: experience with Saving Gateway pilots 31% are loan parents (compared to 15% amongst eligible population) 15% are unemployed (12%) 25% had no current account (14%) 30% with household income below £99 (24%) Deposits were made in 74% of months, averaging £16 per month. (Kempson, McKay and Collard, 2004)

7. 7 Next steps 3: The Saving Gateway 1)Roll out – targeted at either deprived areas or low income? 2)Match rate – would a lower rate be as effective? 3)Account length - restricted to a few years or used across the life time? Could the Saving Gateway evolve into part of a new progressive life-time account?

8. 8 Assets as a fourth pillar? Roll-up existing provision? Some possibilities but limited for social democrats Therefore asset-based welfare largely additional to current provision Reform saving incentives? Stronger case – what is appropriate support across peoples lifecycle? Link to tax changes? Possible but politically difficult. Inheritance tax / Stamp Duty / Land tax

9. 9 Three questions How important are assets in influencing life- chances? What are the options for the next steps with the Child Trust Fund and the Saving Gateway? How significant should asset-based welfare be in the long term? Should it be a fourth pillar of welfare?